Islamic Social Reporting Of Listed Companies In Malaysia

The resurgence of Islam to a loftier pedestal as a way of life opened up an additional dimension to financial reporting to stakeholders.  Muslim decision-makers expect corporations to include additional information in their reports to enable them to exercise prudence, both from economics and Islamic jurisprudence point of views.  Based on the Islamic theoretical foundation of social accountability and full disclosure, Muslim business owners - or in this study, the shariah-approved companies, must prove that they are operating under Islamic laws. The Islamic capital market has developed at such a rapid pace that the shariah-approved companies are beginning to present a religious aspect to their financial statements by disclosing the fulfilment of its obligations in line with the shariah, like zakat, sadaqa, wages and compensation, and the conduct of business activities within a halal environment; hence, the need for Islamic Social Reporting (ISR).  This study attempted to measure the extent of ISR as practiced by shariah-approved Malaysian companies listed in Bursa Malaysia in their annual reports.  The study led to a conclusion on the degree of accountability on the part of the companies by way of their conformity to shariah.  Based on the descriptive statistics of the disclosure index, it can be concluded that the extent of ISR in the annual report of selected companies is considered minimal

The Effect of Board Structure on Shareholders’ Wealth in Small Listed Companies in Malaysia

Using content analyses, this study examines whether board structure of small listed companies influence their shareholders’ wealth. This study focuses on three elements of board structure, namely, board size, board composition and directors’ remuneration to examine the relationship between board structure and shareholders’ wealth. Shareholders’ wealth is measured by the return on investment and earnings per share. The results show that out of the three elements of board structure, board size and board composition play an important role in influencing shareholders’ wealth in small listed companies. The results support the findings in earlier studies that large number of directors and the proportion of executive directors in a board would instil better decision-making policy. The results in this study, however, did not support the contention that there is a significant relationship between the directors’ remuneration and financial performance. The results in this study complement previous studies and provide some understanding on the importance of practicing good corporate governance. Keywords: Board structure, board size, board composition, director remuneration, shareholders’ wealth, Malaysia

Environmental education through mural painting activities as to enhance secondary school students' knowledge and awareness on environment

This study aims to evaluate the impact of environmental education activities and mural painting appreciation in enhancing students' knowledge and awareness to the environment. Environmental education activities were performed in classes for an hour per week for four times. Mural painting activity with the theme of marine ecosystems were conducted outside the classroom for a month. The design of this study was quasi-experimental with a pretest-posttest control group and experimental group, involving 128 students from two ordinary secondary schools in Gombak district, Selangor. The students divided into two groups according to the schools to represent the control and experimental groups, i.e. 64 students for each group. This study used three types of instruments, which are pretest, first post-test and second post-test. Each instrument consists of 20 multiple choice knowledge questions and 18 statements on the environmental awareness based on the 5 Likert scale. The results indicated that the experimental group significantly increased their environmental knowledge and awareness after the experiment, whereas the control group did not

Market Orientation, Firm Performance And The Mediating Effect Of Corporate Social Responsibility

This study examines the effect of CSR disclosure and MO on firm performance as well as the mediating effect of CSR on the relationship between MO and firm performance. These relationships are examined based on content analysis of 242 Malaysian public listed companies’ annual reports for 2006, 2007 and 2008. Results of this study provide evidence that CSR activities communicated in corporate annual reports are important business strategy in creating continuous superior performance for organisations. The results also indicate that MO companies are integrating CSR activities into their business strategies. However, the insignificant mediating effect of CSR on the relationship between MO and firm performance indicates that MO and CSR strategies have not been effectively integrated in creating a synergistic effect that can bolster firm performance. Overall, findings in this study indicate the strategic value of CSR in creating economic sustainability for organizations even in an environment characterised by concentrated ownership structure where the companies may be less market focused

Pyramid of Maslahah for Social and Economic Welfare:The Case of Bank Islam Malaysia Berhad

Islamic financial system is no longer a new phenomenon. The existence of Islamic banking over the past fifty years has proven that Islamic financial system has a stand and desirable by society. Maqasid shari’ah or the higher objective of shari’ah is viewed by the contemporary Muslim bankers and academicians as an alternative tool to emphasize on issues relating to social and economic ends of financial transactions. Instead of over emphasizing on profit maximization in conventional banking, the Maqasid shari’ah mechanism contributes to the reorientation of Islamic finance and banking. This is seen in the social welfare institution process of innovation as promoted by Islamic moral economy. Islamic economy suggested the establishment of Islamic social banking in order to fulfil the social and economic needs of the Muslim. Thus, Islamic financial institutions (IFIs) focus is mainly on the social and economic welfare, benefits, and needs. Moral values is the major mutual concern of the system, neither profit maximization nor competitiveness as practiced by existing finance and banking system. This paper shed light on the prospects of pyramid of maslahah in social and economic welfare area of IFIs such as the practice of charity, waqf, zakat and Takaful. Bank Islam being the pioneer Islamic bank in Malaysia is chosen in assessing their role on promoting social and economic welfare as outlined by maqasid shari’ah. Keywords: Islamic financial system, social and economic welfare, maqasid shari’ah, social bankin

