Corporate Risk Disclosure in Malaysia: The Influence of Pre-dispositions of Chief Executive Officers and Chairs of Audit Committee

Drawing on upper echelons theory, this study aims to provide evidence on the effects of the background influences of the Chief Executive Officer (CEO) and Chair of Audit Committee (CAC) on corporate risk disclosure. In practice, such corporate disclosures are found to be inadequate, and there is limited evidence on factors influencing risk disclosure decisions by management. Sampling from the 200 top listed companies in Malaysia, data is hand-collected from annual reports. Sentences in which pre-determined risk-related keywords appear are counted to measure total risk disclosure and its sub-categories. Demographic data for CEOs and CACs is collected, including age, functional track, education, tenure and ethnicity. The findings in this paper indicate that the CEOs’ tenure and ethnicity significantly influence their decision making in regards to corporate risk disclosure. That is, CEOs with Bumiputera ethnicity and with shorter-tenured backgrounds are associated with higher corporate risk disclosure. However, the background of CACs is found to have no significant influence. These results have implications for board decisions on the recruitment of CEOs. Further, there are implications for corporate governance policy-makers concerning the credentials of CACs in Malaysia. This paper provides empirical evidence on the relationship between corporate risk disclosure and the influence of pre-dispositions of CEOs and CACs in Malaysian top listed companies since prior research has not investigated these two types of key management players in the area of corporate risk disclosure. Keywords: Malaysia, Corporate risk disclosure, Upper echelons theory, Chief Executive Officer, Chair of Audit Committee, Demographic characteristic

STANDING ISSUES OF RUSSIAN BANKS AND SOLUTIONS

The article deals with current issues of today, hampering the development of the Russian banking sector, such as the availability of banking services in the regions, low capitalization of banks formed imperfect structure of the banking system and a number of others. The arguments justifying the need to create favorable conditions for the expansion of the presence of banks in the region, preservation of credit institutions with little capital, to restore the role of the banking sector in the mechanism of transformation of savings in the production of investment. There are basic directions of solving the above problems

Stability, efficiency and financial risks of islamic banks in conditions of instability of global financial system

In modern conditions of implementation Islamic model of banking, the issues of increasing efficiency of its activities and ensuring the long-term stability of Islamic banks come to the fore. Article analyzes the activities of Islamic banks in the post-crisis period, both in the global Islamic banking sector as a whole, and in the context of individual countries in which Islamic banks are predominantly or significantly represented, as well as financial risks that pose a threat of losses for Islamic banks. It has been concluded that the Islamic financial system is becoming one of the most important components of the international financial system, and Islamic banks within the global financial system are becoming more recognized and competitive, as they demonstrate a sufficiently high efficiency and stability of activity, a positive trend of development. Analysis found that Islamic banking has demonstrated its reliability and stability in the post-crisis period and continues to be a viable and effective mechanism of financial intermediation in the conditions of global financial system instability. The differences in the functioning and performance of Islamic banks in different countries within a single consolidated Islamic banking system have been revealed, a comparative analysis effectiveness of banking sectors a number of Muslim countries has been given, the directions of development of Islamic banking in them have been shown. Conclusions have been drawn on the need for Islamic banks to introduce effective mechanisms for monitoring and managing financial and investment risks in order to increase their ability to withstand adverse external factors, since in the future, despite the positive trends in the activities of Islamic banks, there are potential financial risks due to the growth of their current costs associated with the possibility of potential deterioration in the quality of assets and reduction in the level of profit

Capital adequacy assessment and risks of Russian banks in an unstable economic situation

A review of the dynamics of the main indicators of Russian banks has been presented, their risks in the context of step-by-step implementation of the recommendations of the international capital adequacy assessment standards in a period of unstable economic situation have been analysed, and also the current level of capital adequacy of banks in order to cover their risks has been evaluated. The problems, with which Russian banks may face in the process offurther transition to international standards for assessing capital adequacy have been designated. Recommendations taking into account the peculiarities of banks functioning in the current conditions, aimed at ensuring the financial stability of the banking business at the level of both the individual Bank and the banking sector as a whole, as well as at limiting the concentration of risks and preventing the emergence of new concomitant or specific risks have been given

THE EFFECT OF GOOD CORPORATE GOVERNANCE IMPLEMENTATION IN DIVERSIFICATION STRATEGY OF FAMILY COMPANY AND ITS EFFECT ON FIRM VALUE

