Haniff Abdul Rahman, Jaharah A. Ghani, Wan Mohd Faizal Wan Mahmood and Mohammad Rasidi Mohammad Rasani
This study aims to simulate the influence of surface texturing produced via turning process toward pressure distribution and load capacity generation using computational fluid…
Abstract
Purpose
This study aims to simulate the influence of surface texturing produced via turning process toward pressure distribution and load capacity generation using computational fluid dynamics (CFD).
Design/methodology/approach
The dimple geometry was obtained via turning process, to be used for future application on piston skirt surfaces. Two cases were studied: a preliminary study using single periodic dimple assuming linear dimple distribution and an application study using multiple periodic dimples to address actual dimple orientation following the turning process.
Findings
For the first case, the dimple was proven to generate load capacity with regard to untextured surface, owing to the asymmetric pressure distribution. Increasing the Reynolds number, dimple width and dimple depth was found to increase load capacity. For the second case, although load capacity increases via surface texturing, the value was 97.4 per cent lower relative to the first case. This confirmed the importance of doing multiple dimple simulations for real applications to achieve more realistic and accurate results.
Originality/value
A new concept of dimple fabrication using a low-cost turning process has been developed, with a potential to increase the tribological performance under hydrodynamic lubrication. Previous CFD simulations to simulate these benefits have been done using a single periodic dimple, assuming equal distribution array between dimples. However, due to the different orientations present for dimples produced using turning process, a single periodic dimple simulation may not be accurate, and instead, multiple dimple simulation is required. Therefore, present research was conducted to compare the results between these two cases and to ensure the accuracy of CFD simulation for this type of dimple.
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Tze Kiat Lui, Mohd Haniff Zainuldin, Ahmad Nazri Wahidudin and Chuan Chew Foo
The purpose of this study aims to empirically examine the corporate social responsibility disclosure (CSRD) levels of conventional and Islamic banks in Malaysia. Additionally, as…
Abstract
Purpose
The purpose of this study aims to empirically examine the corporate social responsibility disclosure (CSRD) levels of conventional and Islamic banks in Malaysia. Additionally, as Malaysian banks have different shareholding patterns that are more highly concentrated than those in the developed economies, this study also investigates the impact of ownership concentration on CSRD in both types of banks.
Design/methodology/approach
This study employs hand-collected corporate social responsibility (CSR) data from the annual and sustainability reports of 21 conventional banks and 16 Islamic banks in Malaysia during 2010–2017. The data are then run using the pooled ordinary least square (OLS) with robust standard errors and robust regressions models together with all possible factors determining CSRD in the banking sector.
Findings
This study discovers that Islamic banks disclose a higher level of total CSRD than their conventional counterparts after controlling a number of important determinants of CSRD. These results remain consistent for four different dimensions of CSRD, i.e. employees, communities, environment and products and services. In relation to the impact of ownership concentration on CSRD level, the results show that high ownership concentration reduces the level of CSRD by Malaysian banks. However, in an additional interaction test, the result exhibits a complementary relationship between Islamic banks and ownership concentration in influencing CSRD level.
Research limitations/implications
This study finds that the principle of Islamic accountability has been internalised by Islamic banks, and shaped them to put equal emphasis on the disclosure of CSR practices and the financial information disclosure.
Practical implications
It is recommended for all banks to ensure the integration of a more comprehensive ethical system, such as theological ethical values in every aspect of their business activities. The findings from this study also highlight the necessity for the central bank to increase their monitoring role, especially towards banks with a more concentrated ownership structure by limiting the size of shareholdings by any particular types of owners.
Originality/value
Only a few studies have compared CSR practices between these two types of banks, and most of them are descriptive and qualitative in nature. This study is the first that uses a robust model with a high R-squared value, which control for all possible factors determining CSRD in the banking sector.
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Mohd Haniff Zainuldin, Tze Kiat Lui and Kwang Jing Yii
This paper aims to discuss and explore the unique agency issues in Islamic banks which give rise to different agency conflicts exist in Islamic banks as compared to conventional…
Abstract
Purpose
This paper aims to discuss and explore the unique agency issues in Islamic banks which give rise to different agency conflicts exist in Islamic banks as compared to conventional banks. In addition, this paper critically examines agency theory in Islamic banking perspective by incorporating Islamic ethical considerations in the principal–agent setting.
