This paper examined the practicality and potential value of Enterprise Risk Management (ERM) in China through three aspects: the impacts of ERM on the relationship between different kinds of risk and whole risk portfolio; the influence of ERM on components of risk structure; and the function of ERM in correlation with risk portfolio and firm performance. A Multiple Indicator Multiple Causes (MIMIC) model was structured for a comprehensive determination of the connection between ERM and firm's performance. The results showed that ERM could reduce the relevance of the kinds of risk to risk portfolio, and the interactions between risk categories are minimised as well. As ERM makes the risk structure more significant to firm's performance, thus, the firm can benefit from risk portfolio and realise profit potentials.
The uncanny valley theory is an idea pioneered by Masahiro Mori in 1970 in relation to the psychological effects of lifelike robotics (Mori, 1970). The uncanny valley is a phenomenon that occurs in animation and robotic, wherein things that look extremely similar to the human face, but with slight differences from the natural appearance or the natural movements and expressions of humans, that are found to be disturbing, uncanny, and revolting (Mewes & Heloir, 2009). This study aimed to accomplish three goals: 1) analysing the participants' attitudes towards digital characters based on a series of validated semantic differential questionnaires; 2) developing a conceptual model focusing on overcoming the uncanny valley theory in computer generated digital characters based on empirical findings; and 3) validating the theoretical model by providing specific guidelines for overcoming the uncanny valley theory by avoiding negative human attitude responses. Based on results from 229 participants, this study examined the key factors of digital characters from games and movies which caused uncanny responses from the participants based on their attitudes. The structural model indicates that digital characters' facial expressions have the strongest influence on the participants' perceived humanness, followed by the stimulus's physical movements. Meanwhile, the digital characters' animated hair has the next strongest influence on the participants' familiarity, followed by its facial expression.
3D Animation Perceived Humaness, Psychology, Stylized Animation, Uncanny Valley Indices.
The high internet usage from college students has drawn the attention of different marketers. However, research pertaining to statistics of social media usage among youngsters, especially college students in Malaysia and their choice in social networking sites (SNSs), are still very few. The objective of this paper is to study the choices and the prioritised criteria in choosing SNSs among college students by using Analytical Hierarchy Process (AHP). Findings revealed that privacy attention and awareness are rapidly increasing among college students since privacy threats could hardly be ignored.
Social networking sites, students' preference, Analytical Hierarchy Process (AHP)
This paper investigated intrinsic motivation as a mediating factor of the relationship between CEO characteristics and accounting information system adoption in the SMEs of Libya. The adoption model with mediation was tested with a sample of 348 top level managers and owners of SMEs. Understanding the main determinants of accounting information system adoption for SMEs is very crucial, whereas characteristics of CEO play a significant role in identifying users' behavioural intention for technology adoption. For this purpose, structural equation modelling approach was applied using quantitative research design. Findings supported intrinsic motivation as partially mediating between CEO's characteristics and users' behavioural intention. Therefore, motivating users intrinsically by providing knowledge, innovativeness and trust will have an effect on Accounting information system (AIS) implementation in the organisational context.
This paper examines the importance of the U.S. external shocks and monetary transmission mechanism channels in the United Arab Emirates (UAE). The focal points are to analyse whether or not the U.S. external shocks are relevant to influence the UAE economy and to identify the significance of the two channels of monetary transmission mechanisms (the interest rate and the exchange rate channels) in the UAE during the global financial crisis of 2007/2008. Using a non-recursive SVAR identification scheme, the results of impulse response function suggest that the U.S. external shocks affect the UAE output and inflation rate quickly and strongly. However, the interest rate and the exchange rate channels of monetary transmission mechanisms are not very effective in the UAE. This is consistent with the hypothesis of the study in which the interest rate and the exchange rate channels may not be effective due to the fixed exchange rate regime and the interest rate pegging in that country. Another key finding is that the world oil price has a dominant role in explaining major macroeconomic fluctuations in the UAE economy, which suggests that the UAE economy is vulnerable to the world's oil price shocks. This finding suggests that the UAE policy makers need to consider diversifying their export sectors in mitigating the economic fluctuations.
