Engku Zaidah Engku Abdul Rahman, R. Ismail, Saunah Zainon, D. Adhariani
There are still insufficient data concerning the impacts of Value-based Intermediation (VBI) performance output on sustainability although the Global Alliance for Banking on Values has been used to measure VBI performance of Islamic Financial Institutions (IFIs). Therefore, this study aimed to measure the impacts of VBI adoption among IFIs in Malaysia using the logic model approach. Data were extracted from IFIs’ annual reports published and the Association of Islamic Banking Institution Malaysia (AIBIM)’s report on VBI Implementation issued from 2017 to 2020. The results showed that VBI performance measures were different among Community of Practices (CoPs) according to their different levels of adoption. The levels of VBI adoption were more likely to persistently affect customers, communities, and the environment. The logic model approach clarified that VBI performance reports should not be one-fit-all as the adoption level varied among CoPs. The findings also indicated that VBI performance information in the CoPs’ annual reports might engage them with targeted customers, communities, and the environment, expecting to add new insights into the literature on performance measurement in the area of Islamic Finance. This could assist regulators and industry players in planning more strategic initiatives and provide clear guidelines for VBI adoption. Keywords: impact measurement, Islamic financial institution, performance measurement, value-based intermediation
{"title":"\"Impact Measurement of Value-Based Intermediation Among Malaysian Islamic Financial Institutions \"","authors":"Engku Zaidah Engku Abdul Rahman, R. Ismail, Saunah Zainon, D. Adhariani","doi":"10.24191/apmaj.v17i3-01","DOIUrl":"https://doi.org/10.24191/apmaj.v17i3-01","url":null,"abstract":"There are still insufficient data concerning the impacts of Value-based Intermediation (VBI) performance output on sustainability although the Global Alliance for Banking on Values has been used to measure VBI performance of Islamic Financial Institutions (IFIs). Therefore, this study aimed to measure the impacts of VBI adoption among IFIs in Malaysia using the logic model approach. Data were extracted from IFIs’ annual reports published and the Association of Islamic Banking Institution Malaysia (AIBIM)’s report on VBI Implementation issued from 2017 to 2020. The results showed that VBI performance measures were different among Community of Practices (CoPs) according to their different levels of adoption. The levels of VBI adoption were more likely to persistently affect customers, communities, and the environment. The logic model approach clarified that VBI performance reports should not be one-fit-all as the adoption level varied among CoPs. The findings also indicated that VBI performance information in the CoPs’ annual reports might engage them with targeted customers, communities, and the environment, expecting to add new insights into the literature on performance measurement in the area of Islamic Finance. This could assist regulators and industry players in planning more strategic initiatives and provide clear guidelines for VBI adoption. Keywords: impact measurement, Islamic financial institution, performance measurement, value-based intermediation","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46159936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Customer satisfaction is an essential experience in e-commerce. The objective of this study was to identify determinants of customer satisfaction in e-commerce. This case study adopted its theoretical framework from the Theory of Reasoned Action (TRA). It also applied a quantitative research methodology by using self-administered questionnaires as a measurement tool in gathering sample data. The sample were student’s students from various course backgrounds in higher learning institutions in Johor. A total of 224 students answered the questionnaires. IBM SPSS version 26 was used to analyse the sample data. A test of reliability was carried out using the Cronbach's alpha method. Later, using Pearson correlation and multiple regression analysis to assess the interrelationship between the independent and dependent variables, predictors and criteria values were identified. The findings revealed that user interface quality, product information quality, security perception, and privacy perception had a positive relationship with customer satisfaction. However, e-service quality had a negative relationship and had no significant impact on customer satisfaction. This study provides insight into the influencing aspects and their functions. This would allow e-commerce firms to improve their websites based on the findings. Keywords: customer satisfaction, e-commerce, B2C, TRA, influencing factors
客户满意度是电子商务中必不可少的体验。本研究的目的是确定电子商务中顾客满意度的决定因素。本案例研究采用了理性行为理论的理论框架。它还采用定量研究方法，使用自我管理的问卷作为收集样本数据的测量工具。样本是来自柔佛州高等院校不同课程背景的学生。共有224名学生回答了问卷。采用IBM SPSS version 26对样本数据进行分析。采用Cronbach’s alpha方法进行信度检验。随后，利用Pearson相关和多元回归分析评估自变量和因变量之间的相互关系，确定预测因子和标准值。结果显示，使用者介面品质、产品资讯品质、安全感知、隐私感知与顾客满意呈正相关。然而，电子服务质量与顾客满意度呈负向关系，对顾客满意度无显著影响。本研究提供了对影响因素及其功能的深入了解。这将允许电子商务公司根据调查结果改进他们的网站。关键词:顾客满意度，电子商务，B2C, TRA，影响因素
