Big-Four Auditors and Financial Reporting Quality: Evidence from Pakistan

Purpose of Study: The purpose of this paper is to investigate whether firms audited by big four auditors have better financial reporting quality as compared to firms audited by non-big four auditors in Pakistan. Methodology: This study examine whether firms are more engaged in real earnings’ management when their ability to manage accruals is constrained by big four auditors. In current study, we find that big four auditors’ have curtailed accrual- based earnings management activities in firms. Results: However, firms audited by big four auditors are more engaged in costly real earnings’ management activities. The study used a sample of non-financial listed firms in Pakistan over the period of 2009–2016. This study contributes to the field of corporate governance, where it provides deep insight to policy-makers who are interested in improving financial reporting quality in transnational economies

Does Competition Matter in The Malaysian Banking System?

The transition from financial repression to financial liberalization, which led to cross-border capital flows and the expansion of the financial sector, has had a significant impact on the global financial market. Competition could pass through or interact with the impact of financial liberalization on financial stability. A liberalized banking sector prompted commercial banks to intensify risk-taking activities, which ultimately could affect financial stability.  This paper examines the effect of financial liberalization on financial stability and the roles of competition as the interacting variable using a panel data analysis based on a sample of 43 banks in Malaysia.  Results from the Malaysian banking sector indicate that increased competition will affect the stability of the financial system. Lastly, competition needs to be set at the best possible level so that financial stability can be well preserved

Fuzzification of quantitative data to predict tumour size of colorectal cancer

Regression analysis has become more popular among researchers as a standard tool in analyzing data. This paper used fuzzy linear regression model (FLRM) to predict tumour size of colorectal cancer (CRC) data in Malaysia. 180 patients with colorectal cancer received treatment in hospital were recorded by nurses and doctors. Based on the patient records, a triangular fuzzy data will be built toward the size of the tumour. Mean square error (MSE) and root mean square error (RMSE) will be measured as a part of the process for predicting the size of the tumour. The degree of fitting adjusted is set between 0 and 1 in order to find the least error. It was found that the combination of FLRM model with fuzzy data provided a better prediction compared to the FLRM model alone. Hence, this study concluded that the tumour size is directly proportional to several factors such as gender, ethnic, icd 10, TNM staging, diabetes mellitus, Crohn’s disease

Analytic hierarchy process on criteria selection on the ideal partner among university students

. This study investigates the criteria of an ideal partner among university student by using Analytic Hierarchy Process (AHP) in Universiti Tun Hussein Onn Malaysia (UTHM). A questionnaire survey has been distributed to respondents in nine faculties in UTHM with the total of 11 criteria of an ideal woman and 11 criteria of an ideal man have been listed for respondents to rank based on their priorities. The objective of the study is to determine the priority criteria of man and woman that most students considered before getting marriage. Some comparison of selection criteria for an ideal partner between Malay and non-Malay has been analysed. Result shows the main priority criteria for an ideal man are religious followed by responsible, loyal, honest, loving, mature, hygiene, ambitious, rich, intelligent and good looking. Meanwhile, the main priority criteria for an ideal woman are religious followed by honest, motherly, patient, beautiful, polite, cooking, friendly, cheerful, intelligent and independent. The comparison between non-Malay present the main criteria of an ideal man and ideal woman are responsible and beautiful. One of the significant findings throughout the research was majority of the respondents agreed that religious become the main criteria in selecting a right partner and highly significant difference in selection criteria of an ideal partner between Malay and non-Malay

Capital Structure–Firm Performance Nexus: The Moderating Effect of Board Independence

The purpose of this study is to investigate the relationship between capital structure and firm performance by exploring the moderating effect of one of the corporate governance mechanisms, namely board independence. Panel data regression was employed based on a sample of 492 non-financial listed companies in Malaysia from 2010 to 2019. The results showed that capital structure has a significant positive impact on firm performance. Meanwhile, board independence significantly and negatively moderates the relationship between capital structure and firm performance. The findings of this study shall provide better insights for investors, firm managers, and policymakers on the critical role of corporate governance mechanisms in enhancing firm performance, particularly in implementing suitable actions and policies

