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Article
Publication date: 31 July 2021

Ainul Huda Jamil, Zuraidah Mohd Sanusi, Najihah Marha Yaacob, Yusarina Mat Isa and Tarjo Tarjo

The purpose of this paper is to provide a conceptual discussion and analysis of the Covid-19 impact on financial crime and regulatory compliance. The analysis is conducted to make…

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Abstract

Purpose

The purpose of this paper is to provide a conceptual discussion and analysis of the Covid-19 impact on financial crime and regulatory compliance. The analysis is conducted to make a comparison of the financial crime and regulatory compliance patterns before and after the Covid-19 pandemic occurred.

Design/methodology/approach

This paper contextualises the impact of Covid-19 on financial crime and regulatory compliance. Moreover, this paper explores different ways of conceptualising the Covid-19 impacts in terms of financial crimes and regulatory compliance patterns based on the surveys by PricewaterhouseCoopers and Deloitte.

Findings

The Covid-19 pandemic has brought both challenges and opportunities to financial crime and regulatory compliance. In the aspects of financial crime patterns, this study found a reduction in physical crime whilst on the other hand increment in cybercrime. Nevertheless, this study discovered regulatory compliance not at a satisfactory stage even before the Covid-19 pandemic, let alone during the pandemic.

Practical implications

This study implies that the financial institutions must work together to combat the risks of financial crimes, not only amongst the institutions but also with the regulators. Digitalisation and robust risk management need to be improved at a massive level to beat the criminals’ high fintech skills and systems. The initiatives of fund packages from the governments to assist the companies especially the small firms need to be fully used by the companies to improve regulatory compliance.

Originality/value

Whilst some studies discussed the impact of Covid-19 on the economy, there are still scarce resources on the comparative analysis on the financial crime and regulatory compliance, not to mention the before and after effect of the Covid-19 pandemic. This is the first paper to integrate the issues surrounding the Covid-19 impact, financial crimes and regulatory compliance in Malaysia.

Details

Journal of Financial Crime, vol. 29 no. 2
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 15 January 2018

Zuraidah Mohd Sanusi, Takiah Mohd Iskandar, Gary S. Monroe and Norman Mohd Saleh

The purpose of this paper is to examine the effects of self-efficacy, goal orientation and task complexity on audit judgement performance in correctly linking audit procedures to…

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Abstract

Purpose

The purpose of this paper is to examine the effects of self-efficacy, goal orientation and task complexity on audit judgement performance in correctly linking audit procedures to audit objectives and types of misstatements.

Design/methodology/approach

The authors conducted an experiment audit with 154 auditors from small and medium audit firms in Malaysia as participants. The experimental task required them to link audit procedures to audit objectives and types of misstatements.

Findings

For sample of auditors from small and medium audit firms in Malaysia, the authors found that learning goal orientation has a stronger effect on audit judgement performance than performance-approach and performance-avoidance goal orientations. Self-efficacy mediates the effect of goal orientation when an audit task is less complex compared to when the task is more complex.

Research limitations/implications

These results highlight the importance of social cognitive factors in explaining variations in audit judgement performance for audit judgement tasks with different levels of complexity.

Originality/value

The incorporation of individual psychological differences as explanatory variables in audit judgement studies may lead to a better understanding of auditors’ judgement and decision-making processes in small and medium audit firms located in developing economies.

Details

Accounting, Auditing & Accountability Journal, vol. 31 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 11 September 2017

Effiezal Aswadi Abdul Wahab, Akmalia M. Ariff, Marziana Madah Marzuki and Zuraidah Mohd Sanusi

The purpose of this paper is to examine the relationship between political connections and corporate tax aggressiveness in Malaysia. In addition, this paper investigates the…

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Abstract

Purpose

The purpose of this paper is to examine the relationship between political connections and corporate tax aggressiveness in Malaysia. In addition, this paper investigates the relationship between corporate governance variables and corporate tax aggressiveness. Next, the study investigates the mitigating role of corporate governance in the relationship between political connections and corporate tax aggressiveness.

Design/methodology/approach

The sample of this study is based on 2,538 firm-year observations during the 2000-2009 periods. This study employs a panel least square regression with both period and industry fixed effects. The study retrieved the corporate governance variables from the downloaded annual reports, whilst the remaining data were collected from Compustat Global.

