111 research outputs found
The impact of the modified budgeting systems (MBS) on performance measurement in Malaysian central government organisations
The introduction of the Modified Budgeting System (MBS) as one of the New Public Financial Management (NPFM) tools to bring the efficiency of private sector into Malaysian government organisations had its implication on these organisations' performance measurement systems. Therefore, by obtaining perceptions of the senior managers in the civil services who experienced the reform, this study examines the impact of the Modified Budgeting System (MBS) had on performance measurement practice in Malaysian central government organisations. Specifically, the respondents were asked about the impact of the MBS on improving output based performance measurement, linkage between inputs and outputs, and developing own output measures. This study also examines who are the stakeholders consulted to develop performance measures and the level of importance that civil service’ managers attach to different types of performance indicators covering both financial and non financial indicators. The study found that generally the respondents agreed that the MBS had improved performance measurement in their organisations, and civil service managers attached more importance on customer related measures than efficiency indicators. Despite of these, weaknesses in implementation was mainly related to resistance to change by managers, thus, this might impede the effective development of the performance measures
Commercialization of accounting profession: the case of non-audit services
Over the last decade, the accounting profession has witnessed the commercialisation of audit firms through offering of non-audit services (i.e. business consultancy services) to their audit client. Regulators and stakeholders have placed a great concern on the potential threat of commercialization of audit services on perceived auditor independence. This study reports the effects of the joint provision of audit and non-audit services (NAS) and the type of NAS on perceived auditor independence. The main findings suggest that auditor independence is perceived to be compromised when audit and NAS were jointly offered by audit firms. However, when there exist proper segregation of duties in audit firms that offer both services, the perception changed
The new public financial management in Malaysia
Purpose - This study focuses on the effectiveness of New Public Financial Management (NPFM) in Malaysia.
Design/methodology/approach – The paper reviews the literature on the universality of NPFM, distinguishing between those arguing NPFM is universally applicable and those regarding it as situational. It then tests whether NPFM is appropriate outside western contexts, examining developments in the emerging country of Malaysia. Major surveys and in-depth interviews with senior managers in 131 government agencies explore perceptions about the effectiveness of NPFM.
Findings – Although technical, socio-political and behavioral issues do arise, we find empirical support for a universalist thesis that NPFM is appropriate in this emerging context.
Research limitations/implications – All limitations of qualitative research apply. Findings may not be transferable to other emerging contexts.
Practical implications – Practitioners should ensure sufficient resources to train managers in new methods and interpreting information. A participative culture may reduce gaming behavior, as may measuring the results of activities rather than provision, and rewarding managers for savings. Implementation success depends on parliamentary will to honour appropriate and timely allocations and on the executive to oversee and monitor the process effectively.
Originality/value – The study provides rare empirical evidence on the universalist debate in emerging countries; with no previous substantive studies existing of NPFM in Malaysia. It also challenges conventional wisdom on institutional voids, socio-cultural differences and competitive market environments, indicating NPFM may be appropriate in emerging contexts
Factors affecting independent audit committee members' effectiveness - the case of listed firms on Bursa Malaysia
Studies on audit committee effectiveness have so far examined the relationship between significant presence of independent directors and the establishment of influential independent standpoint on the committee’s decision-making. However, independent composition does not necessarily guarantee audit committee members performance of financial oversight duties competently. This paper aims to investigate the characteristics of audit committee members in 221 listed firms in Bursa Malaysia. The results show that audit committee governing enhanced firm performance when there is high proportion of independent audit committee members with practicing accountant experience on the committee and firm explicitly disclosed the right of audit committee to report to the Stock Exchange of its breaching of Exchange and other regulatory rules. On the contrary, the relationship between composition of audit committee exclusively by independent director and the convening of independent committee members meeting with the external auditor without executive officers presence and firm performance is negative. The audit committee effectiveness is crucially dependent on audit committee members collective commitment to fulfil their oversight duties responsibly and management giving full co-operation and support to the access of required information for decision-making
