...DETERMINANTS OF CEO COMPENSATION: EVIDENCE FROM MALAYSIAN BANKING INDUSTRY CHONG KOK CHIEK (AC082799) MUHAMMAD AZWAN BIN MOHD ARIFFIN (AC082868) SITI SUHANNA BINTI ABDUL GHANI (AC083010) BACHELOR OF ACCOUNTING (HONS.) COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING UNIVERSITI TENAGA NASIONAL 2012 DECLARATION We hereby declare that this project is our original work except for quotations and citations which have been duly acknowledged and that it has not been previously and/or concurrently submitted for any other degree at Universiti Tenaga Nasional and/or other institutions. CHONG KOK CHIEK AC 082799 MUHAMMAD AZWAN MOHD ARIFFIN AC 082868 SITI SUHANNA ABDUL GHANI AC 083010 Date of submission: 13th August 2012 i ACKNOWLEGDEMENT We would like to express our sincere gratitude to our project supervisor, Mr. Wan Mohammad Taufik bin Wan Abdullah, lecturer of Department of Accounting of Universiti Tenaga Nasional, for his valuable advices and continuous guidance throughout the research process. Mr. Taufik spent a lot of time enlightening us on various issues, giving us a comprehensive view in the academic aspect via our meetings within his busy working schedule. It is our pleasure to have him as our project supervisor. Without his unconditional support and care, our project could not be finished effectively. He let us try different approaches with confidence in the process, assisting us to solve a lot of problems especially at the time when we did...
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...FORM C: ABDC 2013 JOURNALS LIST REVIEW RATING UPGRADE SUBMISSION *** PLEASE NOTE THAT: FORM C is designed to formalise requests to the ABDC Journals Review Panel 2013 seeking an upgrade in rating of an academic journal which is currently included and rated in the ABDC 2010 list e.g. seeking to raise a rating from a “B” to an “A” journal. Please complete a separate form relating to each journal for which you wish to make a submission of this type. Journal Title: MALAYSIAN ACCOUNTING REVIEW QC1. FIELD of RESEARCH (FoR) PANEL to which this request is directed (tick one box only): 0806 Information Systems 1401-1499 Economics 1501 Accounting 1502 Finance 1503 Management 1504-07 Marketing/Tourism/Logistics 180105/1801025 Business and Taxation Law QC2. WHAT ABDC 2013 RATING DO YOU PROPOSE FOR THIS JOURNAL? A* A B C QC3. WHAT ABDC 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C QC4. WHAT ERA 2010 RATING WAS THIS JOURNAL ASSIGNED? A* A B C not applicable QC5. NOMINATE “THE BEST” COMPARATOR JOURNAL (journal from the ABDC 2010 list that is most similar in research quality): ASIAN REVIEW OF ACCOUNTING QC6. JOURNAL INFORMATION Editor’s Name: PROF. DR NORMAH OMAR Web Address: http://ari.uitm.edu.my/mar.html Institution: UNIVERSITI TEKNOLOGI MARA NATURE OF SUBMISSION QC7. Primary submitter type (tick one box only) Higher Education Institutional Submission (e.g. formal submission from Business...
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...Combining Qualitative and Quantitative Methods In Environmental Accounting Research Evangeline Elijido-Ten Faculty of Business and Enterprise, Swinburne University of Technology Address for correspondence: Faculty of Business and Enterprise Swinburne University of Technology John Street, Hawthorn Victoria, Australia 3122 Phone: +61 3 9214 4471 Fax: +61 3 9819 2117 E-mail: eelijidoten@swin.edu.au 1 Combining Qualitative and Quantitative Methods In Environmental Accounting Research Abstract Purpose: To explore how the combination of quantitative and qualitative methods can enhance a study on the environmental reporting decisions made by Malaysian companies using the emergent stakeholder theory. Methodology/approach: The paper provides an illustration of how the descriptive, exploratory and explanatory type of research is entrenched with the objectives of the research and how the combination of quantitative (statistical regression and weighting/mean ranking) and qualitative (archival analysis, qualitative interviews) methods may enhance accounting research not only from results that corroborate. Findings: The three-fold objective of this study, corresponding to its three phases, illustrates that combining qualitative and quantitative methods involves considerations at each phase of the investigation. The research design shows that when the researcher work with different types of data within the same project, the way data is used varies according...