Ownership structure and firm performance

This study implies that diffuse ownership structure negatively affects firm performance. Our study based on empirical evidence found that the ownership structure (the outsider and the insider i.e. managerial ownership) favorably increase the firm performance. Our sample data was based on 200 Malaysian companies listed on the Malaysian stock exchange Bursa Malaysia. We used Tobin’s Q and accounting rate of return for firm performance measurement and compared it with important ownership structure and managerial ownership structure. Our results indicate that both ownership structures have a positive relationship with firm performance

Application of fuzzy linear regression models for predicting tumor size of colorectal cancer in Malaysia's Hospital

Fuzzy linear regression analysis has become popular among researchers and standard model in analysing data vagueness phenomena. These models were represented by five statistical models such as multiple linear regression, fuzzy linear regression (Tanaka), fuzzy linear regression (Ni), extended fuzzy linear regression under benchmarking model (Chung) and fuzzy linear regression with symmetric parameter (Zolfaghari). A case study in colorectal cancer (CRC) data at the general hospital in Kuala Lumpur was carried out using the five models as mention above. Secondary data of 180 colorectal cancer patients who received treatment in general hospital were recorded by nurses and doctors. Twenty five independent variables with different combination of variable types were considered to find the best models to predict the size of tumor colorectal cancer. The quality of life among CRC patients which is to detect the early CRC stage is still very poor, not implemented and divulged as a nationwide programme. The main objective of this study is to determine the best model by predicting the size of tumor of CRC. Moreover, this study wants to identify the factors and symptoms that contribute the size of tumor. The comparisons among the five models were carried out to find the best model by using statistical measurements of mean square error (MSE) and root mean square error (RMSE). The results showed that the fuzzy linear regression with symmetric parameter (Zolfaghari) was found to be the best model, having the lowest MSE and RMSE value by 98.21 and 9.91. Hence, the size of tumor could be predicted by managing twenty five independent variables

Sukuk structure with embedded options as a risk mitigation tool / Roslina Mohamad Shafi, Nur Afizah Muhamad Ariffin and Norhana Salamudin

Sukuk market has grown tremendously and has gained attention from many countries.Various innovation has been designed to ensure the marketability of such instruments. However, these innovations have generated various shariah and financial issues and controversies. Among others, is the issue of the sukuk risk whereby the risk structure needs to be disclosed and conformed with shariah values. Even though sukuk is recognized as one of the Islamic financial products, it does not necessarily mean that it is free from the elements of risk. Even Islam has acknowledged the concept of risk as al ghurm bi al ghunm (entitlement to return is related to the liability of risk) in the application of muamalah (transaction, trade). Consequently, the aim of this paper is to suggest the application of sukuk with embedded options as to mitigate the risk faced by sukuk holders. Previous research has suggested the use of embedded options as a way to mitigate the risk. This paper will cover and discuss the issues pertaining to sukuk structures, the shariah values and the risk mitigation technique. A proposed sukuk structure and the mathematical model for finding the value of the real asset will also be covered in this paper. This study concludes with limitations of the study and recommendation for future research

International financial reporting standards and earning management: Comparative study of pre-post full convergence of IRRS in Malaysia

Purpose – The purpose of this study is to examine the influence of full convergence of IFRS (International Financial Reporting Standards) on earnings management using a sample of companies listed on Bursa Malaysia given that the rationale for adoption of IFRS in Malaysia was to make the published financial statements of public listed companies more transparent and comparable. Design/Methodology/Approach – A sample of 200 firms listed on Bursa Malaysia (Malaysian Stock Exchange) were chosen to investigate and examine the quality of accounting information by evaluating and measuring the Earning Management in the context of Malaysian listed companies. This research was carried out using the earnings management model, which was first introduced by Jones (1991) and later modified by Dechow et al. (1995). Findings – The findings from this research suggested that the full convergence of IFRS is negatively and significantly associated with earnings management. Research Limitations/Implications – This study examined only one aspect of IFRS i.e. full convergence of IFRS on the intensity of Earnings Management, hence any conclusions drawn are based on that one aspect only. Furthermore, EM (Earnings management) is not limited to and identified via the accruals model only, so future studies may use other models as well. Finally, the residuals of accruals model was extracted cross-sectionally, which assume that all firms in the industry tend to employ similar accruals techniques. In practice however, firms differ from one another in structure, character and in many other regards