24 research outputs found
Accounting standard precision and incentive for revenue management / Lim Ying Zhee
No full textDespite the fact that accounting standards tend to be used as tools to legitimise questionable accounting decisions, it is essential to ensure that the standards provide a
proper level of prescription for guiding managers’ financial reporting decisions and minimising aggressive reporting. Drawing inferences from the newly issued IFRS 15, this
study examined the issues related to the inclusion of indicators in a set of principle-based standards. In addition, taking into consideration that incentives play an important role in the financial reporting process, given different levels of accounting standard precision
(principle, principle with indicators), the present study examined the moderating effect of different reported revenue trends (increasing, decreasing, and volatile) and credit rating downgrade types (notch, category) on revenue management through a 2x3x2 between subject experiment. The empirical results of the experiment show that the inclusion of indicators in a principle-based standard can constrain managers’ revenue management intentions. When a standard is less precise, the incentives of reported revenue trends and credit rating downgrades will moderate the manner in which the standard will be interpreted, making it easier for managers to engage in revenue management. The findings of this study not only extend the literature in the field of accounting standard precision and incentives, and their effects on aggressive reporting, they also provide useful insights for standard setters engaged in revisiting accounting standards in use
Corporate Governance And Social Reporting: A Study Of Public Listed Companies In Malaysia
No full textIn view of the various efforts undertaken by the Malaysian government to promote social disclosure, this study also examines the association between government controlled companies and the level of social reporting
The Influence of External Audit Quality on Discretionary Accruals and Real Earnings Management Practices: An Analysis of Malaysian Firms
No full textThis paper aims to analyse the mitigating effects of external audit quality (EAQ) factors on earnings management (EM) practices. Data were collected from firms listed on Bursa Malaysia’s main market, covering the years 2011 through 2022. Panel regression was employed to analyse the data. The findings of this study confirmed a significant negative association between audit reputation, audit quality, audit opinions, and EM of listed firms in Malaysia. Audit fees and audit tenure were found to be not significant in relation to EM. The study included five control variables in the analysis, and only economic value added (EVA) was found to be significant. The findings suggest that a number of audit quality factors are indicative of EM among listed firms. The authors extend, as well as contribute to, the growing literature on the EAQ, and therefore, wider corporate governance literature. Thus, it provides originality by presenting empirical evidence and outcomes to fully understand how discretionary accrual and real EM affect EAQ in the Malaysian context. Therefore, stakeholders should place higher concern on the selection of an external auditor, and investors should take into account the external audit factors when making investment decisions. Measuring the effectiveness of EAQ allows decision-makers to evaluate how effective employed governance measures are in improving shareholders’ perceptions of financial information quality and mitigating EM practice
Role of Credit Attitude on Credit Card Misuse: A Study of Malaysian Working Adults
No full textCredit card misuse, an issue resulting from preference over luxurious lifestyle, overvaluation of available funds, and imprudence over credit usage, is at its worrying trend. Prior studies have evidenced that credit card misuse tends to be associated with indebtedness and psychological problems. This study aims to make its contribution by examining the contributing factors of credit card misuse among Malaysian working adults and the potential mitigating factor of credit attitude in curbing such problem. With a sample of 250 Malaysian working adults, it is concluded that materialism and social norms have a positive relationship with credit card misuse. However, with proper credit attitude, it is helpful in mitigating the credit card misuse problem. The findings of the study provide useful insights to the relevant parties on the importance of credit attitude. Actions shall be taken in promoting proper credit attitude in the younger generations
Cybersecurity Awareness Among Youth: What’s Vital?
No full textThe advancement of modern science and technology has significantly changed the ways of living. Despite the fact that the internet is convenient for users, these advancements in technology have also led to tremendous cybercrime and scam cases globally. Internet users must be vigilant to protect themselves from cybercriminals and cyberattacks. It is reported that online scam cases are on an increasing trend in Malaysia and one of the contributing factors to such a problem is the lack of awareness of cybercrime with most of the online scam victims being those aged between 21 and 40 years old. With that, there are urges to enhance cybersecurity awareness among youth in Malaysia. This study aims to investigate the factors affecting cybersecurity awareness among youth in Malaysia. With the survey questionnaire sent to a sample of 200 youths between the ages of 15 to 30 years old in Malaysia, it is evidenced that security concerns and cybersecurity knowledge have a positive significant relationship with cybersecurity awareness. Financial literacy and subjective norms, on the other hand, have no significant relationship with cybersecurity awareness. This study contributes to the current literature on cybersecurity and practical perspective and provides useful insights into enhancing cybersecurity awareness among Malaysian youth
Impact of credit rating downgrades and tightness of accounting standards on earnings management in listed SMES
No full textDue to its nature, funding remains the main problem for listed small and mediumsized enterprises (SMEs) globally. To overcome such a problem, there is a trend of using credit rating as the benchmark to appraise funding opportunities and applications
in listed SMEs. As credit rating levels vary across time, subject to the performance of
the listed SMEs, changes in the credit rating levels might trigger attention from listed
SMEs, and actions might then be taken by the management to ensure that the credit
rating is at the desired level. Since the literature in this strand of study is limited, this
study aimed to examine the effect of credit rating downgrade and tightness of accounting standards on earnings management in listed SMEs. Employing a 2x3 betweensubjects experiment manipulating credit rating downgrades (category or notch) and
tightness of accounting standards (less tight, moderately tight, tight), it is evidenced
that credit rating downgrades, especially notch downgrades, lead to more earnings
management behaviors in the presence of a tight and less tight set of accounting standards. Different classifications of credit rating downgrades – notches and categories –
will have different implications for earnings management based on the extent to which
they are subject to external monitoring. As a practical matter, it is recommended that
regulators exercise equal monitoring regardless of whether credit rating downgrades
occur by category or notch
An Evaluation of Left and Right Brain Dominance using Electroencephalogram Signal
No full textThe left and right brain dominance theory has been
established for decades. Besides, the left and right brain
balancing education concept and training have also been
developed for years. Currently, the only way to determine a
person whether is left or right brain dominance is by making a
questionnaire assessment. There is no scientific data that can
directly reflect brain activity to prove the left and right brain
theory as well as the effectiveness of the left and right brain
development training. Hence, in this research, it is aimed to
determine whether the electroencephalography (EEG) signal
has any correlation with the brain dominance level. The brain
dominance level of the subject is determined and benchmarked
by using the Hermann Brain Dominance Instrument (HBDI)
test, a popular testing tool utilized by innumerable multinational
companies to determine employee’s brain dominance level. As
the captured raw EEG signal is complicated and noisy, several
preprocessing methods are utilized to eliminate the unwanted
noise and artifacts efficiently from the acquired signal. The
techniques are namely baseline correction method, electrical
line noise removal, and independent component analysis (ICA).
