bluuebunny/crossref_metadata_2025 huggingface dataset:
Empirical research on private entrepreneur human capital in China and enterprises' growth performance
Authors: Jin Zhang , Huixin Yang , Ruizhan Lv
Published: June 2010

Purpose

The purpose of this paper is to locate those entrepreneur human capital elements which significantly influence an enterprise's growth performance, within both high‐tech and traditional enterprises, thereby helping entrepreneurs understand that human capital elements will provide different impacts within different industries.

Design/methodology/approach

Under some necessary research assumptions, the statistical analysis described in this paper uses data collected from a questionnaire survey and is performed under the SPSS16.0 Program.

Findings

An enterprise growth model is built from the perspectives of entrepreneur human capital. Analysis shows that human capital elements of the same entrepreneur have different impacts on the performance of business growth in different industries. The theoretical model provides a better explanation of the high‐tech enterprises' growth performance. Innovation and business growth performances from a high‐tech enterprise have greater reliance on human capital of entrepreneurs than the traditional industries.

Originality/value

Most current studies of the human capital of entrepreneurs focus on the analysis of background characteristics, but inadequate attention has been given to the relationship between human capital and the enterprises' growth performance, as well as to the comparative analysis of entrepreneurs' human capital in high‐tech enterprises and traditional enterprises. This paper, however, compares and analyzes such relationships between high‐tech enterprises and traditional enterprises.
An empirical study of mechanisms to enhance entrepreneurs' capabilities through entrepreneurial learning in an emerging market
Authors: Jiao Hao , ogilvie dt , Cui Yu
Published: June 2010

Purpose

Based on behavioral learning theory, this paper argues that entrepreneurial learning plays an important role in enhancing entrepreneurs' capabilities. With increasing research attention given to entrepreneurs' capabilities, the need to explore the building mechanism has continued to escalate. The purpose of this paper is to explore the impact of changes in entrepreneurial learning approaches that influence the improvement of entrepreneurs' capabilities.

Design/methodology/approach

The authors sent out 1,200 questionnaires, and 226 were returned, of which 167 were usable. The authors used the difference in difference method and the ordinal logistic regression model to analyze the data and test the hypotheses.

Findings

In this paper, the authors report findings using panel data from 167 entrepreneurs. The empirical results show that changes in entrepreneurial learning influence changes in entrepreneurs' capabilities.

Practical implications

Combining theory and evidence from this study, an intertemporal learning model that suggests entrepreneurs' capabilities rest on a self‐reinforcing learning cycle of experiential learning and social network learning from stakeholders is proposed. This is a sense‐making and seizing process affected by entrepreneurs' previous knowledge and their degree of involvement in the organization, which leads them to dedicate increasing resources to the exploration and exploitation of some opportunities, following a process of improving their capabilities.

Originality/value

An empirical verification of the links between learning and capabilities development in the context of China's emerging economy, which has not been studied in the current literature is conducted. This paper provides implications for entrepreneurs in finding the right way to build and enhance capabilities through deployment of learning.
Collective action in the implementation of a “greener” performance measurement system
Authors: Länsiluoto Aapo , Järvenpää Marko
Published: June 2010

Purpose

The purpose of this paper is to investigate how different actors influenced the implementation of an environmental management system (EMS) and a performance measurement system (PMS) in a case company when the systems are eventually integrated. Another purpose is to illustrate how the frameworks of Gibson and Earley and Lovaglia et al. can be utilized to investigate the implementation of different management systems in practice.

Design/methodology/approach

This paper is an interpretative case study, which utilizes qualitative methods such as semi‐structured interviews and internal documents.

Findings

The results indicate the importance of maintaining a separation between the power and status of an actor in EMS and PMS implementation processes, and the ways in which the power and status of actors in the EMS and PMS implementation differed. The status and role of an actor can change although the power may be static during the implementation of different management systems. Therefore, the paper confirms the classification of Lovaglia et al. and proposes that their classification should be added to the framework of Gibson and Earley.

Originality/value

Earlier accounting studies using the institutional theory framework of Burns and Scapens did not specifically investigate the role of actors, or their power and status in implementing two different management systems. The collective action frameworks of Gibson and Earley and Lovaglia et al. have not been practically utilized before in EMS and PMS studies. Furthermore, EMS and PMS integration studies have usually been normative without empirical case data.
The influence of the types of NAS provisions and gifts hospitality on auditor independence
Authors: Law Philip
Published: June 2010

Purpose

Auditor independence is regarded as the cornerstone in the auditing profession. But there is lack of research to examine the influence of the types of non‐audit services provisions and gift hospitality on auditor independence. This paper aims to fill this gap.