Findings

This study finds that politically connected firms are more tax aggressive than non-connected firms. Furthermore, the study finds that large board size decreases the likelihood of tax aggressiveness and a non-linear relationship exists between institutional ownership and tax aggressiveness suggesting increase in monitoring as the ownership increases. However, the study finds no evidence to suggest that corporate governance mitigates the influence of political connections in promoting tax aggressiveness behavior. The findings suggest that the impact of political connections could outweigh the benefits of changes in corporate governance in Malaysia.

Research limitations/implications

The data are not recent, but it reflects a rather longitudinal research period.

Originality/value

This paper extends the literature of tax research in Malaysia which is in its’ infancy stage. Furthermore, it investigates the role of political connections in tax-planning research.

Details

Asian Review of Accounting, vol. 25 no. 3
Type: Research Article
ISSN: 1321-7348

Keywords

Article
Publication date: 8 March 2022

Ainul Huda Jamil, Zuraidah Mohd-Sanusi, Yusarina Mat-Isa and Najihah Marha Yaacob

This paper aims to provide an empirical analysis of the effects of regulatory enforcement and customer risk determinants on money laundering risk judgment. The study further…

Abstract

Purpose

This paper aims to provide an empirical analysis of the effects of regulatory enforcement and customer risk determinants on money laundering risk judgment. The study further explores the moderating impact of regulatory enforcement on compliance officers in the banking and money service business (MSB) sectors. The analysis is conducted to find the important factors that contribute to the issues of risk judgement among compliance officers to establish effective anti-money laundering (AML) and countering financing of terrorism compliance at the financial institutions, as highlighted in the National Risk Assessment Report 2017 by the Central Bank of Malaysia.

Design/methodology/approach

An experimental study with four different scenarios of case studies distributed to 124 compliance officers at the banking and MSB sectors was conducted via online platforms. The paper uses a quantitative approach via structural equation modelling.

Findings

The result shows a significant effect of customer risk determinants and regulatory enforcement on money laundering risk judgement, taking into account competency as the control measure. A further test on the interaction effects of both determinants shows a significant result on the money laundering risk judgement. The empirical evidence indicated that regulatory enforcement influenced compliance officers’ money laundering risk judgement and suspicious transaction report submission. In other words, the banking and MSB sectors’ AML compliance significantly depends on the regulators’ enforcement activity.

Research limitations/implications

This study is limited to two independent variables: regulatory enforcement and customer risk determinants. Future studies may consider other factors affecting compliance officers’ money laundering risk judgement, such as technical competency, knowledge management, digitalization and technology and ethical issues.

Practical implications

This study provides several theoretical and practical implications. Emphasizing the excellent quality of judgement and, eventually, good quality of reporting the suspicious transactions will not be achieved merely from enforcing fines and punishment, but comprehensive measures must be taken. Increasing the competency and training, educating the compliance officers, supporting the industry and practitioners with incentives and digitalization, enhancing the campaign and awareness among the public and standardizing the policy shall be the good initiatives for the regulatory enforcement to establish.

Originality/value

This paper provides a valuable contribution to the body of knowledge and fulfills the significant gaps in the literature on money laundering, not to mention, the integration between behavioural studies and anti-money laundering compliance, which has scarcely been statistically evident from the research studies.

Details

Journal of Money Laundering Control, vol. 26 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

Open Access
Article
Publication date: 15 October 2020

Soheil Kazemian, Hadrian Geri Djajadikerta, Saiydi Mat Roni, Terri Trireksani and Zuraidah Mohd-Sanusi

This study aims to examine the three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, which influence the…

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Abstract

Purpose

This study aims to examine the three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, which influence the accountability in the financial and social performance of tourism operators in large touristic cities.

Design/methodology/approach

In total, 95 usable questionnaires as the required data were collected from the top managers of four- and five-star hotels in Iran.

Findings

Partial least squares (PLS) results confirm that customer orientation and inter-function coordination influence both the financial and social performance of the hospitality sector yet reveal that competitor orientation has no significant relationship with social performance.

Research limitations/implications

These findings not only highlight the compatibility of PLS with various forms of statistical analyzes but also furthers the current understanding of hospitality networks in megacity economies, where literature are scarce.

Practical implications

The findings of this study can help policymakers, tourism associations and practitioners enhance the accountability and sustainable financial and social performance of the hospitality industry in megacities. This study proposes some unique measurements for the social and financial performance of the hospitality sectors.