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...on the firm’s performance. This is because this study shows that the relationship between the audit committee and the two performance measures is not statistically significant.This result is not consistent with some previous studies such as Klein (2002) and Mansi and Reeb (2004), where they reported strong positive relationship between audit committee and the performance variables they used in their studies ← Audit committees being occupied by majority of outside members have no influence on the ← firm’s performance. This is because this study shows that the relationship between the audit committee ← and the two performance measures is not statistically significant.This result is not consistent with ← some previous studies such as Klein (2002) and Mansi and Reeb (2004), where they reported strong ← positive relationship between audit committee and the performance variables they used in their studies Corporate Governance and Firm Performance: The Case of Nigerian Listed Firms Kajola, Sunday O Department of Accounting, Olabisi Onabanjo University Ago-Iwoye, Nigeria Tel : 234-8033519371 E-mail: omobaaseye@yahoo.com ← Regarding future line of research, efforts should be put at increasing the sample size and the ← corporate governance variables, particularly the inclusion of ownership concentration/characteristics. ← The need to examine the relationship between firm performance measures when leverage...
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...characteristics on corporate social responsibility disclosure by Islamic banks: evidence from Gulf Cooperation Council countries Abdullah Awadh Bukair and Azhar Abdul Rahman Abstract Corporate social activities have become major subjects because of their effects on the quality life of citizens, in particular, and on the society at large. Therefore, today, there is an increase awareness of social responsibility due to the challenges meeting the financial institutions (particularly, Islamic banking) around the world. This paper examines the influence of the board of directors’ characteristics, consisting of board size, board composition, and the separation roles of CEO and chairman, on corporate social responsibility (CSR) disclosure in 53 annual reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results indicate that corporate governance structure...
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...Financial Institutions and Markets THE MALAYSIAN STOCK MARKET | | | | | | | | | TABLE OF CONTENTS Executive Summary 1 1.0 Introduction 2 2.0 Major Developments of Malaysian Stock Market for the past 10 years (2002 – 2011) 4 2.1 Merger of Two Stock Exchanges (KLSE and MESDAQ) 5 2.2 Standard Board Lot of 100 units 5 2.3 FTSE Bursa Malaysia Index (FBM) 6 2.4 Bursa Trade Securities (BTS) 6 2.5 Introduction of Special Purpose Acquisition Companies (SPACs) 6 2.6 Amendments on Listing Requirements 7 2.7 Introduction of E-dividend and E-share Payment System 7 2.8 ASEAN Exchanges Trading Link 7 3.0 Capital Market Master Plan (CMP) 9 3.1 Capital Market Master Plan 1 9 3.2 Capital Market Master Plan 2 (CMP 2) 9 3.2.1 CMP2 and the development of stock market 12 4.0 Outlook of Islamic Stock Market 13 4.1 Introduction of Islamic Stock Market 13 4.2 Current Condition 13 4.3 Efforts in Strengthening Malaysia’s Position in Global Islamic Stock Market 13 4.4 Prospects of Malaysia Islamic Stock market over next decade 14 5.0 Conclusion 15 Reference List 16 Appendices 20 List of Figures Figure 1: Main indicators for Malaysia Stock Market from year 1989 to 2010 4 Figure 2: Malaysian Stock Market Capitalisation in the past ten years (2002 - 2011) 5 Figure 1: Number of stockbroking member companies before and after merger 21 Figure 2: Number of dealer representatives before and after merger 21 List of table Table 1:...
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...Strategies on Performance by Raduan Che Rose, PhD, and Naresh Kumar, PhD T oday a firm’s success largely depends on the capabilities of its members. Firms may have the capital and technology, but it is Human Resources (HR) that will help firms face the challenges of business globalization. Capital can be generated. So can technology. But the HR required to propel an organization through the coming challenges must be rightly and appropriately encouraged and motivated. Significantly, these days careful management of this important resource calls for a strategic focus on Human Resource Management (HRM) in the organization. Previous research on HRM widely accepted that employees create an important source of competitive advantage for firms (Barney, 1991; Pfeffer 1994). As a result, it is important that a firm adopt HRM practices that make best use of its employees. This trend has led to increased interest in the impact of HRM on organizational performance, and a number of studies have found a positive relationship between so-called “high-performance work practices” (Huselid, 1995) and different measures of company performance. Furthermore, there is some empirical support for the hypothesis that firms, which align their HRM practices with their business strategy, will achieve superior outcomes (Bae & Lawler, 1999). However, a review of the literature indicates a serious lack of large-sample empirical studies designed to investigate whether extensive use of “high-performance” HRM practices...
