Papers by Wan Razazila Wan Abdullah
International Journal of Academic Research in Business and Social Sciences
The 2008 global financial scandals have increased pressure on corporations to improve corporate g... more The 2008 global financial scandals have increased pressure on corporations to improve corporate governance practices particularly on risk management. As a response to the crisis, corporate governance reforms have been evidenced. Enterprise risk management (ERM) was introduced as one of the mechanisms that can improve corporate governance practices particularly on risk management. Since its introduction, ERM has received major attention from corporations. Despite the claim that ERM is the solution for corporate governance deficiency, the number of empirical research examining this new field is still limited. Thus, this study aimed at assessing the current development of ERM practices and identifying corporate governance characteristics that influence ERM implementation among Malaysian Shariah-compliant firms. The extent of ERM implementation was measured by using ERM Dimension index (ERMDi). A questionnaire survey was developed based on ERMDi to gather information on the extent of ERM practices. Four corporate governance characteristics were examined that are risk management committee (RMC), board size, proportion of non-executive directors and board expertise and its influence to ERM implementation. The data was analyzed by using Partial Least Squares and Structural Equation Modelling technique (PLS-SEM). Findings of this study show that the extent of ERM implementation among sample firms is at the moderate level and based on PLS-SEM analyses, board size and board expertise has a strong influence to ERM implementation. This study, find support that corporate governance characteristics have a positive and significant association with ERM implementation. The findings of this paper provide an additional empirical evidence regarding the extent of ERM practices and corporate governance characteristics that would influence ERM implementation among Malaysian Shariah-compliant firms.
International Journal of Academic Research in Business and Social Sciences
In today's knowledge-based economy, the management of green intellectual resources (GIC) is very ... more In today's knowledge-based economy, the management of green intellectual resources (GIC) is very important in dealing with environmental issues. The implementation of GIC contributions is said to be able to help companies in driving competitiveness and sustainability. A green intellectual capital model is needed to enable companies that are sensitive to the environment, such as manufacturing companies in assessing the company's level of resource management. Since the existing GIC model is limited to measurement tools developed in developed countries, whose green technology progress is ahead of developing countries, a specific model that represents the perspective of developing countries should be developed. This paper is a continuation of the study on the measurement of GIC for environmentally sensitive companies in Malaysia. The methodology used in this study included a previous literature review, focus group interviews and expert reviews The results of this study have classified GIC into 5 themes, namely green human capital (GHC), green innovation capital (GNC), green organizational capital (GOC) and green relationship capital (GRC). This model is also highly recommended for use by researchers. and managers of the manufacturing sector in Malaysia and other developing countries.
International journal of academic research in accounting, finance and management sciences, Sep 19, 2022
The coronavirus (COVID-19) pandemic is regarded as the world's most serious health, economic, and... more The coronavirus (COVID-19) pandemic is regarded as the world's most serious health, economic, and social crisis. Therefore, managers play an important role in ensuring the survival of their business, and their discretion in financial reporting during a crisis becomes an interesting area to study. Meanwhile, the adoption of the International Financial Reporting Standard (IFRS) is anticipated to enhance the accuracy of earnings reported in financial statements. As a result, the objective of this study is to investigate the relationship between IFRS adoption and the impact of COVID-19 on earnings quality among Malaysian public listed companies. This study used two measures of earnings management: Accrual Earnings Management (AEM) and Real Earnings Management (REM). The sample of this study covers the period after the implementation of MFRS 111 for Construction companies in the year 2012 until the latest COVID-19 outbreak up to the year 2021. This study discovered that earnings management decreases after the adoption of IFRS, indicating that earnings management activities have been mitigated. However, the results also demonstrate that that earnings management figures are significant during the COVID-19 outbreak. Furthermore, the findings show that board composition and firm characteristics have an impact on firms' decisions to manage their earnings, whether on an accrual or real earnings management basis.
International Journal of Academic Research in Business and Social Sciences
Earnings management has long been in practice for several reasons with various implications repor... more Earnings management has long been in practice for several reasons with various implications reported on firm performance. The COVID-19 pandemic has created another compelling reason for earnings management to be conducted as it has undoubtedly affected many businesses financially. This study examines the impact of earnings management on firm performance during the COVID-19 pandemic hits. Earnings management is quantified following the Roychowdhury-inspired model of real earnings management, where abnormal cash flows from operation, abnormal discretionary expenses, and abnormal production costs are used as proxies. As for performance, it is reflected through the firm's return on assets (ROA), return on equity (ROE) as well as earnings per share (EPS). The sample for the study comprises a number of consumer goods firms listed in Bursa Malaysia from 2020 through 2021. Analyses of descriptive statistics, correlation analysis, and multiple regressions were adopted to test the research hypotheses. Results showed that earnings management had a positive but insignificant impact on firm performance during the pandemic years. This study adds to the body of knowledge by shedding light on the effects of earnings management during the pandemic and by expanding the literature on earnings management. This is particularly useful for managers, investors, and analysts for decision-making and analysis purposes.