Purpose: This study aims to analyze the relation of GCG implementation and diversification strategy in the family company and its effect on the corporate value that is proxied with returns of corporate share (cumulative abnormal return - CAR). Methodology: This study used control variables which were size, age, and growth of the company. The hypothesis test was done by using multiple regression and an average T-test. The samples of this study were companies listed in Indonesian Stock Exchange that have fulfilled the characteristics of concentrated share ownership by one family. This formulated two-equation models i.e. Dependent variable for equation model I was diversification strategy and for equation model II was corporate value. Results: The result of this study shows that management compensation, independent commissioners, and managerial ownership positively affect, while the number of the audit committee and leverage ratio do not affect diversification strategy. The next testing result was a diversification strategy applied by the family company that positively affects corporate value. Implications: In order to conduct a controlling function, a company must plan the existence of good corporate governance (GCG) that organizes the relation and responsibility between many parties involved in the company, that a number of regulations, policies, and procedures. The implementation of GCG is expected able to guarantee the action of management in line with the interest of shareholders

BANKING REGULATION AND SUPERVISION IN TRADITIONAL AND ISLAMIC FINANCE: COMPARATIVE ANALYSIS AND IMPLEMENTATION FEATURES

The content of banking regulation and supervision, its structural and functional elements and features of implementation in traditional and Islamic financial systems have been revealed. Special attention to the issues of evolution of international approaches to banking regulation has been paid. The main models and tools of prudential supervision of Islamic financial institutions-Islamic audit and Sharia financial supervision authority have been characterized. The main problems of implementation of international standards in the activities of organizations providing Islamic financial services, specific features and main directions of development of the system of regulation and supervision of Islamic banks in the context of harmonization of the Supervisory process of Islamic banks and international standards of banking supervision have been analysed

Determinants of asset misappropriation in small and medium enterprises: Evidence from Malaysia

This paper investigates the factors that contribute to the occurrence of asset misappropriation in small and medium enterprises (SMEs) in Malaysia. For a theoretical basis, the fraud hexagon model, which includes pressure, opportunity, rationalisation, capability, ego, and collusion elements, is adopted to guide the study. For the analysis, 306 valid responses from individuals working in diverse SME sectors in Malaysia were obtained via a self-administered questionnaire. Based on the objectives and to test the hypotheses, this research used a quantitative approach. Correlation analysis was utilised to examine the relationship among the independent variables. In addition, multiple regressions were conducted to answer the research questions of this study. The findings show that opportunity, rationalisation, and collusion have a significant relationship with the occurrences of asset misappropriation in Malaysian SMEs, whereby collusion makes the strongest and most significantly unique contribution to explain the occurrences of asset misappropriation. Thus, the study concluded that opportunity, rationalisation, and collusion are indeed significant factors that influence the occurrence of asset misappropriation. This study provides insights for Malaysian SME business owners regarding the minimum monthly salary policy, which should be revisited and reconsidered

Determinant of Lecturers’ Research Productivity: A Comparative Study Between Universitas Negeri Surabaya (UNESA) and UiTM Malaysia

This study aims to examine the effect of motivational variables, research behavior, research climate, and university support on the research productivity of lecturers at the Faculty of Economics and Business Unesa and UiTM Malaysia. Data was collected through questionnaires to lecturers from these universities. The results showed that motivation had a positive and significant effect on the research productivity of lecturers at the Faculty of Economics and Business, Unesa. Research behavior has a positive and significant effect on the research productivity of lecturers at the Faculty of Economics and Business, Unesa. The research climate has a positive and significant effect on the research productivity of lecturers at the Faculty of Economics and Business, Unesa. University support has a positive and significant influence on the research productivity of lecturers at the Faculty of Economics and Business, Unesa. Motivation, research behavior, research climate, and university support together have a significant positive influence on the research productivity of lecturers at the Faculty of Economics and Business, Unesa

Analysis and main digital bank development directions in Russia

Digital technologies are rapidly penetrating the banking sector, making it more flexible, mobile and able to meet the changing needs and preferences of customers under the influence of the digital transformation of the economy. In the current situation, banks have to invest a significant amount of funds in the development of innovations in order to remain in demand in the market. This requires banks not only to change the way they provide services and build communications with customers, but also to qualitatively restructure business processes, methods and approaches to their management. The main purpose of the study is to analyse the features of the formation and development of digital banks in Russia, identify their main types and characterise the main groups of business models. During the study, special attention was paid to the factors contributing to the success of the implementation of the bank’s digital business model. The use of clustering methods, comparative analysis made it possible to distinguish 5 groups of digital banks based on the identity of the operations performed. A comparative analysis of the performance indicators of leading traditional credit institutions and wellknown digital banks has been made. The indicator “return on equity (ROE)” was used as the main indicator for comparative analysis. As the study showed, digital banks were the leaders in terms of high ROE. It article are made about the further trend in the development of digital banks towards the creation of their own platforms and ecosystems, with the observed trend of gradual blurring of the lines between traditional and digital banks