Design/methodology/approach

This Hong Kong study differs significantly from prior studies and is the first to examine the perceived independence by encompassing both qualitative and quantitative analysis. Binary logistic regression is used to capture data from Big 4 auditors and financial analysts' viewpoints.

Findings

Results indicate that auditor independence decreases as the auditors provide accounting services, internal audit or corporate finance services to the firms. Corporate finance services have the greatest negative impact. However, it contributes new knowledge to the literature that the provisions of taxation services to clients are value‐added service and confirms the result in the US study. Receiving gift or hospitality from client has no influence on perceived independence and revokes an early study by Pany and Reckers. There is no expectation gap found between the groups, narrowing the expectation gap theory in the post‐Enron and revokes the US and the UK studies.

Practical implications

The expectation gap theory seems to be narrowed in the post‐Enron environment. It is hoped that a longitudinal study could be conducted in future.

Originality/value

This paper adds new contributions to the auditing literature in the Asia Pacific Region and provides better understanding for devising auditing guidelines in Hong Kong and their international counterparts.
Who are your peers?
Authors: Hu Nan , Liu Ling , Shin Haeyoung , Zhang Jin
Published: June 2010

Purpose

The purpose of this paper is to propose and evaluate a new matching sample comparison method, the industry size peer matching method.

Design/methodology/approach

Based on archival financial data from Compustat and econometric methods, the paper first validates that such a method will result in firms being divided into more homogenous groups, making peer‐performance comparison more meaningful. Then it compares this new peer matching method with previous methods through two resource‐based related studies in the IT valuation context.

Findings

The results show that the industry size matching method is a better method because: it is theoretically grounded, addressing industry, size, and random shock effects and, at the same time, avoids the selection bias caused by using a single firm as benchmark; and empirically such a technique results in more homogeneous groups and can explain more firm‐level returns than the industry‐only classification.

Originality/value

Matched sample comparison group analysis is widely used in both academy and industry. The paper's theoretically grounds and empirically validated matching sample comparison method provides researchers and practitioners with a tool for their future research, performance evaluation, earning management detection, or compensation contract design, when selecting the right peers is called for.
Intranet use in Hong Kong public hospitals
Authors: Chun Cheong Fong Steve , Quaddus Mohammed
Published: June 2010

Purpose

The purpose of this paper is to report the findings from a study of the relationships of organization support, user characteristics, task characteristics, and intranet characteristics for using intranet applications to support management accounting in public hospitals.

Design/methodology/approach

To test the research hypotheses, data were collected from Hong Kong public hospitals using a questionnaire survey. The research attempts to identify how the interactions of these antecedents help to achieve intranet user information satisfaction (IUIS) and thus efficiency of management accounting in hospitals in terms of information quality of management accounting systems (MASIQ).

Findings

The results show that IUIS is positively associated with IQMAS in Hong Kong public hospitals. User characteristics such as information systems (IS) experience is positively associated with IUIS, and the extent of task characteristics is also positively associated with the IQMAS. The results have several implications for accounting IS management.

Research limitations/implications

The paper provides support for some prior research findings and some findings are not consistent with expectations. The paper is based on questionnaire responses of 157 hospital executives. The findings are then generalized to the population studied – Hong Kong public hospitals. More research is needed for exploration and confirmation of these findings.

Practical implications

The research offers insights into management accounting and control systems as they are implemented through the use of intranet in public hospitals. It suggests that top management support is of prior concern in improving managerial performance.

Originality/value

The paper bridges two disciplines of studies, management accounting and IS. The results provide some useful support of prior findings and some modifications and extensions that further understanding in this area.
Ethics And The Accounting Profession In Malaysia
Authors: Adam Bakar Mohammad , Mohamed Saat Maisarah , Hj. Abd. Majid Ainum
Published: June 2010

Ethics, of late, had aroused significant interest amongst practitioners and academics alike. The collapse of Enron, the largest energy‐trading company in the US had jolted the profession out of its complacency and serves a warning that all is not well with the profession. It is under scrutiny! The message is clear, if accountants want to be relevant, they have to be more diligent and ethical. This paper reports on an empirical research carried out to understand the impact of the implementation of the By‐Laws (On Professional Conduct and Ethics) isued by the Malaysian Institute Of Accountants to its members. We use structured interviews and questionnaires and were able to solicit resources from 92 respondents out of 110 approached. We looked at five issues – whether respondents knew the existence of the By‐Laws, how much they knew about it, how much they understood its provisions, why they follow certain principles enshrined in it and how often they refer to it when faced with conflicts which were addressed by the By‐Laws. From the study, we found that the By‐Laws have no significant influence over their actions and behavior. This was due to the fact that most of them were ignorant of the By‐Laws. As such many were unaware of the provisions contained in it. even amongst those who were aware, not many refer to it when faced with ethical dilemma. Any adherence to the provisions of the By‐Laws were either coincidental or by default due to them being a universally accepted deeds.
Competition Policy Issue In Drug Companies: A Management Accountant’s View
Authors: Akbar Tengku Abdullah Tengku
Published: June 2010

