A comparative analysis of intellectual capital disclosure practices between Malaysian and Indonesia / Amrizah Kamaluddin, Zuraida Mohamad Nor and Erlane K Ghani.

This study examines the extent of intellectual capital (IC) disclosure practices between Malaysian and Indonesian agricultural companies. This study relied on content analysis on the annual reports of public listed agricultural companies in Malaysia and Indonesia. The results show that the extent of IC disclosure practices of the companies between the two countries are similar. However, the Malaysian companies disclose more information on human capital and more quantitative in nature whilst the Indonesian companies disclose more information on relational capital and more qualitative. The results also show a significant positive relationship between the extent of IC capital disclosure and companies’ performance. The findings in this study contribute further understanding on the extent of IC capital disclosure in the agriculture industry. This study extends the understanding of the role of IC and its interaction in generating competitive edge from the perspective of a developing nation such as Malaysia and Indonesia

Enhancing organisation effectiveness through human, relational and structural capital: an empirical analysis / Amrizah Kamaluddin, Rashidah Abdul Rahman

The research deepens the understanding of the role of intellectual capital in creating corporate wealth from the perspective of a developing nation like Malaysia. A different economic set up where there exists different technological advancements (Chen, Cheng and Hwang, 2005) and differences in views on the metaphors of knowledge between the West and Asia (Andriessen and Boom, 2007) suggests that, a different implication of intellectual capital may exist. Thus, the research contributes to the intellectual capital literature of the ASEAN countries where culture, politics, economics and social environment provide a different perspective and challenges. Resource-based theory views, intellectual capital as the resources of wealth creation, vital to firm financial performance and the key driver to achieve sustained competitive advantages (Riahi- Belkaoui, 2003; Tayles, 2004).The current research investigates the relationship of Malaysian listed companies’ intellectual capital with organisation effectiveness. Based on the results through questionnaire survey of 155 Malaysian companies’ managers, it was found that among the intellectual capital components, structural and relational capital significantly influence the organisation’s effectiveness with structural capital as the strongest predictor. This reveals that structural capital, which comprises investment enhancement in technology, processes and systems, coupled with relational capital which includes customer-oriented and market driven activities, are imperative in determining high performance and competitive advantag

The relationship between financial leverage and liquidity, and firms’ profitability of the agricultural industry: evidence from malaysian listed firms / Muhamad Adhwa Zulkipli, Nik Anis Idayu Nik Abdullah and Amrizah Kamaluddin.

This study examined the relationship between financial leverage and liquidity with firms’ profitability of the Malaysian agricultural industry between 2011 to 2015. Additionally, the study attempted to examine the ability of both financial leverage and liquidity in predicting firms’ profitability. Financial ratios of 40 agriculturural firms’ that were listed in the Bursa Malaysia Main Board were taken as the sample. The selected variables for the study were Debt Equity Ratio (DTE), Interest Coverage Ratio (ICR), Proprietary Ratio (PR), Current Ratio (CuR), Quick Ratio (QR) and Cash Ratio (CsR) as the independent variables whilst Return on Capital Employed (ROCE) was the dependent variable. The study discovered that significant relationships exists between both financial leverage and liquidity and firm profitability. In addition, both financial leverage and liquidity are also significant to explain and predict firms profitability. The results confirm the trade-off theory, which suggests that firm profitability would increase as the level of debt increases, but only to an optimal level where any subsequent increment in the firms’ debt level upon reaching its optimal level would result in the contraction of its profitability

The relationship between financial leverage and liquidity, and firms' profitability of the agricultural industry: evidence from Malaysian listed firms / Muhamad Adhwa Zulkipli, Nik Anis Idayu Nik Abdullah and Amrizah Kamaluddin.