{"title":"Determinants of Customer Satisfaction in E-Commerce: A Case Study in Higher Learning Institutions in Johor","authors":"Abd Halim Mohamad, S. Adam","doi":"10.24191/apmaj.v17i3-04","DOIUrl":"https://doi.org/10.24191/apmaj.v17i3-04","url":null,"abstract":"Customer satisfaction is an essential experience in e-commerce. The objective of this study was to identify determinants of customer satisfaction in e-commerce. This case study adopted its theoretical framework from the Theory of Reasoned Action (TRA). It also applied a quantitative research methodology by using self-administered questionnaires as a measurement tool in gathering sample data. The sample were student’s students from various course backgrounds in higher learning institutions in Johor. A total of 224 students answered the questionnaires. IBM SPSS version 26 was used to analyse the sample data. A test of reliability was carried out using the Cronbach's alpha method. Later, using Pearson correlation and multiple regression analysis to assess the interrelationship between the independent and dependent variables, predictors and criteria values were identified. The findings revealed that user interface quality, product information quality, security perception, and privacy perception had a positive relationship with customer satisfaction. However, e-service quality had a negative relationship and had no significant impact on customer satisfaction. This study provides insight into the influencing aspects and their functions. This would allow e-commerce firms to improve their websites based on the findings. Keywords: customer satisfaction, e-commerce, B2C, TRA, influencing factors","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45861229","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A non-profit entity faces multiple accountabilities as the main stakeholders are wider. Reporting is arguably one of the mechanisms to show the discharge of accountability. This paper identifies the reason for the reporting practices of foundations – non-profit entities. Using the ‘accountability reporting’ framework (Ebrahim, 2003a) the reporting practices were viewed from the legal, bureaucratic, and social perspectives. Four foundations with different legal structures were examined through semi-structured interviews, supported by document reviews. The study found that the reporting practices were guided by the perceived importance of the main stakeholder. In the absence of dedicated accounting standards, the reporting practices follow who the foundations perceive they should be accountable to the most. Different foundation undertook reporting practices differently. The study indicates the importance of being sensitised towards the organisational and legal structure of foundations. As NPO – including foundation is established to assist beneficiaries, this main mission should always be privileged despite different organisational/legal structures. Future research may be undertaken to itemise the reporting difference among these foundations in order to identify the trend and relationship of accountability and reporting choice. Keywords: accountability, foundation, non-profit organization, reporting, Malaysia
{"title":"Accountability through Reporting: The Case of Foundations in Malaysia","authors":"Nurul Iffah Ghazali, Ahmad Zamri Osman, R. Ismail","doi":"10.24191/apmaj.v17i2-02","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-02","url":null,"abstract":"A non-profit entity faces multiple accountabilities as the main stakeholders are wider. Reporting is arguably one of the mechanisms to show the discharge of accountability. This paper identifies the reason for the reporting practices of foundations – non-profit entities. Using the ‘accountability reporting’ framework (Ebrahim, 2003a) the reporting practices were viewed from the legal, bureaucratic, and social perspectives. Four foundations with different legal structures were examined through semi-structured interviews, supported by document reviews. The study found that the reporting practices were guided by the perceived importance of the main stakeholder. In the absence of dedicated accounting standards, the reporting practices follow who the foundations perceive they should be accountable to the most. Different foundation undertook reporting practices differently. The study indicates the importance of being sensitised towards the organisational and legal structure of foundations. As NPO – including foundation is established to assist beneficiaries, this main mission should always be privileged despite different organisational/legal structures. Future research may be undertaken to itemise the reporting difference among these foundations in order to identify the trend and relationship of accountability and reporting choice. Keywords: accountability, foundation, non-profit organization, reporting, Malaysia","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42385538","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Auditors’ ethical behavior has become a concern globally with the continued occurrence of financial scandals. As a result, regulators, researchers and other stakeholders are focusing on auditors’ ethical behaviour, auditor independence and professional skepticism. As there are limited studies on the issue, the purpose of this study was is to examine the influence of professional skepticism and independence on the ethical behaviour of Indonesian auditors based on Rest’s model within the context of certain material audit adjustments to be recorded by an audit client. This study was also intended to examine the mediation effect of state professional skepticism on the relationship between auditor’s independence threat and auditors’ ethical decision making. This study adopted the experiment approach by utilizing case scenarios. There were 121 auditors from the Big 10 firm in Indonesia as participants of this study. This study found that despite auditors not recognizing the ethical issues due to independence threat, they still can act ethically. Further, state professional skepticism did not affect ethical decision making of auditors. Keywords: ethical decision making, professional skepticism, auditor independence