Monetary Transmission Mechanism, SVAR, the U.S. External Shocks, United Arab Emirates
Malaysian Higher Educational Institution (HEI) needs to allocate adequate building spaces and facilities to support the increasing number of tertiary student population, particularly and consequently realising the objective to make Malaysia the Asian Education Hub by 2020. However, a huge sum of capital is required to develop the projects, and relying upon the government funding alone is almost impossible. Therefore, both public and private sectors need to cooperate to accumulate all the necessary resources including capitals. For this reason, Public Private Partnership (PPP) was launched to attain financial resources purposely for higher educational projects. Nevertheless, the concession price is the main capital problem in PPP HEI projects and finding the concession price itself is a tedious task. Thus, the research aims to establish a system dynamic model based on concession price model (financial model) for Higher Educational Institution. The developed price model for PPP HEI projects is created using data from observation and case study. The prototype of concession price model (system dynamic model) consists of a set of cause effect diagrams. It is verified by Net Present Value (NPV) graft that exceeds zero and keeps on increasing with time. The developed system dynamic model provides better pricing of PPP projects that are going to be a useful tool for all stakeholders.
Concession Price, Financial Model, Public Private Partnership, System Dynamic Model
In this work, the extent of earnings management before and after IFRS convergence was examined. Board's characteristics (independent of board members, board size, ethnicity, and political influence) and company's characteristics (audit quality, foreign stock market listing, company size, leverage, profitability and growth) before and after IFRS convergence were also investigated. Meanwhile, the Kothari's discretionary accrual model was used to measure the extent of earnings management. Using a sample of 231 publicly listed Malaysian companies over the 2005–06 period, it was found that IFRS convergence reduced the extent of earnings management. However, board's characteristics variables did not show any significant difference before and after the IFRS convergence. As for company's characteristics, only company growth was found to have a statistically significant difference before and after the IFRS convergence.
Political connections, IFRS, Malaysia, Earnings management
The purpose of this paper is to observe the implementation of financial inclusion in Indonesia. Using Micro Enterprises (MEs) in traditional markets around Jakarta – Indonesia as the object of the research, approximately 20% MEs were found to have no banking facilities. Furthermore, instead of using credit facility, around 78% MEs still utilise their own capital to facilitate their businesses. The paper also examines the personal characteristics that can explain financial inclusion. Results revealed that only gender and education could explain financial inclusion. Morever, the findings also revealed that MEs generally demand for banking facility. Nevertheless, there are several barriers that hamper them from financially included. In particular, Self Exclusion and Marketing Exclusion are the most barriers that MEs face in accessing financial services.
Climate change is the most severe global problem. Every investor with a social and long-range view intends to improve climate performances by means of its investment. Companies should appeal to investors by disclosing their environmental activities. Among many disclosure systems, CDP (the former Carbon Disclosure Project) is the pioneer of the global one. This study shows the relation between corporate activity to prevent climate change and shareholder structure, by means of the response to CDP Japan 500. This investors' activity study indicates that disclosing the climate performance affects investor's activity to hold the stock of companies preventing climate change. It is critical that the company that is requested to provide information on climate change by CDP answers it and aims at high CDP score. In particular, this study shows the relation between investors and companies and promotes corporate activity to prevent climate change.
Climate change, shareholder structure, CDP (The Carbon Disclosure Project)
Globally, the corporate tax planning activities remain unresolved issues faced by the various tax authorities. In Malaysia, these issues have received serious attention from policymakers, especially among the tax authorities concerned with either direct or indirect taxes. The transformations in the tax systems and accounting standards have given companies opportunities to manage their tax affairs for the benefit of their shareholders. Hence, using the longitudinal approach, this study analysed tax expense and financial ratios of 4,500 firmyears from publicly listed companies prepared for the years 2001 to 2012. A company's tax planning is reflected in its Effective tax rate reported in the financial statements. Thus, the difference between the statutory tax rate and the effective tax rate shows the gap which indicates the level of aggressive tax planning undertaken by the companies. The statistical results from the pooled OLS regression model disclosed that financial ratios such as inventory intensity, capital intensity, leverage and research, as well as development expenditure have a significant relationship with the level of companies' tax expense. Thus, the findings implied that companies' financial ratios could be used as red flags to identify aggressive tax planners which can be further investigated for potential tax frauds.
