Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in…
Abstract
Purpose
Islamic finance and Halal product sectors are thriving successfully. This chapter is a general review of the perception of Asian consumers on Islamic finance and Halal sectors in the global Halal economy.
Methodology/approach
The first section will briefly describe the Halal concept in both Islamic finance and Halal industries, and the growth of both sectors in Asian countries. The second part highlights the review of Asian consumers’ perception towards Islamic finance products and Halal products.
Findings
The review found that the consumers’ perception towards the Islamic finance products and Halal products is distinctive. This is due to the diversity of Asian countries in terms of geography, religion, culture, ethnic, school of thoughts (madzahib), income per capita and government’s involvement.
Originality/value
The third part of the chapter concentrates on planning towards Halal marketing, which involves the move and future challenges in different layers of industries to gear up and strengthen the Halal economy.
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Azhar Abdul Rahman and Mohd Diah Hamdan
The purpose of this paper is to investigate Malaysian companies’ compliance with mandatory accounting standards. Specifically, this study examines the efficacy of agency-related…
Abstract
Purpose
The purpose of this paper is to investigate Malaysian companies’ compliance with mandatory accounting standards. Specifically, this study examines the efficacy of agency-related mechanisms on the degree of compliance with Financial Reporting Standards (FRS) 101, Presentation of Financial Statements. It so proceeds by focussing on corporate governance parameters (board characteristics and ownership structure) and other firm characteristics.
Design/methodology/approach
Using data drawn from a sample of 105 Malaysian companies listed on the ACE market in 2009, the authors employ multiple regression analysis models to establish whether selected corporate governance and company-specific characteristics (proxying for agency-related mechanisms) are related to the degree of disclosure compliance.
Findings
The results indicate that the overall disclosure compliance is high (92.5 per cent). Furthermore, only firm size is positively associated with the degree of compliance. The other variables, those consisting of board independence, audit committee independence, CEO duality, the extent of outside blockholders’ ownership and leverage, do not show any significant relationship with the degree of compliance.
Research limitations/implications
This study focusses on only one accounting standard (FRS 101) that is mandatory in Malaysia. FRS 101 is both structured and rigid, leaving no room for companies to conceal any particular information. The sample of Malaysian companies selected is restricted to those listed only on the ACE market. As such, the results cannot be generalised to every company in Malaysia.
Practical implications
These results have important implications for policy makers because they suggest that whilst agency-related mechanisms may motivate compliance with mandatory standards, full compliance may be unattainable without regulations.
Originality/value
This is the only study in Malaysia to investigate the impact of regulatory requirements on corporate compliance level by companies listed on the new ACE market, which was introduced by the Bursa Malaysia in August 2009. This study contributes to the literature by examining the effects of both company-specific characteristics (such as company size, company age, liquidity, etc.) and corporate governance parameters on the degree of corporate compliance with mandatory disclosure, simultaneously, in contrast with prior studies which have examined them in isolation.
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Abstract
Purpose
The paper aims to improve the protective and comfort properties of both woven and knitted acrylic fabrics by applying a hybrid waterborne polyurethane/fluorocarbon hydrophobic finish.
Design/methodology/approach
In this study, it was found that the transportation of water from fabrics is one of the important textile parameters. To improve this property, a polyurethane-based finish (Dicrylan BSRN®) and an oil- and water-repellent finish (Oleophobol ZSR®) were applied by using the pad-dry-cure method. After applying the finishes, the resultant fabric samples were investigated for various textile properties.
Findings
The application of Oleophobol ZSR® increased the absorbency time, indicating that the fabric became hydrophobic, whereas the application of Dicrylan BSRN® finish improved the moisture management properties of the woven acrylic. The tensile strength of the woven acrylic fabric was not significantly affected by the application of these finishes. The contact angle of treated knitted fabrics increased and air permeability decreased with an increase in the concentration of Oleophobol ZSR®.
