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This paper is a pilot study that examines the perceptions of transformational leadership among cooperative movements’ boards. Past studies have shown that transformational leadership is a strong predictor of firm performance (effectiveness). This study aims to examine on the perceptions of transformational leadership style among Malaysian cooperatives board of directors. Among the major problems faced by Malaysian cooperatives are the lack of board of directors’ commitments, directors failed to perform their duties effectively and weak leadership from Board of Directors which affected the board effectiveness and performance.

This paper is a pilot study that examines the relationship between organizational culture and board effectiveness in cooperative movements. Past studies have shown that organizational culture has influence on performance but there have been very limited studies on its impact on cooperative's board effectiveness. This study aims to examine the impact of organizational culture on Malaysian cooperatives board of directors' effectiveness. The study adopted the survey research design while the population of the study is all board of directors in Malaysian cooperative movements. The study found a significant relationship between organizational culture and board effectiveness in cooperative movements and concludes that organizational culture is very important to enhance organizational performance of the cooperatives.

Auditors are required to issue going concern opinion (GC opinion) to companies that are incapable to continue their operations in the near future. It is very important for auditors to issue the GC opinion properly because such opinion is the only signal from them on the viability of a company. Investors need such signal before they can make good investment decisions. In Malaysia however, auditors do not want to issue GC opinion to a very large percentage of financially distressed companies. This motivates this paper to discuss the impact of the latest ISA 570 (2016) on GC opinion issuance rate in this country. Overall, we are in the opinion that there is no strong ground to expect the new ISA 570 (2016) to reduce the problem of Malaysian auditors do not issue the GC opinion to many financially distressed companies. This is due to no new stricter measures being introduced in the latest auditing standard. Nonetheless, we propose four actions that can be taken by Malaysian policy makers and standard setters if they want to improve the rate and practice of GC opinion issuance.

This study assesses the differences between Islamic and conventional bank’s productivity. Earlier studies on bank productivity focused on conventional banks, but few have been done on Islamic banks. Therefore, the present study attempts to close the gap in the literature by investigating the productivity of Islamic and conventional banks in the context of the Middle East, Southeast Asia and South Asia regions. The sample is comprised of 385 banks (66 Islamic banks and 319 conventional banks) from 18 countries with data observations from 2008 to 2017. Panel data techniques with DEA-based MPI will be employed to investigate the impact of selected important factor and bank productivity as indicated by total factor productivity changes (TFPCH). Based on the results, Islamic banks are more productive than conventional banks and the results from t test are further confirmed by the results from nonparametric tests. These results are attributed to the progress in EFFCH. However, the mean di...

Incidents where external auditors do not issue a going concern audit opinion (GC opinion) to companies having severe financial problems have been reported globally. This issue motivated this study -- (i) to investigate the effect of selected auditor characteristics in terms of specialization, tenure, and fee on GC opinion issuance and (ii) to examine the moderating effect of management’s, family’s, and institution’s influence on the relationship between auditor characteristics and GC opinion issuance. The study involves 644 Malaysian financially distressed listed companies in the period 2006 to 2012. The results of a panel logistic regression analysis show that auditor characteristics have no relationship with GC opinion issuance. Influential management -- measured as the level of their ownership -- can dampen the positive relationship between auditor specialization and auditor tenure with GC opinion issuance. The presence of an influential family, on the other hand, can strengthen ...

Research aims: This paper aims at investigating the decision usefulness, namely predictive power and value relevance, of Net Income (NI) in comparison with Comprehensive Income (CI) for financial firms in Malaysia. Design/Methodology/Approach: Panel data analysis techniques are used. An unbalanced panel data is obtained from 29 financial firms listed in Malaysia from 2012 to 2017. Research findings: Pertaining to predictive power tests, there is not enough evidence to conclude that one accounting metric has better predictive power than the other. In terms of value relevance, the results show that NI is better than CI using both Price and Return models. This indicates that NI is more decision useful to investors than CI for financial firms in Malaysia. Originality: This study expands on the literature on the decision usefulness of NI in comparison with CI for financial firms in the context of an emerging economy with a smaller and less efficient market in the Asian region such as Mal...

