13th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES
According to Islamic beliefs, commercial operations must be directed by fairness, equality, and m... more According to Islamic beliefs, commercial operations must be directed by fairness, equality, and morality, as dictated by Shariah requirements. As a result, Shariah-compliant companies must include a religious dimension in their disclosures for the benefit of Muslim stakeholders. Recent research on these Shariah-compliant corporations has focused on their corporate social responsibility disclosures (Said et al., 2018) or the quality of these companies' voluntary disclosure policies in Malaysia (Ousama & Fatima, 2010). The Islamic perspective of disclosure is based on the concept of social accountability and the full disclosure concept (Baydoun and Willett, 1997, Haniffa and Hudaib, 2002). In Islamic accounting, the companies are said to be accountable to the society (Baydoun and Willett, 1997) hence they should disclose information, which can help discharge this accountability. As such, Haniffa and Hudaib (2002) argued that the full disclosure of relevant and reliable information...
This paper discusses the significance of mean difference in free cash flow, leverage, as well fin... more This paper discusses the significance of mean difference in free cash flow, leverage, as well financial distress between Malaysia, Thailand, and Indonesia. It involved 582 samples from Bursa Malaysia, Stock Exchange of Thailand, and Indonesia Stock Exchange on an annual basis commencing from 2015 to 2017. The purpose of this study was to determine whether the significance of variables towards earnings manipulations (by proxy of discretionary accruals) within the countries can be used to propose a new regulation that focuses more towards reducing the earning manipulation within the firm, as results might be helpful for firms in the near future. Moreover, the study aimed to identify which firm within these three countries wholly manipulated earnings more than the other. The significance difference of the of earning manipulation for the 3 countries was investigated. The descriptive statistics tells that Indonesia had the highest debt compared to two other countries. Results from one-wa...
You may print or download ONE copy of this document for the purpose of your own research or study... more You may print or download ONE copy of this document for the purpose of your own research or study. The University does not authorize you to copy, communicate or otherwise make available electronically to any other person any copyright material contained on this site. You are reminded of the following: Copyright owners are entitled to take legal action against persons who infringe their copyright. A reproduction of material that is protected by copyright may be a copyright infringement. A court may impose penalties and award damages in relation to offences and infringements relating to copyright material. Higher penalties may apply, and higher damages may be awarded, for offences and infringements involving the conversion of material into digital or electronic form.
2 ABSTRACT: Internal auditors hold a unique position in their organisation to prevent, deter and ... more 2 ABSTRACT: Internal auditors hold a unique position in their organisation to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research has been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysia utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors ’ ethical decision-making processes. The likelihood for internal whistleblowing intentions was significant among internal auditors ’ ethical judgments for all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational comm...
Over the years, firms have been pressured by various stakeholders to be transparent about how the... more Over the years, firms have been pressured by various stakeholders to be transparent about how they operate. In this regard, good corporategovernance should ensure timely and accurate disclosure is made on a firm’s financial, risk management and internal control. Hence, the purpose of thisstudy is to construct an index for risk management and internal control. This index used to assess the extents of Malaysian listed firms’ compliance of therisk management and internal control guidelines created for directors of listed issuers. The index was developed based on the requirements, underParagraph 15.26(b) of Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (‘Listing Requirements’), as guided by the ‘Statementon Risk Management and Internal Control: Guidelines for Directors of Listed Issuers’. This guideline , which was released on 31 December 2012,incorporates the revision made to the Statement on Risk Management & Internal Control: Guidelines for Directors of Listed I...
Internal auditors hold a unique position in their organisations to prevent, deter and detect corp... more Internal auditors hold a unique position in their organisations to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research having been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors' ethical decision-making process. The likelihood for internal whistleblowing intentions was only significant among internal auditors' ethical judgments on all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational com...