International Journal of Academic Research in Business and Social Sciences
The governance of companies has been the subject of increasing interest following the pandemic CO... more The governance of companies has been the subject of increasing interest following the pandemic COVID-19. Despite the claim that corporate governance is a tool that may help companies sustain it business performance during the pandemic, the number of empirical research studying this unprecedented scenario is still limited. This study aimed at examining the impact of corporate governance mechanisms; board size, board independence, gender diversity and CEO diversity on the firm performance of Malaysian public listed construction firms during the COVID-19 pandemic's bitter period. This study adopts quantitative research approach wherein by employing secondary data. The data sample of this study are extracted from the audited financial statements for the year ended 31 December 2020 from 53 Malaysian public listed construction firms. The findings revealed that, the board independence is positively significant associated to the firm performance. In interval, the board size, gender diversity and CEO diversity are found to be insignificant associated to the firm performance. This study contributes to the policy makers that give a current insight in setting up better corporate governance mechanisms which are capable of meeting challenges in such a grave economic situation. The outcome of this study benefits to the organisation by way of providing them with the tested solutions in their planning and decision making, and as well as to the academicians for future research on the subject related to this area. Future research could expand the setting to include other industries in order to more thoroughly assess the impact of corporate governance on firm performance during the pandemic because the current study is primarily focused on the construction industry.
International Journal of Academic Research in Business and Social Sciences
The main objective of this study is to determine the choice of earnings management approach among... more The main objective of this study is to determine the choice of earnings management approach among financially distressed firms in the period before and during the COVID-19 pandemic. The manager may choose either Accrual Earnings Management (AEM) or Real Earnings Management (REM). This study uses the modified Jones, 1991, model for AEM. Whereby for REM is the Abnormal Cash Flow from Operation (AbCFO), Abnormal Production Cost (AbPROD), and Abnormal Discretionary Expenses (AbDISEXP) model by Roychowdhury, 2006. Using a final sample of 672 firms year observation consisting of Malaysian public listed companies for the period of 2018 to 2021, this study reveals that financially distressed firms do manipulate earnings using the REM approach both before and during the pandemic. Further analysis discovers that those firms specifically practice AbCFO and AbDISEXP in managing earnings. This study also finds a significant negative relationship between financial distress and the AEM approach. In addition, some other control variables such as leverage, firm size, ROA and liquidity also have a significant effect on EM. This study contributes to the earnings management literature, notably how managers choose to manipulate earnings at the different levels of financial health, which then can influence the accounting earnings quality.
International Journal of Academic Research in Business and Social Sciences
The unprecedented effects of COVID-19 have been felt in nearly every industry and country around ... more The unprecedented effects of COVID-19 have been felt in nearly every industry and country around the globe, but the outbreak's severity varies across nations and sectors. This includes the population of female entrepreneurs who own small businesses. Despite numerous financial assistance available to assist women entrepreneurs, it remains a difficult phase for them to re-establish operations, given the embedded problems and challenges they face throughout the process. On top of that, the survival rate of the women-related business is also unsatisfactory due to several business internal factors. Therefore, this study will explore the use of the Resource-Based View theory in achieving business sustainability among women microbusiness entrepreneurs. It is a subject of interest as the RBV theory asserts that the key to enhancing business performance is by exploiting the business's internal characteristics. The RBV framework recommended the management focus on the firm's internal resources in developing the potential to obtain a sustainable competitive advantage. The RBV brings the idea for a firm to properly identify the firm resources, that are subject to be exploited as strategies for development, which in turn help to improve the firm's efficiency and effectiveness. The discussion will be constructed following three attributes of firm resources suggested by the RBV framework, which consists of physical capital resources, human capital resources and organisational capital resources. This paper clarifies the concepts of each attribute and demonstrates the framework's relevance in promoting business sustainability among women microbusiness entrepreneurs.
This study examines the effects of IFRS adoption on the quality of financial reporting (proxies b... more This study examines the effects of IFRS adoption on the quality of financial reporting (proxies by the level of earnings management) in Malaysia. The study measures the quality of Malaysian Construction companies through discretionary accruals yielded from 2008 to 2016. The sample comprises a balanced panel of 810 firmyear observations of Construction firms under the Main Board of Bursa Malaysia. This study accesses the effectiveness of effort by the Malaysian Accounting Standard Board (MASB) to improve the financial reporting by the revision process of the standard and their mandatory application. The accounting standard in Malaysia has closely followed the former International Accounting Standards (IAS) which is currently known as the International Financial Reporting Standard (IFRS). In November 2011, the Malaysian Accounting Standard Board (MASB) has issued the implementation of the Malaysian Financial Reporting Standard (MFRS). The full convergence is effective starting from 1 ...
