12 research outputs found

    Predicting Financial Sustainability in Charities in The Malaysian Environment

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    Charity failure has been a problem that has plagued developed countries; it has been attributed to the poor economy and the resulting fall in donation levels, lack of funding, increased competition for funding, lack of administrative capacity, lack of risk management, inadequate resource planning and development, inadequate fiscal controls, failure to set and adhere to best practices, policies, procedures and standards, and theft and embezzlement, amongst others. A good number of governance failures have been noted amongst charities in the Asian region. From the financial perspective, we view charity failure as an impairment of financial sustainability, or financial vulnerability; hence by inference, we propose to investigate accountability, board tenure diversity, revenue diversification, own income generation and financial management capacity as possible factors in predicting financial vulnerability in charities. Lack of sufficient study has been made in this area, hence originality is considered high. The study utilises a panel data regression method to test the hypotheses of the research. The framework proposed is expected to better predict financial sustainability using specific indicators in the Malaysian charity environment and the confirmed and tested model is envisaged to be a precursor for a charity financial sustainability index that can be used to rate/rank charities as well as other non-profit organisations. Such an index can in turn be utilised for deciding on: allocation of government funding, extension of financing by financial institutions, and financial support provision by donors

    Board diversity and financial sustainability in charities: a Malaysian perspective

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    Charity failure has been a problem that has been plaguing developed countries and developing alike. In Malaysia, it has been reported that charities faced difficulties in raising donations due to the difficult economic climate. Past research has provided some evidence on the role of board diversity on the financial performance of for-profit organizations. This study examines the impact of board diversity in improving charity financial sustainability. A sample of 211 active charities (companies limited by guarantee) in 2016 was selected. Data on board diversity (age, gender, race and tenure) as well as financial sustainability were obtained and binary logistic regression via XLSTAT was performed. The findings suggested that director tenure diversity significantly predicts financial sustainability of charities. Age, race and ethnic diversity were found to be not significant. The implications of the study’s findings mean that charities in general should embark upon regular new director appointments, in order to maintain a fresh outlook and to bring in new infusion of skills at the strategic and operational levels

    Stakeholders‟ Expectations on Human Capital Disclosure vs. Corporate Reporting Practice in Malaysia

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    Corporate disclosure of human capital has received growing research attention in different countries and markets. While past studies have explored the antecedent and implications of reporting human capital, studies on how far those disclosure practices actually meet the stakeholders‟ expectations are still lacking. Hence, this study attempt to apply the stakeholder theory to frame the human capital reporting practices by the corporations in Malaysia. The methodology of this study is twofold; firstly, to develop human capital reporting measurement items as per the stakeholders‟ expectation and their perceived importance of those items through a Delphi technique, and secondly, to determine the extent of human capital disclosure practices through a content analysis of the annual reports. The findings indicate that despite stakeholders‟ high perceived importance on human capital disclosures, the corporate reporting practices are still at an inferior stage. This study contributes in such a way to fill the gap in the literature by exploring the current extent of human capital reporting by the listed corporations in Malaysia and how far such disclosure met the stakeholders‟ expectations. This study also highlights the significance of the stakeholders‟ voice and participation as one of the main driver towards sustainability reporting

    The Evolution of Institutional Environments in the Development of Accounting Regulations and Practices in Malaysia

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    This paper presents several important institutional issues comprising economic and governmental pressures, the legal system category, cultural backgrounds and global pandemic crisis to offer understanding into Malaysia’s accounting practices since 1957. The isomorphism conception under the institutional theory is used to provide a grasp of the position of institutional factors which explain the development of Malaysian accounting regulations and practices. An archival review is made on the websites of accounting professional bodies, journal articles, accounting reference books and other related documents from 1957 until present. This paper adds to offering an overall view of Malaysia’s political, economic, and regulatory atmosphere and accounting and financial reporting framework. Utilizing the isomorphism conception, this review adds on to the worldwide accounting research literature by explaining institutional factors which explain the development of accounting regulations and practices in Malaysia. This whole-inclusive approach would help to understand the current practices and assist to steer the reformation of accounting regulatory in the future. This paper would be useful to academics, practitioners and higher authorities, who strive to improve accounting practices, disclosures and regulations


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    This study investigates the role of board capital on bank’s efficiency for a sample of 45 banks in Vietnam over 2011–2015. Using robust panel regression, we find board capital is important in making Vietnamese bank efficient even after controlling its endogeneity issue. This study further documents that networking capital and experience capital are the important factors, but not education for bank efficiency. The findings of this research contribute to the entrenchment hypothesis in agency theory, where networking and experience can be the bargaining power for manager (agent) in securing their compensation. It also contributes to human capital theory and resource base view theory where it shows networking and experience are stratetic human capital resources for bank efficiency. The findings imply that shareholders should consider the networking and experience of board members during board elections. Future research may engage with the intervention of corporate governance monitoring or test it in other developing countries context

    Hotel environmental sustainability practices within Institutional Theory Framework

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    The purpose of this paper is to explain factors influencing the environment sustainability practice (ESP) in a Sarawak based hotel using the isomorphism tenet. An explanatory case study was applied. A semistructured interview with the hotel personnel was conducted and the hotel website was analysed. The coercive isomorphism arises from the invitation by the National Resource Environmental Board (NREB) to participate in the Sarawak Chief Minister Award and compliance with the ASEAN Tourism Standard, an indication of legitimacy, to be socially acceptable. In terms of the mimetic isomorphism, Hotel A imitated the best practices of its peers in the same organizational field. Finally, normative isomorphism evidence was proven by professional networking via attendance in the environmental award presentation. The content analysis reveals that there is a low disclosure of sustainability information on the hotel’s website. This research contributes to the CSR literature in the hotel industry particularly in an emerging economy in terms of promoting the particpation in the Environmental Award competition and disclosure on the website

    Authentic Learning Though Role Play in Learning Financial Reporting : Malaysian Undergraduate Perspective

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    This paper examines whether role-playing provides student with learning opportunities in financial reporting and motivates student to reflect the practical financial reporting issues. The research is conducted in Advance Financial Reporting class under an undergraduate accounting program in a public university during semester two in 2019. The participants were divided into two roles within the context of an audit firm, audit associate and audit supervisor in preparing and reviewing the consolidation of financial statements audit working paper (financial reporting). The results of the study show that role-playing allowed students to improve their knowledge and increase their confidence in preparing consolidated financial statements. It also motivates student to reflect the practical financial reporting issues. Hence, the results suggest that role-play model can be applied to other accounting learning activities with inter-related subjects within accounting