UNIMAS Journal (Universiti Malaysia Sarawak)
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The Moderating Effect of Human Capital on the Relationship between Enterprise Risk Management and Organization Performance
Get PDFIn today’s challenging global economy, risk management is encountering a significant transformation. Organizations are switching their risk management method to enterprise-wide from the traditional compartmentalized approach. Enterprise risk management (ERM), which aims at increasing the sustainability of an organization and achieving competitive advantage, is gaining global attention and fast becoming an essential concern in all industries. Despite the importance of the knowledge embedded in people in the current knowledge-based economy, there remains a paucity of evidence concerning how human capital could influence the organization’s ERM. Based on the Resource-based view (RBV) theory, this study analyses the correlation between ERM, human capital, and performance in Malaysian public listed companies (PLCs). For this study, 500 questionnaires had been distributed, and 116 responses were obtained. Structural Equation Modeling (SEM) had been used to assess the fitness of the conceptual model. This study found a significant relationship between ERM and organizational performance, and this relationship is moderated by human capital. This study contributes to the ERM literature by providing empirical evidence on the relationship of ERM, human capital, and organizational performance. Findings from this study also provide guidelines for managers, policymakers, and the regulatory bodies to evaluate the ERM practices in PLCs
Factors Determining Libyan Banking Employees’ Readiness to Support the Transformation to a Full-Fledged Islamic Banking System
Get PDFThe purpose of this research is to examine the determinants of banking employees’ readiness to support the transformation to the full-fledged Islamic banking system in Libya. Using the Theory of Planned Behaviour (TPB) and employing survey questionnaires of 323 employees of 10 conventional Libyan banks analysed using Structural Equation Modelling (SEM). This research revealed that the readiness of Libyan banks’ employees is influenced significantly and positively by attitudinal, religious and subjective norms. Moreover, attitude toward transformation is the most critical factor that determines readiness among bank employees. This indicates that bank employees are willing to support the transformation process toward Islamic banking. Due to the unstable security situation in Libya, this research is confined to two states (Tripoli and Benghazi). Further researches may extend applying the proposed model to other states in the country, which may enhance the generalisability of this research’s findings. Overall, this research provides support for the transformation process to Islamic banking as a way to evaluate the readiness of Libyan banking employees for such change. Also, this research emphasizes the importance of undertaking a pre-implementation evaluation of readiness for change in Libyan commercial banks
Does Audit Committee Moderate the Relationship Between Auditor Independence and Earnings Management During Initial Implementation of MFRS in Malaysia?
Get PDFThis paper presents an evaluation of auditor independence concerns against the backdrop of current Malaysian corporate financial scandals by examining the relationship between auditor independence and earnings management, and the role of audit committees in overseeing auditor independence. The study used 1,035 firm-year data in the main market of Bursa Malaysia from 2012 to 2014 and employed multivariate regression analyses. The results revealed that when non-audit fees and total fees were higher, it could reduce the auditor’s independence as higher fees can create economic dependency on his clients. This study found that audit committee size and the frequency of meetings were positively related to earnings management. When testing the audit committee moderation on auditor independence, the study found that audit committee size and its frequency of meetings weaken the positive relationships between lower auditor independence and earnings management. These findings help regulators and professional bodies think about the impact of audit and NAS fees on auditor independence and the audit committee's oversight responsibility. To assess auditor independence, companies should form a fully independent audit committee in accordance with the Malaysian Code on Corporate Governance 2021 (Securities Commission of Malaysia, 2021)
Exploring the Role of Social Capital in Community-Based Tourism in Bum Bum Island, Semporna, Sabah, Malaysia
Get PDFThe application of social capital theory or concept in tourism studies is a growing phenomenon, but the studies related to community-based tourism are still in their infancy in the context of developing countries. This study explores the role of social capital in a community-based tourism project in Bum Bum Island, which is located in the District of Semporna, Sabah, Malaysia. The primary data were collected through in-depth interviews with 19 informants from government, private agencies, local heads, tourist, Non-Government agencies and the local community. The results present evidence on the role of social capital in the development of community-based tourism projects. In addition, this research contributes to the enhancement of the body of knowledge studies related to social capital and community-based tourism. Finally, this paper concludes with some practical implications and suggestions for future research directions
The Impact of Various Facets of Customer-Based Brand Equity on Brand Resonance
Get PDFMeasuring the extent to which customer-based brand equity (CBBE) influences brand resonance (BR) in the context of carbonated soft drinks industry in Bangladesh was the principal objective of this research. In order to do so, a new BR model was developed. In addition, measuring CBBE was an ancillary objective. CBBE was measured by using the arguably two dominant CBBE instruments: CBBE Model-1 by Yoo and Donthu (2001) and CBBE Model-2 by Netemeyer et al. (2004). BR was measured by an instrument that was developed from the work of Lehmann et al. (2008). The measurement models of both CBBE instruments fit the data satisfactorily with some negligible issues. The BR was measured from two distinct datasets: Dataset-1 and Dataset-2. Though both CBBE instruments had some model fit issues in the causal relationship analyses of CBBE and BR, both CBBE Model-1 and CBBE Model-2 had outstanding explained variance estimates on BR measure. The impact of CBBE on BR is an untapped territory of brand management; therefore, measuring the influence of CBBE on BR along with separately measuring CBBE and BR in multiple product or service categories across industries using the instrument of the current research has great values for practitioners
