All Research

Shahanif Hasan · Aza Azlina Md. Kassim · Mohamad Ali Abdul Hamid ·International Journal of Economics and Financial Issues ·2020 ·JEL: G3, M42

In recent decades, there has been a noticeable increase in the practice of earnings management (EM) as a proxy for financial reporting, especially real activities, with effect on the quality of financial statements. The role of the audit committee in mitigating EM remains ambiguous because of inconclusive findings. Therefore, this study examines the moderating effect of audit quality and audit committee on financial reporting quality, also known as real earnings management in Malaysian companies. The results show that corporate governance mechanism such as financial accounting expert, meeting and indicate significant results with real EM while, audit committee independence and size, shows an insignificant result on real EM. In addition, the results show that audit quality of the audit committee leads to less aggressive EM practice in real activities. The findings also show that audit quality and audit committee has a significant role in restricting the real EM. Audit quality is found to significantly moderate the relationship between audit committee with financial reporting governance practices in ensuring credible accounting information

NurulHuda Mohd Satar · Md. Khaled Saifullah · Muhammad Mehedi Masud · Fatimah Binti Kari ·International Journal of Social Economics ·2021

In light of the rapid evolution of information and communication technology (ICT), every society is faced with many issues such as social exclusion, inequality and the digital divide. Hence, there is need to solve these complex challenges without comprising any development objective. A practical solution in this regard includes establishment of a sustainable model of community development. Therefore, this paper aims to identify the role of education in promoting the awareness on the use of ICT-based infrastructure among the general public to enhance their socioeconomic status. In addition, this study sets out to establish the nexus between socioeconomic status, ICT programme as well as the awareness of Kemaman Smart Community (KSC) development project.

Filzah Md Isa · Nik Maheran Nik Muhammad · Azizah Ahmad · Shaista Noor ·Journal of Economics and Business ·2021

Women entrepreneur has gained utmost importance in the past few decades in Malaysia due to their significant contribution to the country's economic development. However, few business challenges create a constant obstruction for many women entrepreneurs such as lack of ICT knowledge, time constraint to learn ICT, lack of technological expertise, etc. The present study aims to identify the effect of ICT adoption on business performance and examine how ICT usage helped them handle operational business matters. The present study adopted the qualitative research strategy, and researchers interviewed ten (10) women entrepreneurs for this study. A semistructured interview technique was applied, and six Malay and four Chinese entrepreneurs made the study population. The result highlights that Malay and Chinese entrepreneurs use ICT in their business operation such as warehousing system, purchasing system, HRM software and accounting system, purchase order system, production system, internal communication, and AutoCAD. The present study may support the prospective entrepreneurs in considering the ICT usage to embark on technology and innovation and provide inputs to policymakers to design a proper support system for Malaysian women entrepreneurs, particularly those new entrepreneurs who are mostly young and inexperienced.

Suhal Kusairi · Suriyani Muhamad · Norizan Abdul Razak · Aji Purba Trapsila ·Journal of Asian Finance, Economics and Business ·2021 ·JEL: D21, D23, M13, M14

This study examines the impact of Information and Communication Technology (ICT) and the role of Malaysian local wisdom called “Ugahari” in managing Work–Life Balance (WLB) during the COVID-19 pandemic in Malaysia. Data was obtained through online and offline surveys which were distributed to the agencies in the public and private sectors spread across Kuala Lumpur, Selangor and Pura Jaya. Overall 466 respondents were found to have given valid and complete responses. This research utilized the Partial Least Squares Structural Equation Modelling. It was found that the use of the ICT during Work from Home (WFH) helped workers to have relatively high flexibility where they could easily expand or contract one domain to meet the demands of another domain. At the same time it also offered high permeability where aspects of one domain entered another domain. This encourages workers to integrate their roles and achieve broad work autonomy. Furthermore, this situation then gives rise to a high level of interference at the boundary between work and family domains. On the other hand Ugahari reduces the level of interference caused by ICT use and encourages workers to compartmentalize their respective roles. Thus, ICT and Ugahari’s behavior can play a role and complement each other in the context of realizing worker well-being

