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Article
Publication date: 7 November 2016

Marziana Madah Marzuki, Effiezal Aswadi Abdul Wahab and Hasnah Haron

This paper aims to investigate whether the revised Malaysian Code on Corporate Governance in 2007 enhances earnings conservatism. In addition, the authors examine the…

Abstract

Purpose

This paper aims to investigate whether the revised Malaysian Code on Corporate Governance in 2007 enhances earnings conservatism. In addition, the authors examine the relationship between board of directors’ expertise and conservatism. The third objective is to investigate the relationship between audit committee characteristics and earnings conservatism.

Design/methodology/approach

The sample of this study is based on 3,183 firm-year observations for a period of 2004-2009. The authors hand collected the corporate governance variables, whereas the remaining data were extracted from Compustat Global. The authors used two measures of conservatism. The first is the market-based model by Basu’s (1997), and the second measure is the accrual-based measure by Ball and Shivakumar (2005).

Findings

The authors find that the revision of Malaysian Code on Corporate Governance 2007 results in improving earnings conservatism. The authors find two audit committee characteristics, namely, audit committee financial expertise and independence increase earnings conservatism, after 2007. However, the authors could not find support whether board financial expertise mix affect conservatism.

Research limitations/implications

This study did not consider other possible corporate governance variables that could influence earnings conservatism, as it would be a difficult task to gather them.

Originality/value

The authors provide evidence on the role of corporate governance and earnings conservatism in Malaysia.

Details

Accounting Research Journal, vol. 29 no. 4
Type: Research Article
ISSN: 1030-9616

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Article
Publication date: 8 February 2021

Ika Sari Wahyuni-TD, Hasnah Haron and Yudi Fernando

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

Abstract

Purpose

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

Design/methodology/approach

A theoretical model was developed based on stakeholder theory, and data were collected from Indonesian Zakat institutions through convenience sampling design. In total, 142 data sets were analysed using partial least squares-structural equation modelling statistical software.

Findings

The results showed that good governance and fraud prevention significantly impact the performance of Zakat institutions. Yet, there was no significant influence of the fairness principle of good governance on Zakat performance in either direct or indirect relationships with fraud prevention.

Practical implications

The results indicated that Zakat institutions as trusted agencies should pay more attention to fairness implementations to avoid fraud. Furthermore, fairness is an early signal that accountants can use to detect either fraudulent or mismanaged Zakat distribution.

Originality/value

This paper provides the empirical justification for a theoretical model of Zakat performance that was conceptualized using good governance principles and Sharīʿah forensic accounting principles.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 4
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 8 May 2017

Azam Abdelhakeem Khalid, Hasnah Haj Haron and Tajul Ariffin Masron

This paper aims to examine the characteristics influencing internal Shariah audit effectiveness in Islamic financial institutions (IFIs) in Bahrain.

Abstract

Purpose

This paper aims to examine the characteristics influencing internal Shariah audit effectiveness in Islamic financial institutions (IFIs) in Bahrain.

Design/methodology/approach

Data were collected from 76 internal Shariah auditors, 23 Shariah supervisory board and 16 audit and governance committee from 52 IFIs in Bahrain. The data were analyzed using structural equation method via SmartPLS 2.0 to examine the relationship between characteristics and effectiveness of internal Shariah audit.

Findings

It was found that competency and work performance were positively significant with internal Shariah audit effectiveness. The findings revealed that the main competency of internal Shariah audit to influence effectiveness were to have professional certification and skills, while work performance to influence effectiveness were engagement planning, performing the engagement and communicating results with management and having sufficient information to provide sound opinion formed by Shariah audit.

Originality/value

From the research perspective, this is the first study that examines the relationship between internal Shariah audit characteristics and its effectiveness in Bahraini IFIs.

Details

Humanomics, vol. 33 no. 2
Type: Research Article
ISSN: 0828-8666

Keywords

Content available
Article
Publication date: 24 August 2021

Wan Zurina Nik Abdul Majid, Effiezal Aswadi Abdul Wahab, Hasnah Haron, Dian Agustia and Mohammad Nasih

The study examines the relationship between nonaudit services (NAS) and accruals quality in Malaysia. The study also considers several important characteristics of audit…

Abstract

Purpose

The study examines the relationship between nonaudit services (NAS) and accruals quality in Malaysia. The study also considers several important characteristics of audit committee as the determinant for accruals quality. Next, the study examines whether these characteristics mitigate the relationship between NAS and accruals quality.

Design/methodology/approach

The study employs descriptive analysis, univariate tests and multivariate regression to investigate the potential effect of NAS on acruals quality. Data for audit committee characteristics were hand collected from annual reports downloaded from Bursa Malaysia's website.

Findings

Based on 1,118 firm-year observations for the period 2009–2011, the study finds that NAS negatively impact accruals quality. This empirical result indicates that the economic bond that is created between auditors and clients restricts the auditors from performing their duty objectively. A fully independent audit committee weakens the negative relationship between NAS and auditor independence.

