Adel Mohammed Sarea

Adoption of AAOIFI accounting standards by Islamic banks of Bahrain

Purpose - – The objective of this paper is to determine the level of compliance with Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) accounting standards by Islamic banks of Bahrain. Design/methodology/approach - – The paper is based on diffusion of innovation theory whereby the perceived relative advantage, compatibility, complexity, trialability and observability factors are expected to influence the level of compliance with AAOIFI accounting standards. Findings - – The findings indicate that Islamic banks of Bahrain are in full convergence with AAOIFI accounting standards. Research limitations/implications - – This research, just like many other studies, faces data limitations. Sample size employed for this study contains only the accountants in Islamic banks of Bahrain. Originality/value - – The results of this paper are expected to serve as a guide to the regulatory bodies and the setter of accounting standards for Islamic financial institutions (IFIs).

The relationship between intellectual capital and earnings quality: evidence from listed firms in Bahrain Bourse

This paper examines the relationship between the intellectual capital and earnings quality for the listed firms in Bahrain Bourse. This paper is applying the modified Jones model (Jones, 1991) in order to examine the relationship between the intellectual capital and earnings quality. The outcomes of this paper conclude to have high level of intellectual capital and earnings quality as well as a positive relationship between them in all listed firms at Bahrain Bourse. The findings show significant support for the current debate regarding the relationship between the intellectual capital and earnings quality in the Bahraini market. This research is expected to serve as a guide for the regulatory bodies such as Bahrain Bourse, financial institutions management as well as academic researchers in Bahrain.

The level of compliance with International Financial Reporting Standards (IFRS 7)

Purpose – The purpose of this paper is to examine the level of compliance with International Financial Reporting Standards (IFRS 7) by listed companies in Bahrain Bourse (BB). Design/methodology/approach – First, the authors design disclosure compliance checklist of ten requirements of IFRS 7. Second, a score of 3 is assigned if high level of compliance, 2 is assigned if medium level of compliance, 1 is assigned if low level of compliance. The sample of the study comprises of (21) companies listed in BB for year 2013. Findings – The main findings are, the level of compliance varied by industry and the highest level of compliance reported for the investment sector whereas the lowest for the insurance industry. This result indicates that all listed companies are complying with IFRS 7 in terms of the standard disclosure requirements. Practical implications – In this paper attempt has been made to support the argument of previous studies. The paper attempts to test and answer the research question; does the f...

Linking soft and hard total quality management practices: evidence from Jordan

The purpose of this study is to describe the relationship between the two aspects of total quality management (TQM), soft TQM practices and hard TQM practices in manufacturing organisations. A research project was carried out in Jordanian manufacturing organisations using questionnaire survey. The relationships between the practices were examined through Pearson correlation and simple linear regression analyses. The results showed that the relationship between soft and hard TQM practices is significant. Customer focus has a significant relationship with statistical process control (SPC), while education and training have two significant relationships (SPC and continuous improvement). Top management leadership has three significant relationships (SPC, continuous improvement and product design). Finally, supplier relationship has significant relationships with all hard practices except process management practice. Hence, managers of manufacturing companies should realise the important role of hard practices in implementing soft TQM practices successfully.

Determinations of Internet Financial Reporting : Evidence Form Bahrain Bourse = محددات نشر التقارير المالية عبر الإنترنت : دليل من بورصة البحرين

The use of internet in business has become inevitable as the result of marvelous development in information technology. Internet Financial Reporting (IFR) is supposed to have a significant role in raising companies’ corporate earnings and their value. The objective of this study is to examine the level of adoption of IFR among listed companies in Bahrain and to examine the relationships among the companies of specific characteristics and IFR. The sample of the current study consists of all 47 listed companies in Bahrain Bourse (BB) in the financial year 2013.The results reveal that 42 companies (89.4%) own websites while 5 companies (10.6%) do not own websites on internet. Moreover out of 42 websites owned companies, 38 of them (90.5%) are adopting IFR while the other 4 (10.6%) do not. The findings also reveal that there is direct relationship among reporting financial information online and the four variables: size, leverage, liquidity and industry type. However, an inverse relationship is noted among IFR and profitability. In addition, size and leverage are also found to be the most significant variables that affect adopting IFR in the listed companies in Bahrain followed by liquidity. This paper contributes towards a better understanding and acceptability of determinations of Internet Financial Reporting by listed companies in Bahrain Bourse.