36 research outputs found
Measuring the impact of absorptive capacity and internal auditing on firm performance / Yaser Ibrahem Almodallah, Suhaily Shahimi and Anna Azriati Che Azmi
No full textThis study aimed to investigate the impact of absorptive capacity (AC) and internal auditing on firm performance. Specifically, it had three main objectives. The first was to investigate the internal auditing characteristics affecting potential AC. The second was to investigate the mediating effect of the internal control system on the relationship between potential and realised AC. The third was to examine the mediating effect of internal auditing processes on the relationship between realised AC and firm performance. This study employed a quantitative method i.e. survey questionnaires distributed to internal auditors and secondary data collection from annual reports of companies listed the Amman Stock Exchange. Return on assets and return on equity were extracted from 2014 to 2018 annual reports. The results indicated that internal auditing characteristics influence potential AC, which impacted the internal control system; the internal control system mediated the relationship between potential and actual AC and realised AC influences internal auditing processes, which in turn served as a mediator between realised AC and firm performance. This study applied the AC theory to internal auditing to provide insights. The evidence also highlights the benefits of utilising information technology in internal auditing
Recognition of deferred tax assets practices and conservatism
No full textThe application of IAS 12 promotes a form of conservative accounting
practice, especially concerning the recognition of deferred tax assets
and liabilities. In this paper, we observe whether these conservative
practices are also evident in Malaysia. We examine one book-tax
difference that may have an impact on the adoption of IAS 12 in
Malaysia. This rule concerns the treatment of losses or allowances
under normal business operations (category I) and those types of
business that are granted tax incentives (category II). We propose that
companies are more conservative if they recognise less deferred tax
assets due to unabsorbed tax losses and allowances and vice versa.
We also identify whether any distinct patterns exist among industries
and auditor type with the recognition of deferred tax assets. Using
descriptive and inferential statistics, we analyse the recognition of
deferred tax assets practices for 880 public listed companies. Two
main conclusions can be made from the findings. Firstly, Malaysian
companies reflect a high degree of conservatism in their practices of
adopting FRS 112. Secondly, a further analysis shows that companies
in the Plantation, Properties and Construction Industry show significant
differences in their level of conservatism while Big-4 auditors also
show higher levels of conservatism
The role of competitiveness, gender and ethnicity in influencing academic performance
No full textThis study seeks to examine the impact of competition on student academic performance across different gender and ethnic groups. This study is based on real observations of the performance of 266 undergraduate Accounting students in taxation courses at the University of Malaya. It has been found that competition has different impacts on gender and ethnic groups. Prior to the introduction of the competition, this study found females outperformed males for both ethnic groups. The post competition results suggest academic performance among Chinese males significantly improved but not those of Bumiputera males. In the case of Bumiputeras, competition has widened the performance gap between males and females. This suggests that Chinese males are motivated by competition whilst no evidence exists to support the same effect among Bumiputra males. This result questions the motivational effects of competition toward improving the academic performance of male Bumiputeras which may suggest that the new generation of Bumiputeras is moving away from a patriarchal society
The mediating effect of tax fairness on the relationship between knowledge, complexity and voluntary tax compliance
No full textThis study aims to examine the mediating role of tax fairness on the relationship between tax knowledge, tax complexity,and voluntary tax compliance. Based on 200 samples of taxpayers, it is found that tax knowledge increases tax fairness perceptions, which,consequently,increasestax compliance behaviour. Similarly, tax fairness perceptions do not reduce the tax compliance directly, but indirectly through the role of tax fairness perceptions. This implies that tax authorities should not only focus on introducing or developing tax rules that are fair to the taxpayers but be able to communicate the rationale of a tax rule in the context of how it permeates fairness into the tax system for certain classes of taxpayers. Our study found that,in situations where tax simplification is not possible, this form of information dissemination could lead to better compliance among taxpayers
The relationship between taxation and financial reporting, with special references to the case of Malaysia
No full textEThOS - Electronic Theses Online ServiceGBUnited Kingdo
Tax aggressiveness and negotiations: A conceptual paper
No full textNegotiation is a pervasive feature of relationships among auditor-clients, buyer-sellers, as well as being a part of tax audits.Various forms of negotiations occur between the taxpayer and the tax authorities but nothing is mentioned in the literatures on the processes and procedures of how both parties arrive at a settlement that is amicable to both parties.This study reviews the literature on how concession timing negotiation strategies adopted by the tax authorities and the tax practitioners’
aggressiveness impact negotiation outcomes
Sustainability Balanced Scorecard Architecture and Environmental Investment Decision-Making
No full textThis study is centered around a set of research questions that aim to explain how sustainability balanced scorecard architectures with sustainability parameters either embedded or treated as a separate perspective relate to environmental investment decision-making. The research also examines the mediating role of sustainability balanced scorecard knowledge and moderating role of strategic risk information. This article presents the results and answers to the research questions via conducting an experimental study approach using a two-factor factorial design. This is possibly the first study that determines, through an experimental procedure conducted with managers working in large manufacturing companies, whether any significant difference exists in environmental investment decision outcomes when decision-makers are presented with either an architecture where sustainability is embedded with the traditional four perspectives of balanced scorecards versus when it is presented as a separate fifth perspective. Furthermore, the development of an integrated model is possibly a significant contribution to the extant literature
Sharīʿah non-compliant income disclosures and the moral legitimacy strategies of Islamic banks
No full textPurpose – The purpose of this study is to understand the reasons behind the different patterns of Sharīʿah
non-compliant income (SNCI) disclosures amongst Islamic banks and, in particular, the extent to which
Islamic banks make SNCI disclosures. The process involved in gaining and maintaining moral legitimacy
forms the framework for this study.
Design/methodology/approach – Interviews were conducted with managers of Islamic banks involved
in the reporting of SNCI in company annual reports.
Findings – The interview findings show that Islamic banks prefer to use procedures to gain and enhance
moral legitimacy amongst their customers, business partners and staff. The constraints and challenges that
Islamic banks face in SNCI reporting make this a popular means of securing moral legitimacy. However, these
practices may not lead to enhanced and more communicative SNCI disclosures by Islamic banks.
Originality/value – To the best of the authors’ knowledge, this is the first study that explains the motivations
behind SNCI reporting by Islamic banks and frames these motivations under the moral legitimacy framewor
