This study was carried out to identify the respondents' preferred objective of accounting programme, especially for public universities as compared to National Philosophy of Education (NPE). This study also attempted to suggest the improvement needed in objective setting for undergraduate accounting programme. The study relied on primary data obtained from reviews of documents and interviews involving a total of 28 accounting lecturers from four (4) selected Malaysian public universities, namely, Universiti Putra Malaysia (UPM), National University of Malaysia (UKM), University of Malaya (UM) and International Islamic University of Malaysia (IIUM). The results suggested that most public universities involved in this study formally expressed their commitment towards academics excellent (material part) in their vision and mission. In contrast, the same universities did not seem to indicate formal commitment toward developing their students' spiritual part as required by NPE. However, accounting lecturers at public universities involved in this study seemed to agree with NPE that the development of students' moral should be set the as the primary objective of the accounting programme. Several respondents, especially Muslims, suggested that the objective of accounting programme should be based on the Islamic framework. In addition, they further suggested that the accounting programme for undergraduates should reduce the technical part andinclude more trainings that emphasise on the ability to be a thinker. This paper extends the accounting and education literature related to the accounting profession since it analyses the issues revolving around the objective of accounting programme, with specific reference to the Malaysian context.
Objectives of accounting programme; Malaysian National Philosophy of Education (NPE), moral, ethics
Malaysia as a developing country is in the transformation process of becoming an industrialised nation, as stated in Vision 2020. Manufacturing industry significantly contributes to the national economic growth in Malaysia; however, the manufacturing industry consumes the most natural resources which cause degradation of natural resources. This is against the global efforts that put pressure on world organisations to carry out their business in a more responsible and sustainable manner. As an approach to improve sustainability performance, manufacturing companies should develop technologies that consume less material, while trying to adopt new technologies effectively. However, empirical studies in Malaysian manufacturing industry on technology and Sustainable Performance Measurements (SPMs) are still very limited. Thus, the main purpose of this study is to determine the relationship between technology and Sustainable Performance Measurements (SPMs) model among different sizes of Malaysian manufacturing companies. The target population in this research is 2500 manufacturing companies registered under Federation of Malaysian Manufacturers (FMM). The random sampling method is engaged in the sample selection. A total of 217 observations were collected over 600 sample size, with a response rate of 36.17%. The results of the analysis indicate that product technology does not have any significant effect on SPMs. In contrast, process technology demonstrates a positive relationship with SPMs. In addition, business size does not affect SPMs. Overall, it can be concluded that Malaysian manufacturing companies consider more privilege for process technology implementation to achieve desirable SPMs performance in their business rather than product technology.
Sustainable performance measurement, product technology, process technology, Malaysia
Although the agency theory has been widely used across a variety of corporate finance concepts for the past three decades, little work has been undertaken with regard to how the agency theory could be used to explain simultaneous interrelation among internal solutions for Agency problem. In addition, no general consensus has emerged after many years of investigation and scholars can often disagree about the same empirical evidence. Among other, potential endogeneity of the agency mechanisms, as well as cultural and structural differences between developed and developing markets, has been stated to cause the complexity of corporate governance around the world. This article reviews the theoretical and empirical literature addressing causal effects of managerial incentives and financial controlling instrument due to agency problem. At the same time, the article aims to improve the understanding of how these instruments affect each other. The main part of the discussion is related to the evaluation of theoretical aspects of internal Agency solution and their interrelations, as well as the experiential studies in different countries. As such, specification of Malaysian market is surveyed separately to highlight the need for multi-theoretic process and interrelation effects in future research on corporate agency problems in the Malaysian context.
The purpose of this paper is to investigate the occurrence of unethical behaviours commonly known as Reduced Audit Quality Practices (RAQP) among auditors. The study employed a mail survey to collect data from auditors registered with the Malaysia Institute of Accountants. The results of this study indicated that RAQP did occur in the Malaysian auditing profession, especially among auditors with less auditing experience and practicing in non-big four audit firms.
The increasing use of Internet technology in corporate world is undeniable. Corporate Internet Reporting (CIR) is the communication process between the corporate sectors and stakeholders via the medium of the Internet. CIR is a significant way for the corporate sectors in presenting and disseminating business information. The study is conducted with the objective to examine the practice of CIR by the Malaysian listed corporations. Sample of the study consisted of 380 listed corporations. In measuring the level of CIR practice by companies, a CIR index was used. Data for CIR practice were collected by observing the presence of CIR attributes in the websites of companies being investigated and analysed by using descriptive statistics. The findings show that 82 percent of the companies examined have websites and are practicing CIR. On average, Malaysian listed companies practiced around 28.9% of the overall CIR attributes. The results based on industry type showed that the plantation sector had the highest mean score for overall CIR, Investor Relations category and User Support category, whereas the finance sector had the highest mean score for the categories of Accounting and Finance and Technological Advantage, and the construction sector revealed the highest mean score for forward looking data. Furthermore, a comparison between the Main Market and ACE market companies did not show any significant difference in the mean score for the overall CIR attributes and specific CIR attributes. Findings of the study might be useful to the Malaysian listed corporations in better understanding the level of CIR they practised so as to further increase the level of CIR in the near future. Finally, the study adds to the knowledge on the practice of CIR in Malaysia as one of the world's emerging economic countries.
