ORCID Profile
0000-0003-3242-0686
Current Organisations
INTI International University
,
Open University Malaysia
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Publisher: Emerald
Date: 05-12-2016
Abstract: The purpose of this paper is to determine whether the representation of women on the boards (WOMBDs) and audit committees is associated with a reduction in the practice of earnings management and whether women are associated with income reducing (conservative) rather than income-increasing (aggressive) earnings management. The authors further argue that family ownership moderates the relationship between the presence of WOMBDs and audit committees and earnings management. The study uses non-finance firms listed on Bursa Malaysia over a period of four years, i.e. from 2008 until 2011. The evidence reveals that the presence of WOMBD or audit committee is not associated with a propensity for earnings management. In addition, the evidence also reveals that family ownership does not interact either with WOMBD or with women on the audit committee (WOMAC) to influence the propensity for earnings management. Nevertheless, the additional analyses show that, while women on boards are not associated with income-decreasing accruals, the presence of women on audit committees leads to income-reducing earnings management. The evidence further reveals that family ownership does not interact with either WOMBD or WOMAC to influence income-decreasing earnings management. This study extends prior research on the role of women directors and women audit committee members on earnings management focussing on family ownership. Further, the study also examines the direction of earnings management as opposed to the most prior studies, which mainly focus on the propensity of earnings management.
Publisher: Conscientia Beam
Date: 08-2023
Abstract: This study seeks to investigate the impact of accounting information systems on the performance of small and medium-sized enterprises (SMEs) in Malaysia. SMEs were the focus of this study due to their importance to the economy. The features of an accounting system, namely accuracy, efficiency, reliability, data quality, and ease of use, were tested against the performance of a s le of SMEs that implemented an Accounting Information System (AIS) in their companies. A closed-ended questionnaire consisting of a five-point Likert scale was used to gather the data. Convenience s ling was utilized to collect data from a s le size of 112 respondents using questionnaires distributed via online platforms, including social media, messaging applications, and email. The findings revealed that only three features of an accounting information system were positively related to the performance of SMEs in Malaysia, namely accuracy, reliability, and ease of use. Therefore, an accounting system must generate accurate, reliable, and easy-to-use data to assist management in making informed decisions. Companies need to provide internal and external training for accountants and decision-makers and give organizational culture the attention it deserves as it impacts accounting data quality. This training should aim to promote a strong work ethic and a culture of excellence.
Publisher: Virtus Interpress
Date: 2008
DOI: 10.22495/COCV5I3P12
Abstract: This study investigates whether a firm‟s management decision to locate the auditor‟s report in the financial statements is explained by information signaling theory. We posit that a firm that conveys good news is more likely to place its auditor‟s report at the beginning of the financial statements than at the end, and vice-versa. Based on 698 firms listed on the Bursa Malaysia as on December 31, 2002, we find that majority of Malaysian listed firms in Malaysia place their auditor‟s reports at the beginning rather than at the end of the financial statements. This could be a manifestation of the importance of the auditor‟s report in the financial reporting framework. However, our evidence the type of news, as measured by Tobin‟s q, ROA and EPS, does not have any association with the location of the auditor‟s report. Thus, it is concluded that information signaling theory is not supported.
Publisher: Emerald
Date: 03-2006
DOI: 10.1108/14720700610655169
Abstract: The purpose of this study is to investigate the extent to which firm's performance, the structure of the board of directors and ownership determine directors' remuneration in Malaysia among distressed firms. The study uses publicly available data from a s le of 86 distressed firms and matched 86 non‐distressed firms for 2001 financial year. The findings for the full s le show that directors' remuneration is not associated with firm's profitability, as measured by ROA. A negative and significant association is observed between directors' remuneration and lagged ROA. With regard to corporate governance, board independence and the extent of non‐executive directors' interests are found to have negative influence on directors' remuneration. In addition, findings also reveal directors' remuneration is positively associated with firm's growth and size. In sub‐s le analyses, a strong negative relation is observed between ROA and directors' remuneration for healthy sub‐s le. Future research on this area could examine period after the adoption of the Malaysian Code by the Bursa Malaysia in 2001. Further, interviews with directors and managers about the need to link remuneration and performance could be carried out. There is a need for companies to link remuneration with performance, which this paper found to be lacking in practice. The contribution of this paper is its examination of directors' remuneration among distressed firms. Findings of this paper would be useful to both regulatory bodies and practitioners.