{"title":"Ethical Decision Making Among Auditors in Indonesia: Examination on State Professional Skepticism and Auditor Independence","authors":"Yanto Kamarudin, Zuraidah Mohd Sanusi, Sharifah Nazatul Faiza Syed Mustapha Nazri, Budi Frensidy, Yusarina Mat-Isa","doi":"10.24191/apmaj.v17i2-10","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-10","url":null,"abstract":"Auditors’ ethical behavior has become a concern globally with the continued occurrence of financial scandals. As a result, regulators, researchers and other stakeholders are focusing on auditors’ ethical behaviour, auditor independence and professional skepticism. As there are limited studies on the issue, the purpose of this study was is to examine the influence of professional skepticism and independence on the ethical behaviour of Indonesian auditors based on Rest’s model within the context of certain material audit adjustments to be recorded by an audit client. This study was also intended to examine the mediation effect of state professional skepticism on the relationship between auditor’s independence threat and auditors’ ethical decision making. This study adopted the experiment approach by utilizing case scenarios. There were 121 auditors from the Big 10 firm in Indonesia as participants of this study. This study found that despite auditors not recognizing the ethical issues due to independence threat, they still can act ethically. Further, state professional skepticism did not affect ethical decision making of auditors. Keywords: ethical decision making, professional skepticism, auditor independence","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45483007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
S. Zainuddin, Borhan Abdullah, Noorshella Binti Che Nawi, T. Abdullah, Noorul Azwin Md Nasir, Nur Izzati Mohamad Anuar
Operational risk management practice varies from one organization to another. There is no consistency in its implementation. This has caused misinterpretation, half-hearted implementation which eventually, denies the full function of its capabilities to support a business operation. Previous studies have provided limited exposure in finding on the best practice of operational risk management implementation. To fill the gap, this study aimed to uncover and explore how operational risk management is institutionalized within an organization and the best practice from a primary GLC in Malaysia. An extended case study approach by Burawoy (1998) was adopted. The primary data from 42 semi-structured interviews were analyzed using thematic analysis. The study found seven processual stages which the case company underwent to institutionalize risk management and regarded as the best practice of operational risk management implementation that supports business operations. Namely, strong leadership and obtaining external consultancy, setting the apparatus and assignment of tasks to the person in charge, risk framework, risk diagnostics, monitor and measure, developing and nurture a risk management culture, and consistent risk management enforcement and monitoring. These are regarded as a best practice by similar organizations in its sector. Keywords: case study, institutionalization, operational-risk-management
{"title":"The Institutionalization and Processual Elements of Operational Risk Management as a Best Practice in a Government-Linked Organization: A Case Study in Malaysia","authors":"S. Zainuddin, Borhan Abdullah, Noorshella Binti Che Nawi, T. Abdullah, Noorul Azwin Md Nasir, Nur Izzati Mohamad Anuar","doi":"10.24191/apmaj.v17i2-08","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-08","url":null,"abstract":"Operational risk management practice varies from one organization to another. There is no consistency in its implementation. This has caused misinterpretation, half-hearted implementation which eventually, denies the full function of its capabilities to support a business operation. Previous studies have provided limited exposure in finding on the best practice of operational risk management implementation. To fill the gap, this study aimed to uncover and explore how operational risk management is institutionalized within an organization and the best practice from a primary GLC in Malaysia. An extended case study approach by Burawoy (1998) was adopted. The primary data from 42 semi-structured interviews were analyzed using thematic analysis. The study found seven processual stages which the case company underwent to institutionalize risk management and regarded as the best practice of operational risk management implementation that supports business operations. Namely, strong leadership and obtaining external consultancy, setting the apparatus and assignment of tasks to the