Volume 9 Number 2, 2019 (Special Issue, UiTM)
(Full articles will be available from Ebsco and GALE soon. For subscribing individual article, click here to send your request with the respective title)
Guest Editorial ( Upcoming)
Analysis on Competencies and Situational Support on Performance Effectiveness of Forensic Accountants in Malaysia
(Norazida Mohamed, Zuraidah Mohd Sanusi, Nur Hamizah Binti Hasnan, Lee Teck Heang and Yusarina Mat Isa, Page 145-157)
Due to worldwide spread of
financial scandals, forensic accountants
who can competently identify and detect
irregularities and frauds is much
needed. Therefore, a questionnaire
survey was conducted to examine whether
competencies and situational support
factors enhance the performance
effectiveness of forensic accountants in
Malaysia with 91 respondents. The
results show that competencies and
situational supports have a positive
relationship with the performance
effectiveness of forensic accountants.
It contributes to the understanding on
the need for competencies and
situational supports from organisations,
such as team members, technology and
integrated facilities, aiding forensic
accountants in performing their task
efficiently and effectively.
Due to worldwide spread of financial scandals, forensic accountants who can competently identify and detect irregularities and frauds is much needed. Therefore, a questionnaire survey was conducted to examine whether competencies and situational support factors enhance the performance effectiveness of forensic accountants in Malaysia with 91 respondents. The results show that competencies and situational supports have a positive relationship with the performance effectiveness of forensic accountants. It contributes to the understanding on the need for competencies and situational supports from organisations, such as team members, technology and integrated facilities, aiding forensic accountants in performing their task efficiently and effectively.
Modelling Attitudes towards Dysfunctional Audit Behavior Using Firm Factors
Paino, Zubaidah Ismail, Malcolm Smith
and Normah Omar,
page 159-170 )
The current study develops and tests a theoretical model built from the audit firm’s factors. The model identifies budget emphasis, leadership behavior structure and leadership behavior consideration and effectiveness of audit review as antecedents of attitudes towards Dysfunctional audit behavior (DAB). Path analysis based on a partial least square technique indicates that the survey results from 225 audit managers support the theoretical model. The findings produced consistent evidence that it is contextual variables, such as leadership behavior structure and effectiveness of audit review, that lead to undesirable behavior and not the emphasis on meeting budgets.
Forces of Accounting Information System: Organizational
Change and Governance of
A Malaysian Agricultural Company
A Malaysian Agricultural Company
Erlane Ghani, page
Understandably, organisation that experiences organisational change faces different ways of change and means of solving issues surrounding such change. Specifically, this study focuses on the change of accounting information system (AIS) and governance in an agricultural company. A case study approach using triangulation method is employed. A key finding in this study is that the external forces; government’s economic decision and regulator’s guidelines wields a significant impact on organisational stability and good governance. This impact is not limited to a small fraction of an organisation, such as AIS, but extends to a bigger fraction, such as the business model, corporate structure and listing of the organisation.
Business Survival and Sustainability through Comprehensive Value Creation in Malaysian Government-Linked Companies
(Nik Herda Nik Abdullah, Jamaliah Said and Enni Savitri, page 195-205)
Corporate value creation aids corporate managers plan and execute strategies successfully while securing sustainable competitive advantages. This paper aims to explore the extent of top management emphasis on the measures of value creation that are deemed important for business survival and sustainability in the context of Malaysian government-linked companies (GLCs). A questionnaire survey was distributed with a response rate of 47%. Findings revealed that enhancing business opportunities, brand recognition and reputation and improved operational performance are the top three most important non-financial measures. Meanwhile, the top three financial measures are sales growth, return on investment and market value.
Comparison of Liquidity, Solvency, and
Profitability Analyses Using Traditional
and Cash Flow Ratios on the MSWG’s Top
Comparison of Liquidity, Solvency, and Profitability Analyses Using Traditional and Cash Flow Ratios on the MSWG’s Top 100 Companies
Najwa Abdul Talib,
Zuraidah Mohd Sanusi,
Ancella Aniwati Hemawan and Nawal Kasim ,
This study examined the level of liquidity, solvency, and profitability among 30 of the Top 100 Companies in the Minority Shareholder Watchdog Group (MSWG). A total of 150 datasets from 2010 to 2014 underwent paired sample t-tests. Results affirm a significant difference between the traditional and cash flow ratios for liquidity analysis. In addition, the tested solvency ratios point at both directions, whereas the profitability ratio shows no difference. The significant difference indicates various perspectives on cash flow ratios. Thus, traditional and cash flow ratios must be acquired simultaneously to achieve the accurate measurement of a company’s performance.