Design/methodology/approach
This is a conceptual paper, and the discussions revolve around the review of literature of which important sources have been cited in a way that demonstrates a reasonable understanding of the topic. It attempts to create a discourse around the inclusion of Islamic ethical system in understanding the governance structure of Islamic banks.
Findings
This paper concludes that Islamic ethical system embedded in the Islamic banks business activities shapes Islamic banks into organisations that place higher ethical considerations than conventional banks. Therefore, Islamic banks are likely to have less severe agency problems relative to their conventional counterparts.
Research limitations/implications
Because of the chosen research approach, the research results may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions further.
Practical implications
As the discourse generated by the paper, it can ultimately enhance the understanding of Islamic governance structure in the perspective of agency issues.
Social implications
As the discourse generated by the paper, it can ultimately enhance the understanding of Islamic governance structure in the perspective of agency issues.
Originality/value
The paper attempts to bring to attention the important aspect of principal–agent relationship within the Islamic banking structures and explain the role of incorporating Islamic ethical system in enhancing the understanding of the principal–agent relationship.
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Mohd Haniff Zainuldin and Tze Kiat Lui
This study bibliometrically describes and depicts the intellectual structure and knowledge progress of CSR studies in the banking industry.
Abstract
Purpose
This study bibliometrically describes and depicts the intellectual structure and knowledge progress of CSR studies in the banking industry.
Design/methodology/approach
Bibliometric analysis is used to quantitatively examine the bibliographic data that gathered from Scopus database. The evaluative and relational techniques are employed to produce the findings and mappings for research themes, impact and directions, as well as collaboration trends. A topical classification is also included to review the results of different types of analysis.
Findings
This study discusses how the CSR literature in the banking industry has evolved between 2009 and 2019. The publications increase significantly from 2015 to 2019 and the top journals, authors, affiliations and countries are identified. Stakeholder, disclosure, financial performance, Islamic banks, corporate governance and international banks are among the popular research and collaboration trends found in the extant literature. Reflecting on the arguments in the previous literature, several key research gaps and further suggestions are acknowledged for future studies.
Research limitations/implications
The bibliographic data used in this study bounds to Scopus database and the methodology itself suffers a few limitations, which integration of other methodologies will be worthwhile to unearth the field beyond the current discovery.
Practical implications
This study is beneficial to potential researchers, scientific journal editors, and bankers to understand the current research progression and evolution within CSR field in the banking sector.
Originality/value
Compared to the existing bibliometric literature, this study is among the pioneer wide-ranging bibliometrics study covering co-word, citation, bibliographic coupling, co-authorship and co-citation for CSR research in the banking sector.
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Jafni Hashim, Mohd Nizal Haniff and Ibrahim Kamal Abdul Rahman
The purpose of this paper is to address the question of whether Malaysian public listed companies manage their earnings in response to changes in tax polices. The context of this…
Abstract
Purpose
The purpose of this paper is to address the question of whether Malaysian public listed companies manage their earnings in response to changes in tax polices. The context of this study is the tax waiver year of 1999 which came about from the introduction of the Self Assessment System (SAS) by the Inland Revenue Board of Malaysia (IRBM) in the year 2000. If companies are to minimize tax liabilities, then the tax waiver year of 1999 may provide a substantial incentive for these companies to manage earnings in 1999.
Design/methodology/approach
The modified Jones Model (adjusted) is used to obtain the discretionary current accruals which represent earnings management. It is hypothesized that there is a significant positive discretionary current accrual (income increasing earnings management) in the tax waiver year of 1999.
Findings
The results indicate that that there is a negative relationship between earnings management and the effect of the tax waiver year of 1999. These results suggest that the magnitude of discretionary current accrual is not related to the tax waiver year in a way that is consistent with tax‐motivated income shifting behavior. Instead companies tend to manipulate earnings downwards during severe economic downturn. This is in line with Healy's bonus maximization hypothesis.
Research limitations/implications
The test sample is limited to public listed companies only and some companies are excluded due to insufficient data. Therefore, the results cannot be a representation of Malaysian companies' practices.
Originality/value
The findings of this paper contribute to the sparse literature on tax‐induced earnings management practices in Malaysia. The findings could be of value to the IRBM in designing and improving on the plans for future tax‐based incentive schemes.
