Conceptual Framework on Antecedents of True and Fair View Reporting Surrounding Migration to Accrual-Based Accounting by Public Sector Entities: A Case of Federal Statutory Bodies (FSB) in Malaysia

Following the institutional reforms in Malaysia, the Federal Government issued Treasury Circular PS 1.2/2020. Federal Statutory Bodies (FSBs) are now required to adopt the Malaysian Public Sector Accounting Standard (MPSAS) as the standard for preparing financial statements. While most private sectors strongly embrace accrual accounting systems and derive many benefits from them, the practice and application in the public sector, including FSBs, is still in its infancy. Therefore, this study examines the antecedents of true and fair view reporting in the context of migration to accrual accounting by FSB in Malaysia. This study is due to the lack of research on accrual accounting in the public sector, as researchers rigorously focus on the private sector that controls the economy. In addition, there are few studies on the conversion of the public sector in emerging economies to accrual accounting. The study provided a conceptual discussion on the antecedents that potentially affect the true and fair view reporting through the adoption of accrual accounting. The discussion is expected to benefit many stakeholders, especially regulators and policymakers, as emerging economies such as Malaysia continue to actively pursue institutional reforms. By adding new variables from the study so that they can be used in various and extensive aspects of the research

Sensitivity Of Socially Responsible Investment Behaviour To Experience And Size Of Funds

This paper examines the moderating effect of experience and size of fund towards socially responsible investment (SRI).A survey was conducted to get the responses of fund managers, and data were analysed using a multi-group approach of Structural Equation Modelling (SEM).At intentional level, there was a significant moderating effect on the relationship between attitudes and caring ethical climate towards an intention to SRI among less experienced fund managers. There was a significant moderating effect on the relationship between subjective norms and perceived behavioural control towards an intention to SRI among more experienced fund managers. There was also a significant moderating effect on the relationship between subjective norms and caring ethical climate towards an intention to SRI among small-sized fund managers. At behavioural level, there was a significant moderating effect on the relationship between moral intensity and SRI behaviour among less experienced fund managers. There was also a significant moderating effect on the relationship between moral intensity and caring ethical climate on SRI behaviour among bigger-sized fund managers. This paper conduits the literature gap by expanding the understanding on the moderating impact of experience and size of fund towards SRI, provides insights to policy makers in carrying out appropriate talent development strategies in accumulating the support of fund managers towards SRI-related initiatives in the capital market, and reveals the potential contribution of fund manager talent management in sustainable development through SRI. The paper offers vision on fund manager talent management to forefront the progress of SRI in emerging economies

EVALUATING THE IMPACT OF INNOVATION ON MOSQUE COOPERATIVES’ ADAPTIVE CAPACITY IN THE AGE OF DISRUPTION

The disruptions such as the pandemic Covid-19 driven Movement Control Order (MCO) and the Fourth Industrial Revolution (4IR) have delivered dynamism in the form of accelerated change, technological innovation, convergence, new sources of growth or disparities, and new technology costs and investments. These are expected to have an impact on the economy, society, and politics of the industry and its sub-sector. Nevertheless, the existing Dasar Koperasi Negara 2 (DKN 2), 2011-2020, and the most recent mid-term review report of DKN 2 did not specifically mentioned about preparing or building the country’s co-operative sector based on those disruptions, though undeniably there are some elements in these two documents reflecting such move towards it. The silence and absence cast doubt on local mosque cooperatives' ability to adjust in the face of upheaval. It also creates concern on driving factors of mosque co-operatives’ adaptive capacity. Thus, this proposed study aims to ascertain elements of mosque co-operatives’ 4IR adaptive capacity, then to evaluate the interactions and relationships between organisational, product & process, and social innovation and adaptive capacity of mosque co-operatives. Employing survey method, this study will engage the Chairman of Board of mosque co-operatives in state of Selangor as a respodent. The feedback will be analysed using the Structural Equation Modelling technique via SmartPLS. Understanding the variables that drive innovation allows mosque cooperatives to strengthen their adaptive ability by concentrating efforts on improving specific competencies and boosting the sub-preparation sector's for future shocks. It also provides insights to key stakeholders viz. MEDAC, SKM, ANGKASA, and IKM in planning enhanced training moduls, standard operating procedures, action plan relating to a specific innovation process that can enhance mosque co-operatives’ adaptive capacity, including in in finalising the Dasar Koperasi Negara 3, 2021-2030. This proposed research aims to answer the following research questions:- 1. How organisational innovation affect mosque co-operatives’ adaptive capacity? 2. How product and process innovation affect mosque co-operatives’ adapative capacity? 3. How social innovation affect mosque co-operatives’ adapative capacity