Lee Hwok Aun ·Asian Economic Policy Review ·2021 ·JEL: D30, D63, I30, J15

The New Economic Policy (NEP) which focused on poverty reduction and social restructuring has transformed Malaysia since 1971. Pro-Bumiputera affirmative action was intensively pursued and has continuously faced pushback, with heightened debate at key junctures. The NEP was marred by gaps and omissions, notably its ambiguity on policy mechanisms and longterm implications, and inordinate emphasis on Bumiputera equity ownership. Broader discourses have imbibed these elements and tend to be more selective than systematic in policy critique. During the late 1980s, rousing deliberations on the successor to the NEP settled on a growth-oriented strategy that basically retained the NEP framework and extended ethnicitydriven compromises. Since 2010, notions of reform and alternatives to the NEP’s affirmative action programme have been propagated, which despite bold proclamations, again amount to partial and selective – not comprehensive – change. Affirmative action presently drifts along, with minor modifications and incoherent reform rhetoric stemming from conflation of the NEP’s two prongs.

Muhammed Abdul Khalid · Li Yang ·Journal of Asian Economics ·2021

In this paper, by combining information obtained from national accounts, household surveys, and fiscal data, we document the evolution of income inequality in Malaysia, not only at the national level (for the period of 1984–2014) but also by ethnic group (for the period of 2002–2014). To our knowledge this is the first attempt to produce inequality measurements of Malaysia, which are fully consistent with the national accounts. Our research shows that despite Malaysia’s exceptional economic growth rate, its growth has been inclusive. For the period of 2002–2014, the real income growth for the bottom 50 % is the highest (5.2 %), followed by the middle 40 % (4.1 %), the top 10 % (2.7 %) and then the top 1 % (1.6 %). However, while average growth rates are positive across all ethnic groups (Bumiputera 4.9 %, Indians 4.8 %, and Chinese 2.7 %), the highest growth of real income per adult accrued to the Bumiputera in the top 1 % (at 8.3 %), which sharply contrasts the much lower growth rate of the Indians (at 3.4 %) and negative income growth rates of the Chinese (at −0.6 %). Despite the negative growth rate, the Chinese still account for the lion’s share in the top 1 %. In 2014, 60 % of the adults in the top 1 % income group are Chinese, while 33 % Bumiputera, and 6 % Indians. We conclude that in this period, Malaysia’s growth features an inclusive redistribution between income classes, but with a twist between racial groups.

Abdo Yousef Qaid Saad · Amer M Alhusini Alshehri ·Journal of Asian Finance, Economics and Business ·2021 ·JEL: M00, M31, G1, G2, G21

The study aims to measures the service quality of Islamic banking in Malaysia from non-Malaysian customers’ perspective based on the six different dimensions of the SERVQUAL model, namely, Shariah, assurance, reliability, tangibles, empathy and responsiveness. This study surveyed 100 non-Malaysian respondents from 25 different countries who have first-hand experience with Islamic banking services in Malaysia. The collected data were analysed by using the SPSS v23 for reliability analysis and descriptive statistics. The results indicates that customers’ impressions of Islamic banks’ service quality in Malaysia did not meet their standards. The independent variables, namely, compliance, assurance, reliability and empathy have positively affected customer satisfaction, while two dimensions, namely, tangibility and responsiveness does not significantly influence non-Malaysian customer satisfaction in the Islamic banking system in Malaysia. The findings of the study suggested that the Islamic banks should develop and obey the customer perception’s policy by following customers’ expectations and the results are also expected to include recommendations for improving the level of satisfaction of the Islamic banking system’s foreign clients in Malaysia. Since this study was limited to Islamic banks in Malaysia, the findings may not be applicable to other traditional banks.