International Journal of the Economics of Business produced a special issue on “Symposium on the US brand name prescription drug antitrust legislation” in 1997. This case involved fascinating scientific and policy issues including price discrimination. Economic scholars contributed to the debate. This paper gives a management accountant’s view on the competition policy issue. It clarifies the competition policy issue diagnostic tools (an analytical construct and concepts of cost). These diagnostic tools haave been able to give insights into the issue.
Assessing Business Zakat At Pusat Zakat Selangor: Between Theory and Practice
Authors: Abdul Rahman Rashidah , Awang Rohila
Published: June 2010

The main objective of this study is to determine the value measurement used by zakat collection centres, particularly Pusat Zakat Selangor (PZS), in measuring business zakat among companies owned by Muslims in Selangor territory. The study found that PZS assessed zakat from companies financial statements based on historical cost, and not current value as hypothesised by previous researchers. The continuous use of historical cost may lead to negative wealth transfer for zakat beneficiaries particularly in time of rising prices. Even though certain adjustments are made to the assessment, however the purpose of such adjustment is merely to reflect the Islamic philosophy of the implementation of halal and haram as well as different views of Islamic Accounting and Conventional Accounting in recognising income and expenses.
The Skills Necessary For Work Place: Accounting Graduates’ Perceptions
Authors: Mohd Hanefah Mustafa , Hj. Ismail Samihah
Published: June 2010

Many researchers have debated the relevance of accounting curriculum to the employers in the US and other developed counries. Accounting graduates are said to lack various skills that are important in today’s job market. Among them are technological skills, oral and communication skills, and professional skills. This phenomenon is not only common in developed countries, but als in the developing countries like Malaysia. In Malaysia, graduates from local universities and colleges are facing unemployment due to the lack of such skills. Although the Malaysian economy is performing better than other countries in this region, yet the unemployment rate among graduates is still high.
An Empirical Study On Computer Literacy Among Graduating Students In The Bachelor Of Accountancy Programs Of Malysian Public Higher Institutions
Authors: Noor Hayati Mohamed Zawawi Siti , Abdul Rahman Rashidah
Published: June 2010

Information age in the 21st century is witnessing the dramatic increase in computer‐related jobs. Many employers are now recruiting candidates who have knowledge and experience in information technology or those who are computer literate. Therefore, potential candidates should m aster at least some level of computer literacy. Thus, the m ain objective of this study is to analyse the level of computer literacy among graduating Bachelor of Accountancy students in Malaysian public higher institutions. Based on the findings, computer literacy can be group into basic, advanced, self‐efficacy and technical level. Evidence shows that, graduating accountancy students are computer literate at the basic, advanced and self‐efficacy level. Significant difference is also found in the students’ perceptions on Accounting Information System (AIS) suggesting that the educators should give due attention to AIS courses, particularly in enhancing students’ computer literacy level. There are also evidence that the level of basic and advanced computer literacy of male students are significantly higher than female students; those who woned computers are significantly more computer literate in terms of basic and advanced computer literacy than those who did not own computers; and finally, previous computer experience is not generally related to computer achievement, except for self‐efficacy computer literacy level.
The Self‐assessment System And Its Compliance Costs
Authors: Mansor Muzainah , Saad Natrah , Ibrahim Idawati
Published: June 2010

The self‐assessment system has been implemented on companies since 2001 as to replace the former official assessment system. As such, proceural issues and compliance cost associated with the new assessment system are of significant interest to the taxpayers. This study was conducted in the year 2002 i.e. after one year the self‐assessment system for companies has been put into practice. It focuses on the compliance cost in terms of the time spent by the taxpayers. In the study, time spent is used to measure the increment of compliance cost since time devoted to compliance activities is very much associated with the cost incurred. The respondents in this study are the small and medium enterprises (SMEs) and the tax agents in the northern region i.e. Perlis, Kedah and Penang. As this is an exploratory study, the researchers used convenience sampling, which enabled them to get fifty‐six SMEs, the findings reflected that the most prominent variable is the time spent for discussion with tax agents (78.83 per cent), which represented the major source of increment in compliance cost under the new system, followed by learning the new tax laws (55.40 per cent); paying taxes (50.00 per cent); record‐keeping (48.20 per cent); and answering IRB queries (44.70 per cent). Meanwhile 90.00 per cent of the tax agents suggested that there was an increase in time spent under the new system for the total hours spent in complying with the new system, learning the new tax laws, preparing tax returns, and discussion with clients. Only 63.70 per cent of them implied that there was an increase in time spent in answering IRB queries.
Perceptions Towards Accounting Career Among Malaysian Undergraduates
Authors: Said Jamaliah , Ghani Erlane K. , Hashim Afizah , Mohd Nasir Noraini
Published: June 2010

