Hairul Suhaimi Nahar

Accountability in the sacred context: The case of management, accounting and reporting of a Malaysian cash awqaf institution

Purpose – The concept of accountability has long been argued in the academic and public policy debate to have been contextually ingrained in the technical processes of accounting and reporting. Both processes provide lenses through which the extent of managerial accountability in the corporate context could be objectively examined. The sacred religion of Islam as a social order with a complete code of life classifies accountability as being dual; in line with the duality concept in life – in this temporal world and eternal hereafter, necessitating for accountability concept in accounting and reporting from the Islamic worldview to transcend beyond the point of worldly objectives. Parallel to this line of reasoning, the purpose of this paper is to undertake a preliminary empirical investigation with respect to accounting, reporting and accountability practices of a Malaysian cash awqaf (Islamic endowment) management institution over a six‐year period, from 2000 to 2005.Design/methodology/approach – The pap...

Insurance vs Takaful: identical sides of a coin?

Purpose – The purposes of this paper are threefold. First, it aims to argue normatively how Shari’ah precepts governing Takaful operations are translated into (rightfully) different accounting and reporting of Takaful operators. Second, it provides a critical review of the available and applicable accounting and reporting standards and guidelines related to Takaful in the Malaysian context. The third objective which constitutes the empirical piece of this paper centred on the basic numerical evidence obtained from the survey of final-year accounting students with regards to their ability in identifying the basic (dis)similarities in accounting and reporting between Takaful and insurance based on the published financial statements. Design/methodology/approach – A mixed-mode research approach was adopted covering archival document reviews and focused group survey. Findings – Findings are arguably informative and relevant to diverse stakeholders. First, the missing jigsaw puzzle representing accounting and r...

Accountability through accounting and reporting lenses: Lessons from an awqaf institution in a Southeast Asia country

Purpose - – The purpose of this paper is to review, understand and document the contemporary Design/methodology/approach - – Consistent with the established research objectives, this study adopts the qualitative research approach of a single case study research involving semi-structured interviews and archival documentation review and analyses. Sample is chosen using purposive sampling to suit the research objectives. Findings - – The paper finds that Research limitations/implications - – The sample is an Islamic organization in a non-Islamic country; therefore, the results are unique and may not be generalised to organizations in Islamic nations, as it will be a different setting with different variables. Secondly, the paper only focuses on Practical implications - – This paper is important as it shows that the management and administration of Originality/value - – Focusing on a single

Understanding and Assessing Governance Agents’ Relationships: The Contribution of Leader-Member Exchange Theory☆

Abstract It is a textbook truism that many corporate relationships among governance agents could be theoretically informed by the established agency paradigm. The economic based principal-agent theorization is however falling short of allowing researchers to evaluate the quality of such relationships. In this paper, we depart from the mainstream principal-agent theoretical argumentation by attending to “Leader-Member Exchange” theory (LMX theory), a commonly applied theorization in organizational psychology and communication management literature repertoire. We delineate relevant governance relationships among various governance agents across contexts and subsequently, theoretically argue the applicability of LMX theory in explaining their dyadic relationships. Interfacing LMX theory with corporate governance, we further provide the necessary instruments for measuring governance agents’ relationships quality. Despite the theoretical and argumentative nature of our research endeavour, this paper presents a novel attempt to theoretically demonstrate in light of the subtlety in governance scholarship with respect to the quality of corporate relationships prevailing in any established governance arrangements, that the LMX theory provides an applicable and useful framework through which the dynamics of corporate relationships within the context of corporate governance could be appropriately analyzed and evaluated.

Earnings Quality of Malaysian IPO firms: The Effect of Share Moratorium Provision and Institutional Ownership☆

The paper focuses on earnings quality (EQ) of Malaysian Initial Public Offering (IPO) firms and examines the effect of share moratorium regulation and institutional ownership on IPO firms’ EQ behavior. Analyzing both real and accrual earnings management (EM) to measure EQ of 220 sample IPO firms over the period from 2002 to 2009, the results indicate that Malaysian IPO firms engage in both real and accrual discretionary EM. Both EQ measures are also observed to be similar between firms with and without share moratorium provision, evidencing the support towards Malaysias public policy guideline of subjecting all IPO firms to share moratorium regulations as a commitment device to reduce information asymmetry and adverse selection problem between the strategic owners and new investors. The multivariate results further indicate the effective monitoring of institutional shareholders over investee firms’ EQ. The overall results collectively suggest the need for investors to examine investee firms’ real activity discretionary behavior in their investment decisions while regulators should device means of constraining it.

Questioning Public Policy's “Maintained Assumption”: The Case of Governance Rules Impacting Regulatory Sanctions Among Capital Market Players in Malaysia☆

Abstract Legal obligations are primarily introduced and enforced on capital market players with the aim of ensuring orderly capital market activities which should (rightfully) lead to capital market stability and hence unhindered economic growth. In the Malaysian context, listed firms being part of the Countrys capital market players are mandated to observe and comply with extensive capital market rules introduced and enforced by the Countrys capital market regulatory bodies. It includes the need for listed firms to practice sound governance and transparent reporting of financial information. These market disciplining apparatus are essentially economic centric public policies, developed and subsequently imposed on public listed firms premising on the maintained assumption that strong and sound governance structures would result in enhanced market discipline. This research paper reports empirical findings which form part of a larger research project on regulatory sanctions in Malaysia. Examining specific and conventional governance, ownership and firm specific elements comparatively between sanctioned and matched non-sanctioned firms between 2001 and 2008, we document prelude evidence questioning the validity of governance rules’ maintained assumptions that strong and sound governance structures would at least, insulate firms from being sanctioned. The results further signify the entrenched culture of box-ticking among listed firms in Malaysia, whereby the problem practically forms large improvement void which are potentially detrimental to the Countrys capital market stability if left unattended.