Malaysian Journal of Business and Economics (MJBE)

HETEROGENEOUS DETERMINANTS OF GREEN BOND YIELDS: EVIDENCE FROM QUANTILE REGRESSION

Siti Nurhidayah Mohd Roslen — 2026-06-29

This study contributes to the literature on sustainable finance by investigating the determinants of green bonds yield to maturity across different quantiles. Using monthly data spanning from June 2019 to December 2025, quantile regression is used to assess the effects of risk-free rate (rf), consumer sentiment index (CSI), and economic policy uncertainty (EPU) on green bond yield behavior. Findings reveal that the risk-free rate exerts significant positive influence on green bonds yield across all quantiles, highlighting its role as the benchmark for expected returns on riskier investments, including green bonds. CSI shows no significant effect at lower quantiles implying that sentiment plays a limited role in lower yield green bonds. However, sentiment effects are significant for higher yield bonds. These results underscore the dual nature of green bonds as a safe haven asset yet sensitive to risk during heightened uncertainty period.

TRANSACTION COST AND VALUE CO-CREATION IN ELECTRONIC COMMERCE: A NEW CONCEPTUAL FRAMEWORK

Fumitaka Furuoka — 2026-06-29

Theories of transaction costs and value co-creation have significantly contributed to altering the foundational theoretical tenets of microeconomics and consumer behavior. Traditionally, neoclassical microeconomic models often operated under the assumption of frictionless markets and passive consumption. However, this paper argues that such models are increasingly inadequate for explaining the complexities of contemporary market dynamics. Firstly, transaction cost theory emphasizes the critical importance of “friction” in economic transactions by explicitly incorporating the costs associated with maintaining and operating the economic system. These include, but are not limited to, the supplementary expenditures involved in the planning, monitoring, and enforcement of production and exchange processes. These expenditures are formally defined as transaction costs within the economic institutional framework, serving as a pivotal variable that determines organizational boundaries and consumer choices. Secondly, the conceptual role of consumers has undergone a profound transformation, shifting from a “passive” recipient of value to an “active” collaborator who co-creates value in conjunction with producers. This proactive engagement, conceptualized as value co-creation, suggests that value is not merely delivered but is realized through the integration of resources and relational exchanges between multiple actors. Building upon these theoretical shifts, this paper proposes an integrated conceptual framework designed to synthesize these dual perspectives into a cohesive understanding of modern consumer behavior. By reconciling the efficiency-oriented logic of transaction costs with the relational logic of value co-creation, the study provides a more holistic explanatory model. This framework offers significant insights into how firms can minimize informational asymmetries while simultaneously maximizing collaborative value. Ultimately, the synthesis provides a robust theoretical foundation for future empirical research into digital platform economies and service-dominant logic.

'AUTHENTIC SABAH': DOES THE LABEL DRIVE PURCHASE OR JUST DRESS THE SHELF ?

Davelynn Olivia David Rampas — 2026-06-29

Certification labels function as quality signals in markets characterised by information asymmetry, yet their effectiveness in nascent, government-led regional schemes remains empirically underexplored. This study examines whether the 'Authentic Sabah' holographic label influences consumer trust, perceived quality, and purchase intention toward local fast-moving consumer goods (FMCG) products in Sabah, Malaysia. Grounded in Signalling Theory and Labelling Theory, a quantitative cross-sectional design was employed, with data collected from 356 eligible respondents via an online self-administered questionnaire. Partial Least Squares Structural Equation Modelling (PLS-SEM) was applied for hypothesis testing. Results demonstrate that Region of Origin, anchored by label-trust cues, exerted strong positive effects on Perceived Quality (β = 0.835) and Product Evaluation (β = 0.796), with a significant direct effect on Purchase Intention (β = 0.414). Purchase Intention fully mediated the relationship between Region of Origin and Purchase Behaviour (VAF = 100%). These findings confirm that the 'Authentic Sabah' label operates as an effective certification signal in a low-involvement FMCG context. Policymakers and MSMEs are recommended to invest in consumer awareness campaigns, transparent certification governance, and active label communication strategies to sustain signalling effectiveness. Future research should pursue longitudinal designs, explicit measurement of label credibility, willingness-to-pay analyses, and comparative studies across Malaysian regional certification schemes to advance theoretical and practical understanding of regional label effectiveness.

ESG RATINGS, MARKET VALUATION AND ENVIRONMENTAL PERFORMANCE: EVIDENCE FROM MALAYSIAN LISTED FIRMS

Juan Zhang — 2026-07-07

Environmental, Social and Governance (ESG) ratings are increasingly used to guide investment decisions and sustainability disclosure, yet their ability to reflect realised environmental outcomes remains uncertain. This study examines whether ESG ratings capture market valuation and reported environmental performance among Malaysian listed firms. Based on 625 ESG-rated firms from an initial screen of 1,124 Malaysian listed companies, the analysis estimates ordinary least squares regressions with HC3 heteroskedasticity-robust standard errors, controlling for firm size, pretax return on assets and financial leverage. The valuation model uses 551 observations, while the CO₂ emissions model uses 523 observations because of environmental disclosure gaps. The results show that composite ESG scores are positively associated with price-to-book ratios (β = 0.033, p < .001), suggesting that Malaysian equity investors treat ESG ratings as value-relevant market signals. ESG scores are also strongly associated with environmental sub-scores, indicating internal consistency within the same commercial rating system. However, the relationship between ESG scores and logged CO₂ emissions is economically small and weakly negative after controls (β = −0.014, p = .032), while firm size remains the dominant predictor of reported emissions. These findings show that ESG ratings in Malaysia capture valuation relevance and disclosure visibility more clearly than realised environmental performance. The study contributes by distinguishing ESG ratings as market signals, internally consistent commercial scores and imperfect proxies for environmental outcomes. It highlights the need for more comparable, transparent and assured climate-related reporting before ESG ratings can be treated as reliable indicators of environmental performance.