Practical implications
Moisture management is one of the crucial performance criteria in today’s apparel industry. Therefore, fluorochemicals are one of the major precursors used in water-repellent finishes and waterproof membranes in outdoor garments. Based on this fact, this research work focused on the textile sector, where moisture management is required.
Originality/value
This is the first report about the combined application of waterborne polyurethane and fluorochemical-based finishes on acrylic fabrics to tune their comfort and hydrophobic properties.
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Shamsul Nahar Abdullah and Ku Nor Izah Ku Ismail
The purpose of this paper is to determine whether the representation of women on the boards (WOMBDs) and audit committees is associated with a reduction in the practice of…
Abstract
Purpose
The purpose of this paper is to determine whether the representation of women on the boards (WOMBDs) and audit committees is associated with a reduction in the practice of earnings management and whether women are associated with income reducing (conservative) rather than income-increasing (aggressive) earnings management. The authors further argue that family ownership moderates the relationship between the presence of WOMBDs and audit committees and earnings management.
Design/methodology/approach
The study uses non-finance firms listed on Bursa Malaysia over a period of four years, i.e. from 2008 until 2011.
Findings
The evidence reveals that the presence of WOMBD or audit committee is not associated with a propensity for earnings management. In addition, the evidence also reveals that family ownership does not interact either with WOMBD or with women on the audit committee (WOMAC) to influence the propensity for earnings management. Nevertheless, the additional analyses show that, while women on boards are not associated with income-decreasing accruals, the presence of women on audit committees leads to income-reducing earnings management. The evidence further reveals that family ownership does not interact with either WOMBD or WOMAC to influence income-decreasing earnings management.
Originality/value
This study extends prior research on the role of women directors and women audit committee members on earnings management focussing on family ownership. Further, the study also examines the direction of earnings management as opposed to the most prior studies, which mainly focus on the propensity of earnings management.
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Shamsul Nahar Abdullah, Nor Zalina Mohamad Yusof and Mohamad Naimi Mohamad Nor
This paper seeks to examine the effects of Malaysian Code on Corporate Governance on the nature of financial restatements in Malaysia and whether corporate governance…
Abstract
Purpose
This paper seeks to examine the effects of Malaysian Code on Corporate Governance on the nature of financial restatements in Malaysia and whether corporate governance characteristics are associated with financial restatements.
Design/methodology/approach
Data for this paper are obtained from annual reports that had been restated for the period of 2002‐2005 with firm‐years being the unit of observation. A control group comprising non‐restating firms is formed using match‐pair procedures where restated and non‐restated firms are matched by size, industry, exchange board classification, and financial year end. The data are subsequently analyzed using a t‐test, the Pearson correlation and logistic regression.
Findings
The results show that the primary reason for misstating the accounts is to inflate earnings. The nomination committee of the firms that restated is found to be less independent with higher managerial ownership. The logistic regression analysis indicates that the extent of ownership by outside blockholders deters firms from misstating accounts. Surprisingly, audit committee independence is associated with the likelihood of financial misstatement. Financial restatements, nevertheless, are not found to be associated with board independence, managerial ownership, and CEO duality. Finally, the results show that firms with high level of debts are more likely to commit in financial misstatement.
Practical implications
The research is significant as it provides evidence on the role of corporate governance, especially the independence of the nomination committee and extent of ownership by outside blockholders in Malaysia. It shows that outside blockholders is effective in disciplining managers so that the accounts so prepared are not misleading. The move in 2007 by the Malaysian Government to require companies audit committee to be composed of only independent and non‐executive directors, as well as requiring audit committee members to be financially literate, should be seen as important in ensuring the effectiveness of the audit committee.
Originality/value
This research is considered as the first study which examines the effects of corporate governance variables on the incidents of financial restatements in a developing country. The findings of this paper would be useful for policy makers in evaluating the importance of corporate governance in emerging countries, specifically on the issue of quality financial reporting.
