Andrain Hadiyanto, Evita Puspitasari and Erlane K. Ghani
This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether…
Abstract
Purpose
This study aims to examine the relationship between accounting measurement method of biological asset and financial reporting quality. Specifically, this study examines whether using fair value method or the historical cost method on biological asset provides different financial reporting quality.
Design/methodology/approach
This study uses data from 38 agricultural companies that are members of the Roundtable on Sustainable Palm Oil. The annual reports of 38 companies from the Palm Oil Growers over a five-year period starting from 2011 to 2014 are analysed.
Findings
This study shows that companies using historical cost measurement produce less reliable and less relevant information compared to the companies that are using fair value measurement.
Research limitations/implications
The results in this study imply that the use of fair value measurement improves the quality of financial information.
Practical implications
This study supports IASB’s justification of developing IAS 41 as the principle-based standard that better represents the financial information related to biological asset and subsequently lead to good accountability and harmonisation practices.
Originality/value
This study provides evidence on the best measurement to be used in agriculture activities using a larger sample size of few countries. In addition, this study contributes to the existing literature on the effect of accounting methods on financial reporting quality.
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Sharifah Norzehan Syed Yusuf, Nur Hanida Sanawi, Erlane K. Ghani, Rifqi Muhammad, Dalila Daud and Eley Suzana Kasim
This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement, procedural…
Abstract
Purpose
This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement, procedural application and governance on Sarawak university students’ zakat distribution effectiveness.
Design/methodology/approach
This study used the questionnaire as a research instrument and divided it into five parts. Part A gathers demographic information of respondents. Part B measures the respondent’s opinion on current technology improvement. Part C measures university students’ opinion on zakat application procedures. Part D measures the governance concept of the zakat institution. Part E measures the effectiveness of zakat distribution.
Findings
This study found technology improvement and governance significantly influence the effectiveness of zakat distribution to university students. This study provides no significant influence of the procedural application on zakat distribution’s efficacy to university students.
Research limitations/implications
This study suggested that technology plays an essential role in zakat distribution effectiveness by providing faster data processing, easier retrieval of information and time reduction to complete a task. The enforcement of good governance by zakat institutions allows them to be competitive, meets the stakeholders’ demand and serves them better.
Practical implications
This study provides understanding to the zakat institutions in developing appropriate zakat distribution strategies and strengthening their management and governance system.
Originality/value
This paper integrates technology improvement, procedural application and governance in zakat distribution.
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Jamaliah Said, Erlane K. Ghani, Afizah Hashim and Noraini Mohd Nasir
In the late 20th Century and the early part of the 21st Century, the accounting profession has suffered some setback in its image. The recent scandal involving Enron and Arthur…
Abstract
In the late 20th Century and the early part of the 21st Century, the accounting profession has suffered some setback in its image. The recent scandal involving Enron and Arthur Andersen may have an adverse impact on the career choice of accounting students. On the other hand Malaysia needs more accountants to assist the country to achieve developed nation status by year 2020. Therefore, this study is an attempt to determine whether accounting students still prefer to become accountants and to compare the perception of accounting as a career between first semester and final semester accounting undergraduates in Malaysia. One thousand questionnaires were distributed to these two groups of students in all the universities regestered with the Ministry of Education. The valid response rate was 52.7 per cent. The results of this study show a significant difference in career choices between first semester and final semester students. Of the first semester student respondents, 30.3 per cent prefer to be public accountants, whereas only 25.8 per cent of the final semester responsents choose to be public accountants. However, both groups agree that starting salary is an important criterion for choosing accounting as a career and that their university has provided them with adequate knowledge to enable them to join the accounting profession.
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Abdallah A.S. Fayad, Arifatul Husna Binti Mohd Ariff, Sue Chern Ooi, Ali H.I. Aljadba and Khaldoon Albitar
This paper aims to explore the role of ownership structure on integrated reporting quality (IRQ) in an emerging market.
Abstract
Purpose
This paper aims to explore the role of ownership structure on integrated reporting quality (IRQ) in an emerging market.
Design/methodology/approach
This study includes a sample consisting of 64 firms from Bursa Malaysia, with 173 firm-year observations from 2017 to 2020. Feasible Generalised Least Square model has been used to test the hypotheses.
Findings
The findings show that government ownership has a positive effect on IRQ and that the integrated reports and <IR> framework are well aligned. Foreign ownership influences IRQ positively. However, the results did not support the effect of family ownership on IRQ as hypothesised.
Practical implications
The findings of this research hold practical implications for companies and regulators in Malaysia. The results demonstrate to investors that both government and foreign ownership have a positive impact on IRQ. Therefore, investors can make well-informed investment decisions regarding companies with a high level of government or foreign ownership.
Originality/value
To the best of the authors’ knowledge, this is the first paper to explore the effect of ownership structure on IRQ in the Malaysian context.
