This study aims to examine the prevalence of overconfidence bias in the decision-making process of Malaysian investors in Ponzi schemes. We explore a well-documented behavior that distorts the investor’s judgment, leading to a future event’s miscalculation — a psychological bias known as overconfidence bias (Kuranchie-Pong & Forson, 2022). Our study offers a novel viewpoint by investigating the hard-to-reach type of investor, the Ponzi scheme investors using the behavioral finance theory and qualitative method. Therefore, this investigation employed qualitative reasoning, which could also be an example of applying thematic analysis using ATLAS.ti. This study’s findings indicate that Ponzi scheme investors exhibit overconfidence bias in investing in the Ponzi investment schemes. We unraveled three types of overconfidence bias that prevail in the Ponzi scheme investors’ decision process. Acknowledging its limitations as a qualitative inquiry, the authors call for a joint effort to explore this field of study further. This emerging area of investor behavior research will afford valuable knowledge that could resolve the mysteries behind the never-ending issue of the Ponzi investment scheme.
Purpose: The current study hypotheses that the antecedent factors (knowledge, skills and abilities, change attitude, and training) would influence budget preparers’ awareness of accrual-based budgeting in the Malaysian public sector. Design/Methodology/Approach: This study employed a questionnaire survey to investigate three variables, namely knowledge, skills and abilities, change attitude, and training in predicting the accrual-based budgeting awareness among budget preparers in the Malaysian government sector. Before data collection, the questionnaire survey was validated by conducting expert reviews before examining 42 pilot data through exploratory factor analysis (EFA). Subsequently, multiple regression analysis was performed on 174 collected responses. Findings: The findings revealed that the three variables significantly influence budget preparers’ awareness of accrual-based budgeting in the Malaysian public sector. Specifically, fundamental knowledge is essential to assist in implementing accrual-based budgeting, while skills and capabilities, including communication, analytical, interpersonal, and technical skills, are integral to participating in the planning, preparation, negotiation, and monitoring of accrual-based budgeting activities. Simultaneously, budget preparers’ commitment to change, self-efficacy, and valence would be critical in transforming from cash-based to accrual-based budgeting. Furthermore, robust training is pivotal to increasing accrual-based budgeting awareness. Practical Implications: The present study contributed theoretical evidence to the existing literature by addressing the knowledge gap due to limited studies on the relevant topic. This study also provided instrumental insights into accrual-based budgeting awareness determinants which supported the Malaysian government in executing the economic transformation agenda. Originality/Value: The study is among the first to examine antecedent factors influencing accrual-based budgeting awareness to bridge the knowledge gap in the current literature. Keywords: Awareness, knowledge, skills and abilities (KSA), change attitude, training, accrual-based budgeting.
Purpose: This qualitative study mainly aims to examine the awareness of budget preparers on accrual-based budgeting in the Malaysian Public sector and their perception of its challenges. Specifically, the objectives of this paper are twofold. Firstly, to provide a critical review of the literature on the accrual-based budgeting. Secondly, to examine the awareness of budget preparers of the key concepts of accrual-based budgeting and its challenges to successfully implement accrual-based budgeting in Malaysia. Design/Methodology/Approach: This study employs face-to-face and semistructured interviews conducted with six (6) budget preparers who have been carefully identified and selected within the public sector in Malaysia. Findings: Our results indicate that there is a high level of awareness of accrual-based budgeting among budget preparers, but this is not the case with other employees who do not have hands-on practice in accounting. Our findings also reveal that knowledge and understanding, upper management enforcement and aggressive promotion is important in determining awareness of accrual budgeting. A further examination of implementation challenges reveals that understanding, cost increment, resistance to change, information and training are the main concerns in implementing accrual-based budgeting. Our results are very similar to studies in other countries. Practical Implications: This study sheds light on awareness of the concept of accrual-based budgeting among budget preparers in the Malaysian public sector and has certain implications pertaining to policy-making. Originality/Value: Our study is among the first to provide an in-depth analysis of accrual-based budgeting in the Malaysian setting. The findings of this study are expected to provide information to regulators and standard setters on the awareness and the implementation issue of accrual-based budgeting. Keywords: Accrual-based budgeting, public sector, qualitative, awareness, challenges
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.