In the late 20th Century and the early part of the 21st Century, the accounting profession has suffered some setback in its image. The recent scandal involving Enron and Arthur Andersen may have an adverse impact on the career choice of accounting students. On the other hand Malaysia needs more accountants to assist the country to achieve developed nation status by year 2020. Therefore, this study is an attempt to determine whether accounting students still prefer to become accountants and to compare the perception of accounting as a career between first semester and final semester accounting undergraduates in Malaysia. One thousand questionnaires were distributed to these two groups of students in all the universities regestered with the Ministry of Education. The valid response rate was 52.7 per cent. The results of this study show a significant difference in career choices between first semester and final semester students. Of the first semester student respondents, 30.3 per cent prefer to be public accountants, whereas only 25.8 per cent of the final semester responsents choose to be public accountants. However, both groups agree that starting salary is an important criterion for choosing accounting as a career and that their university has provided them with adequate knowledge to enable them to join the accounting profession.
An Exploratory Study On English Language Proficiency And Academic Performance In The Context Of Globalization Of Accounting Education
Authors: Khadijah AlHaddad Sharifah , Mohamed Mahfudzah , Musa AlHabshi Syed
Published: June 2010

The academic achievement of Malaysian students being non‐English proficient have long been a major national education concern in Malaysian in the last decade. This among other factors culminated in the recent change in the Malaysian national education policy on English as a medium of instruction for mathematics and science with immediate implementation at primary school level. The global concern is also affecting accounting education. The Education Committee of the International Federation of Accountants (IFAC) has been one of the few active internaional players on global accounting education. The assessment of professional competencies based on the whole range of knowledge, skills and professional values, is a determinant factor affecting accounting education. Communication, intellectual and interpersonal skills form part of the elements of accounting education and experience as per IFAC ED9. Proficiency in English, measured by students’s ability to effectively communicate to a certain extent, may have an influence on their ability to master the courses or programmes where English is the medium of instruction. The purpose of this preliminary study is to examine the academic performance of limited‐English‐proficient Universiti Teknologi MARA (UiTM)’s Bachelor of Accountancy (Hons) students (being non native speakers of English Language). A sample from archives on grades obtained was analyzed, employing historical data analysis (data mining technique). The findings of this study suggested that the relationship between English proficiency and accounting students’ academic performance existed in the case of limited‐English‐proficient students.
Language And Content Complexities Encountered By Students In Taxation Courses
Authors: Ern Chen Loo , Juan Keng Ho
Published: June 2010

Courses in taxation generally cover elements pertaining to the quantitative, legal and expository aspects, all of which rely on the understanding and interpretation of complex tax statutes, which in turn involve both language and content complexities. This study is on students pursuing taxation courses at the tertiary level in Malaysia, where the medium of instruction is in English, which is neither the students’ mother tongue nor their first language. As tax statutes and reference materials on taxation in Malaysia are mainly in English, and taxation courses are taught and assessed in English, a reasonably high level of English language skills is essential to cope with the legal and expository aspects. The study reveals that a majority of the students agreed that they encountered difficulties in terms of language complexity rather than content complexity, particularly in relation to understanding textbooks and examination questions. In terms of content complexity, less than one third agreed that they encountered difficulties in understanding textbooks and lectures/tutorials.
Corporate Reporting on Minority Shareholders Information And Its Implication on Shareholders Activism in Malaysia
Authors: Mohd Fahmi Fazlina , Omar Normah
Published: June 2010

The objectives of the current study are of two folds; dealing firstly with the commitment of the listed companies in reporting minority shareholders’ information in their corporate annual report and secondly to determine the implication of such reporting practices towards shareholders activism in this country. It is implied in this study that if the reporting practices is fair and the level of shareholders activism is high, corporate governance practices could be significantly improved.
Income Smoothing and Market Perception of Accounting Numbers: An Empirical Investigation of Extraordinary Items
Authors: Adibah Wan Ismail Wan , Anuar Kamarudin Khairul , Kamil Ibrahim Muhd
Published: June 2010

