Accountant's perception on the factors affecting the adoption of international financial reporting standards in Yemen

The purpose of this study is to examine the accountants’ perception of International Financial Reporting Standards (IFRSs) adoption and the requirement and expected period for the adoption of IFRSs in Yemeni companies. In addition, this study examines the accountants’ opinion whether or not the following factors government policy, capital market, economic growth, external environment/international exposure, professional bodies, education level of accountants, company size, initial cost of IFRSs adoption and culture affect the adoption of IFRSs in Yemen. This study also examines the differences in opinion between academicians and practitioners regarding IFRSs and factors which affect its adoption. Yemen has still not adopted the IFRSs. In this regard, this study carried out a survey using 48 Yemeni accounting postgraduate students in Malaysia’s public Universities to collected data, which was then analysed using SPSS. The results of this study show that the majority of respondents perceive the benefits of adopting IFRSs in Yemeni companies. Moreover, majority of respondents (82.9%) agree that Yemeni companies should adopt IFRSs. About 58.6% of respondents expect the period of IFRSs adoption in Yemen to be within three to 10 years, while 41.5% expect it to be more than 10 years. The respondents believe that the lack of government policy, absence of capital market, lack of economic growth, lack of professional bodies, weakness in the education level of accountants, the small size of the companies and initial cost of IFRSs adoption affect the adoption of IFRSs in Yemen. The study also shows that the international environment has a weak effect on IFRSs adoption while the Yemeni culture does not affect IFRS adoption. The results of this study may help policy-makers and the Yemeni Association of Certified Public Accountants (YACPA) to make more precise decisions regarding IFRSs adoption in Yeme

Internal and External Governance Impact Analysis and Contribution on Operating Performance during Goods and Services Tax Implementation. A Malaysian Evidence

The Goods Services Tax (GST) is a beneficial consumption-based tax for a country development. However, during GST implementation an adequate planning is required in the business supply chain functions and operations as to avoid any unfavourable outcome to operating performance. The GST implementation is a challenge to internal and external governance as it requires changes in the business operations. In this paper, we analyze the impact of GST to external auditors and internal control system of the Malaysian listed firms from year 2014 to 2016 using the paired t-test. We identify that the changes in audit firms and audit partners occurred during GST implementation period. Thus, no major significant impact occurred to position of external auditors and internal control system during and after GST implementation. In addition, the 200 firm-year observations regression results from year 2015 to 2016 during GST implementation reports that the external auditors to reserve independence and do not influence the relationship between internal control system with operating performance. Further, the results reveal that lower internal control system cost provides a significant improvement to firms’ short-term commitments during GST implementation

Internal and External Governance Impact Analysis and Contribution on Operating Performance during Goods and Services Tax Implementation. A Malaysian Evidence

The Goods Services Tax (GST) is a beneficial consumption-based tax for a country development. However, during GST implementation an adequate planning is required in the business supply chain functions and operations as to avoid any unfavourable outcome to operating performance. The GST implementation is a challenge to internal and external governance as it requires changes in the business operations. In this paper, we analyze the impact of GST to external auditors and internal control system of the Malaysian listed firms from year 2014 to 2016 using the paired t-test. We identify that the changes in audit firms and audit partners occurred during GST implementation period. Thus, no major significant impact occurred to position of external auditors and internal control system during and after GST implementation. In addition, the 200 firm-year observations regression results from year 2015 to 2016 during GST implementation reports that the external auditors to reserve independence and do not influence the relationship between internal control system with operating performance. Further, the results reveal that lower internal control system cost provides a significant improvement to firms’ short-term commitments during GST implementation

Analysis of the Impact of Tax on Companys Investment Strategy: Case of the Biovarm Drug Company

The aim of the study is to identify and clarify the extent of the impact of the tax legislation on the investment strategy of the institution. Further, it attempts to evaluate the effectiveness of the tax incentives created by a legislator to pay positively for an economic institution. Lastly, the study looked at the outcomes that the organization can draw upon in implementing its investment strategy. Indeed, the state seeks to reduce the tax burden on the companies and tries to encourage them to make more investment. The results show that tax variable influences an enterprises investment strategy through its imposed tax mix, rates of tax subjugation, legal provisions of the tax legislation that specify the procedures to be followed by an enterprise to determine taxable profit, and the calculations of the value of the taxes and fees to be paid. The study showed that the tax legislator sought to support the economic institution by reducing the tax burden on it by granting tax exemptions and tax breaks, especially for corporate profits. On the other hand, it has limited it to the set of legal texts regulating the procedure for determining the tax base, such as the provisions, the revaluation of assets and the accounting treatment of deductible costs

Accountants’ perceptions on the adoption of international financial reporting standards in Yemen

Developments in the global capital market have made the adoption of International Financial Reporting Standard (IFRSs) more significant than ever before.The purpose of this study is to examine the accountants’ perception of IFRSs adoption in Yemen. We also seek the accountants’ view on whether Yemen should adopt the IFRSs or not, and on the expected time taken to adopt the accounting standards. We also examine the difference in opinion between academicians and practitioners regarding the adoption of IFRSs. In this regard, this study carries out a survey of 48 Yemeni accounting postgraduate students in Malaysian public universities.We find that a majority of the respondents acknowledge the benefits of adopting IFRSs in Yemeni companies. Moreover, a majority of the respondents (82.9%) agree that Yemeni companies should adopt IFRSs. About 58.6% of respondents expect the period of IFRSs adoption in Yemen to be within three to 10 years, while 41.5% expect it to be more than 10 years.The results of this study may help policy-makers and the Yemeni Association of Certified Public Accountants (YACPA) make more precise decisions regarding IFRSs adoption in Yemen