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Tze Kiat Lui and Mohd Haniff Zainuldin
Strengthening ESG strategies in Malaysian banks is necessary as they continue to face difficulties integrating ESG into their strategies and disclosure despite existing government…
Abstract
Purpose
Strengthening ESG strategies in Malaysian banks is necessary as they continue to face difficulties integrating ESG into their strategies and disclosure despite existing government frameworks. This study aims to use stakeholder-resource-based view (RBV) concept to explore how board characteristics and ownership concentration influence ESG disclosure practices in Malaysian banks.
Design/methodology/approach
The study analysed annual, environmental, social and governance (ESG) and integrated reports of Malaysian banks from 2010 to 2022 to examine the effects of board characteristics on ESG disclosures. Using content analysis and 481 balanced data sets, ordinary least squares (OLS) and robust regressions were applied, with interaction terms testing the moderating effects of ownership concentration.
Findings
Board independence negatively impacts ESG disclosure in Malaysian banks, suggesting that independent directors may not prioritise sustainability. Board size, diversity and sustainability committees positively influence ESG practices. Ownership concentration interactions reinforce these findings, but board independence remains negatively significant.
Research limitations/implications
Future research should expand the sample to other emerging markets, explore a wider range of bank board attributes and use advanced econometric methods to increase the generalisability of the results.
Practical implications
The study impacts theory, financial institutions and policy, redefining ESG practices in Malaysian banking. It highlights the role of board characteristics and the importance of ownership concentration. Several practical recommendations are provided.
Social implications
The study impacts theory, financial institutions and policy by redefining ESG practices within Malaysian banking. It highlights the significance of board characteristics and ownership concentration, offering several practical recommendations.
Originality/value
The study fills gaps in the literature by examining the impact of board characteristics on ESG disclosures through content and statistical analyses. It integrates stakeholder theory with RBV to provide novel insights into ESG reporting in Malaysian banks, highlighting the role of high ownership concentration in emerging markets.
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Yee Peng Chow and Young Han Tan
The purpose of this paper is to examine the influence of the daily growth in confirmed COVID-19 cases in Malaysia and government interventions on the daily returns of financial…
Abstract
Purpose
The purpose of this paper is to examine the influence of the daily growth in confirmed COVID-19 cases in Malaysia and government interventions on the daily returns of financial times stock exchange Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) and eight selected Bursa Malaysia sectorial indices for the period January 29, 2020 to March 31, 2021.
Design/methodology/approach
This paper adopts the multivariate generalized autoregressive conditional heteroscedasticity model to determine the effects for the entire study period and four sub-periods, i.e. pre-government intervention, movement control order (MCO), conditional MCO (CMCO) and recovery MCO phases.
Findings
This paper finds no evidence of the effect of the daily growth in confirmed COVID-19 cases on the returns of FBMKLCI and eight Bursa Malaysia sectorial indices for the full study period. However, the former has exerted different effects over the four sub-periods. Sectors that are positively affected for the MCO period are financial services and real estate investment trust. Yet, these sectors are negatively affected for the CMCO period along with the industrial products and services and technology sectors. Sectors that consistently demonstrate statistically insignificant results are construction, energy, plantation and utilities.
Originality/value
This study makes an initial attempt to investigate the influence of the COVID-19 pandemic on the returns of Bursa Malaysia sectorial indices over different phases of government interventions in Malaysia.
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Adeel Nasir, Umar Farooq, Kanwal Iqbal Khan and Ather Azim Khan
This study aims to explain the Sukuk structures individually by highlighting the key differences and commonalities in their influential aspects. It also compares the core aspects…
Abstract
Purpose
This study aims to explain the Sukuk structures individually by highlighting the key differences and commonalities in their influential aspects. It also compares the core aspects of Sukuk literature with conventional bonds and suggests the point of differences between them.
Design/methodology/approach
This study uses a quali-quantitative approach with the help of segmented bibliometric analysis to describe core differences and commonalities in various Sukuk structures in terms of core authors, countries, sources, affiliation, documents and keywords. In addition, it deploys “biblioshiny” from R-package “bibliometrix 3.0” to identify key influential aspects of different Sukuk instruments.
Findings
Results reported that Malaysia is the core contributing country in Sukuk publications and the center of author correspondence. There is a structural difference among various Sukuk instruments. The significant literature commonalities in Ijarah, Mudarabah, Musharakah and Murabahah Sukuk affiliations and globally cited journal articles are also found. However, the influential aspects of Sukuk compared with conventional bonds are different from other Sukuk literature. It also conducted a keyword analysis to report significant themes in the literature.