Publisher: Cold Spring Harbor Laboratory
Date: 15-12-2017
DOI: 10.1101/225920
Abstract: Jumping to conclusions during probabilistic reasoning is a cognitive bias reliably observed in psychosis, and linked to delusion formation. Although the reasons for this cognitive bias are unknown, one suggestion is that psychosis patients may view s ling information as more costly. However, previous computational modelling has provided evidence that patients with chronic schizophrenia jump to conclusion because of noisy decision making. We developed a novel version of the classical beads-task, systematically manipulating the cost of information gathering in four blocks. For 31 in iduals with early symptoms of psychosis and 31 healthy volunteers, we examined the numbers of ‘draws to decision’ when information s ling had no, a fixed, or an escalating cost. Computational modelling involved estimating a cost of information s ling parameter and a cognitive noise parameter. Overall patients s led less information than controls. However, group differences in numbers of draws became less prominent at higher cost trials, where less information was s led. The attenuation of group difference was not due to floor effects, as in the most costly block participants s led more information than an ideal Bayesian agent. Computational modelling showed that, in the condition with no objective cost to information s ling, patients attributed higher costs to information s ling than controls (Mann-Whiney U=289, p=0.007), with marginal evidence of differences in noise parameter estimates (t=1.86 df=60, p=0.07). In patients, in idual differences in severity of psychotic symptoms were statistically significantly associated with higher cost of information s ling (rho=0.6, p=0.001) but not with more cognitive noise (rho=0.27, p=0.14) in controls cognitive noise predicted aspects of schizotypy (preoccupation and distress associated with delusion-like ideation on the Peters Delusion Inventory). Using a psychological manipulation and computational modelling, we provide evidence that early psychosis patients jump to conclusions because of attributing higher costs to s ling information, not because of being primarily noisy decision makers.
Publisher: Wiley
Date: 09-01-2015
DOI: 10.1002/SMJ.2352
Publisher: Emerald
Date: 12-2004
DOI: 10.1108/14720700410558871
Abstract: This study investigates the roles of board independence and CEO duality on a firm’s performance relying on financial ratios, namely ROA, ROE, EPS and profit margin. This paper argues that if boards and leadership structure are well in place and conform to the practices in other developed countries, the long‐term shareholder value is expected to increase and shareholder interests are also well protected. To test the roles of board independence and CEO duality, data from the KLSE Main Board companies for the 1994‐1996 financial years were used. The 1994‐1996 financial years were chosen because, during this period, the issue of corporate governance in Malaysia was not as prominent as it was during, and after, the 1997/1998 financial crisis. Thus, this period could be considered as the period during which guidelines on the structure of the board of directors were not yet available in Malaysia. The findings, generally, suggest that neither board independence, leadership structure nor the joint effects of these two showed any relations with firm performance. Findings of this study, nonetheless, showed that Malaysian companies’ boards were generally dominated by outside directors and the majority of the companies in the study practiced non‐dual leadership structures. Thus, this evidence suggests that the structure of the boards of directors in Malaysia is largely independent of management and the absence of any dominant personality.
Publisher: Emerald
Date: 10-2006
DOI: 10.1108/14720700610706072
Abstract: This study seeks to examine the influence of board independence, CEO duality and ownership structure on the firm financial distressed status using a s le of distressed companies and a matched‐pair s le of non‐distressed companies listed on the Bursa Malaysia. This study utilized publicly available data from annual reports of a s le of 86 non‐finance distressed firms listed on the Bursa Malaysia and a s le of matched 86 non‐distressed firms for a period covering the 1999‐2001 financial years. Board independence and CEO duality are not associated with financial distressed status. Management and non‐executive directors' interests are associated negatively with financial distress. A negative association is also documented for outside blockholders. The evidence also supports the contention that ownership by non‐executive directors and outside blockholders effectively increases their incentives to monitor management in ensuring their wealth in the firms is intact. One limitation of this research is that it relies on publicly available data and agency theory. Future research could apply other theories, such as resource dependency and stewardship. Use of process‐oriented data could also improve the findings. Independent directors need to undergo training to help them improve and be aware of their responsibilities. This paper offers evidence on the extent to which distress is associated with corporate governance from a developing country. The paper should be of interest to the regulatory bodies and practitioners.
Publisher: Virtus Interpress
Date: 2011
DOI: 10.22495/COCV8I2C4P5
Abstract: The purpose of this study is to determine whether board independence and ownership have any influence on the decision on CSR disclosure. This study uses the proportion of pages in an annual report and a CSR disclosure checklist to measure the extent and quality of a firm’s CSR disclosure. Multiple regression and logistic regression analysis are employed to test the hypotheses. The paper finds that boards of family owned firms are negatively associated with the level and the quality of CSR disclosure. The fact that board independence is not significant on CSR disclosure could be due to the fact that CSR initiatives are strategic in nature. Finally, firm’s size, performance and leverage are found to have significant effects on CSR. This study was conducted among Malaysian top 100. The generalizability of the findings of this study is, thus, limited to Malaysian large firms. One of the major findings of this study is the ineffectiveness of the board of directors in ensuring firms discharge its social responsibility. Relevant authorities may need to come up with measures to ensure independent directors are effective. The study adds to the understanding of how ownership structure plays an influential role as oppose to independent board of directors on CSR disclosure in Malaysia.
