Papers by Norman Mohd Saleh
The framing effects of stakeholder’s power and sustainability disclosure / Suria Majdi … [et al.]
Faculty of Accountancy eBooks, 2019
Zenodo (CERN European Organization for Nuclear Research), Dec 23, 2022
This paper aims to extend the reviews of corporate social disclosure (CSD). This study focuses on... more This paper aims to extend the reviews of corporate social disclosure (CSD). This study focuses on the variables affecting CSD and the associated theoretical bases. This study followed a desk-based research method (traditional narrative review) to explore available knowledge on CSD. The paper finds that firm characteristics, ownership structure, and board characteristics influence CSD. The coverage of relationships between CSD and the firm's different features was the most dominant in the reviewed literature, followed by board qualities and ownership structure. Unlike the rest of the firm features, the effect of firm size on CSD received the greatest attention from prior studies. Moreover, board size and government ownership were the core focus of previous studies which analyzed the impact of board qualities and ownership structure on CSD. Theoretically, the prior studies explained firms' CSD behavior mostly from the lens of legitimacy theory. The second most adopted theoretical interpretation was agency theory, followed by stakeholders' and institutional theories. This paper enables us to clarify the factors that gained the growing attention of empirical studies as determinants of CSD. Furthermore, it further shows what motivates firms to report CSD by analyzing adopted theories by literature.
Jurnal pengurusan, 2017
cooperatives are jointly owned by their member-users, who also democratically control the enterpr... more cooperatives are jointly owned by their member-users, who also democratically control the enterprise. In turn, all members share the benefits of cooperatives. Thus far, not much is understood about the role of the regulator vis-à-vis the cooperative board in the governance of the claimed, social enterprise. The objectives of this study are to evaluate cooperative governance from the public interest perspective and provide narratives of the nature of governance practices for accountability of Malaysian cooperatives. This study adapts a public interest view borrowed from the political theory framework as proposed by Cochran (1974) for the evaluation of governance practices in relation to cooperatives' accountability. Data was collected through in-depth interviews. The framework suggests cooperatives follow a consensualist view, responsible to the specific community or members they serve, which demands a certain degree of autonomy to operate effectively. The description of the nature of control over cooperatives and the public's interest in cooperatives that this study provides, recommends control by regulators is, to a certain extent, needed in order for cooperatives to be effective in discharging their accountabilities as there are a lack of members' activism and cooperative board competency inherent the industry in Malaysia.
South East Asian Journal of Management, Apr 30, 2023
Research Aims: This study tests the effects of different stakeholder power (shareholders, employe... more Research Aims: This study tests the effects of different stakeholder power (shareholders, employees, customers, business partners, community, government, NGOs, and media) on sustainability disclosure using stakeholder salience theory. Extending from this perspective, this study makes separate assumptions for each stakeholder and determines which one had the most power over sustainability disclosure. Design/Methodology/Approach: The study adopts a journalism (i.e., news framing) approach and observes the element of power in sustainability disclosure using content analysis. The sample comprises of panel data of 140 listed firms in the construction and property sector in Malaysia. The results show that the employees, community and media power are positively related to sustainability disclosure. This study improves our understanding of the factors determining firms' disclosure by demonstrating that market stakeholders (shareholders, employees, customers and business partners) are not perceived as necessary by managers concerning sustainability disclosure. Theoretical Contribution/Originality: Common studies view all stakeholders to be taken homogenously into consideration in business decision making. Few studies focus on the power of stakeholders in influencing disclosure is lacking. Managerial Implication in the South East Asian Context: This study gives insight on which stakeholder is the most important in rank and the finding informs managers to draft a stakeholder management plan and budget, given that such activities can increase firm value. Research Limitation & Implications: This research however did not investigate the dynamics of stakeholder power along with the existence of other salience factors, i.e., the legitimacy and urgency factors.
