Page 142 - Contributed Paper Session (CPS) - Volume 7

CPS2048 Md Zobaer H. et al.
+
=
2
Linear Regression
In this study, the linear regression model is utilized to investigate the
impact of profit risk on efficiency score (derived from DEA, SFA and CDS) in
the financial sector of Bursa Malaysia. So, the three models take the following
forms:
(DEA) = + + (6)

0
1

(SFA) = + + (7)

0
1

(CDS) = + + (8)

1
0

where (DEA) , () , (CDS) are the average technical efficiency

scores of the companies derived from DEA, SFA and CDS respectively; is

the average profit risk of ℎ company; is constant and represents the slope
0
parameter; represents error term.

Data collection and Input and Output Variables
There are 30 listed financial companies in Bursa Malaysia. This study will
concentrate on yearly balance data of 26 listed companies (Table 1). The
sample is panel data which covers 26 financial companies listed in Bursa
Malaysia over the period of 2007 to 2016. There are total 260 observations.
Data are collected from Bloomberg. The input and output variables are
selected based on Ismail et al. (2012) and others major studies on the
efficiency of the financial sector.

Table 1. List of 26 Financial Companies
Bursa Malaysia Short Bloomberg Ticker
Company Name
Name Number (MK Equity)
Malayan Banking Bhd MAYBANK MAY
Public Bank Bhd PBBANK PBK
CIMB Group Holdings Bhd CIMB CIMB
Hong Leong Bank Bhd HLBANK HLBK
RHB Bank Bhd RHBBANK RHBBANK
Hong Leong Financial Group HLFG HLFG
AMMB Holdings Bhd AMBANK AMM
BIMB Holdings Bhd BIMB BIMB
Affin Holdings Bhd AFFIN AHB
LPI Capital Bhd LPI LPI
Syarikat Takaful Malaysia TAKAFUL STMB
Allianz Malaysia Bhd ALLIANZ ALLZ
MNRB Holdings Bhd MNRB MNRB
Manulife Holdings Bhd MANULFE MHBS
Pacific & Orient Bhd P&O PO
Malaysia Building Society MBSB MBS
Bursa Malaysia Bhd BURSA BURSA

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