Besides, significant features can be hardly determined from the
time-based EEG signal with high complexity. Hence, the EEG
Topographical Power Spectral Density Percentage
(EEGTPSDP) method is implemented to analyze the EEG
signal. By using the results computed by EEGTPSDP method, it
proves that there is a strong correlation between the brain
dominance level and EEG power spectral density on one
hemisphere. Hence, this research is able to validate the left and
right brain dominance theory according to the EEG signal. The
implemented EEGTPSDP method can be used to classify the
dominant brain of a person. In this way, this research is able to
contribute to the education field by determining the students’
brain dominance level and track their learning progress based
on the EEG signal in a scientific approach
Ownership Structure and Earnings Management Practices: An Empirical Evidence
No full textThis paper aims to analyse the mitigating effects of ownership structure on earnings
management (EM) practices. Data were collected from firms listed on Bursa Malaysia’s
main market, covering the years 2011 through 2021. Panel Regression was employed to
analyses the data, with the aid of STATA software version 17. The finding of this study
confirmed significant negative association between foreign ownership (FOW) and EM
of listed firms in Malaysia. Additionally, managerial ownership (MOW) and ownership
concentration (OC) were found to be insignificantly related to EM. Similarly, the two
control variables included in the analysis, only firm size (FISZ) was found to be
significantly related to EM practices. Practically, this study offers an effective framework
for OC, MOW, FOW and EM to reduce executive manager's opportunistic behaviour.
The findings from this study supports the need for broader understanding so that
investors and other stakeholders can see through earnings reports and, as a result, make
informed contractual decisions, particularly when those decisions pertain to non-ownercontrolled firms. In addition, the study’s findings provide helpful information to
stakeholders in Malaysian listed companies on the value of FOW and it influence on EM
mitigation
Investors’ Perspective on the Impact Of IFRS Convergence on Malaysian Capital Markets
No full textInternational Financial Reporting Standards (IFRS) has become the global standards in producing high
quality, understandable and enforceable accounting standards. Malaysia have committed on full
convergence since the year of 2012. Since then, most of the prior studies in the field focused on the impact
of IFRS adoption on accounting or companies’ perspective. To complete the view, this study aims to
investigate the investor’s views on convergence with IFRS and how it would impact the Malaysian Capital
Market. By interviewing institutional investors, the findings of our study suggest that institutional investors
welcome the move of IFRS convergence in Malaysia and they are positive on such a move. The investors
agree that IFRS convergence will bring benefits to the Malaysia capital market. The convergence is helpful
in increasing the investors’ confidence when making investment decision making in the country. It is also
important to bring the financial reporting environment in the country to the international level
Nexus among disclosure quality, discretionary accruals and real earnings management practices: An empirical analysis of Malaysian public firms
No full textFollowing the financial crisis, business practice and regulatory have become much more interested in corporate disclosure on risk and risk management. The crises necessitate enhancing corporate governance (CG) processes, risk disclosure, reporting, and accounting. This paper aims to empirically analyze specific components of disclosure quality that could be associated with the likelihood of mitigating earnings management (EM) practices. The Bursa Malaysia website, Bloomberg, and the annual reports of the listed firms were utilized as the sources for the data. Descriptive statistics and GLS methods of panel regression were the analytical techniques used in the current investigation. Corporate data of the listed firms on Bursa Malaysia covering financial periods of 2011–2022 were used to examine the research hypotheses. The findings from the panel regression suggested that internal control system disclosure (ICSD) and intellectual capital disclosure (ICD) both have negative and significant associations to the likelihood of EM practices. However, the findings also established negative but insignificant relationships between corporate risk disclosure (CRD), corporate voluntary disclosure (CVD), and the likelihood of EM practices across the sample. This study has implications to companies striving to satisfy shareholders and attract potential investors. The authors add to the growing body of literature on quality disclosure to the larger body of CG literature. Additionally, the study is original as it is the first to consider four qualities (internal control system disclosure, corporate risk disclosure and corporate voluntary disclosure, and voluntary ICD in the Malaysian context of EM practices