International Journal of Management Studies, 2020
This study examines the effect of political connections (PCONS) on firms’ disclosure of forward-l... more This study examines the effect of political connections (PCONS) on firms’ disclosure of forward-looking information choices in the context of developing countries. Using multivariate regression of panel data comprising 360 firmyear observations of non-financial firms listed on Bursa Malaysia between years 2014 and 2017, PCONS are found to be positively associated with disclosure of forward-looking information. However, such relationship only exists for non-financial forward-looking information. Using the stakeholder salience theory to further contribute to the body of knowledge, the strength of the connections suggests that a high composition of politically-connected directors on the board promotes greater information about the future in firms’ disclosure. The common connection through ownership of firms in emerging countries suggests the effective role of institutional shareholders in improving forecasting activities through high disclosure of forward-looking information. The study...
Asian Academy of Management Journal of Accounting and Finance
Earnings management is often investigated from the opportunistic perspective and rarely from the ... more Earnings management is often investigated from the opportunistic perspective and rarely from the informational perspective. This study investigates earnings management from the informational perspective by incorporating underinvestment as a moderating variable in the relationship between earnings management and information asymmetry. A panel data regression analysis on firms listed on the Main Board of Bursa Malaysia reveals that earnings management reduces information asymmetry. We also provide evidence that underinvestment moderates the relationship between earnings management and information asymmetry. This finding suggests that earnings management among underinvesting firms reduces information asymmetry. Therefore, underinvestment motivates managers to convey informational earnings management.
Corporate Governance: The International Journal of Business in Society, 2020
Purpose This paper aims to explore how the presence of an audit committee is associated with othe... more Purpose This paper aims to explore how the presence of an audit committee is associated with other corporate governance mechanisms, i.e. board structure, ownership structure and quality of external audit. The present study evaluated whether the presence of the audit committee complements or substitutes other governance mechanisms in Palestinian companies. Moreover, the effect of investment opportunities on the relationship between the formation of the audit committee and the quality of the auditor was addressed. Design/methodology/approach The association between the formation of the audit committee and other governance variables was modelled as a binary logistic model. The sample comprising 44 firms listed on Palestine exchange for the period between 2013 and 2017, amounting to 220 firm-year observations. Findings Based on the investigation, the results have indicated that board independence, the distinction between the chairman and chief executive officer function, ownership conce...
Jawatankuasa audit di Malaysia : peranan dan cabaran
Penerbit Universiti Kebangsaan Malaysia eBooks, 2010
The Monitoring Role of Institutional Investors and Earning Opacity)
ABSTRAK Pelabur institusi merupakan kumpulan pelabur canggih yang berpotensi mengawasi pengurusan... more ABSTRAK Pelabur institusi merupakan kumpulan pelabur canggih yang berpotensi mengawasi pengurusan firma serta menyumbang kepada pengurangan kos agensi. Kajian ini meneliti peranan pengawasan pelabur institusi dalam ekonomi yang melibatkan pelaburan dana awam serta campur tangan kerajaan yang tinggi. Kajian menfokus kepada kesan pemilikan pelabur institusi terhadap amalan pengurusan perolehan firma portfolio berasaskan tahap kekaburan perolehan. Selain itu, kajian turut melihat sama ada status awam/bukan awam pelabur institusi mempengaruhi keupayaan mereka melaksanakan pengawasan yang berkesan. Pemilikan pelabur institusi diukur berdasarkan tiga dimensi iaitu: (1) peratus pegangan ekuiti pelabur institusi; (2) konsentrasi pegangan pelabur institusi; dan (3) bilangan pelabur institusi. Kecenderungan mengurus perolehan ditentukan berdasarkan tahap kekaburan perolehan firma yang merupakan skor agregat empat ukuran iaitu: (1) keagresifan perolehan; (2) perlicinan perolehan; (3) pengelakan melapor kerugian; dan (4) pengelakan melapor penurunan dalam perolehan. Sampel kajian terdiri daripada syarikat tersenarai di Papan Utama dan Papan Kedua Bursa Malaysia dari tahun 1996 hingga 2005. Data dikutip daripada pengkalan data Datastream dan laporan tahunan syarikat. Perhubungan antara tahap kekaburan perolehan dengan pemilikan pelabur institusi diuji berdasarkan analisis regrasi berganda dengan mengawal kesan tahap pegangan ekuiti pengurusan firma, saiz firma, tahap keumpilan firma dan kualiti juruaudit firma. Keputusan kajian menunjukan bahawa pelabur institusi bukan awam dengan konsentrasi pegangan yang tinggi melaksanakan pengawasan yang lebih berkesan terhadap pihak pengurusan firma berbanding pelabur institusi awam.