Corporate governance has been the subject of increasing interest following the 2008 global financ... more Corporate governance has been the subject of increasing interest following the 2008 global financial crisis. As a response to the crisis, Enterprise risk management (ERM) was introduced globally. Despite the claim that ERM is the solution for corporate governance deficiency, particularly in risk management practices, the number of empirical research studying this new field is still limited. Therefore, the current study has four research objectives that are; (i) to assess the extent of ERM practices, (ii) to identify corporate governance characteristics that influence ERM implementation (iii) to examine the association between ERM and firm value and (iv) to propose and develop the dimensions that can effectively measure ERM implementation. Eighty-one usable questionnaires were successfully collected and analysed using Partial Least Squares structural equation modeling method (PLS-SEM). The results of this study support that corporate governance characteristics (board size and board e...
International Journal of Academic Research in Business and Social Sciences, 2021
Following the COVID-19 outbreak, the educational delivery mode has gone through a drastic change ... more Following the COVID-19 outbreak, the educational delivery mode has gone through a drastic change from face-to-face (F2F) to open and distance learning (ODL). This has called for a comparison of the learning outcomes to ensure that the current learning mechanism and exam format are appropriate, and the academic results truly reflect the ability of students. This study aims to compare the students' performance in various financial accounting and reporting (FAR) courses and to determine if there is any significant difference in the results during both sessions. A dataset of two prime semesters is utilized which includes the results of the last F2F final examination held in 2019 and the first online examination conducted in full in 2020 following ODL. The results indicate a significant difference in scores between F2F and ODL sessions for all FAR courses except for FAR160. There is a mixed picture with a combination of a significant increase, decrease, and no changes in the performance of each FAR course during ODL. However, a significantly better performance can be seen in the overall FAR courses and total GPA scored. Future research may explore the factors influencing the improved performance in ODL as compared to the F2F session.
International Journal of Academic Research in Business and Social Sciences, 2021
Enterprise risk management (ERM) has emerged as an important new corporate risk management practi... more Enterprise risk management (ERM) has emerged as an important new corporate risk management practice. The main objective of ERM is to create shareholders value and increase firm value by reducing various costs involved with highly volatile cash flows particularly to mitigate financial distress costs and underinvestment problems. However, findings of prior studies show mixed results on the ability of ERM to create value for firm. Thus, this study aimed at examining the impact of ERM implementation to maximising shareholders value which is measured by financial distress costs, underinvestment problems and firm value among Malaysian Shariah-compliant public-listed companies. This is a cross-sectional study that used quantitative methodology approach. Two types of data were gathered that are (i) primary data; through survey questionnaire and (ii) secondary data; hand-picked from firms' annual report. Findings of this study demonstrate that ERM implementation has a significant impact to financial distress cost and underinvestment problem. However, the results do not find an impact of ERM implementation to firm value. The outcome of this study would be useful for firms to have a better understanding on the impact of ERM implementation to shareholders value where empirical findings of this study confirmed that ERM
International Journal of Academic Research in Business and Social Sciences, 2018
This study examines the effects of IFRS adoption and corporate governance practices on the qualit... more This study examines the effects of IFRS adoption and corporate governance practices on the qualities of financial reporting in Malaysia. The sample comprises a balanced panel of 360 firmyear observations of Construction firms under the Main Board of Bursa Malaysia from 2013 to 2016. This study accesses the effectiveness of effort by the Malaysian Accounting Standard Board (MASB) to improve the financial reporting by the revision process of the standard and their mandatory application. In addition, this study measures the relationship between of board of directors and the level of earnings management. The composition of board of directors is an important corporate governance mechanism in mitigating earnings management. The Malaysian Code of Corporate Governance (MCCG) has been issued in year 2000 and was revised in 2007 and the latest revision is in 2012 in order to enhance good governance by corporation. Besides MCCG, the year witnessed the full convergence of IFRS effective starting from 1 st January 2012. One of the standards of MFRS 111 Construction Contracts focuses on construction companies. Therefore, this study is to examine the impact of IFRS adoption and corporate governance practices on the level of earnings management of Malaysian Construction companies. The results show that there is a significant relationship between the characteristics of board of directors with the level of earnings management during the years after the adoption of IFRS in Malaysia. This suggests the adoption of IFRS and corporate governance practices by that Malaysian construction companies contribute to higher accounting qualities. Thus, the results of this study are expected to provide early evidence of the impact of adopting IFRS and corporate governance practices and give further direction for the regulatory bodies regarding the accounting standards and financial reporting practices in Malaysia. Future research perhaps could analyze the relationship of the characteristics of audit oversight board in mitigating earnings management.