Nur Azura Sanusi · Noor Hayati Akma Shafiee · Nor Ermawati Hussain · Zuha Rosufila Abu Hassan · Mohd Lazim Abdullah · Nor Hayati Sa’at ·Journal of Asian Finance, Economics and Business ·2021 ·JEL: E47, G17, H52, I123

This study estimates the financial value of return on investment (ROI) of research funds. Four simulation estimations are employed to measure ROI finance value that considers the outputs, outcomes, impacts and total ROI from the allocation input received. Research outputs, outcomes, and impacts can be quantitatively measured based on improvements to existing systems. In terms of input, the Malaysian government has allocated MYR301,350,000 for fundamental research in the 2021 budget compared with 2019, up 9.5 percent from 2019. It brings up the question: To what extent does the input of research funds allocated by the government yield a good return in outputs, outcomes, and impacts to the academic community, society, and country? The result of total ROI shows around MYR7 return is generated by researchers for each Malaysian ringgit channeled by the funder. More specifically, for a research project, it is more difficult to produce impacts and outcomes compared to research outputs. The positive return is evidence that all the allocated funds are beneficial to the stakeholders. The government can apply this approach in calculating ROI for evaluation and fund allocation to universities. Furthermore, the positive financial value of research output, outcome, and impact automatically contribute to a positive innovation environment in Malaysia.

Mohammad Shahansha Molla · Mohammad Tariq Hasan · Mahadi Hasan Miraz · Mohammad Tahlil Azim · Md. Kaium Hossain ·Journal of Asian Finance, Economics and Business ·2021 ·JEL: M1, M4, M48, Q56

This study aims to examine the relationship between directors’ diversity (DIRDIV) and financial performance (FP) with a particular focus on the moderating effect of corporate sustainability practices (CSP). The study analyzes a sample of 104 firms listed on the Bursa Malaysia for the period from 2015 to 2017. Directors’ diversity is measured by the Blau index, and Tobin’s Q is used as a proxy of FP of the firms while the content analysis method is adopted to measure CSP. The study also employs three control variables, namely, board size, firm size, and leverage. Panel corrected standard errors (PCSE) estimator model has been used to test the hypotheses by STATA software. It is found that directors’ diversity in terms of independent and non-independent directors significantly and positively affect the financial performance of the firms. Furthermore, this study reveals that CSP significantly moderates the relationship between directors’ diversity and financial performance. This study suggests that the government and regulatory bodies should put more emphasis on diversifying the board and follow up the mandatory CSP to enhance financial performance of the firms, which is likely to ensure their long-term survival and to reduce the risk of collapse in the future.

Krishna Moorthy · Nik Mohamad Zaki Nik Salleh · Ang Xin Jie · Chan Shu Yi · Lau Shin Wei · Loo Yian Bing · Yee Zhao Ying ·Millennial Asia ·2021

This study examines the social media usage of Malaysian millennials in planning their domestic holidays. This study integrated the theory of planned behaviour (TPB) and technology acceptance model (TAM) variables by adding electronic word-of-mouth (e-WOM), as it is a crucial factor influencing the travel industry nowadays. Data were collected from 301 Malaysians. The results show that e-WOM is the greatest antecedent influencing Malaysian millennials to use social media in planning their domestic holidays. Local tourism organizations such as Tourism Malaysia could gain an understanding of the issue through this study, and the promotion of local tourism through social media could be developed to reach millennials in Malaysia.

Hon Chung Hui ·South Asian Journal of Macroeconomics and Public Finance ·2021 ·JEL: F31, D72, D73, O38

This article explores the effects of political events on foreign exchange returns in Malaysia. We identify five political events in recent history, namely the 13th General Election (GE13), the imprisonment of a key opposition politician, the scandal from the 1MDB exposé, the appointment of a new Central Bank Governor and the 14th General Election (GE14). Using event studies, our findings show that the imprisonment of the opposition party leader triggered a favourable response from the foreign exchange market. However, market reactions to the 1MDB scandal were largely unfavourable. The GE13 triggered unfavourable market response, while the reverse is true for market reactions to GE14. Market response to the appointment of the new Central Bank Governor was rather positive. The Event Study is the first of its kind that examines the foreign exchange market implications of key political events in Malaysia. There are practical considerations that emanate from these findings.