Publisher: Virtus Interpress
Date: 2016
Abstract: This study examines the appointment process for independent directors in public listed companies (PLCs) in Malaysia. To this end, open-ended interviews were conducted with chairmen of nomination committees of PLCs in Malaysia in order to understand the appointment process. The results revealed that nominations may come from various sources, including from the firm’s board members, CEO or owners. It was also found that the nominees are those within the personal network of the board members, CEO or owners. The main reason given was to shorten the appointment process and also because they knew the candidates personally. In terms of the selection criteria, the personal qualities of a candidate were found to be very important. In particular, the board puts emphasis on experience, expertise, professional qualifications, and reputation to identify a candidate who can commit to their tasks. However, the board does not consider race, religion, and gender as important selection criteria. Our findings reveal that it is the board that makes the final decision on the appointment or reappointment of independent directors. Based on our findings, we conclude that nominations for independent directorships mainly come from inside the firms and those nominated are within their networks. In other words, the independent directors are known or connected either to the board members, CEO or major shareholders. Hence, it would be very difficult for independent directors to perform a monitoring role as prescribed in agency theory. Rather, the independent directors are appointed to the board primarily to play a service role, consistent with resource dependency theory. The fact that firms prefer professionals with experience indicates that candidates for independent directorships are appointed because of their expertise and their service role.
Publisher: Virtus Interpress
Date: 2016
Abstract: In the aftermath of the Asian Financial crisis in 1997/1998, the Malaysia Securities Commission (SC) issued the Malaysian Code on Corporate Governance in 2000 (MCCG 2000). It was subsequently revised in 2007 following the Enron and Transmile debacles. In 2012, the SC issued the latest MCCG 2012 which introduced several new recommendations that are in line with developments in other parts of the world. Hence, the purpose of this study is to investigate the influence of the structure of the board and its activities on firm performance post MCCG 2007. The study also aims to shed light on the effectiveness of the board of directors since the issuance of MCCG 2000 and of MCCG 2007. It also aims to reveal the preparedness of listed firms in Malaysia to embrace MCCG 2012. Using a population of non-finance listed firms for the 2009, 2010 and 2011 financial years, it was found that board independence, chief executive officer (CEO) duality, directors’ busyness, nomination committee independence, the establishment of a risk management committee (RMC) and board meetings are not associated with firm performance, i.e. Tobin’s q. However, the market appears to be in favour of a larger board size. As for return on assets (ROA), it is not associated with board independence, board size, directors’ busyness and nomination committee independence. On the other hand CEO duality and the establishment of a RMC improve ROA, while board meetings are detrimental to ROA. It can therefore be concluded that board independence is not associated with either Tobin’s q or ROA. Hence, any corporate governance reforms should not over-emphasize the representation of independent directors on the board, rather the focus might be shifted to board activities, such as board meetings and the establishment of a RMC. With regard to board size, since the market is in favour of a larger board size, firms should increase the board’s size to enable the appointment of women directors to the board. Finally, combining the CEO and board chairman roles should not be disallowed as the market views this favourably. Hence, the ‘one-hat approach’ does not appear to be applicable in the case of CEO duality.
Publisher: Emerald
Date: 29-06-2010
DOI: 10.1108/02686901011054854
Abstract: This paper seeks to examine the effects of Malaysian Code on Corporate Governance on the nature of financial restatements in Malaysia and whether corporate governance characteristics are associated with financial restatements. Data for this paper are obtained from annual reports that had been restated for the period of 2002‐2005 with firm‐years being the unit of observation. A control group comprising non‐restating firms is formed using match‐pair procedures where restated and non‐restated firms are matched by size, industry, exchange board classification, and financial year end. The data are subsequently analyzed using a t ‐test, the Pearson correlation and logistic regression. The results show that the primary reason for misstating the accounts is to inflate earnings. The nomination committee of the firms that restated is found to be less independent with higher managerial ownership. The logistic regression analysis indicates that the extent of ownership by outside blockholders deters firms from misstating accounts. Surprisingly, audit committee independence is associated with the likelihood of financial misstatement. Financial restatements, nevertheless, are not found to be associated with board independence, managerial ownership, and CEO duality. Finally, the results show that firms with high level of debts are more likely to commit in financial misstatement. The research is significant as it provides evidence on the role of corporate governance, especially the independence of the nomination committee and extent of ownership by outside blockholders in Malaysia. It shows that outside blockholders is effective in disciplining managers so that the accounts so prepared are not misleading. The move in 2007 by the Malaysian Government to require companies audit committee to be composed of only independent and non‐executive directors, as well as requiring audit committee members to be financially literate, should be seen as important in ensuring the effectiveness of the audit committee. This research is considered as the first study which examines the effects of corporate governance variables on the incidents of financial restatements in a developing country. The findings of this paper would be useful for policy makers in evaluating the importance of corporate governance in emerging countries, specifically on the issue of quality financial reporting.