Religiosity and Charitable Giving on Investors’ Trading Behaviour in the Indonesian Islamic Stock Market: Islamic vs Market Logic
This study examines retail investors’ trading behaviour and its determinants in the Indonesian Shari’ah stock market by mainly focusing on the religious practice-related factors in the form of sadaqah or charitable giving on individual investors’ trading behaviour. Contextually, the Islamic moral economy (IME) assumes a direct relationship between religiosity and sadaqah giving due to the falah (salvation) oriented individual objective function, which can be reached through doing ihsan (beneficence for equilibrium). The findings based on a questionnaire survey distributed to individual investors on Shari’ah Online Trading System (SOTS) delineate that religiosity, accounting information, neutral information, personal financial needs, and the sadaqah feature have significantly affected investors’ trading behaviour in which the sadaqah feature is positively correlated, while religiosity factors are negatively correlated. Thus, despite the theoretical expectation through IME, this study evidences that Islamic logic is not the main determining factor, as market logic related factors seem to be more dominant in the behaviour of investors in the Indonesian capital market
Assessing audit committee effectiveness of a government statutory body: Evidence from the Inland Revenue Board of Malaysia
This study examines the effectiveness of an Audit Committee (AC) operating in a large government statutory body in an emerging economy, namely the Inland Revenue Board of Malaysia (IRBM). This study is timely, as previous studies focussing on AC effectiveness in relation to the public sector are sparse. Data collection was through in-depth interviews with key individuals involved in the IRBM governance process, including AC members, senior management and external auditors. The study finds existence of a weak AC governance function that inadequately oversees financial reporting and internal control systems. We find the independence of AC members questionable, as a communication gap exists between AC members and the external auditor. In particular, the study highlights that top management should ensure that its AC fulfils its assigned role and that urgent attention is given to issues on composition, appointment and diligence of its AC members. We conclude that the IRBM should consider improving independence by appointing an external independent AC member(s) from either the big four or an influential industry expert to provide the necessary input and expertise to ensure that public confidence continues
The impact of the modified budgeting systems (MBS) on performance measurement in Malaysian central government organisations
The introduction of the Modified Budgeting System (MBS) as one of the New Public Financial Management (NPFM) tools to bring the efficiency of private sector into Malaysian government organisations had its implication on these organisations' performance measurement systems. Therefore, by obtaining perceptions of the senior managers in the civil services who experienced the reform, this study examines the impact of the Modified Budgeting System (MBS) had on performance measurement practice in Malaysian central government organisations. Specifically, the respondents were asked about the impact of the MBS on improving output based performance measurement, linkage between inputs and outputs, and developing own output measures. This study also examines who are the stakeholders consulted to develop performance measures and the level of importance that civil service’ managers attach to different types of performance indicators covering both financial and non financial indicators. The study found that generally the respondents agreed that the MBS had improved performance measurement in their organisations, and civil service managers attached more importance on customer related measures than efficiency indicators. Despite of these, weaknesses in implementation was mainly related to resistance to change by managers, thus, this might impede the effective development of the performance measures
Sharia boards, managerial strategies and governance practices in Islamic banks: Critical insights using Goffman’s lens
Stock market linkage and impact of the sub-prime mortgage crisis: evidence from Mainland China and Hong Kong
This study investigates the linkage between Mainland China and Hong Kong stock markets pre and post 2007 U.S. sub-prime mortgage crisis. We employ Dynamic Conditional Correlation GARCH (generalised autoregressive conditional heteroscedasticity) model to identify the association of weekly market returns based on volatility spillover effects from 2000 to 2007 (pre-crisis), and 2008 to 2017 (post-crisis) respectively. Our study reports significant linkage between the two stock markets with the sub-prime mortgage crisis contributes to strengthening the relationship. In particular, based on the volatility spillover effect, the long-term equilibrium linkage between the two markets is steady and inseparable due to strong economic ties. Our results highlight the importance of policy implications, especially on how regulators should deal with the increased market interconnectedness and on the diversification opportunities by investors
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