This study examined the relationship between financial leverage and liquidity with firms’ profitability of the Malaysian agricultural industry between 2011 to 2015. Additionally, the study attempted to examine the ability of both financial leverage and liquidity in predicting firms’ profitability. Financial ratios of 40 agriculturural firms’ that were listed in the Bursa Malaysia Main Board were taken as the sample. The selected variables for the study were Debt Equity Ratio (DTE), Interest Coverage Ratio (ICR), Proprietary Ratio (PR), Current Ratio (CuR), Quick Ratio (QR) and Cash Ratio (CsR) as the independent variables whilst Return on Capital Employed (ROCE) was the dependent variable. The study discovered that significant relationships exists between both financial leverage and liquidity and firm profitability. In addition, both financial leverage and liquidity are also significant to explain and predict firms profitability. The results confirm the trade-off theory, which suggests that firm profitability would increase as the level of debt increases, but only to an optimal level where any subsequent increment in the firms’ debt level upon reaching its optimal level would result in the contraction of its profitability

Social capital and innovation capital: accountability towards small medium enterprises’ (SMEs) sustainable performance / Amrizah Kamaluddin … [et al.]

SMEs have the potential role to substantially contribute to the current and future economy. In today’s complex business environment, SMEs are facing various challenges in surviving and sustaining their operations.The sudden economic changes and globalization have seen many small enterprises failed in managing their business. In this innovation capital and social capital are two main intangible resources in the organization,which are vital for sustainable performance in any organization. Hence,in discharging their accountability towards the relevant stakeholders, SMEs should deploy their intangible resources. In this regard, the main aim of this study is to investigate the relationship between innovation capital and social capital with SMEs performance. Data were captured via questionnaires, which were distributed to eighty SMEs companies in four states in Malaysia. The results of the study provide evidence that innovation capital and social capital influence the performance of SMEs. In addition, all the dimensions under innovation capital and social capital which are innovation capabilities, innovation culture, structural and relational are significantly positive related with SMEs performance. This reflects that intangible resources in SMEs being capability, culture in working environment, social interaction within organization, network, and the strength of ties among the employee are crucial to influence the efficiency of SMEs organization. Thus, the results of this study offer guidelines and evidences for SMEs in managing their intangible resources in order to be competitive and sustainable in business

Intellectual capital and social performance of Islamic banks in Indonesia and Malaysia: the moderating role of sharia supervisory boards

The purpose of this study is to investigate the relationship between Intellectual Capital (IC) and Social Performance and to further examine whether Sharia Supervisory Boards (SSB) moderate this relationship. This study employed a longitudinal sample of Islamic banks in two countries leading Islamic banking industries in the south-east Asia region, Malaysia and Indonesia, with a sample of 31 Islamic banks during the period 2008-2020. Panel data regression model analysis was applied to test the study research hypotheses. The findings revealed that IC has a positive impact on the social performance of Islamic banks, demonstrating that greater utilization of IC leads to improved social performance. SSB meeting frequency has a positive impact on the social performance of Islamic banks, indicating that the more active the boards are, the more SSB can perform the social performance. Meanwhile, the gender diversity of SSB members has does not influence Islamic banks’ social performance. On the moderating role of SSB aspects, which are SSB meeting frequencies representing SSB activities in monitoring and SSB gender diversity, both proven to strengthen the relationship between IC and Islamic banks’ social performance. Overall, this research contributes to a better understanding of the impact of IC and SSB governance in improving Islamic banks’ social performance functions. This study implies that Islamic banks should be more aware of their intellectual capital resources and the monitoring role of SSB so that the Islamic banks can perform their social functions more optimally