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This paper aims to review the motivation and benefits of implementing halal food safety certification (HFSC) from the upstream perspectives. Food safety certification (FSC) has…
Abstract
Purpose
This paper aims to review the motivation and benefits of implementing halal food safety certification (HFSC) from the upstream perspectives. Food safety certification (FSC) has long been a prevailing issue in the field of food safety research. However, there remains a general paucity of research in religion-specific form of FSC, such as the HFSC. At present, the limited existing studies on HFSC focus on the demand side, but studies on the supply side are scarce and largely inconclusive. The review is further scrutinised by addressing the internal and external motivations and benefits of HFSC.
Design/methodology/approach
The explanatory and general review of this paper is based on an extensive literature review in FSC as well as the author’s personal reflections on past research in halal certification.
Findings
The internal motivations concern a firm’s internal processes, people and the available resources, while the external motivations relate to a firm’s external elements such as government intervention and market pressure. A firm can reap the internal benefits, such as improved product quality, or enjoy the external benefits of better marketing and larger market shares.
Originality/value
The paper offers unique acumens and advances of a less-researched side of the halal food chain. It also compiles the conclusions of FSC research that could have a significant bearing on the internal and external impetuses and advantages of HFSC.
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Noorshella Binti Che Nawi, Abdullah Al Mamun, Noorul Azwin Binti Md Nasir, Noorlisa Maria bt A. Hamid Shokery, Nursalihah Binti Ahmad Raston and Syed Ali Fazal
While it is perceived that adoption reflects acceptance, the purpose of this paper is to argue that individual usage is critical and cannot be guaranteed by mere adoption. This…
Abstract
Purpose
While it is perceived that adoption reflects acceptance, the purpose of this paper is to argue that individual usage is critical and cannot be guaranteed by mere adoption. This study, therefore, focuses on the factors (i.e. performance expectancy, perceived trust, perceived risk, facilitating condition, and perceived enjoyment) contributing to the adoption and ultimately usage of social media as a business platform among student entrepreneurs in Malaysia under the premise of the unified theory of acceptance and use of technology (UTAUT).
Design/methodology/approach
This study adopts a cross-sectional design and quantitative data are collected from 300 selected respondents listed as student entrepreneurs in the entrepreneurship centers of all public universities within Peninsular Malaysia.
Findings
Performance expectancy, perceived risk, perceived trust, and perceived enjoyment have a significant effect on the adoption of social media leading to its usage as a business platform. Findings also report a significant mediating effect of adoption of social media on the relationship between performance expectancy, perceived trust, perceived risk, and perceived enjoyment with the depth of social media usage.
Research limitations/implications
In order to promote entrepreneurial activities among student entrepreneurs using social media as a business platform, programs and policies should focus on improving cyber security and value-added services.
Originality/value
This study puts forward and tests the original UTAUT model to assess the adoption and depth of social media usage as a business platform among young student entrepreneurs in Peninsular Malaysia, which provides a foundation for the design and implementation of programs and policies that promote entrepreneurial activities using social media among student entrepreneurs in Malaysia.
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Mohd Shahir Omar, Muhammad Fakhrul Yusuf and Jack Kie Cheng
This study aims to identify the factors to food safety certification adoption among farmers in Malaysia.
Abstract
Purpose
This study aims to identify the factors to food safety certification adoption among farmers in Malaysia.
Design/methodology/approach
This study was conducted qualitatively using a method of interviewing with unstructured questions. To identify the factors that influence and prevent the adoption of food safety certification among Malaysian farmers, nine (n = 9) agricultural industrial experts were randomly chosen.
Findings
Based on data analysis using thematic analysis, the respondent highlighted 14 factors to food safety certification. Specifically, the most frequent determinant highlighted by the respondent is enforcement (12). Additionally, it has been proven that the identified factors aligned with existing theories: technology, organization and environment (TOE) framework and eco-innovation theory. These theories help researchers to create effective strategies and produce significant findings from their research.
