Search results

The purpose of this study is to examine the relationship between board ethical commitment and the performance of the company. When directors embed ethics in discharging their duty, it will prohibit frauds, unnecessary actions and decisions that are detrimental to the company.

This study collected data for two years i.e. 2013 and 2014 from the annual report of the biggest 500 companies by market capitalisation as of 31 December 2013 listed under Bursa Malaysia stock exchange. Board ethical commitment is measured based on the Malaysian Code of Corporate Governance (MCCG) and various international best practices while corporate performance is measured based on return on equity, return on assets, net profit margin, market to book value and TobinQ.

This study found that ethical commitment by the board has a significant positive relationship with corporate performance. The findings are robust to the alternative performance measurements and lagged one-year corporate performance.

This paper enhances the theoretical understanding of the contribution of the board of ethical commitment to the sustainable performance of the company. However, this study suffered from a limited data collection period of two years only from the annual report of the company.

This study provides an indicator that the directors need to provide a good ethical leadership example to the employees and committed to built a good ethical work culture in the organisation via establishment of code of ethics. In addition, this code needs to be promoted, enforced and embedded in the operations of the organisation.

This study is original as it not only examines board ethical commitment from MCCG 2012 but also international best practices from various countries such as UK, USA and Europe. It also contributed to the literature and theoretical understanding of the importance of board ethical commitment specifically in developing countries like Malaysia that scarce in the literature.

The purpose of this paper is to examine the relationship between corporate governance and company performance and how a board’s ethical commitment can influence this relationship. Prior studies documented mixed evidence on the corporate governance and corporate performance relationship, which can be due to the influence of a board’s ethical commitment and will shape the corporate governance mechanism in the company and, in turn, influence performance.

This study collected data for two years, i.e. 2013 and 2014, from the biggest 500 Malaysian companies listed in the stock exchange. Corporate governance is measured based on the requirements of the Malaysian Code of Corporate Governance (MCCG), while a board’s ethical commitment is measured based on the MCCG and various international best practices. Corporate performance is measured based on return on equity, return on assets, net profit margin, market-to-book value and TobinQ.

A board’s ethical commitment was found to be significant in increasing the strength of the relationship between corporate governance and corporate performance. The findings are robust to the alternative performance measurements and lagged one-year corporate performance.

This paper provides further evidence on the importance of ethical practices to improve corporate environment and, hence, sustain a company’s performance. This study, however, was conducted on only large companies with a limited data collection period.

This study provides an indicator that the policymaker and regulatory authorities need to double their efforts in promoting and encouraging a board of directors to take a bold step in improving its ethical culture. Shareholders and investors need to use their power and rights to demand the company to improve their governance and ethical practices.

This study is original, as it measures a board’s ethical commitment from various sources of local and international best practices such as Malaysia, Australia, Canada, Norway, South Korea, Singapore, Sweden, Turkey, the UK and the USA. It also contributes to the literature and theoretical understanding of the interaction between a board’s ethical commitment and corporate governance on corporate performance, particularly in developing countries like Malaysia, which is scarce in the literature.

Two disastrous Tsunamis, one on the west coast of Sumatra Island, Indonesia, in 2004 and another in North East Japan in 2011, had seriously destroyed a large number of bridges. Thus, experimental tests in a wave flume and a fluid structure interaction (FSI) analysis were constructed to gain insight into tsunami bore force on coastal bridges.

Various wave heights and shallow water were used in the experiments and computational process. A 1:40 scaled concrete bridge model was placed in mild beach profile similar to a 24 × 1.5 × 2 m wave flume for the experimental investigation. An Arbitrary Lagrange Euler formulation for the propagation of tsunami solitary and bore waves by an FSI package of LS-DYNA on high-performance computing system was used to evaluate the experimental results.

The excellent agreement between experiments and computational simulation is shown in results. The results showed that the fully coupled FSI models could capture the tsunami wave force accurately for all ranges of wave heights and shallow depths. The effects of the overturning moment, horizontal, uplift and impact forces on a pier and deck of the bridge were evaluated in this research.

Photos and videos captured during the Indian Ocean tsunami in 2004 and the 2011 Japan tsunami showed solitary tsunami waves breaking offshore, along with an extremely turbulent tsunami-induced bore propagating toward shore with significantly higher velocity. Consequently, the outcomes of this current experimental and numerical study are highly relevant to the evaluation of tsunami bore forces on the coastal, over sea or river bridges. These experiments assessed tsunami wave forces on deck pier showing the complete response of the coastal bridge over water.

The purpose of this paper is to examine two factors which influence auditor change: audit and client firms’ characteristics, for Malaysian listed companies. Given the costs involved, it is important to understand the reasons why companies change their auditor and choose a particular level of audit assurance.

