Malaysia: Value Relevance of Accounting Numbers

Ali, Mazurina Mohd; Ibrahim, Muhd Kamil; Mohammad, Rashidah; Zain, Mustaffa Mohamed; Alwi, Mohd Rashidee

doi:10.1007/978-3-540-68815-0_10

Cited by 6 publications

(3 citation statements)

References 48 publications

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“…Studies have indicated that a highly leveraged capital structure with substantial debt financing is synonymously associative to a higher level of information disclosure on account of a more demanding debt covenant and contracting cost between the company and its debt suppliers (Broberg et al, 2010;Mohd Ali et al, 2009). Managers are predisposed to disclose more information voluntarily to justify their financial position and project a positive socially responsible image to stakeholders (Cormier and Magnan, 2003).…”

Section: Financial Leveragementioning

confidence: 99%

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Tong

2017

SHS Web Conf.

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This study aims to comparatively assess the effects of company-specific variables on the level of corporate social responsibility (CSR) information disclosed in publicly-traded companies from United Kingdom (UK) and Malaysia. Content analysis was applied to sampled reports from the FTSE 100 Index and FTSE Bursa KLCI against inferred meanings from the Global Reporting Initiative (GRI)-derived coding base to identify similarities and/or differences in CSR disclosure practices. The Spearman's correlation coefficients and multiple linear regressions (MLR) analyses further gauged the associations between the variables and total quantity of CSR disclosure (TQCSR); and, determined the predictive determinants on sustainability reporting. The Spearman's correlation has identified a negative association on leverage with TQCSR for UK companies. In contrast, the TQCSR in the Malaysian sample was positively associated with directors' CSR-related experiences and profitability but negatively associated with company size. Results from MLR analyses presented company size as a significant determinant on sustainability reporting in the UK model, while directors' experiences were indicated as the crucial determinant in the Malaysian model. This first, direct cross-market sustainability reporting study highlights the importance of board of directors' CSR-relevant experience in influencing the level of CSR disclosures in publicly-traded companies.

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Section: Financial Leveragementioning

confidence: 99%

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

Tong

2017

SHS Web Conf.

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“…Positive attributes as high profits and low impact may affect their decision to make corporate donations. Besides, firm size can give corporate gifts (Ali et al, 2009). Whereas, building on the upper echelon principle, several earlier studies document that CSR approaches lead to the inherent decisions of the Chief Executive Officer (CEO) and are especially decided by their capacity (Chatjuthamard et al, 2016;Yuan et al, 2017).…”

Section: Independent Journal Of Management and Production (Ijmandp)mentioning

confidence: 99%

The impact of ceo's personal characteristics on corporate social responsibility: evidence from Bangladesh

Islam

Usman

et al. 2021

Ind. Jour. Manag. & Prod.

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Purpose: Advanced CSR research is still in the context of developed countries. Very limited research is available in the CSR system of developing countries such as Bangladesh. Specifically, this paper examines the impact of CEOs personal characteristics on CSR among the public listed company in Bangladesh.Theoretical Framework: This study also focuses on six firm characteristics firm size, profitability board size, firm leverage, sales and cash.Design/Methodology/Approach: Using ordinary least square (OLS) regression analysis on 100 public listed firms at Dhaka stock exchange (DSE) and Chittagong stock exchange (CSE) in Bangladesh.Originality/Value: this study provides new evidence on the relationship between CEO Characteristics and corporate social responsibility in Bangladesh.Findings: The results show that CEO's impressive positive and rationally significant, which means male is better than women, corporate strategy is better than women in their strategy. One of the most important reasons for education because education also results CEO business education positive and significant, which ultimately affects the organization. The Chief Executive Officer of the organization is an important part of religion and its religion, so that the religion of CEO is Islam and Christian, then he will have more impact on the social welfare organization. The variability of CEO's religion (Islam and Christian) is positive, which affects the company's social welfare, which ultimately increases the company's value.

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“…The data was sourced from the Thomson Reuters Database that recorded the company's profile on a annual basis. Listed companies from the financial sector were excluded from the sample (Refer Table 2) due to its exclusive features in financial statements and business activities (Ali, Ibrahim, Mohammad, Zain, & Alwi, 2009). Table 3 presents the variables used in this study with the measurement for each variable.…”

Section: Data and Model Of Analysismentioning

confidence: 99%

Determinants of Capital Structure for Malaysian Shariah-Compliant Firms: The Impact of Revised Screening Methodology

Rahim

Nor

Ramli

et al. 2020

International Journal of Banking and Finance

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This study investigates two main objectives. Firstly, the determinants of capital structure were examined for each sector among Malaysian Shariah-compliant firms, and whether the inclusion of Islamic debt (leverage 1 and leverage 2) has led to different results due to changes in the screening methodology. Secondly, this paper analyzes the target Capital Structure and Speed of Adjustment for both before and after the Revised Screening Methodology. This study employs panel data analysis by using generalized method of moment (GMM). The sample consists of 192 Shariah-compliant companies in Malaysia during the period of 1999 to 2017. The results demonstrated that the firm has target capital structure and identified specific determinants that have affected the capital structure of Shariah-compliant firms in Malaysia. Moreover, the findings have also revealed certain implications toward large firms. Large firms tend to generate more income and profit, however at the same time, these firms require more debt to support investment activities. Hence, with regards to profitability, this study identified a negative relationship between profitability and leverage for Shariah-compliant firms for all sectors. Shariah-compliant firms with high profitability will use a lower leverage in their financial activities. Thus, the results strongly support the pecking order theory. Other than that, this study found that the lagged dependent variable (lagged leverage 1 and leverage 2) presented a positive significance, and concluded that the speed of adjustment takes approximately 2 years. This suggests that the Shariah-compliant firms close approximately by 30% to 70% of the gap between current and target capital structure within one and two years. Furthermore, the findings on the target leverage level imply that after the revised screening methodology was introduced in November 2013, the speed of adjustment became faster than before the implementation of the new screening methodology. Thus, it is important for management to maintain the target leverage during financial decision making, which in turn strengthens the firm’s Shariah-compliant financial stability and sustainability, and continue to remain listed as Shariah-compliant securities. This paper provides an overview of capital structure behaviour in Malaysia.

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Malaysia: Value Relevance of Accounting Numbers

Cited by 6 publications

References 48 publications

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

A Comparative Review on Company Specific Determinants for Sustainability Reporting in United Kingdom (UK) and Malaysia

The impact of ceo's personal characteristics on corporate social responsibility: evidence from Bangladesh

Determinants of Capital Structure for Malaysian Shariah-Compliant Firms: The Impact of Revised Screening Methodology

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