Abstract-As repeatedly emphasized by the Prophet S.A.W, weight and measures are two of the important elements in business transactions. Pedestal on that premises, we concur to discover the existence of income smoothing in Malaysian's Shariah compliant companies which are perceived as companies that go along with ethical Islamic precept in both business transactions and financial reporting. Even though in Islamic financial theory does not repudiate smoothing of profit, this study will examine types of smoothing behaviour that are undertaken by the executives. There are two types of income smoothing; real smoothing and artificial smoothing. Real smoothing comprises making production and speculation decisions that decrease income inconsistency. In dissimilarity, artificial smoothing is attained through accounting practices. We tested our objectives on 712 Shariah compliant companies in Malaysian capital market over the period of 2007 -2011. By using test of artificial income as a measurement, we found that 53.6% of the companies are artificial smoothers.
This study investigates intellectual capital (IC) disclosure in Malaysian public listed companies. Specifically, this research examines the relationship between IC disclosure and companies' profitability, productivity, and firm size. We measure the IC disclosure using the IC disclosure index and I C disclosure frequency. The sample includes 255 firm-year observations from 2006-2008. The results from our content analysis confirm those of prior research that the IC disclosure has been increasing over time. The study finds that human capital is the most reported intellectual capital disclosure. In addition, we also find that firm size positively contribute to the disclosure of IC. The result of this study added to the body of literature by providing evidence on the relationship between IC disclosure and firms' characteristics.
The number of Umrah pilgrims from Malaysia who perform Umrah in the Holy Land continues to increase from year to year. This high demand makes the offer of services by travel agencies as a good business opportunity to generate income while also helping Malaysians to perform Umrah. However, the Covid-19 pandemic that has spread throughout the world has had an impact on the Umrah pilgrims. Restrictions and regulations have been implemented by the Government of Saudi Arabia. Various other countries have implemented similar measures and even imposed restrictions on their citizens in an effort to control the spread of this virus. This discussion paper will discuss the challenges to Malaysian umrah pilgrims and the selection of travel agencies for Umrah after the pandemic.
Abstract-This paper aims to discover the timeliness of income recognition in Malaysian's Shariah compliant companies. In Islamic teachings, weight and measurement play a significant principle in business transactions which have repeatedly emphasized by the Prophet S.A.W. Riba' or interest is forbidden in the Quran. Sunnah should be followed. Nevertheless, post-modern business world embraces International Financial Reporting Standards (IRFS) for reporting for which in contrary is insufficient to cover certain elements of Islamic practice. Hence, Shariah compliant companies are torn in between pursuing religion obligations and being internationally acceptance for compliance and reporting. This research has collected evidence from 712 companies listed in Bursa Malaysia under Shariah law, a decree that is enshrined in the Quran. We employed multiple regression method to test the samples. Malaysian capital market is chosen as our research contender due to its position as the most important Islamic finance center. In effect, even though the main driver for reporting financial statements are IFRS, we found that income recognition in these companies is not significant, an important virtue that is weighty in Shariah companies. There were few studies on Islamic financial institutions that cover different angles of income recognition for other countries. This study focus on the same scenario, yet supplemented with a study on income recognition in Shariah compliant companies in Malaysian capital market.
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