This study examines the extent of geographical diversification of Malaysian public listed firms and its effects on the costs of debt and equity financing. All companies, except those in the utilities and financial industries listed on Bursa Malaysia with segmental and foreign asset information available in Thomson One Banker database from 2008 to 2012, are used. Herfindahl index is used to compute the degree of diversification for firms, while weighted average costs of debt, equity and capital are used to estimate the costs of financing. The results show that less than half of the sample companies are geographically diversified. Although cost of capital is higher in diversified firms and it increases corresponding to the degree of diversification, confirming diversification in this country is not efficient. Debt has a much lower cost of financing compared to equity, which is consistent with the return tradeoff theory and tax shield effects. The debt ratio has the greatest influence on the weighted cost of debt, while P/E ratio has the greatest influence on the weighted cost of equity. It is also found that the relationships are contingent on the level of diversification of the firms. The more geographical diversification of the firms, the higher the cost of debt. As for the equity, the positive interactive coefficient between P/E and H-index shows that the more geographical diversification of the firms, the lower the cost of equity. Overall, the study concludes that Malaysian firms do not pursue efficient diversification as the cost of capital is higher for diversified firms.
Cost of debt, cost of equity, costs of financing, diversification, H-index, Malaysia
The term 'intellectual capital' (IC) may sound unfamiliar to the wider public. However, IC has started to cast greater attention in the corporate world. IC refers to intangible asset which is closely related with the development of strategic decision and corporate performance. With endless challenging business environment and complicated electronic transactions, IC is argued to act as a vital essence for a business to innovate which then drives business sustainability. The ultimate purpose of this study was to investigate whether IC is acknowledged and managed towards improving performance, be it financial or non-financial performance. For this purpose, a questionnaire survey was distributed to the head of internal audit of Malaysian public listed companies. Questions tapping on core IC components including human capital, structural capital, relational capital and spiritual capital were included. Data were analysed using inference analysis methods, including ANOVA, t-test and regression. Findings revealed that IC does exist, but not much of IC management is sought in the companies, although the practice is in place. The results also demonstrate that relational capital emerged as the most influential IC component on corporate performance, while human capital ranked the last. This is an obvious indication that IC is well in fact has developed within Malaysian companies and become an important source for business performance.
Human capital, intellectual capital, performance, relational capital, spiritual capital
This research examines the decision facilitating role of CPMS on manager's role ambiguity and also influence of personality traits of locus of control between CPMS and job performance. Incorporating role theory and social learning theory, this research hypothesises that informational characteristic of CPMS is useful to reduce manager's role ambiguity and in turn enhance their job performance. Data were collected from 120 business unit managers of manufacturing firms listed in the Federation of Malaysian Manufacturers (FMM) 2011 Directory. The results provide evidence that CPMS reduces manager's role ambiguity, which in turn enhances job performance. Additionally, the results also indicate that locus of control moderates only the relation between CPMS and role ambiguity and that there is no evidence of moderation identified between CPMS and job performance.
Performance Measurement System, locus of control, role ambiguity, job performance
Attitude towards money (ATM) often determines an individual's overall subjective well-being or happiness. Most past studies have investigated individual values, societal influences and financial acumen largely in isolation from one other. This study aims to develop a more comprehensive model of the antecedents of ATM by taking into account affective, cognitive and social dimensions concurrently by integrating concepts of the Theory Planned Behaviour (TPB) and the Social Cognitive Theory (SCT). Furthermore, this study focused on Generation Y youths in Malaysia as SCT, which suggests that individuals belonging to a particular generation/era and country/jurisdiction share certain collective social realities, hence ATM. In terms of methodology, a survey involving 248 respondents was carried out by utilising multiple regression analysis to test established hypotheses. The empirical findings suggest that, among others, financial awareness has a significant influence on all dimensions of ATM. In addition, parental influence significantly encourages savings and instils restraint tendency in spending, whereas peer influence acts as an influential substitute to parental influence and mass media effectively promotes materialistic values. In terms of practical implications, the study contributes to the understanding of Generation Y's ATM so as to inform the formulation of better financial planning practices and education-related policies.
Keywords: Attitude towards money, financial awareness, Generation Y