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This study aims to deepen our understanding of how conventional technologies and robust accounting education standards can impact the effectiveness of green accounting practices…
Abstract
Purpose
This study aims to deepen our understanding of how conventional technologies and robust accounting education standards can impact the effectiveness of green accounting practices in enhancing firm performance. To achieve this, the paper explores the moderating effects of artificial intelligence (AI) and accounting education quality on the relationship between green accounting and firm performance.
Design/methodology/approach
Using generalized method of moments estimation, this research uses a comprehensive dataset comprising 32,680 firm-year observations of listed companies from ten prominent countries – Canada, the UK, the USA, China, France, Germany, India, Japan, South Korea and Italy – over the period from 2012 to 2022. These countries, selected based on their high gross domestic product rankings as reported by the International Monetary Fund, ensure a diverse representation of economic strengths and capture a wide range of green accounting practices.
Findings
The study shows that green accounting practices positively impact current firm performance. Country-level AI positively moderates this relationship, suggesting that advanced AI infrastructure enhances the benefits of green accounting through improved data accuracy and decision-making. However, country-level accountancy education quality negatively moderates the relationship, indicating that stringent implementation of green accounting standards in these regions may introduce complexities and costs that reduce firm performance.
Practical implications
Integrating AI enhances data processing, predictive analytics and decision-making, improving green accounting effectiveness. High-quality accounting education ensures accurate reporting and greater transparency. These insights, when applied, can empower businesses to optimize sustainability strategies, assist policymakers in developing targeted regulations and guide educators in preparing accountants for the evolving demands of green accounting.
Originality/value
To the best of the authors’ knowledge, this study is the first to explore the combined moderating effects of AI and accounting education quality on the relationship between green accounting and firm performance. By highlighting the synergistic role of digital innovation and robust educational standards, this research offers novel insights into how these factors can enhance the effectiveness of green accounting practices and improve financial outcomes.
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Sharifah Milda Amirul, Anna Che Azmi and Noor Ismawati Jaafar
Financial representation research has gained considerable attention among researchers. The argument is on representation preferences and the effect of graph versus text…
Abstract
Purpose
Financial representation research has gained considerable attention among researchers. The argument is on representation preferences and the effect of graph versus text representation of financial data. The display format for net income (NI) and comprehensive income (CI) has been proven to influence users’ financial decision-making process, depending upon users’ characteristics. It is worth noting that millennials are users whose characteristics and cognitive skills differ from those of preceding generations. This study aims to unravel millennials’ preferences for the earnings information and representation when making financial analysis and judgement, thus providing insight on their decision-making strategy, either perceptual or analytical.
Design/methodology/approach
This study used a 2 × 2 full factorial of experimental design, in which the financial representation in the following two ways: the textual disclosure content (NI versus CI) and the graphical display content (NI versus CI) was manipulated. This study conducted an online experiment with a total of 60 final participants.
Findings
The results reveal that textual disclosure of CI influences millennials’ financial decisions. This study also discovered that millennials’ financial decisions are unaffected by graphical displays of financial data as they place greater importance on textual financial data, particularly on CI representations, when making financial decisions.
Research limitations/implications
Millennials are financial users who apply different financial analysis and judgement strategy from their predecessor. They value textual disclosure and CI when analysing firms’ performance.
Originality/value
This study contends that millennials are the financial users who will use analytical strategies while making financial decisions.
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Jorge Jimenez Serrano, María Jesús Delgado Rodríguez, Isabel Rodríguez Iglesias and Rafael Manuel López Pérez
The purpose of this article is to deepen on the crime of assets misappropriation (AM) in the company, collecting through a systematic review of the published scientific literature…
Abstract
Purpose
The purpose of this article is to deepen on the crime of assets misappropriation (AM) in the company, collecting through a systematic review of the published scientific literature those factors or theories that are being used when writing about this type of crime, as well as the implications for the business context.
Design/methodology/approach
The PRISMA methodology of systematic review has been used, from which 21 articles have been included, all of them published since 2005 in scientific journals related to the financial and economic context, but also to the criminological approach.
Findings
The articles provide several factors that are currently of interest in the study of the crime of AM in the company: the type of company in which this crime occurs, the most frequent types of AM, the elements of prevention used, as well as the profile and characteristics of employees who usually commit this type of crime.
Research limitations/implications
The conclusions of this article show the importance of studying this type of crime to combat it, not only because of the economic implications but also because of how it affects other spheres of the business context. The research has focused exclusively on articles written in English with the keyword “misappropriation assets”, which may have limited the inclusion of other articles of interest, although the objective of this study is precisely to evaluate the scientific interest in this specific type of Fraud.
Practical implications
Conclusions are drawn regarding prevention elements that are currently being used in the company to detect and combat this type of crime, as well as suggestions for future research.
Originality/value
This article seeks to support and encourage the study of this type of crime in business, following the sustainable development goals, which are the global goals designed to eradicate poverty, protect the planet and ensure global prosperity, among which is the promotion of business ethics and transparency in economic activities, for which the crime of misappropriation is a violation of these principles.