Sharifah Heryati Syed Nor, Shafinar Ismail and Bee Wah Yap
Personal bankruptcy is on the rise in Malaysia. The Insolvency Department of Malaysia reported that personal bankruptcy has increased since 2007, and the total accumulated…
Abstract
Purpose
Personal bankruptcy is on the rise in Malaysia. The Insolvency Department of Malaysia reported that personal bankruptcy has increased since 2007, and the total accumulated personal bankruptcy cases stood at 131,282 in 2014. This is indeed an alarming issue because the increasing number of personal bankruptcy cases will have a negative impact on the Malaysian economy, as well as on the society. From the aspect of individual’s personal economy, bankruptcy minimizes their chances of securing a job. Apart from that, their account will be frozen, lost control on their assets and properties and not allowed to start any business nor be a part of any company’s management. Bankrupts also will be denied from any loan application, restricted from travelling overseas and cannot act as a guarantor. This paper aims to investigate this problem by developing the personal bankruptcy prediction model using the decision tree technique.
Design/methodology/approach
In this paper, bankrupt is defined as terminated members who failed to settle their loans. The sample comprised of 24,546 cases with 17 per cent settled cases and 83 per cent terminated cases. The data included a dependent variable, i.e. bankruptcy status (Y = 1(bankrupt), Y = 0 (non-bankrupt)) and 12 predictors. SAS Enterprise Miner 14.1 software was used to develop the decision tree model.
Findings
Upon completion, this study succeeds to come out with the profiles of bankrupts, reliable personal bankruptcy scoring model and significant variables of personal bankruptcy.
Practical implications
This decision tree model is possible for patent and income generation. Financial institutions are able to use this model for potential borrowers to predict their tendency toward personal bankruptcy.
Social implications
Create awareness to society on significant variables of personal bankruptcy so that they can avoid being a bankrupt.
Originality/value
This decision tree model is able to facilitate and assist financial institutions in evaluating and assessing their potential borrower. It helps to identify potential defaulting borrowers. It also can assist financial institutions in implementing the right strategies to avoid defaulting borrowers.
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Bee Wah Yap, T. Ramayah and Wan Nushazelin Wan Shahidan
The purpose of this paper is to test some antecedents and outcomes of satisfaction in the banking sector in Malaysia.
Abstract
Purpose
The purpose of this paper is to test some antecedents and outcomes of satisfaction in the banking sector in Malaysia.
Design/methodology/approach
A research model based on the customer satisfaction index (CSI) was developed and tested using structural equation modeling technique with the use of partial least squares (PLS) approach. Data was analyzed using 239 bank customer responses.
Findings
The results showed that satisfaction has a positive effect on trust and this trust leads to loyalty to the bank. Good complaint handling by banks will also elevate satisfaction, trust and loyalty.
Research limitations/implications
This work contributes to the existing literature on CSI models by introducing customer satisfaction as an antecedent of trust. The findings are limited by the constraints of the number of measures and the participation of banks in this study.
Practical implications
Banks should focus on building credibility trust and benevolence trust with their customers. Commercial service is of the utmost importance, and hence banks should develop strategies and train officers in delivering efficient communication and administrative service, as this will elevate customer satisfaction.
Social implications
This work contributes to the understanding of customer behavior, needs and preferences, which can help banks to improve customer satisfaction, trust and loyalty.
Originality/value
This paper adds to the existing literature on service satisfaction antecedents and outcomes in a developing country setting. Although there has been some research works on the same issue, their number has been very small in comparison to the literature appearing based on developed countries.
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Nor Azrina Mohd Yusof, Lai Ming Ling and Yap Bee Wah
The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the…
Abstract
Purpose
The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the evolving nature of the Malaysian corporate tax system have motivated this study. The purpose of this paper is to examine the determinants of corporate tax non-compliance among small-and-medium-sized corporations (SMCs) in Malaysia.
Design/methodology/approach
This study used economic deterrence theory to analyze and test 375 tax-audited cases finalized by the Inland Revenue Board of Malaysia in 2011.
Findings
Multiple regression results revealed that marginal tax rate, company size and types of industry exerted significant effects on corporate tax non-compliance. The services and construction industries were noted to be the predominant industries engaged in tax non-compliance. The amount of concealed income unearthed during tax audit indicates clearly that there is widespread tax non-compliance in Malaysia and the quantum of tax lost through tax non-compliance is quite high.
Research limitations/implications
This study only sampled SMCs audited in 2011, hence, care has been exercised in generalizing the findings.
Practical implications
This study affirms that marginal tax rate, company size and types of industry are the main factors influencing compliance behavior of SMCs. The findings provide important insights not only to the Malaysian tax authority, but also to tax authorities and tax researchers in other parts of the world given that tax non-compliance of SMCs is a prevalent and universal problem. For example, with regard to the finding that marginal tax rate and company size are linked to non-compliance, it can be surmised that tax authorities ought to divert resources to firms with such characteristics when conducting audits.
Originality/value
Most tax research tax examining corporate tax non-compliance used financial data from annual reports to predict tax non-compliance, which are not very accurate. This study used actual tax audit cases obtained from the tax authority which are reflective of the actual situation. This study complements the scant existing literature by empirically evaluating the factors that influenced corporate tax non-compliance in a developing country like Malaysia.
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Abdul Habib Zaray, Abid Hasan, Sparsh Johari, Parvez Ahmad Hashmat and Kumar Neeraj Jha
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and…
Abstract
Purpose
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and time-efficient delivery of construction projects during and post-war to bring normalcy to affected lives and places. Consequently, there is always a tendency to finish construction projects in the shortest possible time on a limited budget without following the proper quality management processes. However, the poor quality of construction projects continues to affect the country's development, growth, credibility, reputation, and public safety for several years after the war. To this end, the present study was conducted to evaluate the significant attributes and factors contributing to the poor quality of construction projects in the war-affected Afghan construction sector.
Design/methodology/approach
A total of 31 attributes influencing construction project quality were ranked based on 110 completed survey responses collected from Afghan construction professionals. Moreover, independent samples t-test, Spearman's rank correlation test, and exploratory factor analysis were conducted.
Findings
The study found a moderate consensus between clients and contractors on attributes' rankings. In addition, the independent samples t-test showed statistically significant differences in means values of responses from clients and contractors for eight attributes. Based on factor analysis, 19 important attributes (median value greater than or equal to four) were classified into 4 latent factors – (1) poor-quality assurance and control, (2) unethical practices, (3) design and drawing errors, and (4) knowledge and skills gap.
Originality/value
Evaluating the factors affecting the quality of construction projects will help clients, government departments, and construction practitioners improve the construction quality management practices. The findings will also inform the policies and procedures of international aid providers.