Corporate Governance Practices and Firm Performance After Revised Code of Corporate Governance: Evidence from Malaysia
State-of-the-Art Theories and Empirical Evidence, 2017
This study examines the relationship between corporate governance and firm performance of public ... more This study examines the relationship between corporate governance and firm performance of public listed firm in Malaysia. In March 2000, the Malaysian Code of Corporate Governance (MCCG) was first issued and has been revised twice in 2007 and 2011. The board’s role in governance has been emphasized in the revised MCCG, and directorship of the director in public-listed company is limited to five only. Thus, this study aims to evaluate whether the revised MCCG will give impacts on the firm performance. The sample consists of top 100 firms listed on Bursa Malaysia for the period from 2012 to 2014. Analyses of descriptive statistics, correlation analysis and multiple regressions are used to address the research hypotheses. The finding of this study reveals significant relationship between the revised MCCG with the firm performance.
Factors influencing the financing decision for multinational corporations listed in bursa Malaysia / Norashikin Ismail , Wan Razazila Wan Abdullah , Kharudin Mohd Sali
This thesis may be consulted by you, provided you comply with the provisions of the Act and the f... more This thesis may be consulted by you, provided you comply with the provisions of the Act and the following conditions of use: you will use the copy only for the purposes of research or private study you will recognise the author's right to be identified as the author of the thesis and due acknowledgement will be made to the author where appropriate you will obtain the author's permission before publishing any material from the thesis.
Corporate financial distress, market reaction and turnaround strategies: a Malaysian scenario / Norashikin Ismail , Wan Razazila Wan Abdullah , Raziah Mohamed Sadique
Determinants of corporate dividend policy: a Malaysian perspective/Wan Razazila Wan Abdullah, Norashikin Ismail, Raziah Bi Mohamed Sadique
... WAN RAZAZILA WAN ABDULLAH NORASHIKIN ISMAIL RAZIAH BI MOHAMED SADIQUE NOVEMBER 2005 COPYRIGHT... more ... WAN RAZAZILA WAN ABDULLAH NORASHIKIN ISMAIL RAZIAH BI MOHAMED SADIQUE NOVEMBER 2005 COPYRIGHT @ UiTM Page 3. FAKULTI PERAKAUNAN Universiti Teknologi MARA Johor Km 12, Jalan Muar,85200 Segamat Johor Darul Takzim Tel: 07-9352000 ...
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2021
The board of directors' monitoring function derived from the agency theory plays a crucial role i... more The board of directors' monitoring function derived from the agency theory plays a crucial role in mitigating agency problems and monitoring managerial decisions to protect shareholders' interests and to ensure high-quality financial reporting. There is a recent growing stream of research on the effects of gender differences that state that the presence of women on the board of directors could bring about positive outcomes in a firm's performance, corporate monitoring, and oversight. Thus, the purpose of this study is to investigate whether the gender diversity of the board of directors has a significant impact on the firm's financial reporting quality proxied by earnings management. This study employs panel data analysis of the financial data and qualitative data for the period from 2016 until the latest ones 2020 of Malaysian listed companies, as evidence from emerging countries. The empirical results of this study indicate that female directors on board mitigate earnings management. Thus, the results provide insights for regulators and policymakers; that the presence of female directors will affect management decisions and audit quality, therefore gender diversity on board should be further emphasized.
The New Issue Puzzle in Malaysia: Performance and Earnings Management
Journal of Financial Reporting and Accounting, 2005
The current study seeks to answer the puzzle as to why firms issuing equity produce poor returns ... more The current study seeks to answer the puzzle as to why firms issuing equity produce poor returns to investors in the long run by exploring whether the post issue performance is being influenced by the potential opportuities of earnings management during the period prior to public listing. Using a sample of 187 IPO firms, results in the study shows that firms that go public over the period 1989‐1998 obtained significant negative share return relative to their control firms in the long run. Further analysis provides evidence that managers of Malaysian IPO firms manage their earnings prior to public listing. However, no significant relation is observed between prior earnings management and post issue long run performance. The result is robust with respect to IPO firms with either high or low level of earnings management. Thus, there is no evidence to suggest that the pre offering earnings management is able to predict the negative share return performance post issue. The decline in the...
Uploads
Papers by Wan Razazila Wan Abdullah