Originality/value
To the best of the authors’ knowledge, this study is the first to investigate food safety certification adoption among farmers in the Malaysian agriculture industry using the integration of the TOE framework and eco-innovation theory. The stakeholder is expected to receive the benefits of creating efficient campaigns to encourage more farmers to obtain food safety certification. This study provides further knowledge by improving the understanding of the processes involved in certification adoption, providing context-specific insights, best practices, policy guiding development and emphasizing the effects of certification on sustainability and competitiveness.
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Ahmed Hussein Al-Rassas and Hasnah Kamardin
The purpose of this study is to examine the effect of the audit committee (AC) independence, financial expertise, internal audit function, audit quality and ownership…
Abstract
Purpose
The purpose of this study is to examine the effect of the audit committee (AC) independence, financial expertise, internal audit function, audit quality and ownership concentration on earnings quality (EQ) and, consequently, ascertain whether the AC’s independence and financial expertise has a moderating effect on the relationship between internal audit function and EQ.
Design/methodology/approach
The study sample is 508 firms listed on the Main Market of Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange) for the years 2009 to 2012. EQ was measured using two modified Jones models of discretionary accruals.
Findings
The findings reveal that the independence of AC and investment in internal audit function, as well as the Big4 audit firm, are related to greater EQ. Ownership concentration is found to be associated with lower EQ. The study provides evidence that AC’s independence moderates the relationship between internal audit function (investment in and sourcing arrangements of internal audit function) and EQ. It also shows that AC’s financial expertise moderates the relationship between sourcing arrangements of internal audit function and EQ.
Practical implications
This study extends the prior related literature by examining the AC’s independence and financial expertise as moderating variables on the relationship between internal audit function and EQ.
Social implications
Policymakers might use the findings regarding EQ in relation to governance practices, to recognize the important roles played by the AC’s independence and financial expertise on the effectiveness of internal audit function with EQ.
Originality/value
This study uses the agency theory and resource dependence theory to provide empirical evidence on the impact of internal audit function and AC on EQ in the ownership concentration environment.
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Mohamed Syazwan Ab Talib, Siti Salwa Md. Sawari, Abu Bakar Abdul Hamid and Thoo Ai Chin
The emergence of the Halal food market as one of the largest consumer food markets has encouraged firms to implement Halal food certification. However, the theoretical gap in…
Abstract
Purpose
The emergence of the Halal food market as one of the largest consumer food markets has encouraged firms to implement Halal food certification. However, the theoretical gap in Halal studies and the unequal focus of Halal food certification research prove the deficiency of theoretical development and understanding. Hence, this paper aims to ascertain the theoretical background of Halal food certificate implementation.
Design/methodology/approach
The paper reviews and synthesises literature focusing on Halal certification, food certification and the Institutional Theory factors that could potentially explain the impetus of Halal food certificate implementation.
Findings
The Institutional Theory offers a suitable explanation that grounds the motivation to implement Halal food certification. The highly institutionalised Halal industry comprising government regulations, Muslim demands for Halal foods and intense industry competition instigate Halal food certificate implementation. Three propositions are presented and a conceptual model is developed.
Research limitations/implications
The notions of this paper are based on the institutional perspective, i.e. the external motivation factors. An alternative view on a management theory that explains the internal motivation factors would provide a more comprehensive interpretation of reasons to implement Halal food certification. Nevertheless, the Institutional Theory offers strong understandings behind the motivation to implement Halal food certification.
Practical implications
Discussions and propositions from this paper could contribute to theory formation that is unique to Halal or Muslim food certification. This paper could also provide a sense of direction for researchers in mapping out future research undertakings.
Originality/value
The paper presents a valuable understanding of the dynamic of the Institutional Theory in the field of Halal food certification. It is the first attempt that considers the institutional isomorphism of government decree, consumer demand and inter-firm competition as motivation factors of Halal food certificate implementation.