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The purpose of this paper is to examine the influence of the characteristics of audit committee chairman (ACC) (tenure, age, gender, ethnicity, accounting expertise and directorship) on earnings management (EM) practices.

The Jones model and modified Jones model by Dechow et al. (1995) were used to determine the discretionary accruals (DA) of 288 Malaysian listed firms with lowest positive earnings for the years 2013‒2015.

The results of the ordinary least squares regression indicate that only tenure, gender and ethnicity of the ACC are associated with DA. A further test was conducted by dividing firms into two groups: firms whose boards are chaired by a family member and firms whose boards are chaired by a non-family member. The results reveal that it is possible for firms whose boards are chaired by family members to cause the corporate governance (CG) mechanisms, particularly the audit committee, to lose their effectiveness in overcoming the EM problem. In addition, robustness tests were conducted by using panel data regression, where the results were found to be similar to the original regression results.

This study alerts policymakers, firms and their stakeholders, as well as researchers, regarding the importance of having an independent board chairman, who has no relationship with any directors or major shareholders, as this may hinder the effectiveness of CG mechanisms in curbing EM, especially in emerging countries, such as Malaysia, where it is very difficult to stop members of the family from becoming board directors.

The paper aims to investigate: the influence of knowledge of ethics (KOE) on auditors' perceived ethical problems (PEB); the influence of PEB on ethical judgments (EJ); and the mediating impact of PEB that mediate the relationship between KOE and EJ.

A total of 940 questionnaires were distributed to auditors of audit firms in Malaysia and 250 auditors responded. However, only 224 questionnaires were usable. Data were analyzed using SPSS 16.0 and structural equation modeling (SEM) using AMOSS 16.0.

The results indicated that statistically significant relationships exist between KOE and PEB, PEB, and EJ. Additionally, PEB are found to mediate the relationship between KOE and EJ.

This paper provides important implication for audit firms to enhance sufficient knowledge of Malaysian Institute of Accountants (MIA)'s code of ethical principles among their members. Another implication is for professional bodies to design a complete and effective code of ethics, disseminate free information to members through web site and e‐notification and conduct professional development programs with the latest development on a regular basis.

The number of studies on the impact of PEB as a mediator that mediates the relationship between KOE and EJ is scarce. Therefore, this paper aims to fill this gap. The findings provide insights that it is imperative to emphasize the importance of KOE and PEB in enhancing auditors' EJ.

This paper aims to view the role of religiosity in moderating the relationship between ego-defensive function of Muslim consumers’ and attitude toward advertising of controversial product. There is a rising concern among Muslim consumers’ with regards to the halal status of many food outlets in Malaysia. This came out because many food operators do not understand what halal really means. Many of them are from Kopitiams food and beverages industry.

Survey method was used for the purpose of data collection in April 2014, and quantitative approach has been used as well. This study applied functional theory of attitudes to support this framework. Respondents consisted of 375 Muslim consumers’ in Malaysia.

The paper provides empirical insights about how religiosity moderates the relationship between ego-defensive function and consumer attitude toward advertising. Consumers with a high level of religiosity are more likely to respond less favorably toward the advertising, while consumers who have a low level of religiosity are more likely to respond more favorably toward the advertisement. In addition, it can be postulated that religiosity reduces negative effects of ego-defensive function.

The fact that religious groups are more organized, equipped and motivated to register their concern, demands better understanding of such groups by marketers. To avoid any controversies, or potential business loss, a better understanding of what could ignite their reaction seems to be an appropriate preventive strategy.

Only a few studies directly examined the influence of religion on marketing communication. The effects of religion on the advertising of controversial products remain largely unstudied to date. Therefore, this paper fills the gap in the research area.

External auditors often rely on other professionals for the audit of the financial statements of their clients. Generally, external auditors rely on clients’ internal auditors. Reliance on internal auditors results in cost savings to the client. The objective of this study is to determine which of the criteria as mentioned by AI 610 will be used by the external auditors to evaluate the work of the internal auditors. Respondents of the study consist of those from the big four and non‐big four firms located in Kedah and Penang. A one‐quarter replicate of 2⁸ Kempthorne's design was used to determine the experimental task. The findings of the study indicate that technical competence and scope of function are the two most important criteria that external auditors consider in their reliance on internal auditors. Malaysian Institute of Accountants (MIA), being the standard setter of the auditing standards in Malaysia, will have to develop precise and operational criteria for these factors in planning the audits. The study also shows that there was consistency in audit judgement.

Despite the spread in usage and ownership of credit cards, few studies have examined its effect on consumer debt in developing nations. The main purpose of this paper is to understand consumers' attitude and spending behavior using credit cards.

This study is based on a questionnaire survey conducted in Malaysia. Based on an extensive review of literature, a model is developed to identify the psychographic factors that influence the consumer attitudes toward using credit cards.

The paper found support for some of the theoretical expectations and lends support to some of the earlier deviations reported in the literature.

The findings are likely to be important to banks and financial institutions issuing credit cards, as they help managers to have a better understanding of cardholders in Malaysia and their attitude and behavior toward usage of credit cards.

This paper makes a valuable contribution given the fact that there is a dearth of empirical studies of this nature focusing on Malaysia.