person in charge, risk framework, risk diagnostics, monitor and measure, developing and nurture a risk management culture, and consistent risk management enforcement and monitoring. These are regarded as a best practice by similar organizations in its sector. Keywords: case study, institutionalization, operational-risk-management","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44057296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aimed to fill the gap by measuring and examining the level of GPG for local governments in Indonesia. The study used a multidimensional index by incorporating information from the Indonesia Governance Index (IGI) principles indicators, the Evaluation of local government performance reports, the annual reports of local governments financial statement and the Central Bureau of Statistics from 2015 to 2017. The Two-staged Factor Analysis was employed for weights assignment. The results are presented based on comprehensive scores and ranks for five district and city levels of the local governments which had have the highest and lowest values for each GPG principle and overall GPG index. The findings showed that there was evidence of an increasing trend on the implementation of GPG principles in the local governments. There were also evidence on the lack of information regarding which indicators needed to be improved, due to lack of awareness among the local governments on importance of quality application of the GPG principles in the government system. It implies that the central government focused on performance evaluations, rather than implementation of GPG in local governments. The findings suggest that it is useful for the local governments to measure the level of good public governance using the multidimensional GPG index rather than using a single dimension. Keywords: good public governance, multidimensional index, local government of Indonesia
{"title":"Measuring Good Public Governance in the Local Governments of Indonesia: A Multidimensional Index","authors":"Rafrini Amyulianthy, Ruhaini Muda, Jamaliah Said, Dyah Setyaningrum","doi":"10.24191/apmaj.v17i2-07","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-07","url":null,"abstract":"This study aimed to fill the gap by measuring and examining the level of GPG for local governments in Indonesia. The study used a multidimensional index by incorporating information from the Indonesia Governance Index (IGI) principles indicators, the Evaluation of local government performance reports, the annual reports of local governments financial statement and the Central Bureau of Statistics from 2015 to 2017. The Two-staged Factor Analysis was employed for weights assignment. The results are presented based on comprehensive scores and ranks for five district and city levels of the local governments which had have the highest and lowest values for each GPG principle and overall GPG index. The findings showed that there was evidence of an increasing trend on the implementation of GPG principles in the local governments. There were also evidence on the lack of information regarding which indicators needed to be improved, due to lack of awareness among the local governments on importance of quality application of the GPG principles in the government system. It implies that the central government focused on performance evaluations, rather than implementation of GPG in local governments. The findings suggest that it is useful for the local governments to measure the level of good public governance using the multidimensional GPG index rather than using a single dimension. Keywords: good public governance, multidimensional index, local government of Indonesia","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47097231","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Hafiz Ali, N. Abdul Rahim, M. Yahya, Fakarudin Kamarudin
Increasing awareness for sustainability has led more firms to incorporate environmental, social, and governance (ESG) reporting into their establishments. However, firms’ ESG information are beset with issues of information asymmetry. Hence, this study was set to provide a more uniformed statistical method of measuring firm’s social performance (SP); named ESG efficiency. The Data Envelopment Analysis (DEA) model was used to measure the ESG efficiency of firms in giving back to the masses by means of ESG contribution. Malaysia, Thailand, Singapore, and Indonesia were selected for the study from the year 2010 to 2019. The findings were relatively consistent for all selected countries. The study found that ESG efficiency of both ESG and non-ESG firms had fluctuated, with ESG firms’ ESG efficiency fluctuating on an increasing trend. ESG firms were found to be more efficient in giving back to the masses, with higher mean technical efficiency (TE), compared to non-ESG firms. Furthermore, Pure Technical Inefficiency (PTIE) was identified as a significant factor in influencing a firm’s TE, indicating that the firms were purely managerial inefficient in directing their financial returns toward ESG contribution. Subsequently, this study provides a simpler method in SP measurement, and was able to identify the significant factor that affected firms’ ESG efficiency, and extends the literature on East Asia’s ESG development. Keywords: ESG, data envelopment analysis, efficiency