A Comparative Analysis of ODA and Growth in East Asia Pacific and Sub-Saharan Africa
Get PDFThis paper reports a comparative empirical analysis on the role of official development assistance (ODA) in influencing growth in East Asia Pacific (EAP) and Sub-Saharan Africa (SSA) regions. The distinct difference in growth patterns between these two regions in the past five decades motivates our research to examine what factors contributed to the difference in growth. This study examines, from the financial gap perspective, the role of foreign aid in promoting growth in the two regions. On this basis, our study constructs a theoretical framework by specifying a behavioral equation to examine the relationship between foreign aid and growth supported by capital formation and human resource development. The empirical inquiry uses: two-stage least square instrumental variable estimator; and the generalized method of moments (GMM) estimation of dynamic panel data model. The analytical results induce two conclusions: ODA impacts positively on economic growth in the EAP region but with time lagged effects, and ODA influences economic growth differently by region. The results from the dynamic GMM approach have shown that ODA contributed positively to economic growth in the EAP region but not in the SSA region. Hence, donors, recipients, and aid practitioners must reexamine aid effectiveness especially in the SSA region
Effects of Financial Development and Institutions on Firm in Malaysia
Get PDFThis study is motivated to examine if firm growth is dependent on access to external finance but subject to the macroeconomic environment. Using firm-level data from firms listed in Bursa Malaysia for the 2006-2014 period, the study applies dynamic panel system generalized method of moments (GMM) estimation (Blundell & Bond, 1998) to estimate how a country’s embedded financial development and institutional quality impacts the linkage of firms’ external financial dependence and growth opportunities to firm growth. A dynamic system GMM approach is employed to address the endogeneity and serial correlation concern. Firms that have greater growth opportunities actually grow faster with better financial development with embedded good institutions in the case of Malaysia. So findings concluded that firms experience higher growth through better allocation of finance since they have good potential to grow. This has shed important light on policymakers in formulating the design of many financial development policies across a wide set of countries aimed at fostering financial markets and the banking services sector to provide the vital sources of external financing needed by corporations in financing their investments. A well-functioning financial system is a necessary condition for promoting firm growth
Intensifying Employees' Job Performance in Palestine Banking Sector: How Personal Attributes Tell Us?
Get PDFThis study sought to examine the impact of personal attributes (motivation, proactive personality, and self-esteem) on job performance among the employees of Palestinian banks, particularly the national banks in the Gaza strip. A total of 160 banks’ employees participated in the study, representing 86.25 per cent of the response rate. Empirical findings from Pearson correlation coefficient and multiple linear regression analysis demonstrated that motivation (r = .644, β = .247, p<.01), proactive personality (r = .727, β =.417, p<.01), and self-esteem (r = .612, β = 0.284, p<.01) were all positively and significantly related to the employees’ job performance. Several recommendations were reached, the most important being that the national banks’ administrations should provide various training programs, embrace the approach of flexible working hours, and create programs that can strengthen the employees’ intrinsic motivation
CSR Practices Disclosure’s Impact on Corporate Financial Performance and Market Performance: Evidence of Malaysian Public Listed Companies
Get PDFDisclosure of CSR practices in public listed companies in Malaysia was made compulsory recently. Hence, its contribution to the firm performance based on financial and market indicators has often been questioned. This study explores using partial least square – structural equation modelling (PLS-SEM), the predictive accuracy and relevancy of CSR practices disclosure on corporate financial performance given by ROA and market performance given by Tobin’s Q. Using a sample size of 200 randomly selected public listed firms in Malaysia, the effect of CSR practices on corporate financial performance based on an accounting and market measures was determined. Findings of this study showed that CSR practices have a significant and positive impact on ROA and Tobin’s Q. Reputation mediates the relationship between CSR practices and ROA but not with Tobin’s Q. CSR practices and reputation could explain 52.9% of variance in ROA but only 6.3% of variance in Tobin’s Q. CSR practices have a large effect size on reputation and ROA but negligible effect size on Tobin’s Q. Thus, these findings imply that CSR practices can relate significantly to accounting-based but not market-based financial performance. Further studies to explore internal and external factors such as third-party assurance, industry type and other environmental factors as well as extending the timeline might provide more insights to understand how CSR practices can influence financial performance
Dispositional Dimension of Trust on Customer Interaction with the Banking Sector: A Smartpls Approach
Get PDFThis study explores the influence of dispositional dimension of trust, including propensity to trust, faith in humanity, and trust stance in the banking sector. The research was performed in banks located within the Sokoto metropolis, Nigeria. A questionnaire was distributed to 500 account holders from 10 commercial banks, where respondents were allowed to pick their preferences on the basis of a 5-point Likert scale, and an analysis was carried out using PLS-SEM version 3.2. The findings indicated that propensity to trust, such as experience acquired overtime, religious belief, and positive feelings; faith in humanity, such as dependability, suitability, and confidentiality; and trust stance, such as reliability and quality of information delivered to individual positively influence customer interaction with the banking sector. The findings raise awareness to the bank executive and policymakers of factors influencing customer confidence in a bank and also contribute to retaining and attracting them within the system