Proceedings of the International Congress on Interdisciplinary Behaviour and Social Sciences 2013, 2014
ABSTRACT The paper explores the ethical behavior of internal auditors in predicting their reporti... more ABSTRACT The paper explores the ethical behavior of internal auditors in predicting their reporting behavior towards corporate fraud. Specifically, the objective of this study is to present a conceptual model on internal auditors’ reporting intentions behaviour that may affect their individual factors (locus of control, job satisfaction, trust in management and proactive personality) and whether their decisions are affected by certain types of corporate fraud (financial statement fraud or theft). Due to the seriousness of corporate fraud to various organizational stakeholders, it is important to increase the understanding on the behavioral intentions of internal auditors to report about fraud to their management. Future study would like to utilize hypothetical situations in examining issues related to internal auditors’ intentions in reporting these two types of fraud. It is hope that the outcome of this future study would aid researchers in understanding the determinants of internal auditors’ ethical behaviour in reporting corporate fraud within their organizations.
The issues of social desirability bias and order effect bias are common problems in ethics. Metho... more The issues of social desirability bias and order effect bias are common problems in ethics. Methodologically, these two problems may weaken the study's validity and reliability thus, making the results of the study invalid. Utilizing vignettes in whistle-blowing research may further add to these problems as the case scenario in the vignettes may enhance respondents’ social desirability bias and the sequence of presentation order of vignettes may then present the problem of vignettes’ order effect bias. The paper addresses these two problems by statistically examining the effects of these two types of bias within the study of whistle-blowing intentions.
Whistleblowing is a type of ethical decision-making behaviour, and it has been one ofthe positive... more Whistleblowing is a type of ethical decision-making behaviour, and it has been one ofthe positive outcome behaviours investigated in the ethical decision-making literature.The issue has garnered widespread attention since the collapse of global multinationalcompanies which lead to the passage of the renowned Sarbanes-Oxley Act of 2002.Since then a vast amount of research has been conducted in the whistleblowing stream,though it is still predominantly taking place largely in western countries. Such studiesas have been undertaken in Asian countries neglect to consider how Malaysianrespondents might play their roles in undertaking this type of ethical decision-makingbehaviour. There have been arguments in the whistleblowing literature on whether the internalreporting of corporate wrongdoings should be considered as an internal whistleblowingact, and whether internal auditors should also be regarded as whistleblowers. Despitethe fact that internal auditors hold a unique position in thei...
This study investigates the effect of ownership concentration and firms’ governance on accounting... more This study investigates the effect of ownership concentration and firms’ governance on accounting conservatism and whether ownership concentration moderates the effect of firms’ governance on conservatism. The results show that concentrated ownership is associated with lower accounting conservatism. Firms that have stronger governance mechanisms led to high accounting conservatism but the moderating effect of concentrated ownerships leads the firms’ governance to adopt less conservatism. The findings suggest that accounting conservatism is not a useful agency tool because the controlling shareholders influence governance mechanisms in the firm to adopt lower conservatism.
Despite extensive research undertaken on the issue of whistleblowing globally, empirical study in... more Despite extensive research undertaken on the issue of whistleblowing globally, empirical study in this area is clearly lacking in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian organisational settings. A mail survey was conducted to investigate a variety of individual, organisational and situational factors that could influence the internal auditors' ethical decision-making process. Results are generally consistent with predictions based on a model of whistleblowing as a type of prosocial behaviour. Implications of the findings on Malaysian organisations for research and practice are discussed.
13th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES
According to Islamic beliefs, commercial operations must be directed by fairness, equality, and m... more According to Islamic beliefs, commercial operations must be directed by fairness, equality, and morality, as dictated by Shariah requirements. As a result, Shariah-compliant companies must include a religious dimension in their disclosures for the benefit of Muslim stakeholders. Recent research on these Shariah-compliant corporations has focused on their corporate social responsibility disclosures (Said et al., 2018) or the quality of these companies' voluntary disclosure policies in Malaysia (Ousama & Fatima, 2010). The Islamic perspective of disclosure is based on the concept of social accountability and the full disclosure concept (Baydoun and Willett, 1997, Haniffa and Hudaib, 2002). In Islamic accounting, the companies are said to be accountable to the society (Baydoun and Willett, 1997) hence they should disclose information, which can help discharge this accountability. As such, Haniffa and Hudaib (2002) argued that the full disclosure of relevant and reliable information...