ACKNOWLEDGING INTELLECTUAL CAPITAL IN MALAYSIAN PUBLIC UNIVERSITIES PERFORMANCE

  In today's knowledge-based economy, intellectual capital has emerged as a crucial component for boosting productivity and sustaining organizational performance. The intellectual capital approach has assumed a preeminent position in the higher education industry, where knowledge is the primary output and input. The majority of its valuable input consists of researchers, managers, and students who are acquainted with the university's procedures, rules, and regulations, as well as its network of relationships. Principal outputs include research results, publications, educated students, and productive stakeholder relationships. If universities are to continue providing high-quality services and ensure their long-term viability, these intellectual capital components must be properly identified and managed. Malaysian public universities were chosen as the sample for this investigation into how universities extract the value of their intangible assets. This study seeks to provide empirical evidence on the relationship between the intellectual capital of universities and their performance. IBM-SPSS analysis software was applied to the dataset of 56 respondents. The analysis demonstrates that intellectual capital significantly influences universities’ performance, especially on financial, internal process and learning growth performance perspectives. This study provides a deeper understanding of how universities measure their intellectual capital and the significance of its value in enhancing the performance of public universities. The indicators discovered in measuring intellectual capital are anticipated to become a model applicable to ASEAN public universities for managing and reporting intellectual capital and its significant influence on a university’s performance.   Keywords: Intellectual Capital; Public Universities; University Performance; Measuremen

ANTECEDENTS AND CONSEQUENCES OF PSYCHOLOGICAL EMPOWERMENT AND ROLE CLARITY AS AN INTERVENING VARIABLE

Purpose: This study aims to examine the effect of decentralization in decision making, psychological empowerment, and clarity of role in the implementation of the Regional Financial Information System (SIKD). Methodology: The sampling technique in this study is by using the Convenience Sampling technique. Results: The results of hypothesis testing show that there are six supported hypotheses and two rejected hypotheses. Implications: The implementation of the Regional Financial Information System (SIKD) and the consequences of implementing SIKD on performance by mediating dysfunctional behavior in the Regional Work Unit (SKPD) implementers in Lampung Province

Intellectual capital management practices in Malaysian private hospitals

Intellectual capital has emerged as an indispensable element for enhancing productivity and sustaining performance of organizations in this knowledge-based economy. In the healthcare industry, intellectual capital forms the basis for continuing innovation and subsequent performance. Hence, the management of hospitals needs sound intellectual capitalmanagement in order to ensure sustainability. Moreover, the activities of hospitals generally depend more on intangible resources such as clinical skills, knowledge, expertise, experiences, competencies, doctor-patient relation, doctors’ and hospital’s reputation rather than physical resources like physical assets. For this study, Malaysian private hospitals were selected as sample to investigate how hospitals extract the value of their intangible capital. This study aims at providing empirical evidence on the intellectual capital management practices in Malaysian private hospitals. Data was collected from a series of interviews with representatives from five private hospitals in Malaysia. Cross-case study analysis was carried out in analysing the data collected to develop patterns found in the evidence. The study reveals that the intellectualcapital management in hospital industry is quite unique especially in the human capital management and the relational capital management. For human capital management, clinical staffs’ competencies are crucial. Interestingly, the study found that physicians are often not the direct employees of the hospitals. This leads to a unique relationship between the hospital and the physicians. Meanwhile for the relational capital management, this study also reveals that the unique relationship that exists between the physicians and patients leads to the structural capital of the hospitals which may influence the hospitals’ reputations and good names

Tax literacy among employees: Sabah and Sarawaks perspective

The main intent of this paper is to gauge the level of tax literacy among taxpayers in Sabah and Sarawak. It is vital to shed light on our preparation to face the challenge posed by the implementation of Self -Assessment System (SAS) in 2004 whereby the taxpayers are expected to be functionally tax-literate in computing their own tax liabilities accurately. Methodologically, the subjects were randomly sampled from taxpayers working in a few selected towns in Sarawak and Sabah. Statistical tests like t-tests and chi-square were applied onto the means of tax literacy scores by each state and the taxpayers’ respective workplaces. The taxpayers in Sarawak were found to be more tax-literate as compared to their counterparts in Sabah. Nonetheless, the taxpayers in both states were not eventually prepared for SAS. More aggressive efforts were recommended to raise the level of tax literacy among the taxpayers