This paper examines issues related to the reporting of extraordinary items in the financial statements of Malaysian companies. The first issue concerns the change of accounting standards on extraordinary items, which has limited the scope of extraordinary items. It is found that there are significant changes on the incidence of reported extraordinary items during the period after the adoption of the new standard. The findings supported the argument that the new standards on extraordinary items had consequently reduce significantly these items from financial statements. This paper hypothesizes that extraordinary items classification choice is a means used by companies to smooth income. Two types of statistical tests performed have confirmed the proposition that the disclosure of extraordinary items is subject to this type of manipulation during the period before the adoption of the new standard. Although it is proved that the broad definition of extraordinary items allows companies to manipulate income, evidence gathered from multivariate regressions demonstrates that extraordinary items are of value‐relevance for investors in valuing a firm’s equity. Thus, investors take into account the extraordinary items even though it is disclosed “below the line”.
The New Issue Puzzle in Malaysia: Performance and Earnings Management
Authors: Abdul Rahman Rashidah , Razazila Wan Abdullah Wan
Published: June 2010

The current study seeks to answer the puzzle as to why firms issuing equity produce poor returns to investors in the long run by exploring whether the post issue performance is being influenced by the potential opportuities of earnings management during the period prior to public listing. Using a sample of 187 IPO firms, results in the study shows that firms that go public over the period 1989‐1998 obtained significant negative share return relative to their control firms in the long run. Further analysis provides evidence that managers of Malaysian IPO firms manage their earnings prior to public listing. However, no significant relation is observed between prior earnings management and post issue long run performance. The result is robust with respect to IPO firms with either high or low level of earnings management. Thus, there is no evidence to suggest that the pre offering earnings management is able to predict the negative share return performance post issue. The decline in the post offering share price may be the result of price correction by investors on their beliefs of future earnings based on unfavourable earnings revealed over time by media, analysts reports and subsequent financial statements after listing.
Timeliness of Local Authorities’ Financial Reports
Authors: Ahmad Norkhazimah , Abdul Aziz Asmah
Published: June 2010

This study examines audit lags of local authorities in Johor from 1990 to 2001. In addition, it also investigates the association of audit lag with functioning pattern of local authorities from 1999‐2001. This three‐year period has been chosen, because of the several changes which have been adopted by the local authorities in Johor within this period. Audit lag is defined, as the gap in terms of number of months fromt he end of the financial year (31 December) to the signature date of audit certificate by the Auditor General. Data of audit lags were gathered from the financial sttements and audit certificates issued by the Auditor General, which were obtained from the National Audit of Johor branch. Analysis of this study reveals that 88.89 per cent of audit lags of local authorities in Johor within the period of study exceeded 12 months. The longest average audit lag was in 1990 and the shortest was in 1995. Analysis of association of audit lag and functioning of Johor local authorities from 1999 to 2001 reveals that, only certain local authorities were significantly associated with audit lags.
Graphical Information in Corporate Annual Report: A Survey of Users and Preparers Perceptions
Authors: Mohd Isa Rosiatimah
Published: June 2010

This study surveyed the perceptions of users and preparers of Corporate Annual Reports (CAR) regarding graphical information (GI) disclosed in the CAR. Questionnaires were used and sent to (i) 120 selected users, and (ii) 489 CFO of non‐financial companies listed on the main board of Bursa Malaysia for the year 2002. It was found that users ranked GI as second after financial statements. The users of CAR utilized GI to evaluate company’s performance overtime, make comparison with other companies and assist in making investment decision. The KFV graphs preferred are sales, earnings, EPS, share price performance, and cash flow graphs. More than fifty percent of users believed that graphs disclosed in CAR are sufficient. The survey also revealed that 75.4 percent of Malaysian companies included graphs in their CAR. They disclosed sales, earning per share, shareholders fund, earnings, and net tangible assets. These variables were presented in bar, line, pie, and column. However, the most popular type of graph was bar. The perceived major users of GI are mainly financial analysts, potential investors and financial investors. The preparers indicated that the main reasons that hinder companies from disclosing GI in CAR are due to the sufficiency of the existing numerical and narrative disclosure, and inexistence of formal guideline regarding the construction of graphs. The findings also revealed that users were more aware of fundamental principle of graphs construction than the preparers based on the mean scores by both group on the criterion of good construction of graph. Overall, the survey evidenced that graphs are appreciated by both parties as an alternative way of communicating information in a more effective manner.
Integration of the South and East Asian Stock Markets: How Long to Go?
Authors: Ameer Rashid
Published: June 2010

This paper reappraises the global and regional integration for 6 Southeast Asian stock markets. A time‐varying analysis based on Barari (2004) suggests that Malaysia, South Korea and Thailand have shown significant movement towards international financial integration.The estimates based on TARCH model imply significant support for returns and volatility spillover effects from the World as well as regional markets to all the stock markets except Pakistan. The stock market liberalization measures such as First Country Fund, First Depository Receipt, and First Cross Listing appeared to have induced more positive return spillover effects from the World to India, Indonesia and South Korea. These results have policy implication for the international portfolio investors in sense that portfolio diversification advantages are rather less in Malaysia, South Korea compared to India and Pakistan which still provide higher returns through portfolio diversification.
Leadership Factors in Organizational Change Process: Observations from the Perspective of Management Accounting
Authors: Mail Rasid , Mohamed Nafsiah , Hj. Atan Ruhaya
Published: June 2010