Research limitations/implications

The sample period represents a limitation since it only covers three years of data. This limitation is largely driven by the nature of data collection of NAS fees.

Practical implications

These results contribute to Malaysia's policy deliberation to account for the effects of NAS on auditor independence and the oversight role of an audit committee. This study contributes to theoretical perspectives on accruals quality and corporate governance in Malaysia.

Originality/value

The novelty of this research, coupled with institutional data in Malaysia, claims the originality of this research.

Details

Asian Journal of Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2443-4175

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Article
Publication date: 5 September 2020

Yee Xing You, Suzana Shahar, Hasnah Haron, Hanis Mastura Yahya and Normah Che Din

Aging adults from low-income residential areas were found to have poor nutritional status and mental health based on National Health and Morbidity Survey Malaysia (2015)…

Abstract

Purpose

Aging adults from low-income residential areas were found to have poor nutritional status and mental health based on National Health and Morbidity Survey Malaysia (2015). Good nutrient intake contributes positively in averting these problems. Traditional Asian vegetables (ulam) are rich in polyphenols, antioxidants and fibres which could enhance nutritional status and mood state. This study intended to determine the relationship between habitual ulam intake and nutritional status, mood state and cognition among 252 aging Malaysian adults aged 45–80 years from the low-income residential areas in Klang Valley, Malaysia.

Design/methodology/approach

It was a cross-sectional study that used convenient sampling. Advertisement and invitation letters were sent to three selected community centres in Klang Valley prior to data collection. Informed consent was obtained prior to the collection of socio-demographic data. Anthropometric measurement was performed as per standard protocols. Validated surveys were conducted to obtain information on ulam consumption, mood state and cognitive status using validated food frequency questionnaires, Profile of Mood State and Mini-Mental State Examination questionnaires, respectively.

Findings

The average of ulam intake was 20.5 ± 2.5 g/day (½ serving daily). Habitual ulam intake was associated with lower waist circumference (R2 = 0.166, β = −0.216, p < 0.01), better MMSE scores (R2 = 0.337, β = 0.128, p < 0.05), less anger (R2 = 0.081, β = −0.116, p < 0.05), less tension (R2 = 0.139, β = −0.204, p < 0.01) and positive total mood disturbance (R2 = 0.095, β = 0.164, p < 0.05) after adjustment for gender, age, energy intake, total fruits and vegetables (non-ulam) consumption. The ulam intake at 100th percentile (=30g/day) associated to a better nutritional status, mood state and cognitive status in comparison to 25th percentile (<7.9 g/day) (p < 0.05).

Originality/value

Findings from this research would recommend people to consume not less than 1 serving of ulam everyday in order to have improved nutritional status, mood and cognition; nonetheless, future studies are required to clarify the causal mechanism concerning this relationship.

Details

British Food Journal, vol. 122 no. 10
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 5 March 2018

Azam Abdelhakeem Khalid, Hasnah Haron and Tajul Ariffin Masron

The purpose of this paper is to propose the conceptual relationship between competency and effectiveness of internal Shariah auditors in Islamic financial institutions (IFIs).

Abstract

Purpose

The purpose of this paper is to propose the conceptual relationship between competency and effectiveness of internal Shariah auditors in Islamic financial institutions (IFIs).

Design/methodology/approach

Normative and theorizing based on the main sources of Islam, mainly Maqasid al-Shariah theory, has been utilized in this research.

Findings

This study demonstrated how Maqasid al-Shariah or higher objectives of Islamic law have gradually captured the attention of increasing numbers of modern Muslim scholars for solving contemporary issues.

Originality/value

This study uniquely captured Maqasid al-Shariah for the competency of internal Shariah auditor.

Details

Journal of Islamic Accounting and Business Research, vol. 9 no. 2
Type: Research Article
ISSN: 1759-0817

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Book part
Publication date: 17 July 2014

Roshima Said, Mazlifa Md. Daud, Leily Adja Radjeman and Noridah Ismail

The number of Shari’ah Compliant companies is tremendously increasing year by year in Malaysia. In an attempt to win the trust and confidence of its Muslim investors and…

Abstract

Purpose

The number of Shari’ah Compliant companies is tremendously increasing year by year in Malaysia. In an attempt to win the trust and confidence of its Muslim investors and stakeholders, the Shari’ah Compliant companies must portray their sincerity and earnestness in complying with Islamic values which may have implications on winning the trust of Muslim investors largely from oil-rich Arab Gulf Region which have flush of funds currently. Thus, the purpose of the study is to gauge the extent of the corporate ethical identity (CEI) that is being incorporated by the Shari’ah Compliant companies in Malaysia.

Design/methodology/approach

This study used the content analysis to develop CEI by adding all the items covering the four themes, which were underlying philosophy and values, interest-free and Islamically acceptable activities, developmental and social goals and environment theme. This CEI index was developed by using the dichotomous, which the score of ‘1’, if the company disclose the items and ‘0’, if it is not. The process will add all the scores and equally weighted.