International journal of business, 2003
In response to rapid development in the economy, the Malaysian Accounting Standards Board (MASB) ... more In response to rapid development in the economy, the Malaysian Accounting Standards Board (MASB) was established in 1997. The board is responsible for developing accounting standards and continually improving the quality of external reporting in Malaysia. In the development process, constant reference is made to the work of national standard setters of other countries and the International Accounting Standards Committee. This paper highlights major similarities and differences between United States Generally Accepted Accounting Principles (GAAP) and Malaysia approved accounting standards, and offer some suggestions as to how Malaysia might effectively continue with the further development and restatement of its accounting standards. This study finds no significant difference in the basic accounting principles, assumptions and reporting format between U.S. GAAP and MASB standards. However, some differences in rules regarding specific accounting elements have been identified. Hence, further research is needed in order to understand differences and similarities between accounting standards of the two countries in greater detail.
Management & Accounting Review (MAR), Jun 24, 2005
The study investigates the existence of earnings management practices by companies listed in the ... more The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness test around zero reported earnings, this study finds a significant incidence of companies reporting positive earnings while avoiding showing losses. This finding is consistent with that of previous studies. The study also provides evidence that earnings management practices were reduced following the introduction of a code of corporate governance by the Malaysian government in 2001.
International Journal of …, 2008
This paper examines the roles of independent members on the board, chief executive officer who al... more This paper examines the roles of independent members on the board, chief executive officer who also serves as a chairman of the company, board competency and management's share ownership on earnings management practices. Different from prior research, it also investigates whether independent board competency (an interaction of independence and competency) and independent board share ownership (an interaction of independence and management ownership) would lead to better monitoring over earnings management. It also examines whether board competency and share ownership could compensate the missing role of monitoring when CEO duality exists. The results indicate that excessive shareholding beyond 25% by managers may induce managers to manage earnings, and a combined chairman-CEO roles (CEO duality) does not influence the practice of earning management in Malaysian firms. The results also indicate that the minimum composition of one-third independent director, as suggested by the Code of Corporate Governance in Malaysia is not adequate to monitor the management from earnings management practices.
The shariah committee attributes, advising role and the preservation of religion in the Malaysian Islamic financial institution
Previous studies had documented evidences which were incoherent of which either focused on the Sh... more Previous studies had documented evidences which were incoherent of which either focused on the Shariah Committee attributes or the IFI performance based on profitability and corporate social responsibility. Furthermore, these performance measurements are considered inappropriate as it should be based on the achievement of the maqasid al shariah. Hence, this study addresses this gap by examining the effectiveness influenced by Shariah Committee attributes and its involvement in the advising role in achieving maqasid al shariah. It is a process oriented approach through the lens of Islamic Accountability based on the Shariah Governance Framework (SGF) 2011. This study extends the attributes of the Shariah Committee members to include the component of their tawhidic values and the achievement of the maqasid al shariah through their perceptions. Therefore, the quantitative approach through survey was employed whereby the questionnaire, based on three main constructs namely the Shariah C...
Developing Co-Operatives’ Sustainability Performance Measurement
Social Science Research Network, 2022
International Journal of Management Studies, 2021
This study used the theory of planned behavior to examine the relationship between internal audit... more This study used the theory of planned behavior to examine the relationship between internal auditors’ behavioral factors and intention to evaluate enterprise risk management (ERM) effectiveness of Malaysian statutory bodies. Unlike prior literature, this study also included a test on individual attitude towards risk in addition to attitude towards behavior, subjective norms, and perceived behavioral control. Analysis on 108 received responses showed that subjective norms and perceived behavioral control had positive relationships with the intention to assess ERM effectiveness. Nevertheless, the influence of attitude was not substantiated. The results imply that attitude is not an important factor when individuals do not have total process ownership. Managers of statutory bodies and heads of internal audit departments need to shape internal auditor behavior by instituting social and administrative norms and instilling a positive perception about the ability to perform tasks within th...