Worldwide efforts to transform the public sector under the theme of “New Public Management” have been concerned with the issues of organizational change management. The change in the Accounting sector is one of the pillars of such efforts. This paper promotes the importance of leadership roles within the accounting change process by studying them within the context of a corporatized public sector entity. It offers a longitudinal analysis (1998‐2005) through the framework of “levers of control”. Leadership roles within the accounting scenario are compared with leadership roles within the engineering scenario to demonstrate the importance of accounting in mediating leadership roles, and in the end, promote the organization’s operational and financial performance. Through the framework of levers of control, this paper examines the different approaches and styles of an organizational leader in aligning beliefs systems among the workers, and creating management control systems through the mobilization of accounting calculative and constitutive power. This paper argues the importance of studying the characteristics of good leadership with in the organizational transformation process, particularly within the change management accounting practice that could lead to better organizational performance of the organization.
An Empirical Study on Job Satisfaction, Job‐Related Stress and Intention to Leave Among Audit Staff in Public Accounting Firms in Melaka
Authors: Haji Hasin Hanafiah , Haji Omar Normah
Published: June 2010

This study investigated the relationship between job satisfaction, job‐related stress and intention to leave among audit staff in public accounting firms. Effects of demographic factors on job satisfaction; and the relationship between the elements of two‐factor theory with job satisfaction and job‐related stress were also identified. Data for the study was collected through questionnaires. Statistical analysis such as chi‐square test, factor analysis, correlation analysis and multiple regressions were used. The results indicated that job satisfaction and job‐related stress were significantly related to intention to leave the job. Only demographic factors such as pay or salary, job position and highest education achieved were found to have effect on job satisfaction. Elements of motivators and elements of hygiene were related to job satisfaction and jobrelated stress respectively. The findings of this study may contribute to planning and implementing human resource management’s (HRM) retention strategies. Several suggestions for future research are also presented. If the antecedents of intention to leave can be identified, appropriate HRM practices may minimize dysfunctional turnover of high quality employees.
DIA to BAcc: A Case of UiTM Sarawak Campus
Authors: Mohamad Shafi , Bujang Fatimah
Published: June 2010

This study was conducted as a result of the declining numbers of Diploma in Accountancy (DIA) students obtaining a Cumulative Grade Point Average (CGPA) of 2.75 and above in the Sarawak Campus of UiTM. The reason why CGPA 2.75 was identified as the cut‐off point was because this is the minimum entry requirement for students to enter the degree program in Accountancy. A questionnaire survey was carried out at UiTM Sarawak Campus with the hope of finding the root cause(s) of this problem by focusing on DIA students who were in their final semesters. A total of 65 questionnaires were distributed to selected respondents in Parts 6, 7 and 8 of the DIA program. In addition to that, these students were observed without much interference to their ordinary situation, so that a more reliable outcome could be obtained. From the survey, the researchers found that the factors that caused the decline in the numbers of students achieving a CGPA of 2.75 and above can be categorized into avoidable and unavoidable. The avoidable factors include students’ attitude, study skills and peer influence. These factors are considered avoidable because they are within the students’ control. Final exam paper difficulty is an unavoidable factor, because it is not under the students’ control. The findings show that the university, lecturers and students all have significant roles to play in helping these students obtain a CGPA of 2.75 and above. They should complement one another so that their joint effort can be optimized. Based on the above findings, the researchers conclude that the university, lecturers and students should work together to produce better results not only in terms of the CGPA outcomes but also to improve the students’ attitude.
Enhancing Control Through Participation: Issues of Conflicts in Public Sector Organizations
Authors: Othman Radiah , Said Jamaliah
Published: June 2010

Public sector site is always known for its continuous games of power and control. Public managers often use control to enhance their power and to legitimise their actions. Empirical evidence showed that during the process of implementing accounting information system (AIS), the management adopted various strategies in securing accountants’ participation such as offering accountants to be part in the implementation process as change agents and change champions. Participation is seen as a mechanism to mitigate resistance and to cement commitment of the accountants to the new AIS which would ultimately produce “consent”. Theoretically, this paper is informed by Tannenbaum & Kahn (1957) contribution to organizational control structure, especially their idea that the total amount of control within an organization can be increased by emphasising decision‐making among different organizational members. Nonetheless, this paper argues that multilevel conflicts need to be resolved before participation can be secured and ultimately management control can be enhanced in organizations. The significance of participation in resolving conflicts in the public sector has been under researched and this deficiency remains the focus of this paper. Case studies were conducted in four Malaysian public sector organizations where the interplay of participation, control and conflict were observed and suggestions are proposed for future research.
Universities – Workplace Competency Gaps: A Feedback from Malaysian Practising Accountants
Authors: Ridhuan Che Abdul Rahman Mara , Akbar Tengku Abdullah Tengku , Agus Arawati , Mohid Rahmat Mohd
Published: June 2010