Findings

The study showed that the level of communicated ethical identity disclosed in annual reports of Shari’ah Compliant companies for the year ended 2008 is relatively low with average of 23.66%. Overall, the findings of the study showed that the Shari’ah Compliant companies revealed more communicated ethical identity on Theme 1 (underlying philosophy and values) in the annual reports for the year ended 2008. In addition, in the year 2008, the findings showed that the dimension of developmental and social goals has the most influence towards the ethical identity index of Shari’ah Compliant companies.

Research limitations/implications

The source of data in this study is limited to companies’ annual report. In other words, the extent of communicated ethical identity index is constructed limited to company’s annual report. The study has shown that annual reports is not the only means or medium of disclosure. Hence, studying other forms of disclosure on communicated ethical identity could possibly complement and add value to any investigation on the nature and extent of communicated ethical identity through annual reports in the future.

Practical implications

The study is expected to alert the Securities Commission with regard to the definition of Shari’ah Compliant companies which should not just include ‘good public perception and image company’ but also the extent of the application of Islamic values in the conduct of their businesses.

Originality/value

The study provides a new benchmark of an ideal Islamic communicated CEI index based on Shari’ah principles and also past literatures. The study developed a checklist from preliminary checklist with 88 items based on Berrone, Surroca, and Tribo (2005), Haniffa and Hudaib (2007) and Roshima, Yuserrie and Hasnah (2009). In order to develop the checklist, the researchers also look on the definition of Islamic ethics defined by Khan (2009).

Details

Ethics, Governance and Corporate Crime: Challenges and Consequences
Type: Book
ISBN: 978-1-78350-674-3

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Article
Publication date: 25 October 2011

Hasnah Kamardin and Hasnah Haron

This paper aims to examine the relationship between internal corporate governance mechanisms and board performance in monitoring roles.

Abstract

Purpose

This paper aims to examine the relationship between internal corporate governance mechanisms and board performance in monitoring roles.

Design/methodology/approach

A survey questionnaire was used to gather data on board performance, while annual reports were employed to gather data on internal corporate governance mechanisms. Data for board performance were based on 112 directors who represent the companies.

Findings

Factor analysis extracted two dimensions of monitoring roles: management oversight roles and performance evaluation roles. Non‐independent non‐executive directors and managerial ownership were found to be positively related to both dimensions of monitoring roles, while the multiple directorships of non‐executive directors were negatively related to management oversight roles.

Practical implications

The paper establishes the need for regulators to pay particular attention to multiple directorships, which are commonly practiced in public listed companies. The contribution of non‐independent non‐executive directors rather than independent directors in monitoring roles calls for further research. Regulators need to emphasize the performance evaluation roles of the board of directors (BOD), as much emphasis has been given to management oversight roles.

Originality/value

The study contributes to the literature concerning monitoring roles as it shows that management oversight roles and performance evaluation roles are differentiated. The findings provide an avenue for the contribution of non‐independent non‐executive directors and multiple directorships in monitoring roles.

Details

Journal of Financial Reporting and Accounting, vol. 9 no. 2
Type: Research Article
ISSN: 1985-2517

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Book part
Publication date: 18 April 2011

Roshima Said, Hilwani Hariri, Hasnah Haron and Yuserrie Hj. Zainuddin

Corporate social responsibility (CSR) is a concept that extends the traditional focus of business in achieving bottom-line results to triple bottom-line results and the…

Abstract

Corporate social responsibility (CSR) is a concept that extends the traditional focus of business in achieving bottom-line results to triple bottom-line results and the concept of sustainability that focus on economic, environmental and social performance. The Bursa Malaysia CSR Framework (2006) defined CSR as open and transparent business practices that are based on ethical values and respect for the community, employees, the environment, shareholders and other stakeholders. This CSR framework was designed to deliver sustainable value to the society at large.

Details

Governance in the Business Environment
Type: Book
ISBN: 978-0-85724-877-0

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Article
Publication date: 1 December 2004

Hasnah Haron, Andrew Chambers, Rozaldy Ramsi and Ishak Ismail

External auditors often rely on other professionals for the audit of the financial statements of their clients. Generally, external auditors rely on clients’ internal…

Abstract

External auditors often rely on other professionals for the audit of the financial statements of their clients. Generally, external auditors rely on clients’ internal auditors. Reliance on internal auditors results in cost savings to the client. The objective of this study is to determine which of the criteria as mentioned by AI 610 will be used by the external auditors to evaluate the work of the internal auditors. Respondents of the study consist of those from the big four and non‐big four firms located in Kedah and Penang. A one‐quarter replicate of 28 Kempthorne's design was used to determine the experimental task. The findings of the study indicate that technical competence and scope of function are the two most important criteria that external auditors consider in their reliance on internal auditors. Malaysian Institute of Accountants (MIA), being the standard setter of the auditing standards in Malaysia, will have to develop precise and operational criteria for these factors in planning the audits. The study also shows that there was consistency in audit judgement.

Details

Managerial Auditing Journal, vol. 19 no. 9
Type: Research Article
ISSN: 0268-6902

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