The purpose of this paper is to validate scale measurements of dialogue, access, risk assessment and transparency (DART) constructs, as the process of value-co-creation, and then understand its effect on innovation strategy. Further, the paper explores the influence of innovation strategy on the market performance.

The model links four dimensions of DART as building blocks of value co-creation, to the innovation strategy. Further, the model links innovation strategy to the market performance. In total, five hypotheses are postulated. Testing was conducted through structural equation modeling using PLS-SEM, utilizing data from 249 managers of telecommunication companies in Malaysia.

The result of the analysis revealed dialogue, risk assessment and transparency having a significant positive relationship with innovation strategy. These results signified the importance of value co-creation to formulate an innovation strategy of the firms. The finding of the research shows that innovation strategy has a strong effect on market performance as well.

Implementing value co-creation process facilitates companies in formulating an innovation strategy that enhances market performance significantly.

The paper validated scale measurement of DART model which adds substantial knowledge and concepts in the areas of value co-creation process. It describes the first empirical research study on the practice of value co-creation and innovation strategy in developing country focusing on telecommunication industry. Further, the model examines the effect of DART dimensions on innovation strategy result in market performance enhancement.

The purpose of this paper is to explore the relationship between audit service quality, client satisfaction and loyalty to the audit firms. SERVQUAL model was used to measure the perceptions and expectations of public listed companies on the services received from audit firms.

The five dimensions of SERVQUAL, i.e. reliability, assurance, tangibility, empathy and responsiveness was used to measure the service quality of audit firms. The research was conducted using primary data. Questionnaires were sent to 500 public listed companies listed in Bursa Saham Malaysia for year 2005.

The public listed companies were satisfied with the tangible dimension but were dissatisfied with the other four dimensions. The most dissatisfied dimension was empathy. Customer satisfaction was found to partially mediate the relationship of reliability and customer loyalty.

The small sample size is a limitation of the study. Also, the study examined all services offered by audit firms. A larger sample size and focusing on a particular service would be better as the respondents would then be able to give a more focused answer. Also, the public listed companies were not analysed further into various industry types, size of firm and other corporate attributes to understand their different needs.

The study defines the attributes of quality services from the clients' perspective. Once the needs are more clearly known and understood, the audit firms will be in a better position to anticipate clients' requirement rather than to react to clients' dissatisfactions.

The paper uses a marketing model, SERVQUAL, to measure the service quality of audit firms.

The purpose of this paper is to examine the relationship between distributive, procedural, interpersonal and informational justices on switching intentions.

Data were gathered on distributive, procedural, interpersonal, informational justices and switching intentions by means of a survey from prepaid mobile subscribers in Malaysia.

The results show that the effects of procedural justices on switching intentions were stronger than distributive and informational justices. However, the results did not indicate a significant relationship between interpersonal justice and switching intentions.

The paper examines only one service context; consequently, the results cannot be generalized for other services in the industry.

The results of this study are useful for Malaysian marketing practitioners in the overly saturated and highly competitive mobile telecommunication industry.

Unlike previous studies, the paper incorporates a fourth dimension of justice – informational justice – into the service recovery literature. Although prior studies have investigated the relationship between perceived justice and positive behavioral intentions, there is no specific study currently investigating the relationship between perceived justices and negative outcomes.

The purpose of this study is to assess the influence firm reputation on behavioral intentions and to examine the moderating role of failure attributions in the relationship between firm reputation and behavioral intentions.

The sample used in this study consists of 127 airline passengers in an airport in Iran. The data were collected via a structured survey.

Based on the findings firm reputation has a significant and positive relationship with behavioral intention. Additionally, hierarchical regression analyses confirmed the moderating role of failure attributions in the relationship between firm reputation and behavioral intentions.

This study examines only one service context; consequently, the results cannot be generalized to other service industries.

By understanding the important role of firm reputation, service organizations understand that carefully building and maintaining reputation is paramount for continued success as this study shows that an excellent reputation directly affects how customers respond to failures.

Although, prior research has developed an understanding of the role of firm reputation on behavioral intentions, however, this study additionally examined the role of failure attributions as the moderator in this relationship.

The purpose of this study is to review and evaluate the salient features of stock market manipulation in Malaysia. The research questions used are: Who was involved? How it happened? What were the consequences?

This study has been conducted using content and thematic analysis. This study includes multiple sources of information to help establish the stylized facts and it uses cases that have been prosecuted in Malaysia for 2005-2015.

This study presents arguments and empirical data supporting the view that the stock market manipulation was conducted by those in a privileged position and with access to information. Ethical failure, involving greed, self-interest, dishonesty and a preoccupation with a quick profit, could explain why stock market manipulation happened. Manipulation harms legitimate investors, as share prices and earnings of companies are affected.

A better understanding about the prevalence, characteristics and consequences of the market manipulation problems will be useful for stakeholders, investors and policymakers in the financial industry for promoting and maintaining a fair, efficient and transparent stock market.

The originality of this paper lies in examining and presenting interpretations based on contemporary phenomenon within the real-life context of Malaysia. There is little study or literature that focuses on Malaysia, especially in examining stock market manipulation by integrating finance and management perspectives to form a comprehensive understanding of the issue.