This paper discusses the significance of mean difference in free cash flow, leverage, as well fin... more This paper discusses the significance of mean difference in free cash flow, leverage, as well financial distress between Malaysia, Thailand, and Indonesia. It involved 582 samples from Bursa Malaysia, Stock Exchange of Thailand, and Indonesia Stock Exchange on an annual basis commencing from 2015 to 2017. The purpose of this study was to determine whether the significance of variables towards earnings manipulations (by proxy of discretionary accruals) within the countries can be used to propose a new regulation that focuses more towards reducing the earning manipulation within the firm, as results might be helpful for firms in the near future. Moreover, the study aimed to identify which firm within these three countries wholly manipulated earnings more than the other. The significance difference of the of earning manipulation for the 3 countries was investigated. The descriptive statistics tells that Indonesia had the highest debt compared to two other countries. Results from one-wa...
You may print or download ONE copy of this document for the purpose of your own research or study... more You may print or download ONE copy of this document for the purpose of your own research or study. The University does not authorize you to copy, communicate or otherwise make available electronically to any other person any copyright material contained on this site. You are reminded of the following: Copyright owners are entitled to take legal action against persons who infringe their copyright. A reproduction of material that is protected by copyright may be a copyright infringement. A court may impose penalties and award damages in relation to offences and infringements relating to copyright material. Higher penalties may apply, and higher damages may be awarded, for offences and infringements involving the conversion of material into digital or electronic form.
2 ABSTRACT: Internal auditors hold a unique position in their organisation to prevent, deter and ... more 2 ABSTRACT: Internal auditors hold a unique position in their organisation to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research has been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysia utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors ’ ethical decision-making processes. The likelihood for internal whistleblowing intentions was significant among internal auditors ’ ethical judgments for all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational comm...
Over the years, firms have been pressured by various stakeholders to be transparent about how the... more Over the years, firms have been pressured by various stakeholders to be transparent about how they operate. In this regard, good corporategovernance should ensure timely and accurate disclosure is made on a firm’s financial, risk management and internal control. Hence, the purpose of thisstudy is to construct an index for risk management and internal control. This index used to assess the extents of Malaysian listed firms’ compliance of therisk management and internal control guidelines created for directors of listed issuers. The index was developed based on the requirements, underParagraph 15.26(b) of Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (‘Listing Requirements’), as guided by the ‘Statementon Risk Management and Internal Control: Guidelines for Directors of Listed Issuers’. This guideline , which was released on 31 December 2012,incorporates the revision made to the Statement on Risk Management & Internal Control: Guidelines for Directors of Listed I...
Internal auditors hold a unique position in their organisations to prevent, deter and detect corp... more Internal auditors hold a unique position in their organisations to prevent, deter and detect corporate wrongdoings; however, the role of this profession in investigating their ethical decision-making behaviour towards internal whistleblowing intentions has been very much neglected. Furthermore, although extensive research having been undertaken on the issue of whistleblowing globally, empirical study in this area is still scarce in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian utilising three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors' ethical decision-making process. The likelihood for internal whistleblowing intentions was only significant among internal auditors' ethical judgments on all the three vignettes. Demographic factors (gender, age, and tenure) and other individual factors (locus of control and organisational com...