{"title":"Efficiency in Giving Back to the Masses: Insights from ESG and Non-ESG Firms in Selected East Asian Countries","authors":"Muhammad Hafiz Ali, N. Abdul Rahim, M. Yahya, Fakarudin Kamarudin","doi":"10.24191/apmaj.v17i2-09","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-09","url":null,"abstract":"Increasing awareness for sustainability has led more firms to incorporate environmental, social, and governance (ESG) reporting into their establishments. However, firms’ ESG information are beset with issues of information asymmetry. Hence, this study was set to provide a more uniformed statistical method of measuring firm’s social performance (SP); named ESG efficiency. The Data Envelopment Analysis (DEA) model was used to measure the ESG efficiency of firms in giving back to the masses by means of ESG contribution. Malaysia, Thailand, Singapore, and Indonesia were selected for the study from the year 2010 to 2019. The findings were relatively consistent for all selected countries. The study found that ESG efficiency of both ESG and non-ESG firms had fluctuated, with ESG firms’ ESG efficiency fluctuating on an increasing trend. ESG firms were found to be more efficient in giving back to the masses, with higher mean technical efficiency (TE), compared to non-ESG firms. Furthermore, Pure Technical Inefficiency (PTIE) was identified as a significant factor in influencing a firm’s TE, indicating that the firms were purely managerial inefficient in directing their financial returns toward ESG contribution. Subsequently, this study provides a simpler method in SP measurement, and was able to identify the significant factor that affected firms’ ESG efficiency, and extends the literature on East Asia’s ESG development. Keywords: ESG, data envelopment analysis, efficiency","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42242205","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Wan Noor Asmuni Wan Fauzi, M. Marzuki, M. Zainal Ariffin, N. B. Zakaria
Firms have tendencies to manipulate their financial statements when it is at risk of bankruptcy due to financial distress. Based on the Fraud Diamond Theory, there are four factors that motivate firms to perpetrate fraud, namely pressure, opportunity, rationalization and capability. Therefore, this study investigated the effect of these fraud diamond factors on the likelihood of fraudulent financial reporting among financially distressed firms in Malaysia. In addition, this study investigated whether the new amendment of code of corporate governance on risk management practices can mitigate the effect of these four factors on the likelihood of fraudulent financial reporting. Based on a sample of 53 financially distressed firms from 2014 until 2019, this study found that two fraud diamond factors which are pressure and capability significantly influenced firms’ financial distress and thus influenced the likelihood of fraud. The study found that risk management can reduce pressure and thus reduce the likelihood of fraud of financially distressed firms. Meanwhile, distressed firms change directors to replace with competent ones. Nevertheless, the study found that distressed firms may increase their risk disclosures to cover up their distress by changing directors. This study investigated the prevalence of fraud among distressed firms. Furthermore, it extends the literature of risk management among distressed firms. Keywords: fraud, fraud diamond, risk management, financial distress
{"title":"Fraud Diamond Factors, Risk Management Practices and the Likelihood of Fraud among Financially Distressed Companies Listed on the Malaysian Stock Exchange","authors":"Wan Noor Asmuni Wan Fauzi, M. Marzuki, M. Zainal Ariffin, N. B. Zakaria","doi":"10.24191/apmaj.v17i2-05","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-05","url":null,"abstract":"Firms have tendencies to manipulate their financial statements when it is at risk of bankruptcy due to financial distress. Based on the Fraud Diamond Theory, there are four factors that motivate firms to perpetrate fraud, namely pressure, opportunity, rationalization and capability. Therefore, this study investigated the effect of these fraud diamond factors on the likelihood of fraudulent financial reporting among financially distressed firms in Malaysia. In addition, this study investigated whether the new amendment of code of corporate governance on risk management practices can mitigate the effect of these four factors on the likelihood of fraudulent financial reporting. Based on a sample of 53 financially distressed firms from 2014 until 2019, this study found that two fraud diamond factors which are pressure and capability significantly influenced firms’ financial distress and thus influenced the likelihood of fraud. The study found that risk management can reduce pressure and thus reduce the likelihood of fraud of financially distressed firms. Meanwhile, distressed firms change directors to replace with competent ones. Nevertheless, the study found that distressed firms may increase their risk disclosures to cover up their distress by changing directors. This study investigated the prevalence of fraud among distressed firms. Furthermore, it extends the literature of risk management among distressed firms. Keywords: fraud, fraud diamond, risk management, financial distress","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47653405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Zarinah Abdul Rasit, Nurul Nadiah Kamalolzaman, Sharina Tajul Urus, Nadiah Abd Hamid
