Financial situation of PN17 companies listed in the Malaysian Stock Exchange

A Practice Note 17 (PN17) Company is a listed company in the Malaysian Stock Exchange that is financially distressed or does not have a core business or has failed to meet minimum capital or equity (Less than 25% of the paid up capital). Financial ratio analysis method can be used to detect the failure of this company. As of 9th August 2010, there are still thirty four companies listed on Malaysian Stock Exchange classified under PN17 List. These companies have entered into PN 17 list in accordance with existing standards. There are also investors who do not know the status of these listed companies. A real and full attention has not been given yet for these companies. Analytical studies and scientific researches are almost still lacking on PN17 Companies listed in the Malaysian Stock Exchange. The aims of this research work is to examine the differences between the financial liquidity ratios (Current, Quick, Cash Ratio) and Altman's Z-score in determining the financial failure of companies, that is using financial ratios and Altman Z Score to examine whether there is different between PN17 companies and Non-PN17 listed in the Malaysian Stock Exchange. It also aimed to determine whether are all the PN17 Companies listed in the Malaysian Stock Exchange financial failure companies, to explore and report the financial situation of companies listed on Malaysian Stock Exchange. The available data collected from the library of Malaysian Stock Exchange covering the period from 2003 to 2009 were used in the analysis. This study answered the research questions formulated. Financial Liquidity ratios and Altman Z-score can be used to detect financial distress of companies, and it is important to compare ratios with the industry average or with a competitor in the same sector. Not all the PN17 Companies are financial failure Companies, It was found that there are financial difficulties companies still listed among the Non-PN17 list. Companies should emphasize on the issue of accounting disclosure

Transfer of Islamic banking knowledge from GCC Islamic bank headquarter to its subsidiary in Malaysia

The Gulf Cooperation Council (GCC) Islamic banks' subsidiaries which have invested in Malaysia have seen the going gets tough. They are strapped by paltry returns and stymied by stiff competition from the local Malaysian banks. Since the increasing competition and the slowdown of the economy have encouraged multinational banks to seek new ways to improve their internal efficiency and their performance, it has given the pivotal importance of knowledge transfer for the competitiveness of multinationals, but the process of transferring knowledge effectively across dispersed units of International Islamic banks has only attracted little and rather fragmented research interest. Thus, there is hardly evidence about how this large-scale knowledge transfer has been achieved and what knowledge has actually been transferred to the GCC Islamic banks investing in Malaysia. Therefore, the aim of this research study is to develop a comprehensive Islamic banking knowledge transfer framework that serves as a basis for future research agenda. The study focused on the cases of the Islamic banks' subsidiaries in Malaysia that are fully owned by GCC Islamic banks. The respondents were the experts who are well aware of their business to answer the survey questionnaire. This study is mixed method type of research study. A survey questionnaire was used as a guideline to compose specific questions related to the conceptual model. This is followed by interviews that were conducted with the respondents to investigate the model’s constructs and then to analyse the generated propositions in order to address the main research questions. This study tested the research propositions and found that, the integration between HQ bank and its subsidiary bank, the strategic role and the ability of the subsidiary bank to engage in Islamic banking knowledge transfer are related to the development of Islamic banking knowledge transfer capabilities. Besides that, the development of Islamic banking knowledge transfer capabilities, as well as organizational and cultural distances between HQ bank and its subsidiary bank are related to the Islamic banking knowledge transfer performance. In short, the findings of this research study have not only contributed to the literature, but also provided valuable information to both managers and policy makers on the matter of transferring the knowledge of Islamic banking. The study recommends the top management to implement KT practices that need to be made known and felt by all levels of bank units' members. Managers have to pay attention to the development of communication technologies, personal contacts, training efforts and relations of trust between the employees, because it is an important factor for a successful knowledge transfer process. Finally, the findings of this study are useful, but need to be strengthened by future research work

The strategic role of GCC Islamic banks in Malaysia: a knowledge transfer perspective

The recent trend in the field of strategic management has been to emphasize the role of knowledge management as a basis of the competitive advantage of organizations. Historically, the searches for MNCs performance have been oriented around that knowledge is power. In organizations, this expression has become even more relevant than other social settings. Knowledge is a major factor that differentiates successful organizations from the unsuccessful ones. This study aims to investigate the strategic role in knowledge transfer, as well as to review the effect of strategic role as the constituent factor of knowledge transfer which contributes to the success of Islamic banking and financial knowledge performance in GCC Islamic banks subsidiaries in Malaysia. The data were collected through sending out questionnaires to 5 leaders of Upper Managers in GCC Islamic banks in Malaysia, administered 2-items of strategic roles namely: Contributor and Implementer. The respondents’ answers were subjected to SPSS. After that, semi-structured interviews were conducted with respondents. The results indicated that there is positive and significant influence of strategic leadership on knowledge transfer process. GCC Islamic banks subsidiaries in Malaysia are standing at the great extent level of strategic role from knowledge transfer perspective. In addition, the two factors named contributor and implementer lead to achieve the strategic role between headquarter and its subsidiary. The conclusion of this research paper recommended the advanced empirical research studies in future to develop a conceptual unifying model of Islamic banking and financial knowledge transfer within Islamic banks