Corporate Internet Reporting, practise, emerging economic, Malaysia
This study explored the views of both auditors in the National Audit Department (NAD), and Public Accounts Committee (PAC) members toward the current performance-audit practices in the Malaysian public sector by interviewing selected members of each group. Results revealed that the views of these two groups diverged on several issues concerning auditor roles and responsibilities, auditor competence and independence, as well as the format, content and usefulness of the audit reports. The most significant divergence was in the respective views on the auditors' responsibilities for fraud detection.
Performance auditing, Auditor General, Public sector accounting, Malaysia
In Malaysia, the disclosure of sustainability information is lacking since it is not a common practice for companies in this country compared to developed countries. Sustainability disclosure consists of three dimensions, namely, economic, environmental and social disclosure. This study examined the extensiveness of sustainability disclosure in terms of quality and quantity. In addition, the relationship between sustainability disclosure and financial performance, which was measured by return on assets (ROA) and earnings per share (EPS), was also investigated. The annual reports and stand-alone reports from 2007 to 2010 of 24 public companies listed on Bursa Malaysia (Malaysian Stock Exchange) participated in the ACCA Sustainability Reporting Awards (MaSRA) were analysed using content analysis. Meanwhile, the signalling hypothesis was used to address the relationships of the variables. It was found that the quantity of sustainability disclosure increased from year to year with the highest number of sentences of disclosure in the social dimension. In addition, companies provided comprehensive disclosure in the economic dimension in the forms of qualitative, monetary and non-monetary. Using multiple regression analysis, the results revealed no relationships between the sustainability dimensions and the financial performance of companies except for the economic dimension and ROA with negative effect. The present study contributes to the current literature on sustainability, particularly inasmuch as prior studies mainly focus on corporate social reporting issues.
The trend of accumulation of large credit card debt, especially among young adults, has certainly become a nationwide concern in Malaysia. Consequently, many youngsters have been declared as bankrupt due to credit card indebtedness. Even though these youngsters were those with a lack of essential skills to handle credit cards, it seems that credit cards were easily accessible by them (college students in particular). Therefore, as previous studies have indicated, the ability of these youngsters to manage their finances efficiently is being questioned. The purpose of this study is to examine the factors contributing to postgraduate students' practices on credit card usage. The objectives of this study are: 1) to determine whether the understanding or knowledge of credit card usage can be used to minimise the impacts of credit card debt; 2) to examine whether the perceptions or attitudes on credit cards can affect its usage; and 3) to study the relationship between credit card debt management and credit card practices. Survey questionnaires were distributed and completed by a convenience sample of 100 postgraduate students at Universiti Putra Malaysia. After applying a chi-square test analysis, the results indicated three factors; knowledge of credit card usage, perceptions or attitudes of credit card usage, and credit card debt management have contributed as key determinants of the credit card practices and financial decisions among post-graduate students. The findings can assist the government in identifying suitable measures to reduce irresponsible credit card practices, especially amongst youngsters. It also offers practical information for administrators and counsellors to address the challenges faced by students of higher learning institutions.
Credit card practices, financial decisions, debt management, youngsters, personal bankruptcy
Concerns about graduates' employability are not new. Being burdened with accounting standards to be memorised and regurgitated in examinations does little to encourage learning with understanding, i.e. deep learning. Yet, deep learning is pertinent for development of generic employability skills such as problem solving and critical thinking. This study examines the extent to which accounting undergraduates at a public university in Malaysia adopt deep learning via a questionnaire survey. Results suggest that surface learning, which promotes rote memorisation and is often blamed for graduates' incompetence, is the first step towards deep learning. Having a thirst for meanings has been found to be pertinent to motivate undergraduates to move from rote memorisation to seek meanings and thus deep learning. Female undergraduates have been found to be more inclined to adopt deep learning compared with their male counterparts. Nonetheless, much is still to be learned to promote deep learning, which is a complex process that is not constrained to the campus.
Rote memorisation, learning with understanding, academic performance, gender, graduates' employability
This paper describes how to resolve a recurrent research problem in finance research, that is, how to identify and then take steps to correct structural breakpoints in time series data sets. A review of finance literature suggests that the familiar method of identifying breaks is by using news reports of events, which is not accurate in a formal sense, and will likely introduce estimation errors in research. There exist formal models, which are used to accurately identify breaks especially in long-time series to pre-test exchange rate data series as a pre-analysis step to accurately locate breaks that will help control estimation errors introduced from breakpoint impacts. The findings from testing four-country data series, using 651 months data of each country, suggested that the method described in this study identified breakpoints accurately, which was also verified using graphs. Therefore, it is suggested that this process is helpful for researchers to formally identify structural breakpoints as it greatly improves the robustness of estimation of exchange rate behaviour (apart from other financial variables).
