Tuan Mastiniwati Tuan Mansor, Akmalia Mohamad Ariff, Hafiza Aishah Hashim and Abdul Hafaz Ngah
This study aims to examine the roles of perceived organisational support (POS), attitude and self-efficacy in understanding the external whistleblowing intentions among senior…
Abstract
Purpose
This study aims to examine the roles of perceived organisational support (POS), attitude and self-efficacy in understanding the external whistleblowing intentions among senior auditors through the lens of stimulus–organism–response theory.
Design/methodology/approach
This study uses data from 119 senior auditors in audit firms in Malaysia. POS is predicted to be a stimulus factor from the external environment that affects the attitude and self-efficacy (organism) of the auditors and reassures them to act to whistleblow (response).
Findings
POS has a significant impact on self-efficacy and on attitude. Self-efficacy is shown as a significant mediator between POS and external whistleblowing intentions, but there is no statistical support for self-efficacy having a mediating effect on the relationship between the attitude of senior auditors and external whistleblowing intentions.
Practical implications
The findings can assist accounting professional bodies in understanding the psychological behaviours of auditors that contribute to their intention to shine a light on wrongdoing in audit firms and in providing a better insight into the critical factors that could influence auditors to whistleblow.
Originality/value
This study is among the earliest to investigate the application of stimulus–organism–response theory in whistleblowing, and hence it illustrates how the theory can be applied in studies on the ethical behaviours of actors in professional careers. The findings shed light on the role of self-efficacy as a significant mediator between POS and external whistleblowing intentions.
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Alberto Clavería Navarrete and Amalia Carrasco Gallego
The purpose of this paper is to understand if forensic accounting techniques and tools could contribute to the deterrence of fraud in financial statements, considering the…
Abstract
Purpose
The purpose of this paper is to understand if forensic accounting techniques and tools could contribute to the deterrence of fraud in financial statements, considering the expertise of forensic accountant on ex post activities and that the traditional mechanisms to prevent this type of fraud have not been sufficient to stop the impact on companies, investors, auditors, employees and on society in general.
Design/methodology/approach
This research was carried out using a qualitative exploratory study with a phenomenological approach conducted through in-depth interviews with professional experts in the forensic field.
Findings
The findings confirm that the use of forensic accounting techniques and tools could contribute to the prevention of fraud in financial reporting not only when the risk of fraud has been materialized. Similar studies, about fraud prevention addressing the situation under a qualitative approach from the perspectives of its protagonists, have not been observed in the bibliographical review, so this research contributes to expanding the scientific research, the study and practice of forensic accounting.
Originality/value
From a business management perspective, this study contributes a paradigm shift from the traditional ex post forensic auditing activity toward an ex ante activity to improve management control systems within organizations anywhere in the world. Because this study is guided to prevent fraudulent financial statements, other fraud categories such as misappropriation or corruption could be addressed in other studies and various countries.
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Tuan Mastiniwati Tuan Mansor, Akmalia M. Ariff, Hafiza Aishah Hashim and Abdul Hafaz Ngah
This study aims to investigate external auditors’ whistleblowing intentions by applying the moderated multicomponent of the theory of planned behaviour (TPB), incorporating…
Abstract
Purpose
This study aims to investigate external auditors’ whistleblowing intentions by applying the moderated multicomponent of the theory of planned behaviour (TPB), incorporating perceived organizational support (POS) and provides insights on the moderating effect of moral norm on the relationship between attitude and internal whistleblowing intentions.
Design/methodology/approach
Data was gathered using a questionnaire survey involving 274 external auditors in Malaysia and the data was analyzed using SmartPLS 3.2.9.
Findings
The results show that there are positive relationships between perceived behavioural control and POS with whistleblowing intentions, but there is no evidence to support the hypotheses related to attitude and subjective norm. The findings provide partial support for the capability of the multicomponent model of TPB in examining whistleblowing intentions. The results further show that moral norm moderates the relationship between attitude and whistleblowing intentions.
Practical implications
The findings can assist accounting professional bodies and policy makers in formulating strategies to enhance the practice and, consequently, the benefits of whistleblowing. The findings are also valuable to managers of audit firms in strategizing for ways to enhance whistleblowing intentions to encourage the audit staffs to report any wrongdoings done by their colleagues.
Originality/value
This study provides the perspective of whistleblowing intentions of external auditors in the institutional setting of an emerging market, Malaysia. Further, this study extends the TPB model in whistleblowing studies by applying a higher-order construct, incorporating POS as an additional determinant of whistleblowing intentions and considering moral norm as moderating the relationship between attitude and whistleblowing intentions.