A Performance Measurement System (PMS) for performance evaluation is used primarily for motivation and evaluating employee performance. The mixed findings on behavioural consequences of performance evaluation from previous research suggest further research to examine its effect on individual performance. This research examined the role of interpersonal trust in the design and function of a control system, specifically the formality of a performance evaluation system in emerging economies. Data was gathered using survey questionnaires that were distributed to higher-level executives and managers of Malaysian Government-Linked Companies (GLCs). The research proposed that subordinates’ interpersonal trust may influence the relationship between the formality of a performance evaluationsystem and managerial performance. Using regression analysis, the research revealed that the use of PMS for performance evaluation may influence individual behaviour. The findings confirm the researchers’ expectation that the formality of performance evaluation has a significant influence on interpersonal trust, leading to enhanced managerial performance. There is also evidence of interpersonal trust having a mediating effect between the formality of performance evaluation and managerial performance when tested using the Sobel Test. These findings provide evidence that PMS as a formal performance evaluation may enhance trust, which is significant for improving individual performance. Keywords: formality of performance evaluation, interpersonal trust, managerial performance
{"title":"The Mediating Role of Interpersonal Trust in the Relationship between Formality of Performance Evaluation and Managerial Performance: Empirical Evidence from Malaysia","authors":"Zarinah Abdul Rasit, Nurul Nadiah Kamalolzaman, Sharina Tajul Urus, Nadiah Abd Hamid","doi":"10.24191/apmaj.v17i2-03","DOIUrl":"https://doi.org/10.24191/apmaj.v17i2-03","url":null,"abstract":"A Performance Measurement System (PMS) for performance evaluation is used primarily for motivation and evaluating employee performance. The mixed findings on behavioural consequences of performance evaluation from previous research suggest further research to examine its effect on individual performance. This research examined the role of interpersonal trust in the design and function of a control system, specifically the formality of a performance evaluation system in emerging economies. Data was gathered using survey questionnaires that were distributed to higher-level executives and managers of Malaysian Government-Linked Companies (GLCs). The research proposed that subordinates’ interpersonal trust may influence the relationship between the formality of a performance evaluationsystem and managerial performance. Using regression analysis, the research revealed that the use of PMS for performance evaluation may influence individual behaviour. The findings confirm the researchers’ expectation that the formality of performance evaluation has a significant influence on interpersonal trust, leading to enhanced managerial performance. There is also evidence of interpersonal trust having a mediating effect between the formality of performance evaluation and managerial performance when tested using the Sobel Test. These findings provide evidence that PMS as a formal performance evaluation may enhance trust, which is significant for improving individual performance. Keywords: formality of performance evaluation, interpersonal trust, managerial performance","PeriodicalId":41923,"journal":{"name":"Asia-Pacific Management Accounting Journal","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43182070","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Fadzlina Mohd Fahmi, Nur Fathin R Azmi, Tuan Zainun Tuan Mat
This study intended to achieve two main objectives, which were to determine the level of sustainability reporting disclosure and to examine the relationship between corporate characteristics and sustainability reporting disclosure. This study used the latest Sustainability Framework introduced by Bursa Malaysia in 2015 as the basis for evaluating and measuring the level of sustainability reporting disclosure. 80 of the top 100 companies by market capitalization in the Malaysian Stock Market were taken as the sample. The published sustainability reports (within the annual reports or stand-alone sustainability reports) from 2017 to 2018 were reviewed and analyzed using the content analysis approach to test the objectives of this study. Drawing on the cy theory perspectives, corporate characteristics, such as firm size, industry type, and assurance statement practices, were chosen as the independent variables. Thefindings showed that firm size, industry type, and assurance statement practices had a significant positive relationship with the level of sustainability reporting disclosure. These findings are consistent with the legitimacy theory, which suggests that large companies in high risks industries with assurance statement practices tend to disclose higher sustainability information to legitimize their business operations and activities and maintain their image and reputation. Keywords: sustainability, corporate characteristic, sustainability reporting, legitimacy theory
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