Originality/value
This study contributes to the existing body of knowledge as it helps investors to understand the shariah permissibility and investment supremacy of various Sukuk alternatives. Investors, policymakers, scholars and researchers should understand the dynamics of multiple Sukuk structures and their Shari’ah permissibility. This study significantly elaborates on this objective.
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Mal Kong Sia, Vivien Wong Chin Yew, Zhi Yong Lim and Ye Dongqing
It is essential to provide the necessary facilities in a building for human living. However, most unit owners of high-rise buildings do not realise the importance of good property…
Abstract
Purpose
It is essential to provide the necessary facilities in a building for human living. However, most unit owners of high-rise buildings do not realise the importance of good property management until their buildings and common facilities have deteriorated. It is thus important to ensure adequate maintenance is provided to create and sustain a healthy living environment for high-rise households. The purpose of this study is to measure and compare the perceptions and satisfactions of residents with the facilities and maintenance services provided in two different condominiums located next to each other.
Design/methodology/approach
Survey questionnaires were used, and the data were collected from 120 residents of each condominium which was developed by the same developer but completed at different times. Using the IBM SPSS Statistics software, cross tabulations, χ2 tests of independence and independent-samples t-tests were carried out for descriptive and inferential statistics. A simple post questionnaire survey was conducted to confirm the findings obtained from χ2 tests and t-tests.
Findings
The results show that residents’ perceptions of facilities and maintenance services provided are significantly higher for the newer condominium compared to the older one. Residents’ satisfactions with facilities are also higher for the newer condominium. However, poorer lift services and their maintenance have resulted in lower overall mean satisfaction with maintenance services for the newer condominium. Nevertheless, results from data collected in post questionnaire survey reveal that the respondents still prefer to live in the newer condominium despite higher rental rates.
Research limitations/implications
This paper reports only the data collected from samples of two condominiums in Kuala Lumpur.
Practical implications
There is a dearth of literature on residents’ perceptions and satisfactions towards facilities and maintenance services provided for high-rise residential living, particularly in Malaysia, where high-rise buildings are either managed by joint management body or management corporation depending on whether the strata titles have been issued. The findings can be used as benchmarks for property management purposes of condominiums.
Originality/value
This paper could be considered as the first in reporting residents’ perceptions and satisfactions with the facilities and maintenance services provided in residential high-rise buildings since the implementation of the Strata Management Act 2013, which was implemented to provide for proper maintenance and management of high-rise buildings and the common properties.
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Muhammad Shahrul Ifwat Ishak and Nur Syahirah Mohammad Nasir
The purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has…
Abstract
Purpose
The purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has gained traction as an alternative funding source for businesses, it is unclear how far this concept can benefit a group of micro-entrepreneurs in Malaysia.
Design/methodology/approach
This study uses a qualitative research approach by using data collected through semi-structured interviews with several experts and practitioners in crowdfunding, Shariah and entrepreneurship. Prior to discussing the facets of the findings, the data were analysed based on a thematic approach.
Findings
The findings reveal that while previous works of related literature suggest crowdfunding as a viable alternative financing option for entrepreneurs and their businesses, in reality, its practical implementation presents challenges. Numerous micro-entrepreneurs need more training in the areas of management and marketing. Such concerns raise questions about their ability to attract potential project backers. With the proper selection of Shariah contracts and several approaches to risk management, Islamic crowdfunding can potentially become an alternative funding source for microbusinesses.
Research limitations/implications
Given the exploratory nature of this study regarding the applicability of Islamic crowdfunding as an alternative fund for micro-entrepreneurs, its findings may not fully encompass Malaysia’s context because of the limited number of participants involved.
Practical implications
The findings of this study offer guidelines on how to implement Islamic crowdfunding for micro-entrepreneurs. Consequently, Islamic crowdfunding has the potential to alleviate the government’s burden of providing funds for micro-enterprises and enhance their skills and mentality to be more independent, creative and able to promote their products.
Social implications
While Islamic crowdfunding can be an alternative opportunity for business enterprises and community-based projects, it promotes the spirit of cooperation and collaboration within society.
Originality/value
Although Islamic crowdfunding is a topic that has been discussed previously, empirical investigations in this area remain scarce, mainly through qualitative approaches. Distinguishing from prior literature, this study analyses several potential models of Islamic crowdfunding from the perspectives of experts, practitioners and related agencies for micro-entrepreneurs. Moreover, this study bridges insights from related literature so that they offer practical applications to support micro-entrepreneurs in Malaysia.