Originality/value

The paper states some new measurements for the social performance of the hospitality sectors. In addition, measuring the impacts of market orientation on the financial and social aspects of hotels is totally unique.

Details

Society and Business Review, vol. 16 no. 2
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 18 May 2012

Takiah Mohd Iskandar, Ria Nelly Sari, Zuraidah MohdSanusi and Rita Anugerah

The purpose of this study is to examine the mediating effect of effort on the relationship between both accountability pressure and self‐efficacy, and auditors' performance.

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Abstract

Purpose

The purpose of this study is to examine the mediating effect of effort on the relationship between both accountability pressure and self‐efficacy, and auditors' performance.

Design/methodology/approach

The paper uses a between‐subjects experimental research design with accountability pressure manipulated randomly to two groups, accountable and non‐accountable. Each participant is required to perform internal control tasks.

Findings

Based on partial least square (PLS) analysis, results indicate that both variables, i.e. accountability pressure and self‐efficacy, are positively related to audit judgment performance through the process of high level of effort. High self‐efficacious participants who received accountability pressure would have high levels of effort, which in turn increase audit judgment performance.

Research implications/limitations

This study provides further evidence on the effect of motivational factors on auditors' performance. Understanding the mediating role of some motivational variables is crucial in designing a continuous development program to enhance auditors' performance. The proposed framework of effort as a mediating variable is consistent with Libby and Lipe and Chang et al., who argue that accountability pressure and self‐efficacy would cause individuals to increase their effort in order to perform better.

Originality/value

The paper contributes to the literature on motivational factors that would explain the variability in audit judgments in coping with complex audit tasks.

Details

Managerial Auditing Journal, vol. 27 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

Open Access
Article
Publication date: 20 March 2024

Marziana Madah Marzuki, Wan Zurina Nik Abdul Majid, Hatinah Abu Bakar, Effiezal Aswadi Abdul Wahab and Zuraidah Mohd Sanusi

This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the…

Abstract

Purpose

This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices.

Design/methodology/approach

The sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects.

Findings

This study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting.

Originality/value

This study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations.

Details

Asian Journal of Accounting Research, vol. 9 no. 2
Type: Research Article
ISSN: 2459-9700

Keywords

Article
Publication date: 30 August 2022

Soheil Kazemian, Hadrian Geri Djajadikerta, Terri Trireksani, Kazi Sohag, Zuraidah Mohd Sanusi and Jamaliah Said

This study aims to evaluate the practices of carbon management accounting (CMA) made by companies committed to sustainability in Australia’s four highest carbon-emitting…

Abstract

Purpose

This study aims to evaluate the practices of carbon management accounting (CMA) made by companies committed to sustainability in Australia’s four highest carbon-emitting industries, including electricity, transport, stationary energy and agriculture. The evaluation covers three CMA phases (i.e. data collection, interpretation and reporting).

Design/methodology/approach

This is a cross-sectional study using descriptive research. Data was collected using a questionnaire primarily derived from Burritt et al.’s (2002, 2011) CMA framework and suggestions from other references. The questionnaire includes a set of closed- and open-ended questions. Data was collected from 39 senior managers in the selected industries with direct knowledge and experience in their companies’ CMA practices.

Findings

The respondents disclose numerous different motivations for their companies to practise CMA and various ways of practising their CMA. This reflects diverse industry practices due to the absence of a generally accepted standard and different stages of organisational learning. The findings also show that the respondents perceived CMA practices as essential to enhancing their companies’ sustainability performance and overall reputation. However, the majority of the respondents showed little appetite for carbon emission disclosure.

Practical implications

The findings thoroughly describe the current CMA practices by companies committed to sustainability in Australia’s high carbon-emitting industries. Overall, the results show that while the respondents perceived CMA practices as essential for their companies’ sustainability performance and energy-saving, the CMA applications were inconsistent, along with some concerning results, such as a lack of assurance and accountability in the data validation and audit. These indicate the importance of policymakers to consider establishing CMA guidelines or standards to improve its practice. For any company, these findings can be used as learning materials to start or enhance CMA practice at their companies. A broader professional CMA community can strengthen the collective efforts to make CMA more robust.