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...Introduction of Foreign Direct Investment Foreign Direct Investment (FDI) is known as the long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer of technology and expertise. In other words, foreign direct investment is the cross-border corporate governance mechanism through which a company gains productive assets in another country. FDI is different from other major forms of foreign investment in that it is motivated largely by the long-term profit prospects in production activities that investor directly control (Wong, 2005). Wong also says that almost most of the developing and least developed countries worldwide equally participated in the process of direct investment activities. Over a long period of time, foreign direct investment (FDI) forms a major part of investment in most industrial and some developing countries. Besides that, he did explain that some FDI is intended to utilize local natural resources. Sometimes it is to employ relatively cheap labour, and sometimes to produce goods near to markets. Moreover, foreign direct investment can be a significant driver of development in poor nations. According to Katerina, John and Athanasios (2004), it provides an inflow of foreign capital and funds, in addition to an increase in the transfer of skills, technology, and job opportunities. Furthermore, they said it would be difficult to generate this capital through domestic savings, and even if it were...
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...2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd SUSTAINABLE COMPETITIVE ADVANTAGE FOR MARKET LEADERSHIP AMONGST THE PRIVATE HIGHER EDUCATION INSTITUTES IN MALAYSIA Loh Teck Hua KDU University College Business School Section 13 Campus, 76, Jalan Universiti, 46200, Petaling Jaya, Selangor DE ABSTRACT One of Malaysia’s economic goals is to become an education hub for the region. To achieve this, the Malaysian government had liberalised government policies resulting in the proliferation of Private Higher Education Institutions (PHEIs) including private Universities and University Colleges. As competition intensifies it becomes increasingly pertinent to ask “What sustainable competitive advantage should the Private Higher Education Institutions (PHEIs) have to achieve market leadership in the Malaysian education industry?” For the smaller PHEIs, it is a question of survival itself. This paper aims to provide a theoretical study of some of the key strategic activities of the leading PHEIs to answer this question. The literature review covering both foreign and local sources indicates three key factors of sustainable competitive advantage, i.e. branding and image, the physical aspects of higher education including location and facilities, and the mode of delivery. The paper will seek to identify these factors amongst the market leaders to ascertain the validity of the secondary data via critical analysis of their activities. The...
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...Malaysia Introduction: Bordering Thailand, Singapore, Indonesia, and Brunei is Malaysia, which is located in South East Asia covering 329,845 square kilometers in two islands namely Mainland Asia and Borneo (which also has three countries in the said island). There are two regions namely Peninsular Malaysia which is basically mainland Asia and Malaysian Borneo that covers Borneo while 13 states and three Federal Territories compose the country as a whole. The Federation of Malaya was established in August 31, 1957 with the inclusion of Sarawak, Sabah, and Singapore in September 16, 1963. The latter country, however, left the federation to become an independent country in August 9, 1965. PEST Analysis Political Analysis Overview of the government: Malaysia is a federated constitutional monarchy based on a parliamentary system of government and an independent judiciary. States in this country have and follow their own constitutions and governments. The highest institution is the Conference of Rulers which is made up of the hereditary rulers of nine states in Peninsular Malaysia and four state governors appointed by the king. The nine hereditary rulers in the Conference of Rulers elect one of themselves as the “supreme sovereign” which acts as head of state for a single five-year term. Executive Branch The Conference of Rulers is the topmost institution authorized by the constitution to choose the king, approve appointed judges, rule on administrative...
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...Eclectic Theory (1993); (1) ownership, that is a company possessing an advantage which gives them a competitive edge in the international market as compared to its domestic market, (2) location, where the country a company intends to invest in must have the right pull factors which will be in favour of the investing company, and (3) internalisation, that is transferring the company’s ownership advantage is more beneficial than selling it off, must be satisfied. Emerging countries focus and rely heavily on FDI as it is a vital element which assists in boosting the country’s development and economic growth. Like other developing countries, Malaysia too depended on FDI and benefitted greatly from the strong inflow (Shahrudin, Yusof, & Satar, 2010) and transformed from an agriculture-based economy to an industrial economy (Wong, 2005). Despite being an attractive FDI destination, as well as an eminent host country to foreign investors, Malaysia has seen an 11% decline in FDI inflow (U.N. Conference on Trade and Development, 2015). A country’s rise or fall in FDI is affected by several determinants such as the market factor, trade barriers, costs, and investment climate (Hill, Cronk, & Wickramasekera, 2014). This essay will serve to discuss both domestic and global factors influencing Malaysia’s decreasing FDI inflow during 2014 and 2015, followed by a firm exiting the country due to domestic factors affecting its performance, and lastly, a conclusion to summarize the main points...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-6902.htm MAJ 23,4 The impact of government and foreign affiliate influence on corporate social reporting The case of Malaysia Azlan Amran School of Management, University Science Malaysia, Penang, Malaysia, and 386 S. Susela Devi Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia Abstract Purpose – This paper seeks to investigate the influence of government and foreign affiliates, particularly; multinational companies on corporate social reporting (CSR) development in an economy, where CSR awareness is low coupled with weak pressure group activism. Design/methodology/approach – This is a cross sectional study that focuses on the information contained in the annual reports for year 2002/2003. This research uses content analysis as method to measure the extent CSR. Findings – Based on regression analysis, the study evidences on the impact of government influence. However, the impact of foreign affiliation variables is not evident. Institutionalisation of the government’s aspirations and commitment to CSR is perhaps the most appropriate description for Malaysian CSR practice. Research limitations/implications – There are two main limitations of this study. Firstly, this study examines the annual reports for one year. Secondly, this study is annual reports centric. It does not examine any other stand alone reports that the respondents might...