Publisher: Springer Science and Business Media LLC
Date: 13-08-2013
Publisher: Virtus Interpress
Date: 2017
Abstract: This study seeks to understand how and why women were selected as board members, and reasons for women to accept board appointments. We conduct a questionnaire survey on women who sit on the boards of companies in Malaysia. We provide evidence that education, expertise and leadership qualities are necessary for women to reach the boardrooms. Their willingness to contribute to and share their expertise with a company are the main factors for women to accept the appointment as a director. The women feel that gender is not important in becoming a director compared to one’s capability. A majority of them were recommended by the CEO or other board members to become directors. The outcome of this study complements and strengthens the efforts made by the Malaysian government to achieve the 30 percent target. It is also very beneficial to women who aspire to become corporate directors.
Publisher: Virtus Interpress
Date: 2016
Abstract: This study examines the experiences of board members regarding their roles, the conduct of board meetings, and their influence on the appointment of new directors, the influence of “major” shareholders on board decisions, and the protection of the interest of the minority shareholders. The main objective of this study is to determine whether agency theory plays a dominant role in explaining the roles of the directors of Malaysian listed firms. Semi-structured interviews were carried out amongst selected directors. Our results suggest that agency theory alone is not sufficient to explain the complex issues involving board roles. Rather, a clearer picture emerges with the integration of agency theory and wider theoretical perspectives (i.e. stewardship and resource dependency). Although there is a constrain in accessing the board, this should not h er future studies on examining other issues that could affect board roles such as effectiveness of the chairman, non-executive directors and board sub-committees. Studies of this nature are important as the board has an important influence on the decision making process.
Publisher: Emerald
Date: 03-08-2015
DOI: 10.1108/JABS-03-2015-0028
Abstract: – The study aims to examine the relationship between the corporate disclosure on intellectual capital and five firm characteristics, namely, size, leverage, profitability, age and industry type. – The research uses a meta-analysis technique by taking 19 articles published between 2003 and 2013. Thus, this study integrates and accumulates the findings of prior studies. – The research finds a significant relationship between intellectual capital disclosure (ICD) and the independent variables: size, profitability and industry. – This study provides a systematic overview of the determinants of ICD by using a meta-analysis approach. A systematic analysis is currently lacking in the ICD literature hence, this study attempts to resolve the mixed findings of prior studies.
Publisher: Virtus Interpress
Date: 2007
DOI: 10.22495/COCV4I2P3
Abstract: This study attempts to investigate the roles of the composition of board of directors, audit committee and the separation of the roles of the board chairman and the chief executive officer on the timeliness of reporting. The issue of reporting timeliness is important in corporate governance because it is associated with corporate transparency. It is also an important indicator of the value of the information in the financial reports. Given the fact that the board is the highest internal corporate governance system, it is predicted that the characteristics of the board and its sub-committee, namely the audit committee, are associated with the timeliness of reporting. Using Bursa Malaysia (formerly known as the Kuala Lumpur Stock Exchange) Main Board companies data in respect of the financial years 1998 and 2000, the findings show that board independence and the separation of the roles of board chairman and CEO significantly are associated with timelier reporting. The results also indicate that the 1997 financial crisis had adversely affected the timeliness of reporting. These findings imply that during difficult periods, companies tend to take a longer time to prepare their audited financial reports. The positive association between timeliness of reporting and leverage found in this study suggests that the agency costs of debts could play an important role in explaining the timeliness of corporate financial reports. Finally, the negative relation between firm’s profitability and timeliness of reporting is supportive of information signaling theory.
Publisher: Conscientia Beam
Date: 09-12-2022
Abstract: The aim of this research is to investigate the effects of corporate governance characteristics on a company’s financial performance. To this end, board independence, board gender composition and board size were tested to determine whether they have any influence on a firm’s financial performance. Given the high concentration of ownership in listed companies in Malaysia and the prevalence of family ownership, this research provides evidence from an emerging market. The Malaysian Code on Corporate Governance (MCCG) was developed based on the UK H el Report and the UK Corporate Governance Code, where firm ownership structure is dispersed and family ownership is prevalent. A s le of 70 randomly selected publicly listed companies in Malaysia over the period from 2016 to 2020 was used in this study. From a multiple regression analysis, the results showed that board independence, board gender composition and board size are positively and significantly associated with financial performance therefore, appointing more independent directors, appointing female directors to the board and appointing more directors to the board leads to higher financial performance. Hence, the initiative by the Malaysian government to mandate listed firms to have a board that comprises at least 30% women does have a business case.
Location: Colombia
Location: No location found
No related grants have been discovered for Shamsul Nahar Abdullah.