This study explores the modus operandi and regulatory influence of the pioneering Malaysian dual-... more This study explores the modus operandi and regulatory influence of the pioneering Malaysian dual-layer governance system where, besides an Islamic bank's in-house religious board, supervision is undertaken by the country's Central Bank via its own Shariah Advisory Council (SAC). Data was collected by means of an in-depth interview survey with SAC members, Central Bank compliance officers, Bank Chairmen and members of Shariah boards, CEO's and other senior executives. We find that the procedures asserted by this over-arching governance structure contributes to standardising practice without hampering creativity when innovating new products. Considerable bureaucracy is also found to exist due the the current approval process impeding efficient decision-making. In addition, we find the SAC to be decisive in resolving disputes from the widespread use of the 'legal reasoning' (or Ijtihad) principle exercised by boards providing the much needed confidence and market discipline required by stakeholders. Finally, we highlight how this form of banking operates best when left to a country's own governance framework rather than imposing international regulation for this nascent industry.
This study examines retail investors’ trading behaviour and its determinants in the Indonesian Sh... more This study examines retail investors’ trading behaviour and its determinants in the Indonesian Shari’ah stock market by mainly focusing on the religious practice-related factors in the form of sadaqah or charitable giving on individual investors’ trading behaviour. Contextually, the Islamic moral economy (IME) assumes a direct relationship between religiosity and sadaqah giving due to the falah (salvation) oriented individual objective function, which can be reached through doing ihsan (beneficence for equilibrium). The findings based on a questionnaire survey distributed to individual investors on Shari’ah Online Trading System (SOTS) delineate that religiosity, accounting information, neutral information, personal financial needs, and the sadaqah feature have significantly affected investors’ trading behaviour in which the sadaqah feature is positively correlated, while religiosity factors are negatively correlated. Thus, despite the theoretical expectation through IME, this study...
... aware of their limited engagement period would examine their clients' accounts more obje... more ... aware of their limited engagement period would examine their clients' accounts more objectively ... the rotation of firms could be smoothly implemented if the Malaysian accounting profession ... firms, respondents' opinions were solicited on the effect on auditor independence if the ...
This paper examines the perception of bankers on contribution of audit committees towards externa... more This paper examines the perception of bankers on contribution of audit committees towards external auditor independence in public listed companies. All Malaysian public listed companies are required to establish an audit committee as a measure to improve on the internal control mechanism that can help improve the corporate governance practices of firms. Postal questionnaires and interview surveys were used to solicit the perception and views of loan officers. The majority of the respondents believe that auditor independence is preserved with the presence of an actively functioning audit committee. This implies favourably on the corporate governance reforms initiated by the government after the 1998 financial crisis.
This study investigates the main problems, challenges, and opportunities facing Islamic banking i... more This study investigates the main problems, challenges, and opportunities facing Islamic banking in the United Kingdom. The study reports the results of interviews that were undertaken with senior officials of several key financial institutions who have had many years of experience in dealing with Islamic banking. Our interviews revealed that, although by strict definition Islamic banks do not currently exist in the UK, London is one of the major centers for Islamic banking and finance. It is apparent that the experience of previously established Islamic institutions, such as Al-Baraka, has made other institutions realize that it is possible to provide Islamic banking services in the UK under nonbanking regulations. The interviews also revealed that the main problem that Islamic banking faces in the UK is heterogeneous clients and potential clients. Moreover, regulatory hurdles, competition from conventional banks, and lack of adequately qualified and trained personnel exacerbate the situation. The study concludes by identifying opportunities such as e-banking that may have a significant impact on the future of Islamic banking in the UK.
Regulators and stakeholders in worldwide capital markets have placed a great concern on the poten... more Regulators and stakeholders in worldwide capital markets have placed a great concern on the potential threat of joint provision of audit and non-audit services to audit client on perceived auditor independence. This study reports the research findings of the effects of the joint provision of audit and non-audit services (NAS) on perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers of public listed companies. The main findings of the study were that auditor independence would significantly threaten when audit and NAS were jointly provided by audit engagement team, however, this perceptions were changed when exist proper segregation of duties or 'Chinese Wall' in audit firms either by way of staff from separate department or entities.