Proceedings of the International Congress on Interdisciplinary Behaviour and Social Sciences 2013, 2014
ABSTRACT The paper explores the ethical behavior of internal auditors in predicting their reporti... more ABSTRACT The paper explores the ethical behavior of internal auditors in predicting their reporting behavior towards corporate fraud. Specifically, the objective of this study is to present a conceptual model on internal auditors’ reporting intentions behaviour that may affect their individual factors (locus of control, job satisfaction, trust in management and proactive personality) and whether their decisions are affected by certain types of corporate fraud (financial statement fraud or theft). Due to the seriousness of corporate fraud to various organizational stakeholders, it is important to increase the understanding on the behavioral intentions of internal auditors to report about fraud to their management. Future study would like to utilize hypothetical situations in examining issues related to internal auditors’ intentions in reporting these two types of fraud. It is hope that the outcome of this future study would aid researchers in understanding the determinants of internal auditors’ ethical behaviour in reporting corporate fraud within their organizations.
The issues of social desirability bias and order effect bias are common problems in ethics. Metho... more The issues of social desirability bias and order effect bias are common problems in ethics. Methodologically, these two problems may weaken the study's validity and reliability thus, making the results of the study invalid. Utilizing vignettes in whistle-blowing research may further add to these problems as the case scenario in the vignettes may enhance respondents’ social desirability bias and the sequence of presentation order of vignettes may then present the problem of vignettes’ order effect bias. The paper addresses these two problems by statistically examining the effects of these two types of bias within the study of whistle-blowing intentions.
Whistleblowing is a type of ethical decision-making behaviour, and it has been one ofthe positive... more Whistleblowing is a type of ethical decision-making behaviour, and it has been one ofthe positive outcome behaviours investigated in the ethical decision-making literature.The issue has garnered widespread attention since the collapse of global multinationalcompanies which lead to the passage of the renowned Sarbanes-Oxley Act of 2002.Since then a vast amount of research has been conducted in the whistleblowing stream,though it is still predominantly taking place largely in western countries. Such studiesas have been undertaken in Asian countries neglect to consider how Malaysianrespondents might play their roles in undertaking this type of ethical decision-makingbehaviour. There have been arguments in the whistleblowing literature on whether the internalreporting of corporate wrongdoings should be considered as an internal whistleblowingact, and whether internal auditors should also be regarded as whistleblowers. Despitethe fact that internal auditors hold a unique position in thei...
This study investigates the effect of ownership concentration and firms’ governance on accounting... more This study investigates the effect of ownership concentration and firms’ governance on accounting conservatism and whether ownership concentration moderates the effect of firms’ governance on conservatism. The results show that concentrated ownership is associated with lower accounting conservatism. Firms that have stronger governance mechanisms led to high accounting conservatism but the moderating effect of concentrated ownerships leads the firms’ governance to adopt less conservatism. The findings suggest that accounting conservatism is not a useful agency tool because the controlling shareholders influence governance mechanisms in the firm to adopt lower conservatism.
Despite extensive research undertaken on the issue of whistleblowing globally, empirical study in... more Despite extensive research undertaken on the issue of whistleblowing globally, empirical study in this area is clearly lacking in Malaysia. This paper examines internal whistleblowing intentions among internal auditors in Malaysian organisational settings. A mail survey was conducted to investigate a variety of individual, organisational and situational factors that could influence the internal auditors' ethical decision-making process. Results are generally consistent with predictions based on a model of whistleblowing as a type of prosocial behaviour. Implications of the findings on Malaysian organisations for research and practice are discussed.
The paper explores the ethical behavior of internal auditors in predicting their reporting behavi... more The paper explores the ethical behavior of internal auditors in predicting their reporting behavior towards corporate fraud. Specifically, the objective of this study is to present a conceptual model on internal auditors’ reporting intentions behaviour that may affect their individual factors (locus of control, job satisfaction, trust in management and proactive personality) and whether their decisions are affected by certain types of corporate fraud (financial statement fraud or theft). Due to the seriousness of corporate fraud to various organizational stakeholders, it is important to increase the understanding on the behavioral intentions of internal auditors to report about fraud to their management. Future study would like to utilize hypothetical situations in examining issues related to internal auditors’ intentions in reporting these two types of fraud. It is hope that the outcome of this future study would aid researchers in understanding the determinants of internal auditors’ ethical behaviour in reporting corporate fraud within their organizations.
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