Multiple Structural breaks; Time series analysis; Exchange rates; Bai-Perron Model
What drives banking performance is a little-explored research topic, despite the copious literature. This paper reports findings that offer new insights into what drives net interest margin, a key performance indicator (KPI) for the German banking sector. We consider the link between performance and a few carefully chosen critical bank-specific factors using the most up-to-date econometric methods such as panel regressions using a Generalized Method of Moments with data from 11 recent years. The results show that credit risk, income diversification and size have significant negative effects on net interest margin, as predicted by theory. Meanwhile, capital adequacy has a positive effect, as does the liquidity risk. The paper also finds that the effects of concentration and macroeconomic variables on net interest margin are weak and statistically insignificant. In this study, it was found that credit risk, income diversification, size, capital adequacy and liquidity risk are significant factors contributing to a new understanding of German banking performance.
Net interest margin, credit risk, liquidity, capital, pooled regression, generalized moments method
This paper examines the market reaction to hybrid security announcements in an emerging country, specifically Malaysia, from January 1996 to December 2009. The results indicated that announcements of the intention to issue convertible bonds in Malaysia are significantly associated with negative abnormal returns of 1.10% (significant at the 10% level) on the event window of (-1, 1). On the other hand, announcements of the intention to issue warrant-bonds document significantly positive abnormal returns of 2.25% (significant at the 5% level) on the same event window. The 'univariate' test confirmed that the wealth effect associated with the announcement of the intention to issue warrant-bonds is larger (i.e., more positive) than convertible bonds, in line with a few studies conducted in different markets. The findings of this study highlight that listed firms with high risk uncertainty in Malaysia contribute to more negative abnormal returns in comparison to lower risk uncertainty firms.
Event study, convertible bonds, warrant-bonds, emerging country
The introduction of new capital requirement by the Basel committee has positive and negative impacts on banking stock prices. Previous studies on Basel Accord's minimum capital requirement on various countries have shown mixed results in the stock returns during the announcement date. This paper examines the impact of Basel III announcements on Malaysian banking stocks' returns. Findings showed that investors viewed the implementation of new regulation as bad information and would reduce the banks' stock prices.
This paper investigates the efficiency level of Gulf Cooperation Council (GCC) banks on technical efficiency (TE), pure technical efficiency (PTE) and scale efficiency (SE). Both PTE and SE represent potential factors that influence the efficiency of GCC banks. This study investigates a total of 43 GCC banks over the time period of 2007 to 2011. Data Envelopment Analysis (DEA), a non-parametric method using variable returns to scale (VRTS) under the Banker, Charnes, and Cooper (BCC) model, was applied, with assets and deposit as input, and loan and income as output. On average, results revealed that GCC Banks operate with an optimal scale. Nevertheless, the results were contaminated by the managerial inefficiency in utilising the recourses, although TE, or managerial efficiency, increased to 83.6% in 2011. Furthermore, the results also indicated that, while larger banks (the 22 largest) tend to operate at constant returns to scale (CRS) or decreasing returns to scale (DRS), smaller banks (the 21 smallest) were susceptible to operate at either CRS or increasing returns to scale (IRS).
Technical efficiency, pure technical efficiency, scale efficiency, returns to scale, bank, Gulf Cooperation Council
The association between political elections and stock market performance for Malaysia market is discussed in this paper. This study aims to investigate the impact of General Elections in Malaysia on stock market indices. To provide additional support of the impact of general elections on stock returns through other channels, currency changes were also included in this study so as to discover the mediation effect of the exchange rate on the relationship between general elections and stock returns. Since the exchange rate does, to some extent, influence stock return, the relationship between exchange rates and stock returns during different stages of a general election cannot be overlooked. The results showed that currency change is negatively related with stock returns in pre-election and post-election stages, but it is not significant during the election period. The impact of currency on stock return exists as a mediation effect during election period. In a nutshell, the currency change directly impacts stock return with a negative influence. However, the direct relationship between currency and stock return disappears during the election week. Thus, stock return is affected by currency change indirectly.
General election, stock return, currency, mediation effect
This paper reports new findings on how financial ratios and risk factors of corporations are correlated with cash holdings in Korea and Malaysia. Financial risk and risk factor effects of low cash holding firms and high cash holding firms are similar in both stock exchanges. The means of all variables are higher in high cash holdings firms. The significant results in the form of higher values of financial ratios and risk factors are related to the objective of meeting liquidity needs of firms by providing flexibility to meet uncertainties in the demand for cash flows in the future. The lagged cash flow variables have a significant impact on current cash holdings. Liquidity and repayment ability in Korea and low cash holdings firms in Malaysia have similar findings. These findings add new insights into how cash holding size is associated with key firm-specific and economic factors such as exchange rates and inflation factors.