Executive agencies have had several years’ experience of the introduction and development of accr... more Executive agencies have had several years’ experience of the introduction and development of accruals based accounting systems. Senior agency managers therefore provide an authoritative source of information on the problems that could follow from introducing it more widely across government. A survey of senior managers revealed that, despite major improvements in accounting information systems, agencies still face difficulties in implementing
... Bhimani, A. (1993), "Performance measures in UK manufacturing compan... more ... Bhimani, A. (1993), "Performance measures in UK manufacturing companies: the state of play",Management Accounting, London, Vol. ... Burton, A. (1994), "Performance measurement: responsibility accounting for current assets and liabilities", Management Accounting, Vol. ...
This study examines the perceptions of the users of annual corporate reports in Saudi Arabia. The... more This study examines the perceptions of the users of annual corporate reports in Saudi Arabia. The focus is on the use and importance of the seven different sources of corporate information contained in Saudi annual reports. This includes the board of director's report, the auditor's report, the balance sheet, the income statement, the statement of retained earnings, cash flow statements and the notes to the financial statements. Our sample comprises five major user groups, namely individual investors, institutional investors, creditors, government officials, and financial analysts. In comparison with previous research efforts elsewhere around the world, this study found that the balance sheet and the income statement are the most important sections of the annual report to most of the Saudi users’ groups. The board of directors’ report was found to be the least popular. As far as the cash flow statement is concerned, the individual investors were found to place much less impo...
This study investigates the interaction between the compulsory and voluntary disclosures in the a... more This study investigates the interaction between the compulsory and voluntary disclosures in the annual reports of Saudi Arabian companies. The sample comprises both listed and non‐listed companies. The data were analyzed by constructing three separate disclosure indices relating to mandatory disclosure, voluntary disclosure that closely relates to mandatory disclosure and voluntary disclosure that is not closely related to mandatory disclosure. The results reveal that there is a significant, positive correlation between mandatory disclosure and voluntary disclosure related to the mandatory disclosure index. The study also reports a correlation between voluntary disclosure and the other two indices is found to be weak and insignificant. These weak relationships suggest an absence of effective co‐ordination between the parties involved in preparing the annual report. The analysis also reveals no clear pattern of relationships to exist between mandatory disclosure and the types of disc...
International Journal of Commerce and Management, 2004
This study examines the perceptions of the users of eight different sources of corporate informat... more This study examines the perceptions of the users of eight different sources of corporate information available in Saudi Arabia. The sources of information includes annual corporate reports, interim reports, specialists advice, friend’s advice, newspapers and magazines, specialised publications, direct information from companies and market rumours. Our sample comprises of five major user groups, namely individual investors, institutional investors, creditors, governmental officials, and financial analysts. The study reveals that the corporate annual report was the most important source of corporate information to all of the participating user groups. Individual investors were found to attach lower importance to obtaining information directly from companies than the other groups in our sample. The fact that creditors valued direct information from companies more importantly than the other groups is perhaps because creditors in Saudi Arabia are in a much stronger position to demand for...
International Journal of Commerce and Management, 2003
This study examines the use of selected management accounting techniques by a sample of large and... more This study examines the use of selected management accounting techniques by a sample of large and medium sized Saudi manufacturing companies. The analysis revealed that the vast majority of management accounting techniques that are the focus of this study are used. Traditional management accounting techniques are perceived to be important and are heavily used by participant companies. Although new management accounting techniques, such as ABC and JIT, are used by a limited number of participants, the result is in line with those reported by studies conducted in some developed countries.
International Journal of Commerce and Management, 2002
... The findings also revealed a negative and significant association between the level of disclo... more ... The findings also revealed a negative and significant association between the level of disclosure and individual ownership. ... IJCM Vol. 12, No. 3 & 4, 2002 125 Al-Omari, Ahmad M. Jahmani, Yousef, F. and Salimi, Anwar,Y Owusu-Ansah, S Naser, K Panon, J. and Zelinka, P. ...
INTRODUCTION This paper reports on one aspect of how accounting is being used in the establishmen... more INTRODUCTION This paper reports on one aspect of how accounting is being used in the establishment of Executive Agencies in the UK civil service: more specifically, it analyses the new annual reports and accounts. There are, of course, many profound issues that are raised by these ...
... MAURICE PENDLEBURY, ROWAN JONES AND YUSUF KARBHARI; ... An example of this can be seen in the... more ... MAURICE PENDLEBURY, ROWAN JONES AND YUSUF KARBHARI; ... An example of this can be seen in the Royal Mint's financial target of achieving an annual average return of at least 12.5 per cent on a current cost accounting basis for the period 1990/91 to 1992/93. Page 3. ...
