Assessing Financial Reporting Quality of Company Limited by Guarantee Charities in Malaysia Using Benford’s Law: A Preliminary Study

The issue of terrorism is experienced at the global level, and it has been recognised that such activities need financing from various sources, legitimate and illegitimate. A legitimate source is via non-profit organisations. It has been advocated that effective investigation and information gathering be done at the country-level to facilitate the detection of terrorist abuse of non-profit organisations; such information would include financial information. In view of the foregoing, a comprehensive assessment of the financial reporting quality of non-profit organisations would be a useful step in conducting an overall risk analysis of the non-profit sector. The objective of this study is to assess the financial reporting quality of charities in Malaysia. The financial statements of 235 companies limited by guarantee were extracted for the years 2016, 2017 and 2018 resulting in 7,056 observations. Digital analysis was performed to review the conformity of first and second digit distributions with that of Benford’s Law; the main statistics of the log mantissa and the Mean Absolute Deviation were also computed. Subsequently, statistical tests were run to evaluate data conformity to Benford’s Law. Findings were found to be mixed and inconclusive. Implications of the study’s findings and suggestions for further research were further discussed

Determinants of Export Performance in ASEAN Region : Panel Data Analysis

International trade is one of the major aspects that grow tremendously in Southeast Asia and export is regarded as main accelerators of growth in either developed or developing countries. The objective of this study is to determine the determinants of export performance for ASEAN countries. In this study, panel Autoregressive Distributed Lag (ARDL) method is adopted for time period between 2000 to 2015. Empirical findings indicate that there is a long-run relationship between determinants of export such as interest rate, economic growth and foreign direct investment with export performance of ASEAN countries. Therefore, policy makers need to strategize their policies to move towards closer cooperation among the ASEAN countries, especially promoting sustainable exportation in the region

Leveraging of Business Growth Strategies For Superior Firm Performance in the Malaysian Property Sector

This paper aims to highlight the importance of choosing the correct types of business growth strategies to ensure a fit with the business environment for firm’s superior performance. The Malaysian property sector was chosen due to it dynamic nature and its importance to the country’s economic growth. The scope of the study covers seventy-six property-sector firms listed under Bursa Malaysia, with 15 years of time span coverage data used. Factors that affect the dynamics of growth strategy activities were studied to see the connection with a firm’s superior financial performance. Both quantitative and qualitative data analysis were utilised, that are; the qualitative analysis for the level of growth strategy, while the panel data regression technique comprises the grouping of the time series data and cross-sectional data to examine performance and other relevant factors. The findings show that high performance firms adopt business growth strategies in the area of product development, new market and also practice risk management. Panel regression results indicate that these business growth strategies have a positive impact on the superior firm performance of the business

Board diversity and financial sustainability in charities: a Malaysian perspective

Charity failure has been a problem that has been plaguing developed countries and developing alike. In Malaysia, it has been reported that charities faced difficulties in raising donations due to the difficult economic climate. Past research has provided some evidence on the role of board diversity on the financial performance of for-profit organizations. This study examines the impact of board diversity in improving charity financial sustainability. A sample of 211 active charities (companies limited by guarantee) in 2016 was selected. Data on board diversity (age, gender, race and tenure) as well as financial sustainability were obtained and binary logistic regression via XLSTAT was performed. The findings suggested that director tenure diversity significantly predicts financial sustainability of charities. Age, race and ethnic diversity were found to be not significant. The implications of the study’s findings mean that charities in general should embark upon regular new director appointments, in order to maintain a fresh outlook and to bring in new infusion of skills at the strategic and operational levels

Export Performance In Cambodia, Laos, Myanmar And Vietnam (CLMV) Countries : Panel Data Analysis

Cambodia, Laos, Myanmar and Vietnam (CLMV) countries endeavour to increase the country's foreign exchange earnings by export performance. This study aims to identify the macroeconomic determinants of export performance of CLMV countries from the period of 2000 to 2015. This study adopted panel unit roots test, panel co-integration test and Pooled-mean group (PMG) method for testing and estimating purpose. Empirical findings show that the determinants of export performance are inflation, gross domestic and foreign direct investment, where there are positively associated with export performance of CLMV countries while the interest rate and exchange rate cannot influence the export performance in long run

IFRS Compliance and Nonfinancial Information in Annual Reports of Malaysian Firms

This study analyzes the level of International Financial Reporting Standards (IFRS) compliance practice by the nonfinancial corporations from the different sectors, listed on the main market of Bursa Malaysia. It also analyzes the association between the level of IFRS compliance practice and nonfinancial information like early adoption of IFRS, good corporate governance practice, transparency and disclosure in their annual reports, etc. Research methodology includes content analysis to measure the level of IFRS compliance practice in annual reports of the firms, based on the measurement attributes of disclosure requirements of commonly used 14 IFRS. Multiple regression model estimates the instrumental nonfinancial variables that are accounted for the financial reporting with higher IFRS compliance practice by the firms in Malaysia. The findings highlight that financial reporting with the higher level of IFRS compliance in the annual reports is positively associated with nonfinancial factors like early adoption of IFRS, corporate governance, and transparency and disclosure practice. This study contributes to the evidence of higher IFRS compliance practice by the firms in Malaysia, and reveals the significant role of nonfinancial factors in achieving the mission of full convergence with IFRS in the internationalization of accounting in Malaysia

Constructing a Financial Reporting Disclosure Quality Model of Listed Firms in Malaysia

The national accounting standards set by the Malaysian Accounting Standards Board (MASB) is largely converged with the International Financial Reporting Standards (IFRS). The benefit arising from this is to enable foreign investors to analyse their investments via a standardised financial reporting system in Malaysia. Financial reporting disclosure quality by the listed firms in the consumer product and service sector on Bursa Malaysia is an essential feature in the firms’ financial reporting to the public. This research evaluates the development of financial reporting disclosure quality assurance by firms listed on Bursa Malaysia, by examining financial reporting disclosure quality and subsequent compliance with the International Financial Reporting Standards. This study uses a content analysis approach to identify a financial reporting standard compliance disclosure index, based the financial statements issued by firms listed on Bursa Malaysia from 2008 – 2016. A panel regression model is utilised to construct a model of financial reporting disclosure quality of the firm, based the extent of compliance with IFRS disclosure requirements from the following perspectives: corporate governance practice, audit quality and corporate social responsibility. The sustainability of financial reporting disclosure quality by the listed firms and subsequently the Malaysian capital markets will enable the same to attain a competitive edge in the international markets. In addition, this study will discuss financial reporting disclosure quality implications relevant to the policy makers in Bursa Malaysia, and it is envisaged that such model can be utilised in the improvement of future financial reporting policies