Perceptions of Auditors in Malaysia on the Important Items of Internet Financial Reporting

This study investigates the perceptions of auditors regarding the important items in the disclosure of content and presentation dimension that can be used to describe the level of internet financial reporting (IFR). Questionnaires were distributed to 100 auditors. A total of 40 questionnaires were completed and returned, giving a response rate of 40 percent. From the survey, it was found that the five most important items in the content dimension are income statement of current year, income statement of past years, cash flow statement of current year, notes to financial statements of current year and balance sheet of current year. Meanwhile, in the presentation dimension, five most items important to disclosure are loading time of the website below 10 seconds, annual report in PDF format, hyperlinks inside the annual report, ability to download reports and hyperlinks to financial analysts. Finally, the limitation of this study and future research will also be discussed

Financial Indicators Surveillance Tracker (FiST)

To get a lot of money, it needs a lot of hard work. Now it is time to make your money work for you. Besides, world of investment, have a thousand product to choose. Nowadays, young generation are very lucky to have an updated technology environment especially internet that currently connected with all things that people need as their interest. To invest in stock market, new generation of investor such as young investor needs to have the knowledge and financial circumstances. As a solution, Financial Indicators Surveillance Tracker (FiST) is a web-based platform providing young investor to start learning on how to choose which Public Listed Companies (PLCs) and move a step ahead to invest in stock exchange. The main objective of this application is to develop a financial web-based platform for young investor, which provides important financial ratios of PLCs. This application will also help to identify financial performance of PLCs and propose a guideline on how to have a quality decision making to the young investor. In relation with the problem statement, this web-based platform will analyse the requirements given by Bursa Malaysia, Malaysia's stock exchange and come out with the functionalities of financial ratios, designing the interface consists of database and to provide financial data provider as addition information for young investor. Numerous literatures studies have been done in order to get comprehensive information regarding what kind of financial ratios need to be used, ten different financial ratios been identified and will be included in this web-based platform. It is purposely to ensure the user understand both technical and fundamental analysis that frequently done by the investment analysis. The significance of this project is that, FiST allows the users to focus on financial ratios by comparing with other related ratios. It will be a good platform for young investor to start invests in stock market actively

Initial Effects of Mandatory XBRL Adoption Across the Indonesia Stock Exchange`s Financial Information Environment

This research aims to investigate the initial effects of mandatory eXtensible Business Reporting Language (XBRL) across the Indonesia Stock Exchange`s financial information environment. Financial information environment is measured by event return volatility, absolute cumulative abnormal return, change in standard deviation of returns, abnormal bid-ask spread, and abnormal trading volume. Comparing the effects of pre- and post- XBRL period, we provide evidence that there is no significant implication in the first year of XBRL adoption. It is showed that event return volatility, changes in the standard deviation of returns, and abnormal bid-ask spread was not reduced in the post- XBRL period. On the other hand, it was able to intensify the stock trading volume which noted by the increased abnormal trading volume after mandatory XBRL policy was enacted.JEL Classification: G31; G32; G34DOI: https://doi.org/10.26905/jkdp.v22i2.209

Web financial reporting in Malaysia: The current stage

There is an obvious trend of increase in the number of companies having websites around the world.In addition to sales and customer service materials, a growing percentage of those companies are placing business reporting information, including financial data, on their sites.It shows that there is a development in corporate online financial reporting.The Web-based reports have great potential to be more than electronic versions of conventional paper reports.The question is whether firms actually take the opportunity to reap those benefits by being in higher stages of web financial reporting.There are three stages of Web financial reporting; stage 1 – duplicates the printed financial statements in “electronic paper”; stage 2– uses HTML formatting and permits data downloading; stage 3 – uses enhancements that cannot be incorporated in printed documents. Accordingly, this paper tries to discuss the preliminary result of Web financial reporting by identifying the current stages of web financial reporting in Malaysia.Comparisons are made with prior studies in Malaysia to study whether there are improvements in listed firms’ practices

Devidend payment behaviour and its determinants: The Malaysian property sector

Disappearing dividend phenomenon remains unexplored in the Malaysian market. Therefore, this study investigates whether or not the phenomenon exists in the Malaysian property sector. This is achieved by observing dividend pattern in the sector between 2000 to 2013. The study investigates dividend payout in the sector further by examining the factors that influence companies‟ decision to pay or not to pay dividends. Trend analysis was used to describe the dividend pattern over the period while logistic regression analysis was conducted to determine the factors that influence companies‟ payout decisions. Findings revealed an upward trend in the amount of dividends distributed in the sector over the period as well as in the number of dividend payers. The study provides evidence of dividend concentration in the property sector of Bursa Malaysia as results shows that a large portion of dividend paid out for all the years come from the top 10 payers. As revealed by the findings, the explanatory factors for dividend payout decisions in the Malaysian property sector include dividend premium, retained earnings to total equity, profitability, size, leverage, and past year dividend. Thus, findings of the study provide support for catering theory, lifecycle theory and dividend smoothing theory. Findings indicate that investment opportunities and crisis do not play any significant role in explaining payout decisions in the secto