* The authors are from the Cardiff Business School. They would like to acknowledge the generous s... more * The authors are from the Cardiff Business School. They would like to acknowledge the generous support of the ACCA in providing a contribution towards the cost of this study.
Since the seminal US research of Simunic (1980) a vast number of studies have examined the privat... more Since the seminal US research of Simunic (1980) a vast number of studies have examined the private sector auditing market. These studies have focused on audit pricing models in respect of whether leading (the largest) auditors charge premiums and, given increasing ...
This paper investigates the heterogeneous response of exporters to real exchange rate ‡uctuations... more This paper investigates the heterogeneous response of exporters to real exchange rate ‡uctuations due to product quality. We model theoretically the e¤ects of real exchange rate changes on the optimal price and quantity responses of …rms that export multiple products with heterogeneous levels of quality. The model shows that the elasticity of demand perceived by exporters decreases with a real depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation for higher quality goods. We test empirically the predictions of the model by combining a unique data set of highly disaggregated Argentinean …rm-level wine export values and volumes between 2002 and 2009 with experts wine ratings as a measure of quality. In response to a real depreciation, we …nd that …rms signi…cantly increase more their markups and less their export volumes for higher quality products, but only when exporting to high income destination countries. These …ndings remain robust to di¤erent measures of quality, samples, speci…cations, and to the potential endogeneity of quality.
Over the last decade, the accounting profession has witnessed the commercialisation of audit firm... more Over the last decade, the accounting profession has witnessed the commercialisation of audit firms through offering of non-audit services (i.e. business consultancy services) to their audit client. Regulators and stakeholders have placed a great concern on the potential threat of commercialization of audit services on perceived auditor independence. This study reports the effects of the joint provision of audit and non-audit services (NAS) and the type of NAS on perceived auditor independence. The main findings suggest that auditor independence is perceived to be compromised when audit and NAS were jointly offered by audit firms. However, when there exist proper segregation of duties in audit firms that offer both services, the perception changed.
This study explores the modus operandi and regulatory influence of the pioneering Malaysian dual-... more This study explores the modus operandi and regulatory influence of the pioneering Malaysian dual-layer governance system where, besides an Islamic bank's in-house religious board, supervision is undertaken by the country's Central Bank via its own Shariah Advisory Council (SAC). Data was collected by means of an in-depth interview survey with SAC members, Central Bank compliance officers, Bank Chairmen and members of Shariah boards, CEO's and other senior executives. We find that the procedures asserted by this over-arching governance structure contributes to standardising practice without hampering creativity when innovating new products. Considerable bureaucracy is also found to exist due the the current approval process impeding efficient decision-making. In addition, we find the SAC to be decisive in resolving disputes from the widespread use of the 'legal reasoning' (or Ijtihad) principle exercised by boards providing the much needed confidence and market discipline required by stakeholders. Finally, we highlight how this form of banking operates best when left to a country's own governance framework rather than imposing international regulation for this nascent industry.
This study examines retail investors’ trading behaviour and its determinants in the Indonesian Sh... more This study examines retail investors’ trading behaviour and its determinants in the Indonesian Shari’ah stock market by mainly focusing on the religious practice-related factors in the form of sadaqah or charitable giving on individual investors’ trading behaviour. Contextually, the Islamic moral economy (IME) assumes a direct relationship between religiosity and sadaqah giving due to the falah (salvation) oriented individual objective function, which can be reached through doing ihsan (beneficence for equilibrium). The findings based on a questionnaire survey distributed to individual investors on Shari’ah Online Trading System (SOTS) delineate that religiosity, accounting information, neutral information, personal financial needs, and the sadaqah feature have significantly affected investors’ trading behaviour in which the sadaqah feature is positively correlated, while religiosity factors are negatively correlated. Thus, despite the theoretical expectation through IME, this study...
... aware of their limited engagement period would examine their clients' accounts more obje... more ... aware of their limited engagement period would examine their clients' accounts more objectively ... the rotation of firms could be smoothly implemented if the Malaysian accounting profession ... firms, respondents' opinions were solicited on the effect on auditor independence if the ...
