Ruhaya Atan, Md. Mahmudul Alam and Jamaliah Said
The purpose of this paper is to examine the five dimensions of corporate integrity systems (CISs) and their effects on accountability outcomes of non-profit organizations (NPOs).
Abstract
Purpose
The purpose of this paper is to examine the five dimensions of corporate integrity systems (CISs) and their effects on accountability outcomes of non-profit organizations (NPOs).
Design/methodology/approach
Data were collected from 550 surveys conducted among NPOs in Malaysia registered under Registrar of Society. Regression analysis was conducted to examine the relationships between five dimensions of CISs and accountability outcomes.
Findings
The findings revealed that all five dimensions of CISs (compliance, policies and rules, organizational culture, leadership, ethics training and education, and whistle blowing) significantly contribute to positive accountability outcomes of NPOs.
Practical implications
In order for NPOs to deliver greater accountability outcomes to their stakeholders, serious emphasis on CISs is vital.
Originality/value
To the best of the authors’ knowledge, this study is among the first empirical study to examine the role of CIS dimensions and accountability outcomes in the case of NPOs in Malaysia.
Details
Keywords
Ruhaya Atan, Md. Mahmudul Alam, Jamaliah Said and Mohamed Zamri
The ESG factor, which consists of environmental, social, and governance factors, represents the non-financial performance of a company. United Nations Principles for Responsible…
Abstract
Purpose
The ESG factor, which consists of environmental, social, and governance factors, represents the non-financial performance of a company. United Nations Principles for Responsible Investment invites investors to consider ESG issues when evaluating the performance of any company. Moreover, nowadays, the contribution of corporations towards sustainable development is a major concern of investors, creditors, government, and other environmental agencies. Therefore, the purpose of this paper is to examine the impact of ESG factors on the performance of Malaysian public-limited companies (PLC) in terms of profitability, firm value, and cost of capital.
Design/methodology/approach
A total of 54 companies are selected from Bloomberg’s ESG database that has complete ESG and financial data from 2010 to 2013. This study conducted panel data regressions such as the pooled OLS, fixed effect, and random effect.
Findings
Based on the regression results, there is no significant relationship between individual and combined factors of ESG and firm profitability (i.e. ROE) as well as firm value (i.e. Tobin’s Q). Moreover, individually, none of the factors of ESG is significant with the cost of capital (weighted average cost of capital, WACC), but the combined score of ESG positively and significantly influences the cost of capital (WACC) of a company.
Practical implications
As this is a new study on Malaysia, the findings of this study will be useful to investors, SRI analysts, policy makers, and other related agencies.
Originality/value
To the best of the authors’ knowledge, this study is among the first empirical study to examine the impact of ESG factors on the performance of Malaysian PLC in terms of profitability, firm value, and cost of capital.
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Hazlina Mohd Padil, Eley Suzana Kasim, Fazlida Mohd Razali, Ruhaya Atan and Haziq Aminullah
The purpose of this paper is twofold. First, the study aims to examine the direct effect of illicit financial flows (IFF) and quality of governance (QoG) on economic growth…
Abstract
Purpose
The purpose of this paper is twofold. First, the study aims to examine the direct effect of illicit financial flows (IFF) and quality of governance (QoG) on economic growth. Second, this study seeks to examine the moderating effect of QoG on the economic consequences of IFF.
Design/methodology/approach
This study collected data from nine The Association of Southeast Asian Nations (ASEAN) countries for the period of 10 years from 2008 to 2019. The study concerned an analysis of the testing of a conceptual framework which based on secondary data which may lack a comprehensive substantiation on the grounds of measurement theory. A partial least squares (PLS) modelling using the SmartPLS 3.2.8 version was used as a statistical tool to examine the measurement and structural model.
Findings
Key findings provide empirical support on the effect of IFF and QoG on economic growth. It also confirmed that QoG significantly moderated the relationship between IFF and economic growth by reducing the negative impact of IFF on economic growth.
Practical implications
Immediate corrective action needs to be implemented by policymakers of ASEAN countries to strengthen QoG to effectively curb IFF activities.
Originality/value
This study provides current empirical evidence on the relationship of IFF, QoG and economic growth within ASEAN countries.