Borderless transactions have resulted in changes to the competitive and technological environments. As a result, accounting profession faces challenges in meeting these changes. Previous studies have indicated that accounting education had failed to develop students’ competencies critically required by market. This paper mainly focuses on competencies in the workplace in relation to its levels of importance; as well as the level of emphasis of the competencies during university learning. In this study, 1,300 questionnaires were distributed to accountants graduated from seven state‐run universities namely Universiti Malaya, Universiti Kebangsaan Malaysia, Universiti Putra Malaysia, Universiti Islam Antarabangsa Malaysia, Universiti Teknologi Mara, Universiti Utara Malaysia and Universiti Sains Malaysia. The respondents were asked to rank the level of importance and emphasis of thirteen competencies; namely communication skills, decision‐making skills, leadership development, continuous improvement skills, professionalism, information development and distribution skills, knowledge in planning and budgetary, management control system, interpreting and analyzing financial statements, knowledge in accounting, knowledge in auditing and knowledge in taxation. The study found that there were large gaps between the level of importance of competencies in workplace and the level of emphasis of competencies in workplace. In addition, the study also found positive correlation between the personality traits and the level of competencies. In general, these findings are consistent with the findings from other studies conducted. The findings should provide empirical and relevant input for assessing the content of the existing accounting programs.
Determinants of the Choice of Reporting the Direct Method or Indirect Method of Cash Flow from Operating Activities: Malaysian Evidence
Authors: Hassan Salleh , Christopher Theo
Published: June 2010

This study examines the incentives motivating listed companies in Malaysia to voluntarily choose the Direct Method over the Indirect Method in reporting cash flow from operating (CFO) activities in their 1997 annual financial reports following the adoption of the IAS 7 (Revised) Statement of Cash Flows (SCF), which was used prior to the current standard MASB No. 5 Cash Flow Statement promulgated by the Malaysian Accounting Standards Board (MASB) in 1999. Adopting the signalling perspective, the general hypothesis of this study is that the choice of the Direct Method over the Indirect Method in reporting CFO activities is to maximize a firm’s value via engagement in quality signalling to the market. Specifically, it is hypothesised that such decision is influenced by the firm’s level of managerial efficiency, financial risk, size, its auditor, and industry membership. The sample consists of 231 firms listed on the Kuala Lumpur Stock Exchange; 32 firms in the treatment group (Direct Method) and 199 firms in the control group (Indirect Method). Based on the results from the univariate and multivariate analyses, we found all variables to be in the hypothesised directions. However, we infer that the decision to choose the Direct Method for reporting CFO activities in SCF is significantly influenced by the firm’s level of managerial efficiency, size, and its auditor. Thus, there is support for the general hypothesis of maximization of the value of the firm via quality signalling. The authors gratefully appreciate the helpful comments of the discussant and workshop participants at the 11th Asian‐Pacific Conference on International Accounting
Disclosure of Voluntary Accounting Ratios by Malaysian Listed Companies
Authors: Bin Abdullah Azrul , Nor Izah Ku Ismail Ku
Published: June 2010

Accounting ratios are believed to be of fundamental importance in financial analysis, and therefore are useful addition to financial reports. This paper examines the reporting of voluntary accounting ratio by Malaysian companies in corporate annual reports. Drawing on agency and signaling theories, this paper explores whether associations exist between company performance and voluntary disclosure of accounting ratios. In particular, associations are tested between the extent of ratio disclosure and company performance (nmaely profitability, liqudity, leverage, and company effiency), size and industry. Six hypotheses are tested using data collected from 2003 annual reports of 100 Malaysian listed companies. This paper provides evidence that the extent of voluntary ratio disclosure is low; and size, industry as well as liquidity significantly influence the reporting of ratios in corporate annual reports. The implications of these findings are discussed.
Managerial Ownership Structure and Earnings Management
Authors: Yang Chi‐Yih , Lai Hung‐Neng , Leing Tan Boon
Published: June 2010