Mohd Azlan Shah Zaidi · Zulkefly Abdul Karim · Noor Amirah Zaidon ·Economies ·2022

Movements in palm oil price give important signals to various stakeholders of the palm oil industry in Malaysia. Thus, understanding external and internal factors that may affect the palm oil price is vital to the industry players for sustainability of their activities. This study investigates relative importance of external and internal shocks on the movement of palm oil price in Malaysia. Employing a structural vector autoregressive (SVAR) model on quarterly data from 1990 to 2019, the findings reveal that external shocks are more dominant in affecting the palm oil price. Shocks to the crude oil price, the prices of substitution goods (soybeans oil, rapeseed oil, and sunflower oil), the world palm oil price, and foreign income significantly affect the palm oil price in the short and medium run. The results also indicate that a shock to soybean oil price has a more profound effect on the palm oil price than a shock to rapeseed oil or sunflower oil prices, respectively. Likewise, shocks to incomes from India as well as from Netherlands create greater impacts on the palm oil price than a shock to income from the other trading partners, respectively. The study has shown the importance of external factors in affecting the palm oil industry.

Chia-Guan Keh · Pei-Tha Gan · Yan-Teng Tan · Fatimah Salwa Binti Abd. Hadi · Norasibah Binti Abdul Jalil ·International Journal of Sustainable Economy ·2022

Determining the relationship between financial development and economic growth is important to make precise projections of economic growth. As most of these studies rely on a symmetric relationship, they can lead to misleading policy implications. To overcome this shortcoming, this paper uses a technique involving an asymmetric relationship. This paper examines the asymmetric relationship between financial development and economic growth in Malaysia from 1980 to 2017 using a nonlinear autoregressive distributed lags model. The banking sector and stock market development have been employed as indicators of financial development. The findings suggest that the asymmetric relationship between banking sector development and economic growth exists in the long-run. Banking sector development shows no asymmetric relationship with economic growth in the short-run, while stock market development does not present any asymmetric relationship with economic growth in the short and long-terms. The study infers that the banking sector development is an essential engine of growth promotion. Policymakers should consider banking and stock market development for better policy decision-making.

Basem Ertim · Tamat Sarmidi · Norlin Khalid · Mohd Helmi Ali ·Asian Economics Letters ·2022

In an attempt to mitigate the effects of COVID-19, the Malaysian government imposed the Movement Control Order (MCO). To address the adverse impacts of the MCO policy, the Malaysian government initiated a series of recovery plans for both fiscal and monetary measures. This study aims to assess the government’s various policy measures on Malaysia’s leading macroeconomic indicators. Regardless of the differences in the gross domestic product (GDP) components, the real impacts on GDP growth are almost identical between Malaysia and a control group. This result is partly explained by the increase in total and domestic investment and private consumption.

Muhammad Hafiz Abd Rashid · Muhammad Iskandar Hamzah · Amirul Afif Muhamat · Aida Azlina Mansor · Rahayu hasanordin ·Journal of Asian Finance, Economics and Business ·2022 ·JEL: M10, M30, M31

Studies examining the interplay between brand transgression and brand forgiveness is notably sparse especially in the context of Southeast Asian banking customers. The purpose of this research is to add to the existing literature by examining the impact of brand transgression, which is represented by negative past experience image incongruence, and corporate wrongdoing on brand forgiveness among Islamic banking customers in Malaysia. The increasing surge in interest in unfavorable brand relationships has sparked concerns about its impact on brand forgiveness. As a result, this theoretical argument, which lacks empirical proof, has to be statistically tested. The current study was conducted utilizing a non-probability purposive sampling technique among clients in the Klang Valley who had poor experiences with Islamic banking services. Data analysis included descriptive statistics, exploratory factor analysis, and multiple regression on a total of 211 valid replies. The findings show that two elements of brand transgression, image inconsistency, and corporate wrongdoing, have a major impact on brand forgiveness. However, the other dimension namely negative past experience was found to be non-significant to brand forgiveness. Research implications and directions for future studies are also discussed in this paper.