Accountants' Perceptions on the Adoption of International Financial Reporting Standards in Yemen

Developments in the global capital market have made the adoption of International Financial Reporting Standard (IFRSs) more significant than ever before. The purpose of this study is to examine the accountants' perception of IFRSs adoption in Yemen. We also seek the accountants' view on whether Yemen should adopt the IFRSs or not, and on the expected time taken to adopt the accounting standards. We also examine the difference in opinion between academicians and practitioners regarding the adoption of IFRSs. In this regard, this study carries out a survey of 48 Yemeni accounting postgraduate students in Malaysian public universities. We find that a majority of the respondents acknowledge the benefits of adopting IFRSs in Yemeni companies. Moreover, a majority of the respondents (82.9%) agree that Yemeni companies should adopt IFRSs. About 58.6% of respondents expect the period of IFRSs adoption in Yemen to be within three to 10 years, while 41.5% expect it to be more than 10 years. The results of this study may help policy-makers and the Yemeni Association of Certified Public Accountants (YACPA) make more precise decisions regarding IFRSs adoption in Yemen.    Keywords: IFRSs, accounting standard convergence, Yemen JEL Classifications: M4, M4

Synthesizing social insurance research: A bibliometric analysis

Social insurance has been a pivotal tool in implementing social security. The purpose of the study is to analyze the existing information clusters (areas) in the field of social insurance. Clusters define related and unrelated groups in the field of social insurance. These groups will help streamline and identify areas where little or no research has been conducted to present. To achieve the objective, the study employed a precise and systematic procedure to gather 562 journal articles published in Scopus-indexed journals from 1926–2022. Subsequently, VOSviewer, Science of Science (Sci2), and Gephi were utilized to conduct bibliometric analysis (such as keyword co-occurrence and bibliographic coupling) and network analysis tests (such as citation and co-citation analysis). The results of keyword co-occurrence and co-citation analysis suggest there are three knowledge clusters: welfare provisions, benefits provided by social insurance, and social insurance operational aspects. Through analysis found top article-based Inequality, social insurance, and redistribution with 408(LC) and 1042(GC) and its page rank value is 0.010574 through prestigious analysis. Additionally, it is also observed that I. Nielsen had made the most substantial contributions as an author, with R. Smyth and C. Nyland following closely in the rankings. Also, observed maximum total link strength with 109 value on social security variable. The study also drawn attention to specific deficiencies, including regional concentration of research, insufficient research in developing and underdeveloped countries, inadequate knowledge sharing among researchers, limited methodological diversity, and a lack of research on the role of social insurance in facilitating society’s recovery from the pandemic

Involvement of board chairmen in audit committees and earnings management: Evidence from Malaysia

This paper investigates the effect of the involvement of the board chairman in the audit committee (AC) on earnings management (EM). It examines Bursa Malaysia-listed companies with the lowest positive earnings for the years 2013 to 2015. The Modified Jones Model by Kasznik (1999) was used to determine discretionary accruals. An AC that includes its board chairman as an ordinary member is associated with greater discretionary accruals. However, a board chairman who is also the chairman of the AC does not seem to influence discretionary accruals. This paper supports the agency theory and policy-makers’ efforts to prevent board chairmen from sitting on ACs. It is the first study that uses the agency theory to describe the association between the board chairman’s involvement in the both AC and EM. This study alerts policy-makers, stakeholders and researchers to the influence of a board chairman serving on the AC in curbing EM. Furthermore, it provides empirical evidence that the majority of Malaysian companies whose board chairmen are involved in the AC appoint the chairman as an ordinary member of the AC. This indicates that executive directors may affect such actions. Hence, more policies are needed to improve AC independence

Impactful female directors and earnings management: The moderating effect of ownership concentration

The aim of this study was to examine the moderating effect of ownership concentration (OC) on the relationship between impactful female directors and earnings management (EM). The study concentrated on firms with the lowest positive earnings, measured by return on assets. The results showed that OC positively moderated the association between impactful female directors and accrual earnings management (AEM). With the moderating effect of OC, impactful female directors became positively associated with AEM. In terms of real earnings management (REM), the results showed that OC weakened the significant negative relationship between impactful female directors and REM that was found in the direct regression. With the moderating effect of OC, impactful female directors became insignificantly associated with REM. The study is extremely beneficial to policymakers, stakeholders, researchers, and society. It provides empirical findings that could help all parties to re-evaluate the role of the board of directors, specifically impactful female directors, in mitigating EM. The results highlight the impact of the majority shareholders, introduced by agency theory II, an issue that requires more solutions from regulators

The board chairman's characteristics and financial stability of Malaysian-listed firms

This study examines the association between the board chairman's (BC's) characteristics (independence, age, ethnicity, tenure, family membership, dual chair with nomination committee (NC), dual chair with remuneration committee (RC)) and the firm's financial stability. The Altman (1993) Z-Score indicator was used to determine the financial stability of Malaysian suspect-listed firms, i.e., firms with lowest positive earnings for the years 2013-2015. Ordinary Least Square regression indicates that only the age and tenure of the BC are associated with high financial stability. This means that the chairman's age and tenure could protect the company against financial distress. However, the results showed a negative effect of the BC's ethnicity, family membership and dual chair with the NC on the firm's financial stability. These results, in general, are similar to the Feasible Generalized Least Squares regression and other robustness tests. This study is the first to investigate the influence of the board chairman's characteristics on the firm's financial stability. Thus, it alerts policymakers, firms and their stakeholders, as well as researchers, to the importance of strengthening the board chairman's characteristics to protect the company against financial distress, especially in emerging countries such as Malaysia, where it has been observed that the board chairman attempts to dominate the entire firm's decisions