This study examines the relation between managerial ownership structure and earnings management. Unlike previous research which treats insiders as a homogeneous group, we further classify insiders into executives, outside directors, and blockholders to conduct an in‐depth study. Earnings management is captured by discretionary accruals that are estimated using the modified Jones model. For a large sample of Taiwanese listed firms over the period 1997 and 2004, we find that discretionary accruals first increase and then decrease with executive ownership, forming an inverted U‐shaped relationship. However, discretionary accruals are positively affected by director ownership and blockholder ownership. The results suggest that equity stake owned by top officers of a firm should be encouraged in order to reduce agency cost, thus enhancing information content of earnings.
Regulatory Profit Targets and Earnings Management in Initial Public Offerings: The Case of Malaysia
Authors: Ismail Norashikin , Weetman Pauline
Published: June 2010

We examine the extent of earnings management associated with meeting forecasts made in IPO prospectuses in a developing economy where government regulation requires a profit forecast but allows promoters to choose either (1) to provide a profit guarantee or (2) to elect for a moratorium on share transfers for a defined period. Since the manager is mandated to make earnings forecast and there are costs associated with forecast error, we hypothesise that, in the first reporting period following the IPO, managers opting for a profit guarantee will signal their ability to produce a result within the target zone while managers opting for a share moratorium will match that performance to maintain their reputation, with the result that both groups are indistinguishable in the magnitude of earnings management. Using a sample of 92 regulated IPO firms we find a strong negative association between forecase error before earnings management and a firm’s discretionary accruals. Our results support the hypotheses, leading to the conclusion that earnings are managed towards the forecast amount, consistent with both the desire not to deviate excessively from the forecast and income smoothing.
Book‐Tax Difference and Value Relevance of Taxable Income: Malaysian Evidence
Authors: Rohaya  , Mastuki Nor’Azam , Bardai Barjoyai
Published: June 2010

This study investigates the gap between financial accounting income and taxable income (i.e. book‐tax difference) and the value relevance of corporate taxable income in providing information on the quality of reported earnings for Malaysian listed firms during the tax years 2000 to 2004. The large gap between the financial accounting income and taxable income resulting from tax planning activities is reflected in firms’ effective tax rates (ETRs), a proxy for firms’ actual tax burdens. Thus, lower ETRs indicate high tax planning activities undertaken by the sample firms, and vice‐versa for firms with higher ETRs. This study uses a tax‐based earnings quality indicator, that is, the ratio of after‐tax taxable income to reported income (ATTI) to investigate the quality of corporate earnings. The study provides empirical evidence that firms report higher financial accounting income to shareholders and lower taxable income to tax authorities during the years 2000 to 2004. The significant and positive relation statistical results between firms’ after‐tax taxable income (ATTI) and market value of equity provided indicate the value relevance of taxable income as both an earnings quality indicator and a performance measure. Thus, the empirical results suggest investors appear to fully comprehend the quality‐related information in taxable income. This study concludes that first, tax planning activities contribute to a large gap between financial accounting income and taxable income; and second, taxable income contains useful information on the quality of reported earnings.
Corporate Governance Reform and the Value Relevance of Equity Book Value and Earnings in Malaysia
Authors: Jamaluddin Adibah , Mastuki Nor’Azam , Elmiza Ahmad Asyaari
Published: June 2010

This paper examines the effect of corporate governance reform on the value relevance of equity book value and earnings by employing the Ohlson’s (1995) Valuation Model, and it is based on the methodology developed by Davis‐Friday et al. (2006). The sample consists of Main Board companies listed on Bursa Malaysia from 1999 to 2001 in order to investigate the effect during and after the issuance of the Malaysian Code on Corporate Governance (MCCG) as a measure of corporate governance reform. The findings generally indicate that equity book value and earnings are value relevant in assisting investors to value firms’ equity. Findings of this study, nonetheless, show that the regulatory change experienced by the country did not have an impact on the valuation of equity book value and earnings. This, thus, suggests that most of the Malaysian companies may not have met the intended purpose of MCCG, but merely conformed to the minimum requirement. In summary, the findings of this study provide evidence that the equity book value and earnings reported in the financial statement is value relevant in valuing Malaysian firms’ equity.
Reflexivity in Qualitative Accounting Research
Authors: Nabiha Abdul Khalid Siti
Published: June 2010

The substance of qualitative research is reality reconstruction, which is reconstructing the reality of the subjects regarding their social world. The researcher is, in fact, making claims on behalf of the subjects. As such, reflexivity is important in qualitative research. The core concern in the issue of reflexivity deals with representations of the social reality; the types of representations the researcher is involved with and also the relationship between the researcher and the subjects. Scrutiny of our research practises is necessary in order to address such issues. As such, this paper discusses the issue of reflexivity in qualitative accounting research. The role of the theoretical framework and the researchers own values and assumptions, and how it influences the research process are also discussed.