Effects of Procedural Fairness on Organizational Commitment in Indonesian Stock Market: Antecedent and Intervening Variables
(Sri Indarti, Ria Nelly Sari, Syahnasthalia,Vince Ratnawati, Zuraidah Mohd Sanusi, page 221-237)
This study aims to determine the effect of goal-setting participation on procedural fairness and trust in the superior, the indirect effect of procedural fairness on job satisfaction through trust in the superior, and the indirect effect of procedural fairness on organizational commitment through job satisfaction and trust in the superior. An online questionnaire was sent to middle managers in manufacturing companies listed in Indonesian Stock Exchange with a response rate of 15.8%. The results find that procedural fairness benefits not only employees, but also organizations. Procedural fairness will increase employees’ trust in their superiors, job satisfaction, and commitment to their organizations.
Contribution of Islamic Social Capital on Green Economic Growth in Malaysia
(Nazrah Abdul Hamid, Ruhaini Muda, Md. Mahmudul Alam, Normah Omar and Farah Aida Ahmad Nadzri, page 239-256)
This article empirically discusses the relationship between social capital and green economic growth in Malaysia, with the aim of ascertaining whether Islamic social capital has a role in sustaining economic growth. The study utilizes the annual data over the period of 1970-2014. This study employs the Autoregressive Distributed Lag (ARDL) model and causality using the Vector Error Correction Model (VECM). The findings demonstrate the long and short-run associations between Islamic social capital and green growth in Malaysia. The causality only runs in a uni-direction from Islamic social capital to the green economic growth. The findings have important policy implications for green economic growth measurement to account for social well-being and to fulfil the Maqasid Shariah.
The Effect of Corporate Board Diversity: Real Earnings Management among Malaysian Listed Firms
(Aziatul Waznah Ghazali,
Nurullah, Salma Ibrahim,
Norhayati Mohamed ,
Although past studies show a significant positive relationship between board diversity and firm performance, such research is still limited in the context of financial reporting quality of Malaysian firms. The research sample comprises of 3,255 firm-year observations listed on the Main Board of Bursa Malaysia from 2010 to 2014. A falsification test is also performed using another sub-sample to validate the results of the main analyses. The findings show that ethnicity and nationality diversities add value to the Board in terms of financial reporting decisions. The current study contributes to the existing literature by investigating the association of corporate diversity and the occurrences of real earnings management (REM).
The Effects of Organizational Structure, Organizational Culture and Environmental Factors on the Effectiveness of Internal Control in Social Cooperatives
Zuraidah Mohd Sanusi,
Razana Juhaida Johari, Halim
Mohd Noor and Milen Baltov ,
Although a corporate governance initiative which includes internal control measures has been implemented for public companies, it is not compulsory for the cooperatives. Hence, this study discusses the factors that influence the effectiveness of internal control in social cooperatives. This study also focuses on the examination of the organizational structure, organizational culture and environmental factors of cooperatives on effectiveness of internal control. Data were collected using questionnaires, which were distributed to the Top 100 Cooperatives for 2014. Based on the regression analysis of 58 received responses, organizational, structural, cultural and environmental factors have a significant relationship with effectiveness of internal control in Malaysian cooperatives.
Board Leadership Structure and
Microfinance Performance for Better
Governance Practices in Bangladesh
Board Leadership Structure and Microfinance Performance for Better Governance Practices in Bangladesh
(Mohammad Delwar Hussain, Ibrahim Kamal Abdul Rahman, Md. Suliman Hossin and Jamaliah Said, page 299-319)
This study explores new evidence considering the global debate regarding board leadership structure and its effects on the dual performance of microfinance by observing 80 microfinance institutions in Bangladesh from 2010 to 2015. Random (GLS) and fixed (LSDV) effects models were applied in identifying the insignificant positive effects of CEO duality into microfinance sustainability and the negative effects on outreach of the poor. Results indicate that the structure of board leadership, have positive effects on the sustainability performance of microfinance but have negative effects on outreach performance. The findings contribute to the microfinance governance literature on board leadership and its effects on the dual performance of microfinance.
Impact of Board Capabilities on Environmental and Social Governance (ESG) Practices: Evidence from Malaysia
(Aida Maria Ismail, Zuria Hajar Mohd Adnan, Colin Clark, Jamaliah Said, page 321-340)
For investment purposes, investors not only look at financial performance but also non-financial performance elements, such as the corporate governance and environmental and social governance (ESG) practices. This paper examines the relationship among ESG practices of companies in Malaysia by focusing on the function of corporate governance. Data were obtained from listed companies in the FTSE4Good Bursa Malaysia from 2012–2016. Regression analysis shows that ESG practices have a significant relationship with board size, diversity and independence. The results outlined the important factors that create an impact on ESG practices given that investors are focused on company sustainability.
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