Issues and Perspectives in Business and Social Sciences

Front Matter

2024-07-30

The efficacy of Relative Strength Index (RSI) in KLSE market trade

Chun Lim Siow — 2024-07-30

The Relative Strength Index (RSI) is a widely used technical indicator in stock trading because of its simple application. However, its application combined with fundamental analysis in Kuala Lumpur Stock Exchange (KLSE) is yet to be explored extensively. Hence, this study aimed to investigate the effectiveness of RSI as a predictive tool in the KLSE market. First, 39 stocks that met the set of criteria guided by fundamental soundness were identified. Trading signals are then initiated based on the RSI indicators, which are superimposed on the charts of the identified stocks. The return on investment (ROI) was then estimated and benchmarked against KLCI performance over a period of five years starting from 21^st July 21, 2018. It was found that the average ROI was 3.46% against KLCI’s -24.37% over the same period of 5 years, measured between 21^st July 21, 2018, 21^st July 21, 2023. The average ROI improves as the number of trade iterations increases to five. The peak average ROI is approximately 22%. Technology is the top performer, recording an ROI of more than 40%. In conclusion, the combination of RSI and fundamental analysis yielded a mixed set of results. Although it outperforms KLCI, the annualised ROI is only slightly above 4%. Nevertheless, the results of this study provide valuable insights into the application of the RSI as a trading signal generator in the KLSE market.

Determinants of foreign direct investment in Malaysia

Shu Qing Chew — 2024-07-30

By using annual time series data spanning 1995 to 2021, this study examines the key factors that influence foreign direct investment (FDI) inflows to Malaysia. This study employed the conventional determinants of FDI and incorporated an under-studied corruption variable to capture the political impact on FDI inflows to Malaysia. The ARDL bounds test results identified short- and long-run positive relationships between FDI inflows and two tested variables: market size and education. A positive long-run relationship was also found between inflation rates and FDI inflows. By contrast, infrastructure facilities were found to be negatively related to FDI inflows in the long run. More importantly, the results ascertained that higher corruption levels hamper FDI inflows to Malaysia in the long term. Moreover, the Granger causality test revealed that market size, inflation rate, and infrastructure facilities are critical causal factors that explain the fluctuations in FDI inflows to Malaysia. In light of the results obtained, some policy recommendations are highlighted to help enhance the attractiveness of FDI, thereby stimulating economic growth in Malaysia.

Undergraduate students' motivation toward online learning and intention to enrol in future online courses

Kim Mui Teo — 2024-07-30

Online education has become increasingly common, particularly in higher education, and students' willingness to learn online has increased following the COVID-19 pandemic. This study aimed to understand the factors that motivate students to learn online and their intentions to continue taking online courses. The research surveyed 112 students from a private university in Malaysia and found that both intrinsic and extrinsic factors motivated them to learn online. The majority of students also intended to continue with online learning in the future. Extrinsic incentives such as performance improvement were found to be the most effective motivators. Universities should consider adjusting the curriculum to improve student learning while considering the flexibility of the time and effort that students should put in to build a meaningful online learning experience.

Inward foreign direct investment and innovation: Which comes first?

Julia Henrietta Seow Fung Su — 2024-07-30

This study re-examines the direction of causality between inward foreign direct investment (FDI) and innovation (residents and non-residents) by considering balanced panel data of 56 countries (2000-2020). The vector auto-regressive (VAR) Granger non-causality tests show a direction from FDI inflows to innovation (non-residents), where FDI comes first (FDI-led innovation), while there is bidirectional causality between innovation by non-residents and residents, in general. For developed economies, FDI causes innovation by non-residents, but is caused by residents' innovation. There is no causation between FDI and innovation in either developing economies or economies in transition. These findings were further complemented by impulse response functions and various decomposition tests. Some policy relevance is highlighted.

Analysis of optimal portfolio formation using the single index model approach on Bisnis-27 index shares on the Indonesia Stock Exchange for the 2018-2022 period

Dede Resi Aristya — 2024-07-30

Based on data from the Indonesian Central Securities Depository (KSEI), the number of investors in the Indonesian stock market is increasing, indicating the popularity of stocks as an investment instrument. This study aims to examine the returns and risks of stocks in the optimal portfolio, compared to those not under the optimal portfolio, using the Single Index Model. Secondary data from the Bisnis-27 index were used for the analysis. The results show that returns differ significantly between stocks in the optimal portfolio and those that are not. However, these risks were found to be insignificant. The determination of the optimal portfolio in this study can be used as a reference by investors when making investment decisions.

The impact of inflation on economic growth

Shirley Kai Wen Su — 2024-07-30

This study investigated the correlation between inflation and economic growth in ASEAN-5 countries from 1990 to 2020. The main objective of this study is to explore the causal connection between inflation and economic growth. The results demonstrate variations in the relationship between economic growth and inflation in these countries. Of the five ASEAN countries, we found that inflation hurts economic growth in the Philippines and Indonesia, but not Singapore. This research revealed a stationary economic growth series in all countries except for the Philippines. The inflation rates were found to be stationary for all ASEAN-5 countries. Furthermore, Granger causality tests suggested either a feedback or one-way causal relationship between economic growth and inflation in all countries except Malaysia. Our panel estimation also provides interesting findings that complement time-series analysis. Our findings shed light on the complexities of the inflation-economic growth relationship within ASEAN-5 countries and contribute to a better understanding of their economic dynamics in the age of digitalisation.

The influence of perceived institutional support and social competencies on online learning satisfaction: A private higher education student perspective

Eng Mun Khong — 2024-07-30

COVID-19 pandemic has revolutionised higher education delivery through online learning. While it offers flexibility and accessibility, it also challenges social interaction and satisfaction. To address this challenge, this study adopted the Community of Inquiry framework as a valuable lens to investigate the relationship between perceived institutional support, social competencies with classmates and instructors, and online learning satisfaction. A quantitative approach was used to analyse and explore the proposed hypotheses through Partial Least Squares Structural Equation Modelling. Students with prior experience in online learning from private higher education institutions were approached as the respondents. A total of 419 samples were selected through purposive sampling. The results indicated a positive relationship between perceived institutional support and online learning satisfaction. Perceived institutional support is positively related to social competencies of classmates and instructors. The research found that social competencies with classmates and instructors significantly mediated the association between perceived institutional support and online learning satisfaction. The findings from the study have implications for educational institutions, instructors, and students.