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Rasid Mail, Nafsiah Mohamed and Ruhaya Hj. Atan
Worldwide efforts to transform the public sector under the theme of “New Public Management” have been concerned with the issues of organizational change management. The change in…
Abstract
Worldwide efforts to transform the public sector under the theme of “New Public Management” have been concerned with the issues of organizational change management. The change in the Accounting sector is one of the pillars of such efforts. This paper promotes the importance of leadership roles within the accounting change process by studying them within the context of a corporatized public sector entity. It offers a longitudinal analysis (1998‐2005) through the framework of “levers of control”. Leadership roles within the accounting scenario are compared with leadership roles within the engineering scenario to demonstrate the importance of accounting in mediating leadership roles, and in the end, promote the organization’s operational and financial performance. Through the framework of levers of control, this paper examines the different approaches and styles of an organizational leader in aligning beliefs systems among the workers, and creating management control systems through the mobilization of accounting calculative and constitutive power. This paper argues the importance of studying the characteristics of good leadership with in the organizational transformation process, particularly within the change management accounting practice that could lead to better organizational performance of the organization.
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Jamilah Ahmad and Suriati Saad
The goal of Corporate Social Responsibility (CSR) is to ensure that organisations embrace social responsibility and cultivate activities that provide positive impact on the…
Abstract
The goal of Corporate Social Responsibility (CSR) is to ensure that organisations embrace social responsibility and cultivate activities that provide positive impact on the environment, society, consumers, employees, communities and all other members of the public sphere. Therefore, it is highly important to enhance and augment the teaching of CSR across various disciplines in higher learning institutions. Since 2006, most organisations in Malaysia have been highly encouraged to carry out their Social Responsibility activities, with the government providing support for CSR policies through its tax reduction incentives. Various CSR awards and acknowledgement of the awards provide high value and positive reputation to the organisations that implement CSR-related activities. As a result there is an increasing awareness among businesses to focus beyond compliance with laws in order to respond to the dynamic economic, societal and environmental changes.
Anwar Bin Allah Pitchay, Nur Syazni Arina Mohd Hashim, Yuvaraj Ganesan and Muhammad Shabir Shaharudin
The post-disaster effect is an essential for countries to rebuild an affected place and provide basic needs for victims. However, the government fund alone is insufficient to…
Abstract
Purpose
The post-disaster effect is an essential for countries to rebuild an affected place and provide basic needs for victims. However, the government fund alone is insufficient to cover the total loss of victims. Hence, most of the non-government organisations (NGOs) will play an essential role in raising donation funds from the public. Therefore, this study aims to examine the relationship between information disclosures and giving behaviour.
Design/methodology/approach
A total of 215 responses were gathered through a self-administered questionnaire. The data is analysed using structural equation modelling technique.
Findings
The study result shows that background information, financial information, non-financial information and governance information directly affect trust. Trust is a significant mediator between background, financial, non-financial and governance information towards giving behaviour. Besides, the results illustrated that religious belief does not moderate the relationship between trust and giving behaviour.
Originality/value
This study provides significant knowledge that may be useful for NGOs to be aware of the importance of information disclosures revealed by organisations and make required decisions for potential donors to have trust in organisations handling donations and will be engaging in giving behaviour.
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S. Zainon, R. Atan and Y. Bee Wah
The purpose of this paper is to examine the determinants of the extent of disclosure by non-profit organizations (NPOs) in Malaysia due to the growing interest in the disclosure…
Abstract
Purpose
The purpose of this paper is to examine the determinants of the extent of disclosure by non-profit organizations (NPOs) in Malaysia due to the growing interest in the disclosure practice studies of NPOs and given the importance of disclosure to ensure accountability and transparency.
Design/methodology/approach
This study involves three phases. First, the paper identifies information items NPOs need to disclose. Second, the paper conducts an online survey to determine the ratings of importance for the disclosure items. Third, the paper measures the extent of disclosure from the annual returns of 101 Malaysian NPOs for the year 2009. The paper uses hierarchical regression analysis to determine the significant determinants of information disclosure.
Findings
The key determinants are establishment of an external audit, financial performance and government support in terms of grants. The results show that the presence of external auditors promotes better reporting practice. Malaysian NPOs that receive funding and those with better financial standing disclose more information.
Research limitations/implications
The sample only covers NPOs with tax-exempt status in the state of Selangor and Wilayah Persekutuan in Malaysia. The sample size of 101 registered NPOs limits the generalization of the results. Inclusion and analyses of additional NPOs may offer generalizable results.
Practical implications
This study provides empirical evidence concerning the establishment of external audit for better information disclosure. It also provides 88 items that are important and required by stakeholders.
Originality/value
The study is based on 88 items of information according to the needs of stakeholders for information. The NPOs reporting index can assist the preparers of charity reporting in fulfilling the stakeholders’ requirements. The reporting index can also be used to assess the information disclosure of NPOs in Malaysia.