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...ISBN 1947-833X Proceedings of 1st Global Business Summit Conference (GBSC 2009), Kelantan, Malaysia University of Technology Mara Malaysia, Shah Alam, 15-17 June 2009, Volume 2, pp. 128-137 Entry Mode Strategies of Malaysian Service Firms: A Resource-Based Approach Mohammadreza Asgari*, Mohd Nazari Ismail**, Syed Zamberi Ahmad*** Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur ABSTRACT The rapid progress in services has attracted scholars to study the behaviour and decisions of service firms. Firms from Malaysia, as a developing country, with a fast growing economy that increasingly relies on services have shown a remarkable expansion into foreign markets, which has resulted in high foreign direct investment (FDI) outward inflows and increasing exports of services. This paper utilizes the resource-based theory, in which the main determinants of the choice of entry mode are organizational variables compared to environmental factors, to explain the choice of entry strategies made by Malaysian service firms and the motives for it. This study aims to develop a framework for the choice of entry mode strategies that has fewer shortages than others, analyze the determinants of entry mode strategy in order to find the similarities and differences existing between firms in the decision-making process for the choice of entry mode, and consider the role of psychic distance in adopting an appropriate strategy in different markets. Suggestions for future research...
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...the Books: The Case of Malaysian Listed Companies Fathilatul Zakimi Abdul Hamid Rohami Shafie Zaleha Othman Wan Nordin Wan Hussin Faudziah Hanim Fadzil School of Accountancy Universiti Utara Malaysia Sintok, 06010 Kedah Malaysia. Abstract Cooking the books refers to fraudulent accounting activities undertaken by a business to falsify its financial statements. Thus, the objectives of this study are to investigate what the cooking-the-books activities carried out by businesses consist of, how they conduct them, and what the impact is on the business and its shareholders. The case study sample companies are two Malaysian companies that had received various awards from reputable third-party organizations. On the other hand, the activities undertaken in both companies have caused them to be labelled as Malaysian mini Enrons. We employ a qualitative research methodology as most prior research employs a quantitative methodology to investigate the determinant factors in businesses’ cooking-the-book activities. The result of the study shows that the managers have used their positions, prior experience, and regulatory loopholes in their activities. Furthermore, the financial report restatement and higher reported earnings are the early warning signals of their activities. As a result of this, the Malaysian Securities Commission has revised the corporate governance code, and among others incorporated the Audit Oversight Board, known in the US as the Public Company Accounting Oversight...
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...development to improve individual, group, and organizational effectiveness” (Noe, 2010, pg. 41). Trainers are responsible for the training and development of employees and managers in a corporate organization. Training is an important part of any organizations human resources department and is essential to the growth and development an organization (Kraiger, McLinden, & Casper, 2004, pg. 339). Corporate organizations usually have their own HRD departments within their company. HRD provides in-house consultants, mangers, trainers, and employee experts to help assess, guide and develop employees within the organization. Trainers work with employees and managers on what is needed to improve and increase their effectiveness within the organization (Noe, 2010, pg. 40). Outsourcing training is an alternative option for corporate organization to bring in trainers to train employees or have employees go outside of the organization and receive training. Some examples of organizations providing out outsourced training are trade and professional organizations, and consulting firms (Noe, 2010, pg. 40-41). New trainers gain knowledge and experience through on the job experience and academic courses. There are five concepts that are important for new trainers to learn in order increase their effectiveness in a corporate organization. One concept that is important for new trainers to learn is the roles of employees and managers in an organization and how it affects training. Development, learning...
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