This study evaluates the effects of various independent variables on auditor change behaviour and the sensitivity of results to alternative period measurement by using logistic regression analysis.

An examination of 400 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange‐KLSE) over a period of 18 years reveals auditor change to be significantly influenced by client firm's characteristics, notably changes in management, size of the client firm, complexity, and client's firm growth, lending support to the findings of previous survey studies.

In the cause of brevity, a number of potentially important variables, that might enhance an understanding of auditor change behaviour in Malaysia, were not incorporated in the regression models, and might be considered in future studies.

The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia.

The purpose of this paper is to examine the impact of ethnicity on auditor choice for Malaysian listed companies.

This study evaluates the effects of various independent variables on auditor choice behaviour, particularly ethnicity of auditor and ethnicity of management, using a logistic regression analysis approach for 300 companies listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange‐KLSE) over an 18 year period.

Auditor choice is shown to be significantly influenced by client firm's characteristics, notably changes in management, complexity, and financial risk, lending support to the findings of previous survey studies. Ethnicity was found to be a significant factor influencing auditor choice only for auditor switches between non‐Big 4 and Big 4 firms.

A number of important variables such as corporate governance characteristics, audit fees, client size, and growth that might enhance an understanding of auditor choice behaviour in Malaysia were not incorporated in the regression models, and might be considered in future studies.

The results presented in the paper have important implications for both the auditing profession and regulators in Malaysia.

The quality of the opinion provided by audit firms is an important determinant of their long‐term survival, but audit quality is difficult to gauge, which makes it particularly sensitive to the behaviour of the individuals who carry on audit work. This paper seeks to identify the incidence of dysfunctional audit behaviours and audit quality reduction behaviours, actions taken by an auditor during engagement that reduce evidence‐gathering effectiveness.

The paper is based on a survey of 244 auditors working in small/medium and big audit firms in Malaysia.

The paper identifies key variables leading to dysfunctional audit behaviour.

The paper is subject to the normal limitations associated with survey research.

The paper provides basic empirical evidence of a potentially serious risk of dysfunctional behaviours that may impair audit quality.

The paper provides empirical evidence to address the concerns of the Malaysian regulatory authorities regarding audit quality.

The purpose of this paper is to empirically test the association between two ethnic groups: Bumiputera directors and Chinese directors, on the incidence of accounting conservatism.

A panel data analysis of financial statement data was conducted for 300 Malaysian listed firms between 2001 and 2007.

The analysis shows that the ethnic groups influence the adoption of conservatism, but that the evidence is mixed, implying that there could be factors other than ethnicity which explained the directors’ behaviour.

The results provide a useful input to the proponents of harmonisation in financial reporting, in that Malaysian financial reports do not appear to be influenced by the ethnicity of participating groups.

This is the first paper to measure empirically the impact of ethnicity on the incidence of accounting conservatism.

The purpose of this paper is to investigate individual or personal factors contributing to individual auditor differences in acceptance of dysfunctional audit behaviour (DAB). Dysfunctional behaviour and staff turnover are associated with decreased audit quality, and is characterised as premature sign‐off, gathering of insufficient evidence, accepting of weak client explanation, altering or replacing the audit procedures, and under‐reporting of time, and have negative effects on the auditing profession. In this study the organizational behaviour and industrial psychology literatures provide the basis for the development and testing of an individual factors’ model of DAB.

Using path analysis for direct and indirect effects, survey results from registered Audit Managers are used to provide support for an explanatory model.

Overall, results indicate that auditors who are more accepting of dysfunctional behaviour tend to possess an external locus of control and exhibit higher turnover intentions.

These results suggest that individual factors play a role in identifying those who are more accepting of dysfunctional behaviour. The results can be useful in the operational and management control mechanism of human and social developments relating to dysfunctional behaviour issues.

This study aims to identify the negotiation parameters of needs for Halal talents in Malaysia and proffer solutions on the sustainability of halal talents in Malaysia.

A focus group discussion was performed among seven Halal talents from the industries of various schemes. Using the theory of inventive problem solving (TRIZ) analysis approach, a functional model, as well as causes and effect analysis, is generated by the participants. The model is translated into a contradiction matrix to obtain the necessary solutions in developing a sustainable framework for Halal Talents in Malaysia.

The cause-and-effect analysis reveals that poor career path, lack of training and poor salary structure are experienced by the participants.

Having had vast categories of halal industries, this research focuses on nine schemes under halal certification JAKIM which excludes banking and tourism.

It is suggested that the implementation of mutual benefits should be in place to enhance positivism among Halal talents in the near future.

Unlike the social science approach, the use of TRIZ analysis provides a substantial framework of sustainability among halal talents in Malaysia.