This paper examines the perception of bankers on contribution of audit committees towards externa... more This paper examines the perception of bankers on contribution of audit committees towards external auditor independence in public listed companies. All Malaysian public listed companies are required to establish an audit committee as a measure to improve on the internal control mechanism that can help improve the corporate governance practices of firms. Postal questionnaires and interview surveys were used to solicit the perception and views of loan officers. The majority of the respondents believe that auditor independence is preserved with the presence of an actively functioning audit committee. This implies favourably on the corporate governance reforms initiated by the government after the 1998 financial crisis.
This study investigates the main problems, challenges, and opportunities facing Islamic banking i... more This study investigates the main problems, challenges, and opportunities facing Islamic banking in the United Kingdom. The study reports the results of interviews that were undertaken with senior officials of several key financial institutions who have had many years of experience in dealing with Islamic banking. Our interviews revealed that, although by strict definition Islamic banks do not currently exist in the UK, London is one of the major centers for Islamic banking and finance. It is apparent that the experience of previously established Islamic institutions, such as Al-Baraka, has made other institutions realize that it is possible to provide Islamic banking services in the UK under nonbanking regulations. The interviews also revealed that the main problem that Islamic banking faces in the UK is heterogeneous clients and potential clients. Moreover, regulatory hurdles, competition from conventional banks, and lack of adequately qualified and trained personnel exacerbate the situation. The study concludes by identifying opportunities such as e-banking that may have a significant impact on the future of Islamic banking in the UK.
Regulators and stakeholders in worldwide capital markets have placed a great concern on the poten... more Regulators and stakeholders in worldwide capital markets have placed a great concern on the potential threat of joint provision of audit and non-audit services to audit client on perceived auditor independence. This study reports the research findings of the effects of the joint provision of audit and non-audit services (NAS) on perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers of public listed companies. The main findings of the study were that auditor independence would significantly threaten when audit and NAS were jointly provided by audit engagement team, however, this perceptions were changed when exist proper segregation of duties or 'Chinese Wall' in audit firms either by way of staff from separate department or entities.
Executive agencies have had several years’ experience of the introduction and development of accr... more Executive agencies have had several years’ experience of the introduction and development of accruals based accounting systems. Senior agency managers therefore provide an authoritative source of information on the problems that could follow from introducing it more widely across government. A survey of senior managers revealed that, despite major improvements in accounting information systems, agencies still face difficulties in implementing
... Bhimani, A. (1993), "Performance measures in UK manufacturing compan... more ... Bhimani, A. (1993), "Performance measures in UK manufacturing companies: the state of play",Management Accounting, London, Vol. ... Burton, A. (1994), "Performance measurement: responsibility accounting for current assets and liabilities", Management Accounting, Vol. ...
This study examines the perceptions of the users of annual corporate reports in Saudi Arabia. The... more This study examines the perceptions of the users of annual corporate reports in Saudi Arabia. The focus is on the use and importance of the seven different sources of corporate information contained in Saudi annual reports. This includes the board of director's report, the auditor's report, the balance sheet, the income statement, the statement of retained earnings, cash flow statements and the notes to the financial statements. Our sample comprises five major user groups, namely individual investors, institutional investors, creditors, government officials, and financial analysts. In comparison with previous research efforts elsewhere around the world, this study found that the balance sheet and the income statement are the most important sections of the annual report to most of the Saudi users’ groups. The board of directors’ report was found to be the least popular. As far as the cash flow statement is concerned, the individual investors were found to place much less impo...
This study investigates the interaction between the compulsory and voluntary disclosures in the a... more This study investigates the interaction between the compulsory and voluntary disclosures in the annual reports of Saudi Arabian companies. The sample comprises both listed and non‐listed companies. The data were analyzed by constructing three separate disclosure indices relating to mandatory disclosure, voluntary disclosure that closely relates to mandatory disclosure and voluntary disclosure that is not closely related to mandatory disclosure. The results reveal that there is a significant, positive correlation between mandatory disclosure and voluntary disclosure related to the mandatory disclosure index. The study also reports a correlation between voluntary disclosure and the other two indices is found to be weak and insignificant. These weak relationships suggest an absence of effective co‐ordination between the parties involved in preparing the annual report. The analysis also reveals no clear pattern of relationships to exist between mandatory disclosure and the types of disc...