Real Earnings Management: Do the Experience and Gender of Big4 Auditors Matters?
GATR Accounting and Finance Review, 2021
Objective - This study examines whether the experience and gender of auditors in Big4 firm in rel... more Objective - This study examines whether the experience and gender of auditors in Big4 firm in relationship of deterring Real Earnings Management (REM).Different from the majority of previous studies, this study focuses on auditors in Big4 audit firms and real earnings management within Malaysian business environment. Big4 audit firms are associated with high quality audit because of the reputation to uphold, thus adopted stringent quality control and assurance approach, systems and procedures. Once adopted, the effect of individual characteristics may become less important. Thus, it is questionable whether individual characteristics such as auditor experience and gender could still have an influence on the outcomes of an audit, in this case, REM, when the audit firms are Big 4 (assuming very stringent quality control procedures are adopted). Methodology/Technique –This study substantiates prior literature and conducted tests only on companies audited by Big4 audit firms. We also fin...
Family and Government-Controlled Firms and their Recognition of Goodwill Impairment
The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting In Malaysia
GATR Accounting and Finance Review, 2021
Objective - The objective of this paper is to investigate the relationship between family ownersh... more Objective - The objective of this paper is to investigate the relationship between family ownership and corporate sustainability reporting to determine how the role of board independence affects the relationship between those variables within Malaysian listed companies. Methodology/Technique – The annual reports of 771 listed companies from 2014 to 2016 were analyzed using content analysis methods. The study uses agency theory to develop the hypotheses. Findings - The study found that family ownership is negatively related to corporate sustainability reporting. The finding shows that independent directors are unable to influence the relationship between family ownership and corporate sustainability reporting. The findings of this study are expected to provide insight to authorities in relation to the factors that could enhance corporate sustainability reporting primarily in family-owned companies. Novelty - Previous studies have only focused on environmental and social dimensions of...
Asian Journal of Accounting and Governance, 2019
Effectiveness in managing knowledge asset is essential to improve the quality services and to enh... more Effectiveness in managing knowledge asset is essential to improve the quality services and to enhance performance. The purpose of this study is to explore on how hospitals extracting the value of their knowledge assets in order to sustain and be competitive by considering leadership styles factors. The data collection was carried out by survey. Questionnaires were distributed to all top management team of private hospitals in Malaysia. From the survey, the results indicate that transformational leadership styles are significantly related to the knowledge assets element. This suggests that some hospitals might use the characteristics of transformational leadership styles such as idealized influence, inspirational motivation, intellectual stimulation and individualized consideration to enhance knowledge assets management. The findings might also assist the regulators and managers of the hospitals to formulate strategies in enhancing governance of knowledge assets.
Effects of goal orientation, self-efficacy and task complexity on the audit judgement performance of Malaysian auditors
Accounting, Auditing & Accountability Journal, 2018
PurposeThe purpose of this paper is to examine the effects of self-efficacy, goal orientation and... more PurposeThe purpose of this paper is to examine the effects of self-efficacy, goal orientation and task complexity on audit judgement performance in correctly linking audit procedures to audit objectives and types of misstatements.Design/methodology/approachThe authors conducted an experiment audit with 154 auditors from small and medium audit firms in Malaysia as participants. The experimental task required them to link audit procedures to audit objectives and types of misstatements.FindingsFor sample of auditors from small and medium audit firms in Malaysia, the authors found that learning goal orientation has a stronger effect on audit judgement performance than performance-approach and performance-avoidance goal orientations. Self-efficacy mediates the effect of goal orientation when an audit task is less complex compared to when the task is more complex.Research limitations/implicationsThese results highlight the importance of social cognitive factors in explaining variations in...
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Papers by Norman Mohd Saleh