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Article
Publication date: 4 June 2018

Neilson Anak Teruki, Robert Ochoki Nyamori and Kamran Ahmed

The purpose of this paper is to understand and explain the financial disclosure processes among Malaysian local authorities (MLAs).

Abstract

Purpose

The purpose of this paper is to understand and explain the financial disclosure processes among Malaysian local authorities (MLAs).

Design/methodology/approach

Employing semi-structured interviews, data were collected from 26 members in five case study organisations, and interpreted using Gibbins et al. (1990, 1992) framework of financial disclosure.

Findings

The study finds that financial disclosure is influenced by a hierarchical structure consisting of accountants, the Financial Accounts Committee, the mayor and other managers. The decision to disclose or not disclose was influenced by how sensitive the issue was. External auditors and mediators influenced both the identification of issues, disclosure position and disclosure output. Though there are many laws governing financial accounting, MLAs opportunistically chose to apply the Federal Treasury Circular largely because the external auditors used it.

Research limitations/implications

This study contributes to the literature by illuminating who makes disclosure decisions, what influences these decisions and how. The study reveals hitherto un-researched contextual factors that affect disclosure, namely, religion and external auditors and the opportunistic choice of which laws and regulations to apply in financial disclosure. Future studies might want to apply this approach in other contexts to see what we can learn from them.

Originality/value

Using case studies in the study of financial disclosure provided valuable insights into the complex and multi-dimensional phenomenon of financial information disclosure. The application of Gibbins et al. (1990, 1992) framework in the public sector and in Malaysia is novel.

Details

International Journal of Public Sector Management, vol. 32 no. 1
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 18 September 2009

Soon‐Yau Foong and Neilson Anak Teruki

The purpose of this paper is to investigate the relationship between cost‐system functionality and the performance of oil‐palm enterprises in Malaysia, as well as whether…

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Abstract

Purpose

The purpose of this paper is to investigate the relationship between cost‐system functionality and the performance of oil‐palm enterprises in Malaysia, as well as whether manager's perceived usefulness of cost information mediates the cost‐system functionality‐performance relationship.

Design/methodology/approach

A structured questionnaire is used to gather data from oil‐palm enterprises located in Sarawak.

Findings

The results indicate that the cost relevance/timeliness dimension of cost‐system functionality significantly enhances the performance of oil‐palm enterprises. However, manager's perceived usefulness of cost information only partially mediates the cost‐system functionality‐non‐financial performance relationship, and this is possibly due to the nature of control over the estate operations by the head office.

Research limitations/implications

Owing to the small‐sample size and because the oil‐palm enterprises are located only in Sarawak, the generalisability of the results may be limited. Besides, the findings are based on the estate setting whereby decisions made are relatively structured and therefore, they may not apply in less‐structured decision‐making settings.

Originality/value

Past findings on the causal link between cost‐system functionality and performance are mixed. However, high‐functional cost systems are expected to be more cost beneficial when environment is highly uncertain. The palm oil industry operates in a highly turbulent economic environment due to serious external challenges and it is expected to benefit from high‐functional cost systems. Unlike previous studies based on firms from diverse industries, the operational homogeneity of the oil‐palm enterprises in this paper enables the effects of cost‐system functionality on performance to be examined in a more controlled setting. By analyzing the attributes of cost‐system functionality into two major dimensions, this paper shows that performance could be enhanced only through provision of relevant and timely cost information.

Details

Asian Review of Accounting, vol. 17 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

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