International Journal of Commerce and Management, 2004
This study examines the perceptions of the users of eight different sources of corporate informat... more This study examines the perceptions of the users of eight different sources of corporate information available in Saudi Arabia. The sources of information includes annual corporate reports, interim reports, specialists advice, friend’s advice, newspapers and magazines, specialised publications, direct information from companies and market rumours. Our sample comprises of five major user groups, namely individual investors, institutional investors, creditors, governmental officials, and financial analysts. The study reveals that the corporate annual report was the most important source of corporate information to all of the participating user groups. Individual investors were found to attach lower importance to obtaining information directly from companies than the other groups in our sample. The fact that creditors valued direct information from companies more importantly than the other groups is perhaps because creditors in Saudi Arabia are in a much stronger position to demand for...
International Journal of Commerce and Management, 2003
This study examines the use of selected management accounting techniques by a sample of large and... more This study examines the use of selected management accounting techniques by a sample of large and medium sized Saudi manufacturing companies. The analysis revealed that the vast majority of management accounting techniques that are the focus of this study are used. Traditional management accounting techniques are perceived to be important and are heavily used by participant companies. Although new management accounting techniques, such as ABC and JIT, are used by a limited number of participants, the result is in line with those reported by studies conducted in some developed countries.
International Journal of Commerce and Management, 2002
... The findings also revealed a negative and significant association between the level of disclo... more ... The findings also revealed a negative and significant association between the level of disclosure and individual ownership. ... IJCM Vol. 12, No. 3 & 4, 2002 125 Al-Omari, Ahmad M. Jahmani, Yousef, F. and Salimi, Anwar,Y Owusu-Ansah, S Naser, K Panon, J. and Zelinka, P. ...
INTRODUCTION This paper reports on one aspect of how accounting is being used in the establishmen... more INTRODUCTION This paper reports on one aspect of how accounting is being used in the establishment of Executive Agencies in the UK civil service: more specifically, it analyses the new annual reports and accounts. There are, of course, many profound issues that are raised by these ...
... MAURICE PENDLEBURY, ROWAN JONES AND YUSUF KARBHARI; ... An example of this can be seen in the... more ... MAURICE PENDLEBURY, ROWAN JONES AND YUSUF KARBHARI; ... An example of this can be seen in the Royal Mint's financial target of achieving an annual average return of at least 12.5 per cent on a current cost accounting basis for the period 1990/91 to 1992/93. Page 3. ...
* The authors are from the Cardiff Business School. They would like to acknowledge the generous s... more * The authors are from the Cardiff Business School. They would like to acknowledge the generous support of the ACCA in providing a contribution towards the cost of this study.
Since the seminal US research of Simunic (1980) a vast number of studies have examined the privat... more Since the seminal US research of Simunic (1980) a vast number of studies have examined the private sector auditing market. These studies have focused on audit pricing models in respect of whether leading (the largest) auditors charge premiums and, given increasing ...
This paper investigates the heterogeneous response of exporters to real exchange rate ‡uctuations... more This paper investigates the heterogeneous response of exporters to real exchange rate ‡uctuations due to product quality. We model theoretically the e¤ects of real exchange rate changes on the optimal price and quantity responses of …rms that export multiple products with heterogeneous levels of quality. The model shows that the elasticity of demand perceived by exporters decreases with a real depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation for higher quality goods. We test empirically the predictions of the model by combining a unique data set of highly disaggregated Argentinean …rm-level wine export values and volumes between 2002 and 2009 with experts wine ratings as a measure of quality. In response to a real depreciation, we …nd that …rms signi…cantly increase more their markups and less their export volumes for higher quality products, but only when exporting to high income destination countries. These …ndings remain robust to di¤erent measures of quality, samples, speci…cations, and to the potential endogeneity of quality.
Over the last decade, the accounting profession has witnessed the commercialisation of audit firm... more Over the last decade, the accounting profession has witnessed the commercialisation of audit firms through offering of non-audit services (i.e. business consultancy services) to their audit client. Regulators and stakeholders have placed a great concern on the potential threat of commercialization of audit services on perceived auditor independence. This study reports the effects of the joint provision of audit and non-audit services (NAS) and the type of NAS on perceived auditor independence. The main findings suggest that auditor independence is perceived to be compromised when audit and NAS were jointly offered by audit firms. However, when there exist proper segregation of duties in audit firms that offer both services, the perception changed.
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Papers by Yusuf Karbhari