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Hafiza Aishah Hashim, Zalailah Salleh, Izzati Shuhaimi and Nurul Ain Najwa Ismail
A number of highly publicised scandals such as Enron, Lehman Brothers, Parmalat, Satyam, Toshiba and 1MDB (to name a few) have heightened the awareness of the effects of…
Abstract
Purpose
A number of highly publicised scandals such as Enron, Lehman Brothers, Parmalat, Satyam, Toshiba and 1MDB (to name a few) have heightened the awareness of the effects of fraudulent financial reporting. While enormous measures have been taken to curb the fraudulent activities among large and small businesses, the issues are still alarming worldwide. Thus, this study aims to explore the extent to which the prevalence of fraud risk in state-controlled companies and to enhance understanding of the underlying reasons of the fraudulent activities.
Design/methodology/approach
As this study is a descriptive and exploratory in nature, an exploratory case study method was used in four state-controlled companies. Using the fraud triangle theory to underpin this study, the qualitative face-to-face interviews were carried out with top management of the companies.
Findings
The study reveals a high risk of fraud occurrence at state-controlled companies that involve dealing with various suppliers, governments, customers and shareholders, even when standard operating procedures and rules and regulation are in place. The apparent reason for this phenomenon is attributed to not only opportunities but also incentives and rationalisations in engaging fraudulent activities.
Originality/value
As there are relatively few qualitative studies conducted in this area specifically among Malaysian state-controlled companies, this study extends the fraud literature by examining risk exposure and reasons underlying the fraudulent activities. The findings demonstrate that to a certain extent, the fraud triangle theory explains the motivations behind the fraudulent activities. The finding from this study is relevant to regulators, investors, companies and academicians in understanding, preventing and combating fraud.
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Rosna Awang-Hashim, Rajaletchumi Thaliah and Amrita Kaur
The cross-cultural significance of autonomy within self-determination theory is divisive on universal significance. This paper aims to report a sequential exploratory mixed…
Abstract
Purpose
The cross-cultural significance of autonomy within self-determination theory is divisive on universal significance. This paper aims to report a sequential exploratory mixed methods study conducted to construct and validate a scale to investigate how, in Malaysian context, the construct of autonomy is conceptualized in comparison with the existing scale owing to cultural variation.
Design/methodology/approach
Focus group interviews identified dimensions of autonomy support that were specific to Malaysian culture and guided the development of the survey and construct validation was done using structure equation modeling.
Findings
The results show that the proposed scale has satisfactory psychometric properties, and the hypothesized model had a good fit to the data. The new scale produced four dimensions of teacher autonomy support, namely, responsible, approachable, shows respect and conveys confidence, with three items in each dimension. Malaysian secondary school students’ perception of autonomy support was found to be distinctive from the traditional measure.
Originality/value
Implications for teachers are discussed for culturally meaningful interpretation of the autonomy construct for classroom teaching practices.
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Hoong Sang Wong and Chen Chen Yong
This chapter provided systematic and comprehensive analysis on trawl fisheries management and conservation measures in the Straits of Malacca. Detailed analysis is conducted on…
Abstract
This chapter provided systematic and comprehensive analysis on trawl fisheries management and conservation measures in the Straits of Malacca. Detailed analysis is conducted on Malaysian fishery management framework particularly domestic country's trawl fishery status, legal structure, input-control strategies, ecosystem protection plan, pollution, law enforcement, and complementary measures that designed to reduce and prevent overfishing in the exclusive economic zone (EEZ) of Malacca Straits. Gaps and challenges found in existing trawl fisheries literature are presented followed by recommendations for improvement in the management and conservation of trawl fisheries.
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Waleed M. Al-ahdal and Hafiza Aishah Hashim
The purpose of this paper is to analyse the influence of audit committee characteristics and external audit quality on the performance of non-financial public limited companies…
Abstract
Purpose
The purpose of this paper is to analyse the influence of audit committee characteristics and external audit quality on the performance of non-financial public limited companies listed on the National Stock Exchange 100.
Design/methodology/approach
One-way random effect panel data regression was applied to 74 non-financial firms in the Nifty 100 from 2014 until 2019. The overall audit committee index and external audit index were built based on the new Indian Companies Act, 2013 and on a review of the literature to capture the impact of the new Act on firm financial performance.
Findings
The outcome of the study revealed that there is lack of evidence to show that audit committee characteristics improve the performance of top Indian non-financial listed firms. However, external audit quality was found to have a significant positive impact on the financial performance of firms as measured by Tobin’s Q, while firm size and leverage were found to have a significant impact on the financial performance of firms as measured by return on assets and return on equity.
Practical implications
This paper will be greatly beneficial for financial practitioners and policymakers because it provides practical suggestions and recommendations about the types of external audit that are indispensable for the overall effectiveness and performance of firms. The study findings may also aid strategic policy formulation and execution for better corporate governance practices for the purpose of profit and wealth maximisation.
Originality/value
To the best of the authors’ knowledge, to date, no previous research has evaluated the effects of audit committee features and external audit quality on the financial performance of firms in India after the implementation of the new Companies Act, 2013. Hence, this study fills this void in the present literature by examining the overall features of the audit committee and external audit and their impact on firm performance in the setting of India.