A study on the market reaction to hybrid securities announcements

Abstract The thesis presents three studies that focus on the wealth effects of hybrid securities namely: convertible bonds and warrant-bonds. The wealth effects of these hybrid securities are investigated through both meta-analysis and event-studies. Chapter 2 incorporates a review of the literature on wealth effects associated with the announcement of convertible bonds and warrant-bond loans. The findings of 35 event studies, which include 84 sub-samples and 6,310 announcements, are analysed using meta-analysis. A mean cumulative abnormal return of 1.14% for convertible bonds compared with 0.02% for warrant-bonds are observed, the significant difference confirming a relative advantage for warrant-bonds. Abnormal returns for hybrid securities issued in the United States are significantly more negative than for those issued in other countries. In addition, issuing hybrid securities to refund debt does not seem to be favoured by investors. Finally, several factors identified as important by theory or in prior research are not significant within the cross-study models, suggesting that more evidence is needed to confirm whether they are robust. Chapter 3 presents a study that examines the market reaction to hybrid security announcements in an emerging country, specifically Malaysia, from January 1996 to December 2009. The results indicate that announcements of the intention to issue convertible bonds in Malaysia are associated with significantly negative abnormal returns of 1.10% (significant at the 10% level) on the event window of (-1, 1). On the other hand, announcements of the intention to issue warrant-bonds document significantly positive abnormal returns of 2.25% (significant at the 10% level) on the same event window. The ‘univariate’ test confirms that the wealth effects associated with the announcement of the intention to issue warrant-bonds is larger (i.e., more positive) than convertible bonds in line with few studies in different markets: Japan (Kang, Kim, Park, and Stulz, 1995), the Netherlands (De Roon and Veld, 1998), and German (Gebhardt, 2001). Non-significant abnormal returns of 0.81% and 0.23% on the event window ( 1, 1) are reported for announcements of hybrid securities by means of private placements and rights offerings, respectively, contradict with the ‘certification hypothesis’ of Hertzel and Smith (1993), and ‘signalling hypothesis’ of Heinkel and Schwartz (1986). This chapter also finds that there is no support for ‘information-signalling’ hypothesis (Ross, 1977), as non-significant abnormal returns are observed in the event window ( 1, 1) for announcements of hybrid securities for all purposes of offering (i.e., debt restructuring, mergers and acquisitions, capital expenditure, and working capital). These findings also highlight that listed firms in Malaysia with high risk uncertainty contribute to more negative abnormal returns in comparison to lower risk uncertainty firms, which contradicts with the ‘risk uncertainty hypothesis’. The final study presented in this thesis, Chapter 4, considers the wealth effects of hybrid security announcements in a developed country, the United Kingdom. This third study investigates the wealth effects of announcements of the intention to issue convertible bonds in the UK market over a period from January 1990 until July 2010. The study period also allows for an investigation on the market reaction to announcements of convertible bonds during the financial crisis that started in August 2007. Using the standard event study methodology, a negative abnormal return of 1.75% (significant at the 5% level) on the two-day event window is reported, confirming the findings of previous UK studies (Abyhankar and Dunning, 1999, and Wolf et al., 1999) which are also in line with studies performed using data from other countries such as US, Canada, Australia, and others. There are no significant differences between the results of the sub-samples before and during the financial crisis, suggesting that the economic conditions do not influence the market response. The results of the event study and the multivariate analysis in this chapter are consistent with the ‘market timing hypothesis’ implying that managers in the UK announce their intention to issue convertible bonds after a period of good stock price performance

Female directors on corporate boards: does female leadership drive corporate environmental transparency?

This paper examines the role of female directors on corporate boardroom on the extent of corporate environmental disclosure (CED) of 260 Malaysian listed companies in year 2013. Resource dependence theory is utilized as the theoretical framework to explain the role of female directors on corporate boards.Content analysis is employed to gauge the extent of CED based on a self-constructed index that is derived from Global Reporting Initiatives (GRI) and prior studies.Multiple regression is conducted and findings revealed that female directors’ presence and female holding multiple directorships to be significant predictors of extent of CED.The findings lend support to the resource dependence theory on the contribution of board gender diversity and are useful for both policy makers and regulators