Kesan Pengajaran Dan Pembelajaran Pendidikan Alam Sekitar Melalui Aktiviti Melukis Mural Untuk Meningkatkan Pengetahuan Dan Kesedaran Pelajar Sekolah Menengah Terhadap Alam Sekitar (The Effect Of Teaching And Learning Of Environmental Education Through Mural Painting Activity In Enhancing The Knowledge And Awareness Of Secondary School Students Towards The Environment)

Kajian ini bertujuan untuk menilai kesan aktiviti pengajaran dan pembelajaran Pendidikan Alam Sekitar melalui aktiviti penghayatan melukis mural dalam usaha meningkatkan pengetahuan dan kesedaran pelajar terhadap alam sekitar. Aktiviti pengajaran dan pembelajaran Pendidikan Alam Sekitar dijalankan di dalam kelas selama 1 jam seminggu sebanyak 4 kali manakala aktiviti melukis mural bertemakan ekosistem marin dijalankan di luar kelas selama sebulan. Reka bentuk kajian ini adalah kuasieksperimental menggunakan ujian pra dan ujian pos bagi kumpulan-kumpulan tidak seimbang dengan pengukuran berulang. Kajian ini melibatkan seramai 128 orang pelajar tingkatan dua daripada dua buah sekolah menengah harian biasa di daerah Gombak, Selangor. Sebuah sekolah telah dipilih sebagai kumpulan kawalan dan sebuah lagi sebagai kumpulan eksperimen yang diwakili oleh seramai 64 orang pelajar bagi setiap sekolah. Responden yang terlibat dalam kajian ini akan diuji dengan empat jenis instrumen iaitu ujian pra, ujian pos 1, ujian pos 2 dan ujian pos 3. Setiap instrumen mengandungi 20 soalan pengetahuan dengan 4 pilihan jawapan dan 18 pernyataan kesedaran yang mengukur sikap dalam bentuk skala 5-Likert. Keputusan kajian mendapati kumpulan eksperimen telah menunjukkan peningkatan dalam pengetahuan dan kesedaran terhadap alam sekitar tetapi tidak kepada kumpulan kawalan

The mediating effects of organizational learning orientation on the relationship between strategic management accounting information use and organizational performance / Jamaliah Said … [et al.]

The use of strategic management accounting information is a key ingredient for organizational success. However, past literature suggests that examining the direct effects of strategic management accounting information use and organizational performance provides an incomplete picture. Several studies suggest that the use of strategic information enhances organizational performance through organizational learning orientation. However, the focus of past studies was not on strategic management accounting (SMA) information. In addition, it is unclear as to whether the use of strategic management accounting information could have a positive impact on organizational learning orientation which in turn enhances the performance of local government authorities (LGAs) in Malaysia. Hence, this study empirically examined the mediating effect of organizational learning orientation on the relationship between the SMA information use and organizational performance. Using data collected from 109 LGAs in Malaysia, the result supports the positive direct effect of SMA information use and organizational performance. Further analysis of mediating effect of learning orientation suggests that higher usage of SMA information is one of the support mechanism for organizational learning in response to the information generated. Subsequently, an organization learning enhances their ability to respond to changes in the environment which in turn contributes to better financial and service quality performance. For managers of Malaysian LGAs, the findings of the study suggest that the use of SMA information and learning orientation are an important mechanism to improve the level of financial and service quality performance

Takaful industry: a Malaysian experience / Nooraslinda Abdul Aris and Pm Dr Rohana Othman

Insurance has become a necessity for all individuals and businesses. Islam supports the concept of insurance, provided it does not contradict the tenets of Shari'ah. The Al-Qur'an has invoked Muslims to prepare for any misfortune. Islamic insurance or Takaful is based on mutual assistance, sharing of risk and cooperation among participants. This research focuses on Takaful operators in Malaysia, looking specifically at their business models and modus operandi. The research also looks into the Takaful operators' financial performance and growth over the last three years, i.e. from year 2007 to 2009. The findings of the study shows that the industry is still a green field or new growth area that requires widespread public awareness and education. The study also found regulations and standards in practice to ensure the growth of the Takaful industry are at par with world economics principles and perhaps can be built up as a mechanism to protect public interest and welfare in accordance to the Shari'ah

Human-Capital based Governance Structure, Success Factors and Barriers to Effective Governance: Co-operatives in Malaysia

Co-operatives comprise the crucial third engine of growth for the Malaysian economy after the public and private sectors.  This study investigates the human capital based governance structure, success factors and barriers to effective governance of co-operatives in Malaysia. Questionnaires were distributed to the top 100 co-operatives listed in the Malaysian Co-operative Societies Commission website. Analysis of the responses to the questionnaires showed that human capital based co-operatives governance comprise members’ participation, independence of the board, depth of expertise and competencies of directors and other characteristics of the board. This study also identified branding as the most important success factor ahead of competitiveness and proximity.  Malaysia’s economy is projected to continue relying significantly on the performance of co-operatives.  Thus, it is incumbent for greater attention to be given towards an effective governance that results in successful co-operatives.© 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK. Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies, Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.Keywords: Governance; branding; proximity; competitivenes