Social implications

The findings portray the perceptions of practitioners from Australia’s four highest carbon-emitting industries, indicating motivations to use CMA to understand their companies’ carbon footprint and reduce their companies’ environmental impacts.

Originality/value

The findings contribute to the limited literature in this area and offer several valuable insights regarding the current practice of CMA in Australia, focussing on high carbon-emission industries. It also encourages more research in this area using data from other industries or countries to develop comparative results and strengthen the literature. Future research using actual carbon emission information or a longitudinal approach could also evaluate the changes and progresses in CMA practices.

Details

Sustainability Accounting, Management and Policy Journal, vol. 13 no. 5
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 19 February 2021

Zulkifli Halim, Shuhaida Mohamed Shuhidan and Zuraidah Mohd Sanusi

In the previous study of financial distress prediction, deep learning techniques performed better than traditional techniques over time-series data. This study investigates the…

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Abstract

Purpose

In the previous study of financial distress prediction, deep learning techniques performed better than traditional techniques over time-series data. This study investigates the performance of deep learning models: recurrent neural network, long short-term memory and gated recurrent unit for the financial distress prediction among the Malaysian public listed corporation over the time-series data. This study also compares the performance of logistic regression, support vector machine, neural network, decision tree and the deep learning models on single-year data.

Design/methodology/approach

The data used are the financial data of public listed companies that been classified as PN17 status (distress) and non-PN17 (not distress) in Malaysia. This study was conducted using machine learning library of Python programming language.

Findings

The findings indicate that all deep learning models used for this study achieved 90% accuracy and above with long short-term memory (LSTM) and gated recurrent unit (GRU) getting 93% accuracy. In addition, deep learning models consistently have good performance compared to the other models over single-year data. The results show LSTM and GRU getting 90% and recurrent neural network (RNN) 88% accuracy. The results also show that LSTM and GRU get better precision and recall compared to RNN. The findings of this study show that the deep learning approach will lead to better performance in financial distress prediction studies. To be added, time-series data should be highlighted in any financial distress prediction studies since it has a big impact on credit risk assessment.

Research limitations/implications

The first limitation of this study is the hyperparameter tuning only applied for deep learning models. Secondly, the time-series data are only used for deep learning models since the other models optimally fit on single-year data.

Practical implications

This study proposes recommendations that deep learning is a new approach that will lead to better performance in financial distress prediction studies. Besides that, time-series data should be highlighted in any financial distress prediction studies since the data have a big impact on the assessment of credit risk.

Originality/value

To the best of authors' knowledge, this article is the first study that uses the gated recurrent unit in financial distress prediction studies based on time-series data for Malaysian public listed companies. The findings of this study can help financial institutions/investors to find a better and accurate approach for credit risk assessment.

Details

Business Process Management Journal, vol. 27 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 8 August 2016

Soheil Kazemian, Rashidah Abdul Rahman, Zuraidah Mohd Sanusi and Abideen A. Adewale

Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan…

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Abstract

Purpose

Without prejudice to the efficacy of other poverty alleviation mechanisms, micro-financing arguably enjoys relative prominence. However, notwithstanding the remarkable loan repayment rate that the microfinance firms report, they still face the challenge of sustainability. The paper aims to provide insights into how three dimensions of market orientation, namely, customer orientation, competitor orientation and inter-function coordination, affect the two aspects of the sustainability of microfinance institutions (MFIs; management and financial).

Design/methodology/approach

To achieve this goal, this study focuses on Amanah Ikhtiar Malaysia (AIM), a leading microfinance provider which is also the largest MFI in South East Asia. Data elicited via a survey questionnaire administered on 190 management staff of AIM across Malaysia are subjected to statistical analysis via the partial least square-structural equation modeling using SmartPLS 2.0.

Findings

The results provide empirical evidences that indicate that management sustainability is significantly influenced by customer orientation and inter-function coordination. However, only customer orientation affects the financial sustainability of AIM. Nevertheless, competitor orientation has non-significant effects on both aspects of sustainability of AIM.

Research limitations/implications

The result of the paper contributes to the literature in understanding the long-term sustainable financial and social performance-based market orientation.

Originality/value

Findings are useful for policy makers, management of MFIs, practitioners and academics to enhance microfinance system. Managerial implications, limitation of the study and suggestions for future research are also included.

Details

Humanomics, vol. 32 no. 3
Type: Research Article
ISSN: 0828-8666

Keywords

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