Organisational distance between GCC Islamic banks and their subsidiaries in Malaysia: a knowledge transfer perspective

GCC Islamic banks‟ subsidiaries in Malaysia have seen the going through tough, strapped by paltry returns and stymied by fierce competition from the local banks. The future of these GCC Islamic bank subsidiaries in Malaysia is being scrutiny through by when their headquarters back home is reaping a much higher return on equity. Thus, this research paper is conducted to investigate the organisational distance between the headquarters of GCC Islamic banks and their subsidiaries in Malaysia. Five large GCC Islamic banks subsidiaries in Malaysia were identified to document the organisational distance between headquarters of these banks and their subsidiaries in Malaysia. The data of this study were collected through sending out questionnaires to subsidiaries of GCC Islamic banks in Malaysia, as well as conducting semi-structured interviews with the top managements of these banks and through reviewing, tracking and comparing the information of their past and current from literature works to report the impact of organisational distance on knowledge transfer. The results show that the GCC Islamic banks subsidiaries in Malaysia are at the moderate level of organisational distance on knowledge transfer. The four factors which are structures, routines, decision-making and organizational culture, significantly influence the organisational distance between subsidiaries and the headquarters. The findings result in developing a conceptual unifying model of knowledge transfer between Islamic banking and financial services within Islamic banks and provide impetus for future empirical testing

High-performance work system or “wolf in sheep’s clothing?” a mediating effect of organisational cynicism and its outcome

Cynicism is new developing pattern of employer–employee relations. Current academicians realise the profound effect which cynicism can have on organisations, this significance of understanding the seemingly widespread organisational phenomenon. This study takes a systematic view in which organisational cynicism considered as negative attitude directed, particularly towards the educational sector. The current study aimed to endeavours to examine the mediating role of organisational cynicism on high-performance work system with the outcome of organisational citizenship behaviour among teachers of the public schools in Malaysia. The current study will show the work environmental factors and personal characteristics in determining organisational cynicism and will suggest the causes and consequences of cynicism

A review of traditional cost system versus activity based costing approaches

In the last two decades, business environment has been changing rapidly with fierce global competition. Firms using the traditional costing system were forced to change from their old system traditional-cost method and to accept the newer cost system, better known as the activity based on costing (ABC system). The new system is able to support and enhance decision making of the decision makers, besides being adaptable to the new business environment. Therefore, this paper aimed to review the applications and importance of both traditional cost system and ABC system for business decision making, and compare the results of ABC and the traditional costing systems via literature reviews of works by previous authors. The results reflected that activity based on the costing system is a better system comparing to the traditional costing systems. ABC system enhances decision making of the interested user with its better adaptable costing features to support the new business environment and global business competition. It thus creates a more sustainable source of competitive advantage. In addition, it identifies the under-costed and over-costed of the products of a firm

Features of Gulf Cooperation Council banks investment in Malaysia

Finance is the lifeblood of trade and commercial industry. Today’s competitive markets uses of complementary resources in collaborative agreements for many enterprises are the only means to expand internationally and gain global competitiveness. Trades between countries occur by exchanging goods and/or services with their counterparts. The economic interactions between parts of the world with another have expanded over the centuries and exerted significant impact on the world’s economic development. This study is among the earliest to investigate the various GCC bank features that operate in Malaysia. Seven large GCC banks in Malaysia were studied to document the GCC Banks features that have invested in Malaysia. The data of this study were collected through surfing the websites of all these GCC banks, conducting semi-structured interviews with the top managements of these banks and through reviewing, tracing and comparing the information of their past and current from literature works to report the features of GCC banks investment in Malaysia

Causes of organizational cynicism and its consequence on teaching staff in Malaysia

Cynicism reveals itself as a new pattern in employer and employee relations. Now academicians are realising the effect that cynicism can have on organizations. This phenomenon has widespread in various kinds of organizations. This study considering a systematized view in which organizational cynicism measured as a negative behaviour, mainly in the educational sector. Current study aimed to endeavours to analyse the mediator role of organizational cynicism on the relationship among workplace incivility, psychological contract violation, with the outcome of organisational citizenship behaviour among teaching staff of the public secondary schools of Malaysia. The current study emphasises the value of working environment and personal characteristics of employees in determining organisational cynicism and will suggest the causes and consequences of cynicism