7 research outputs found
Board composition, institutional ownership, firm performance and Islamic corporate social responsibility (ICSR) disclosure / Muhammad Mukhlis Abdul Fatah
No full textRecently, there is a growing concern especially among muslims society to opt to the fully-fledged Islamic banks as an alternative to the conventional banks due to the requirement of shari'ah. Malaysia as one of the leading Islamic country that continuously emphasise on the Islamisation process has been selected as the focus of the study. The fully-fledged Islamic banks in Malaysia have adopted the Islamic corporate social responsibility (ICSR) disclosure in their daily practices which will reflect the interest of the muslims stakeholders and other stakeholders. The study examines factors that determine the Islamic corporate social responsibility (ICSR) disclosure based on two theories i.e. resource-based theory and stakeholders' theory. Based on resource-based theory, this study examines the influence of five largest institutional ownership, muslims board members, top management support and the independent non-executive directors on the ICSR disclosure. In addition, the effects of the ICSR disclosure to the firm performance based on stakeholders' theory are also examined. Furthermore, the content analysis is used to measure the extent of ICSR disclosure with the related variables based on the annual reports of the 17 fully-fledged Islamic banks in Malaysia for the year ended 2008 until 2010. The findings of the study shows that muslims board members and top management support significantly influence the ICSR disclosure while the independent non-executive directors do not influence the ICSR disclosure. On other hand, five largest shareholders have inverse relationship with the ICSR disclosure. Furthermore, ICSR disclosure is significantly affecting the Islamic banks' performance which is in line with the stakeholders' theory. Thus, ICSR disclosure is viewed as intangible resources as well as can be used as important strategy which improves the Islamic banks profitability besides portrays good reputation to public. Overall, this study highlights the importance of board composition, top management support and the institutional ownership on the ICSR disclosure. Further, ICSR influence Islamic banks to disclose more ICSR information in annual reports and subsequently improving the firm performance
LIQUIDITY AND CLAIM IN TAKAFUL INDUSTRY
No full textAbstract Takaful products have captured a significant market portion of the insurance industry in Malaysia. The increasing trend in the take-ups since its inception in mid 1980s brings along challenges similar to that of its conventional products which, among others, is the stability of its reserves to meet claim obligations and the needs to generate auxiliary incomes. As the reserves are used to discharge the claims, the stability of the reserves is thus associated with the level of claim paid. Using a dataset for a period between 2012 to2015, a panel data analysis was conducted to explore an association between takaful operators’ liquidity (i.e., reserves) and its claim payout. The study however, does not uncover a significant association between liquidity and claim of 41 observations. Nevertheless, a closer inspection of the results points to a potential negative correlation between these variables. Therefore, future research using a dataset spanning across a longer period is encouraged. Keywords: Takaful, insurance, liquidity, panel data.
An investigation into accounting students’ preliminary comprehension of auditing / Nur Farahah Mohd Pauzi … [et al.]
No full textAudit has a critical function in identifying fraud that has taken place in the corporate sectors and in producing high-quality audit reports that help management make decisions. Despite the fact that the audit course is one of the core courses in the university-level accounting program, there are indications that accounting students do not have a good understanding of the audit profession. This study aims to ascertain the preliminary understanding of auditing among accounting students in regard to a few crucial elements. Semi-structured interviews with fifty students who are in their second-year Bachelor of Accountancy studies from a local university in Melaka were conducted. Findings of the study indicated that before taking the audit course, the undergraduates did not have a thorough understanding of audit. Despite having rudimentary understanding of the goals of auditing and how it greatly benefits the organizations, students did not have a comprehensive grasp of auditing
Ar-Rahnu: A Review of Literature and Future Research
No full textAcademicians, practitioners, and other faith-based stakeholders have recognised Ar-Rahnu or Islamic pawn broking as one of micro financing tool to the Muslims. The increasing need for Ar-Rahnu services is influenced by the awareness of the Muslims on the availability of such service and the benefit of using it. In line with this development is academician is growing interest in Ar-Rahnu research, thus create opportunities for interested scholars to assess the development of research in this discipline. This paper purported to review published studies in this discipline since the inception of Ar-Rahnu concept to the current year to identify key trends or issues in Ar-Rahnu research and propose future research agenda. This review, which is the first of its kind, is hoped to be valuable to the present and future Ar-Rahnu scholars interested in the evolution of literature and identifying opportunities for future research
The Share Price Behavior of the IPO Surrounding the Expiration of the Lockup Period. Evidence from IPOs with No Analyst Positive Recommendations
No full textThis study investigates the share price performance of the IPOs surrounding the expiration of the lockup period in the Malaysian stock market. The study explores whether the IPOs without analysts’ positive recommendations give a significant positive share price performance in situations of the negative effect of the expiration of the lockup period. The IPOs sample of 281 companies was taken from the period of January 2000toDecember 2014. The study applied event study methodology to investigate the performance of the IPO share price. The study found that the IPOs without analysts’ positive recommendations gave an insignificant positive share price performance in the event window of (-10, +10) surrounding the expiration of the lockup period. Whilst, the longer event window (-30, +30) shows a significant positive share price performance surrounding the expiration of the lock-up perio
Artificial Intelligence Adoption in Smaller Audit Practices
No full textThe emergence of new technologies, such as Artificial Intelligence (AI), is anticipated to profoundlyimpact the accounting and auditing sectors. AI is essential for automating repetitive tasks and enhancing auditjudgment. This study seeks to investigate the adoption of AI in small audit firms in Malaysia. A qualitativeresearch design was employed, involving semi-structured interviews with nine audit supervisors from smallaudit firms in Kuala Lumpur, Negeri Sembilan, Pahang, and Melaka. The discussion focuses on two elements:(1) Perceived Usefulness (PU) – emphasizing how AI enhances audit efficiency and accuracy, and (2) PerceivedEase of Use (PEU) – highlighting the ease of adoption and integration of AI tools into existing audit workflows.The findings reveal that AI is perceived as a valuable tool in small audit firms, improving audit quality andworkflow by significantly accelerating the audit process. However, human expertise is still required for certaincomplex tasks and decision-making. Hence, it is crucial to communicate the AI’s capabilities and constraints toprevent users from experiencing undue disappointment. The findings of this study aim to assist regulators andstandard-setters in developing guidelines, principles, and frameworks for AI adoption among audit firms inMalaysia
The Needs and Readiness of the Islamic Banks to Adopt the Comprehensive Islamic Accounting Standards: The Malaysian Experience
No full textThe Islamic finance sector in Malaysia has seen substantial growth over the past few decades, becoming one of the leading markets for Islamic financial products and services. This growth has brought about significant challenges in financial reporting, primarily due to the limitations of conventional International Financial Reporting Standards (IFRS) in addressing the unique characteristics of Islamic financial transactions. The shari’ah transactions are governed by Shariah principles, which prohibit interest (riba) and emphasize on risk-sharing, ethical investments, and social justice. The study aims to provide a comprehensive analysis of the current issues and debates surrounding the need for comprehensive Islamic accounting standards in Malaysia. It will review recent literature, regulatory developments, and the experiences of practitioners in the particular field. Furthermore, the report seeks to highlight the readiness of Bank Negara Malaysia and all Islamic Banks to adopt Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) standards and explore the feasibility of integrating these standards within the International Financial Reporting Standard (IFRS) framework. Additionally, this report aims to contribute to the ongoing discourse on Islamic accounting by offering critical insights and recommendations for policymakers, regulators, and financial institutions. The ultimate goal is to enhance the transparency, comparability, and reliability of financial reporting in the Islamic finance sector, thereby promoting its sustainable growth and integration into the global financial system