THE IMPACT OF PANDEMIC COVID-19 ON THE ACTIVISM, FINANCIAL AND DIGITAL WELL BEING OF MOSQUE INSTITUTION

The pandemic driven Movement Control Order (MCO) caused pain to mosque institutins in terms of activities, financial and digital. As the pandemic Covid-19 hit the country in early 2020, mosques were closed, number of congregation reduced, Friday and tarawih prayers were postponed, sadaqah collection dropped, and lesser knowledge based activities or Islamic teachings programmes were recorded due to social distancing order as the authority intended to stop the lethal virus transmission. In certain circumstances, social gathering activities were permitted at mosque; however, with a strict permission and stringent standard operating procedures. Coupled with lack of digital literacy, skills and equipment, as well as insufficient financial resources, mosque's engagement and visibility with larger societal members were also unfavourably impacted. Consequently, mosque institution is not able to carry out its function effectively as a centre of knowledge, centre of economy, and centre of community engagement. The research aims to explain the impact of pandemic Covid-19 towards mosque institutionn. Specifically, this conceptual paper discusses the implication of pandemic Covid-19 on activism, financial and digital well-being of mosques. It explores initial publications like academic articles, news, reports, and ministerial statements about the issue. The findings indicated the impact of pandemic Covid-19 towards mosque institutions’ well-being in the three areas i.e. activism, financial, and digital, and the response of mosques’ leadership and Muslim community. The study offers conceptual discussion, and generalisation take place cautiously. The value of the research embedded in its intention to assess the impact of pandemic Covid-19 on mosque institutions from three different dimensions namely activism, financial and digital. Moreover, the findings shall enhance the preparedness of mosque institution in those three areas to brace future shock. The findings also shall support the aspiration of SDG 16 in preparing mosque as a peace, justice and strong institution for community

Factors Influencing Socially Responsible Investment Behaviour among Institutional Investors in Malaysia

Socially responsible investments (SRI) have been gaining momentum since the beginning of the millennium. This phenomenon has attracted multiple assessments; however, there is still limited literature which examined SRI behaviour in Asia, including Malaysia using an integrated and validated model. Therefore, this study aims to conceptualise and validate a model examining factors that influence intention and SRI behaviour. Using the Theory of Planned Behaviour (TPB) as a core theory, the research framework is extended with moral intensity – a component of the Issue-Contingent Model (ICM) and caring ethical climate – a component of the Ethical Climate Theory (ECT). The deployment of the extended TPB permits the simultaneous assessment of the influence of attitude, subjective norms, perceived behavioural control (personal factors), moral intensity (contextual/situational factor), and caring ethical climate (organisational factor) towards intention and SRI behaviour

Chairman statement characteristics and firms performance: a study of Malaysian construction companies

Chairman statement in the corporate annual report is classified as narrative accounting and until today it remains as voluntary disclosure. Without guidelines by the accounting standards setters and close monitoring by the regulators, it is hypothesised that company management may exaggerate the qualitative explanation in the chairman statement to impress various groups of stakeholders. In 2008, as sub prima crisis effecting global economic, and eventually reaches Malaysian shore, one of the badly suffered sectors in construction industry. Therefore, this study attempts to examine how these construction companies disclosure their chairman statement in order to reflect the negative impact towards their bottom line financial reporting. Specifically, the study investigates whether there is a significant different between profitable and not profitable construction companies as well as increased or decreased revenue construction companies associate with the characteristics of chairman statement in the corporate annual report. The independent sample t-test showed that there are no significant different, except profitable construction companies tend to provide more picture and graphic in the chairman statement section while reporting their bottom line performance.chairman statements; firm performance; construction industry; Malaysia; narrative accounting; voluntary accounting; corporate annual reports; voluntary disclosure; subprime crisis; financial crisis; negative impact; financial reporting; bottom line performance; profitability.

What prompts firms to choose between business and geographic segments as a primary segment?

Purpose – The purpose of this paper is to investigate what causes a firm to choose between a business segment and a geographic segment as a primary segment for its segmental information disclosure. It seeks to examine Malaysian firms' experiences as they disclose segmental information under the new accounting standard known as FRS 114, Segment Reporting. Design/methodology/approach – The paper involves 374 Malaysian public-listed companies which disclosed segmental information in their 2006 annual reports. Four hypotheses are developed to examine the influence of these five factors, namely the size of the company, listing status, financial leverage, financial performance, and industrial membership. The non-parametric test is employed to test the formulated hypotheses. Findings – The results reveal two important outcomes: first, size of company, financial performance, and industrial membership are significantly associated with the choice of a primary segment; and financial leverage of a company and listing status are not significantly associated with the choice of a primary segment. Research limitations/implications – The limited number in the sample and inherent segmental reporting problems present limitations. Practical implications – The paper implies extensive auditing work as the new standard requires more extensive disclosure for the primary segment, although the standard allows the adoption of primary segment reporting at management's discretion. Originality/value – The paper's value lies in determining what motivates a company to disclose a business segment or a geographic segment as its primary segmental reporting basis.Accounting standards, Information disclosure, Malaysia

Impact of Individual and Organisational Factors on Whistleblowing Intention in Public Sector Organisations: The Mediating Role of Self-Efficacy

Whistleblowing can be described as a response of reporting towards an improper conduct in an organisation. It comprises reporting of any detrimental practices that requires instant remedial action in order to reduce the adverse effect across organisation. Like Malaysia, the enactment of Whistleblowing Protection Act 2010 (WPA) was established in combating corruption issues. Therefore, it recognises the significant role of whistleblowing in an organisation. However, the poor ranking of Corruption Perception Index and Global Corruption Barometer challenged the effectiveness of WPA implementation especially across the public sector organisations in Malaysia. Purpose – This study investigates the determinants of whistleblowing intention among public sector internal auditors of 25 ministries in Malaysia. The selection of internal auditors as the unit analysis of this study is mainly due to the fiduciary roles of an auditor in assuring the adequate internal control in place through the effective and efficient management of organisations resources

A Study on the Professional Skepticism Characteristics Among Malaysian Public Sector Auditor

Professional scepticism being define as “an attitude of questioning mind, being alert and also having critical assessment towards audit evidence” (ISA, 200). In Malaysia, auditors are required to apply professional scepticism during audits (MIA, 2008). Purpose – This study examines the demographic factor also professional scepticism criteria among auditor in Malaysia public sector