The extent of taxpayer knowledge can have a major impact on the degree of compliance with taxation rules and regulation. Low knowledge creates uncertainty about requirements of the tax regulation and can lead to high degree of involuntary non-compliance. This study highlighted the importance of taxation knowledge by measuring Malaysian's tax payers' tax literacy rate taking into consideration the following criteria: 1) Individual ability to fill the tax return form independently, 2) Taxpayer's interest in learning about tax, and 3) Incident of errors in filling the tax return forms. Questionnaires were used in this study to ascertain the tax literacy rate. The results indicate that among the respondents, professionals group has the highest percentage of tax literacy and the formers have the lowest percentage. Majority of the businessmen paid for services for filling tax return forms and high rank officers are the highest among the group for not employing others for filling the tax forms. Businessmen have the highest incidence of error in filling tax return form and most of teachers reported no error in filling such forms. Most businessmen showed interests and were willing to spend time to learn about taxation. They perceived taxation knowledge as an important tool for themselves and also for their family. Overall results indicate that more than 60% of respondents are tax literate. However, a significant number of them are actually' functionally tax illiterate'. Most of them thought that they knew a lot about taxation as they had read them in the tax literature sent to them by the IRB. However, the evidence was contrary to this conjecture. The information on the extent of taxpayers' knowledge is potentially useful to the tax authorities to assist them in developing effective compliance enhancement policies

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Prior studies have shown that the majority of FfSE 350 firms do not fully comply with the Code of Corporate Governance (henceforth known as the Code). This is puzzling since the Financial Reporting Council (FRC) has advocated the benefits of having high corporate governance standards and yet it would seem that not many firms are taking this initiative seriously. Therefore I am motivated to find reasons why most of the firms still decided not to take this kind of opportunity to inform their shareholders that they are working in tandem with the principles of the Code and would rather following their own measures or standards of good governance. In order to address this, I will investigate what makes the firms that fully comply with the Code differ from than those that do not in term of safeguarding the welfare of stakeholders and controlling managers' behaviour, what set of principles within the Code matter most to the shareholders, and what are the potential costs to the firms if...

The Malaysian concept of collecting Corporate Art remains underdeveloped, with only a few businesses supporting such engagement. Considerable research has been conducted to understand the management rationale for either engagement in collecting or avoiding art, although no such study is available relating to Malaysia. This research investigated the relationship between managers’ demographic backgrounds and the practise of collecting Corporate Art in Malaysia. Corporate Social Responsibility (CSR) and community engagement are the drivers behind organisational art acquisition. Art can also enhance other stakeholders’ benefits. This study used the Stakeholder Theory as theoretical framework, and the analyses used mainly t-Test and ANOVA. Major findings were that demographics influence the rationale behind Corporate Art Collection practice, and a positive correlation was found between the CSR rationale and other rationales such as Decoration or Cultural Experience. A model for the highe...

Corporate voluntary disclosure becomes a burning issue in the literature of accounting throughout the last two decades. The study aims to explore the most crucial determinants that influence corporate voluntary disclosure in a transition economy. A cross-sectional study based on the pharmaceutical and chemical companies listed in the Dhaka Stock Exchange is conducted to reconnoiter the crucial determinants affecting the voluntary disclosure. Based on the agency theory, stakeholder theory, and previous literature, the determinants are selected. An unweighted disclosure index is used to measure the extent of voluntary disclosure; after that, a multivariate analysis is steered to reconnoiter the key determinants of voluntary disclosure. It is found that firm leverage and firm liquidity are the key determinants that significantly influence the corporate voluntary disclosure in a transition economy. In contrast, no significant positive association is found between voluntary disclosure an...

This paper intent to examine the function of the financial reporting, in enhancing the Shariah compliance of the Islamic financial transactions and the role of the Shariah committee in the Islamic bank in giving the assurance of Shariah compliance of the financial reporting. These would enhance the integration of the financial reporting of the Islamic bank and Shariah compliance.  However, how Shariah compliance is conveyed in financial reporting received scant attentions in academia.  This study uses literature as the study method. This is a conceptual paper describing the link between financial reporting on the Islamic financial transactions and Shariah compliance. The conclusion of this  study shows that the knowledge in finance and accounting and experience of the Shariah committee enhances the financial reporting to be aligned with the Shariah.  Therefore, it could increase the confidence of the stakeholders.    As such, this study might be of interest to top management in Isla...

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This study aims to explore the perception of stakeholders on alternative money creation for the commercial banks’ money lending activities in Malaysia. Phenomenological approach has been employed to explore the perceptions of stakeholders through sharing of their experiences. A semi-structured interview approach has been used to collect the data. Ten individuals from different stakeholder groups have been interviewed with their prior consent. This research has uncovered respondents’ opinions on possible alternative money creation for the commercial banks’ money lending activity. Respondents suggested two proposals. A few respondents have the opinion that fiat money should be removed from the monetary system and money backed by real assets like gold and silver should be issued and controlled only by Bank Negara Malaysia (BNM). Along with the above alternative, other respondents highlight that the accounting entry for commercial banks’ money lending needs should be similar to the acco...