Kamilah Ahmad

Corporate governance practices and firm performance: evidence from top 100 public listed companies in Malaysia

Abstract Corporate governance practices have been a concerned issue by many Asian countries after the Asian Financial Crisis in 1997 including Malaysia. Due to the crisis, Malaysian Code of Corporate Governance (MCCG) has been introduced as part of the Bursa Malaysia (BMB) listing rules. This study hence focuses on corporate governance practices among Top 100 public listed companies in Bursa Malaysia and the relationship between corporate governance practices with firm performance. Two corporate governances indicators (Board size and Board Independence) were chosen in testing the hypothesized relationship between corporate governance practices with firm performance, which was measured by return on asset (ROA) and return on equity (ROE). Descriptive and correlation analysis were used to examine the hypotheses in this study. The result showed that board size has significantly weak negative relationship with ROA but it was found to be insignificant to ROE. The other finding indicated that there was no relationship between board independence and firm performance. This study provide useful information for policy makers or regulators in improving the corporate governance policies in the future and also helps in increasing understanding on the relationship between corporate governance practices and firms performance.

The Application of Non-Financial Performance Measurement in Malaysian Manufacturing Firms☆

Non-financial performance measures in recent years have been receiving growing attention among modern’s organizations to provide additional information for managers. The use of non-financial performance measures in the manufacturing environment is even crucial where its normal operation is more complex than any other type of organizations. The purposes of this research are to examine the application of non-financial performance measurement system among manufacturing companies and to explore the association between size of the firm, business environment, owners/manager involvement and modern manufacturing technology and the use of non-financial performance measures. A questionnaire was sent to a random sample 500 Malaysian manufacturing firms which resulted in 102 useable returned questionnaires. The results show that nonfinancial performance measures related to internal processes and customers have the highest extent of use. In contrast, techniques related to quality control have a relatively low level of use. The results also reveal that there are significant relationships between size of the firm, involvement of owner/manager, and modern technology and the use of non-financial performance measures. This research provides new empirical evidences on the use of non-financial performance measures and contributes a better understanding of the contingency approach in the context of performance measurement system within a manufacturing environment.

Factors explaining the use of management accounting practices in Malaysian medium-sized firms

Purpose – The purpose of this paper is to investigate factors that affect the use of management accounting practices (MAPs) in Malaysian medium-sized firms in manufacturing sector. Design/methodology/approach – A quantitative research design involving the use of postal questionnaire was carried out to investigate the influences of key contingent factors on MAPs. The survey was conducted to 500 Malaysian medium-sized firms in manufacturing sector which elicited 110 useable responses. Findings – The results indicates that size of the firm, intensity of market competition, commitment of owner/manager of firm and advanced manufacturing technology have significant influences on the use of certain MAPs. Thus the research provides support for a contingency-based explanation for the use of MAPs and identifies new variable such as commitment of owner/manager as one of a key factor that affect the extent of use of MAPs in smaller firms. Research limitations/implications – The research focused on medium-sized firms ...

Incorporating Islamic Values into Business Towards Holistic Shariah Compliance

Islam is not only a religion but is a way of life. The teaching of Islam asks Muslims to practice Islam in holistic approach. Current shariah compliance businesses have been narrowly defined to focus only certain aspects of businesses particularly related to products and manufacturing processes, as well as related to finance. This paper is trying to discuss a framework towards holistic shariah compliance business by incorporating Islamic values into business mission and vision, human resource management, operations, marketing, and finally accounting and finance. Shariah compliance businesses should not only to gain material profits, but also to achieve blessing from Allah the Almighty.