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Kavitha Sathasivam, Rosmawani Che Hashim and Raida Abu Bakar
This paper focusses on the roles and experiences of the human resource managers and safety, health and environment managers in promoting environmental sustainability in automobile…
Abstract
Purpose
This paper focusses on the roles and experiences of the human resource managers and safety, health and environment managers in promoting environmental sustainability in automobile industry.
Design/methodology/approach
The exploration uses the data generated from ten in-depth interviews with human resource managers as well as safety, health and environment (SHE) managers from three automobile companies.
Findings
Three main themes were derived from the inductive analysis in support of environmental sustainability. They comprised environment-oriented perspectives, green human resource management (HRM) practices and supportive mechanisms. These findings served as insights for the HR managers who played a supportive role in environment sustainability. This study also found that Green HRM practices within the automobile industry were confined to green training and development, green rewards, green employee involvement and green orientation.
Research limitations/implications
The outcome of this study carries implications for managers and businesses in designing a more sophisticated framework for Green HRM practices for their companies so as to achieve a more progressive sustainable goal. For instance, HR managers who are environment-oriented can play a more active role in environmental sustainability. They can participate directly in developing policies by co-partnering with their SHE colleagues. They can encourage and motivate their employees to apply green practices both at work and in their homes. This integration would eventually create a cascading effect that could reduce the industry's negative impact on environment, thereby developing a more environmentally-friendly society.
Practical implications
This study provided practical implications for both the HR and SHE managers in taking up responsibilities in environmental sustainability. This study also indicated the practical implications for the top management in the automobile industry, especially in the designing of the environmental sustainability framework.
Originality/value
This study contributes to the Green HRM area by understanding and comparing the roles of the HR managers and their counterpart, the SHE managers, in support of environmental sustainability. The comparison would provide a clearer picture on how the implementation of Green HRM can be implemented within the automobile industry.
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Rohaida Seno, Hafiza Aishah Hashim, Roshaiza Taha and Suhaila Abdul Hamid
The purpose of this paper is to determine whether Hofstede’s cultural dimensions have a significant relationship with ethical decision-making among tax practitioners while…
Abstract
Purpose
The purpose of this paper is to determine whether Hofstede’s cultural dimensions have a significant relationship with ethical decision-making among tax practitioners while performing their duties in ensuring tax compliance among taxpayers.
Design/methodology/approach
A structured questionnaire was used to collect data from tax practitioners in the state of Terengganu, Malaysia. Two hundred questionnaires were distributed via Google Forms and email to tax practitioners who were selected from the Inland Revenue Board of Malaysia website using a mixture of systematic random and snowball sampling approaches. The Statistical Package for Social Sciences software program was used to analyse the collected data.
Findings
The results show that power distance (PD), individualism (IND) and uncertainty avoidance (UAV) have a significant relationship with ethical decision-making, whereas masculinity (MAS) has no significant relationship with ethical decision-making among tax practitioners while carrying out their duties. The positive relationship of PD and of IND with decision-making behaviour indicates that ethical decision-making is highly practised in a low PD and low IND culture rather than in a high PD and high IND culture. In contrast, UAV shows a negative beta sign, which indicates that tax practitioners tend to practise ethical decision-making in a high UAV culture.
Originality/value
This study fills a gap in the literature in regard to the influence of culture on tax compliance particularly among tax practitioners in Malaysia. The study shows how culture is related to the decision-making practices of tax practitioners while performing their role as an intermediary between their clients and the government. It is worthwhile to examine the decision-making of tax practitioners because the results of such an examination not only provide some insights into the professional practices of accountants that will be of interest to the relevant authorities such as the Malaysian Institute of Accountants, they also offer some information that will be of assistance to higher learning institutions in formulating accounting programmes to produce the future generation of accountants.
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Ahmad Yuosef Alodat, Zalailah Salleh and Hafiza Aishah Hashim
This paper aims to examine the impact of corporate governance (CG) on sustainability disclosure (SD) from the perspectives of resource dependence, agency and stakeholder theories…
Abstract
Purpose
This paper aims to examine the impact of corporate governance (CG) on sustainability disclosure (SD) from the perspectives of resource dependence, agency and stakeholder theories in the context of Jordan.
Design/methodology/approach
The analyses were based on 405 observations from non-financial firms listed on the Amman Stock Exchange, spanning the period of 2014–2018. The CG that influences SD was examined using panel data regression models.
Findings
The results of the current study show a positive and significant relationship between the extent of SG and the audit committee and board of directors’ effectiveness. In terms of ownership structure, both institutional and foreign ownerships yielded an insignificant relationship with the extent of SDs.
Practical implications
The analyses have implications for practitioners, policymakers, top management and corporate executives. Firms are encouraged to restructure their board of directors to enhance the effectiveness of the board to better monitor and support better SD.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the determinants of SD in Jordan firms. This paper adopted a newly developed global reporting initiative-based reporting index that identifies companies with good sustainability practices. This adds value to the existing sustainability literature.