Maliah Sulaiman

Management accounting practices in selected Asian countries: A review of the literature

Traditional management accounting techniques such as standard costing and variance analysis, traditional budgeting and cost volume profit analysis are said to be less useful in the present manufacturing environment. To succeed in the present dynamic business environment, tools or strategies such as JIT, ABC, TQM, process re‐engineering, life cycle assessment and target costing would greatly enhance the ability of corporations to meet global competition. Through a literature review, this study examines the extent to which traditional and contemporary management accounting tools are being used in four Asian countries: Singapore, Malaysia, China and India. Overall, the evidence reviewed suggests that the use of contemporary management accounting tools is lacking in the four countries. The use of traditional management accounting techniques remains strong. The paper concludes with various recommendations for future research, the most important of which is the need for future studies to be grounded in theory.

Environment disclosure in Malaysia annual reports: A legitimacy theory perspective

This study attempts to apply legitimacy theory to determine if it explains the extent and nature of environmental disclosures made, and the reasons for the disclosure in the context of Malaysian industrial products and construction companies. The study adopts a dual methodology of content analyses of annual reports and a questionnaire survey. Findings show some limited support for legitimacy theory in explaining the nature of disclosure, as well as the reasons for the disclosure. Extent of environmental disclosures is, however, very low. Further research is suggested in other industry sectors to examine if the results are consistent across industry sectors.

Implementation of activity based costing in Malaysia: A case study of two companies

Purpose - The study aims to document and highlight the problems and benefits of implementing activity-based costing (ABC) in two companies in Malaysia. Design/methodology/approach - A case study methodology was used to describe the process of ABC implementation in a Malaysian based multinational company as well as a Malaysian multinational company. Findings - Although ABC is not widely adopted by companies in Malaysia, it is recognized as a valuable tool to improve the performance of these two companies. Additionally, many of the problems that hinder the implementation of ABC are related to managerial factors rather than the technical aspects of the tool itself. Several factors are pertinent to ensure the success of ABC: top management support, simplifying the ABC implementation process, sourcing suitable ABC software, and finally, ensuring that all affected employees understand and actively support the implementation process. Originality/value - The findings have significant implications for companies that want to embark on ABC. The problems highlighted may help companies planning to adopt ABC in the near future to better address these issues.

Are budgets useful? A survey of Malaysian companies

This study examines if budgets are still used in Malaysian companies. There are two divergent views on the usefulness of budgets. Proponents of budgets argue that they are still relevant and useful. Meanwhile, critics claim that budgets are obsolete. The study uses the instrument developed by Drury et al.. Results are compared to those of Guilding et al. The results show that budgeting practices in Malaysia are similar to those in the UK and New Zealand. There are only three major differences. First, Malaysian managers appear to feel that a participative approach to budgeting may encourage budget padding. Second, a much higher percentage of respondents compared to the Guilding et al.’s study, agree that top management should evaluate performance mainly on ability to achieve budgetary goals. Finally, companies in Malaysia appear to use flexible budgets more than those in the UK and New Zealand.

Is standard costing obsolete? Empirical evidence from Malaysia

Purpose – Many authors have predicted that the shorter product life cycles, advanced manufacturing technologies, decreasing emphasis on labour in the production process, and global competition may lead to the demise of standard costing. This exploratory study aims to provide empirical evidence on the extent to which companies in Malaysia use standard costing. It also examines the differences in the use of such techniques between local Malaysian firms and Japanese affiliates.Design/methodology/approach – From the industrial and consumer products sectors listed on the Kuala Lumpur Stock Exchange and 21 Japanese affiliates in Malaysia, 66 companies were surveyed.Findings – Despite its various criticisms, the empirical findings suggest that standard costing is still being used by a large majority of firms in Malaysia. Thus, Malaysian companies (both Japanese and local) perceive that the basic principles of standard costing remain sound.Research limitations/implications – While the empirical results may be int...

Understanding environmental management accounting (EMA) adoption: a new institutional sociology perspective

Purpose – The purpose of this research paper is to report the results of a study that explains the relationship between institutional pressure and environmental management accounting (EMA) adoption. Specifically, it looks at the pressure of government and other parties in society concerning EMA adoption among manufacturing companies in Malaysia.Design/methodology/approach – Drawing from the new institutional sociology theory, the paper seeks to identify the extent to which institutional pressure influences EMA adoption level. A total of 74 accountants from manufacturing companies in Malaysia participated in the survey. Institutional pressure (coercive isomorphism, normative pressure and mimetic processes) was tested against the level of EMA adoption via multiple regression analysis. Next, semi‐structured interviews were employed with four survey participants to gain further insights into the survey results.Findings – The findings of this study reveal some influence of institutional pressure on EMA adoptio...

Auditing of environmental management systems: alegitimacy theory perspective

Provides findings from a survey of environmental management systems (EMS) auditors at ISO 14001‐certified sites of Australian enterprises. Taking a legitimacy theory perspective, this study investigates the way in which enterprises with certified sites are meeting their implied social contract with stakeholders (also termed “relevant publics”) on environmental conduct. Investigates whether EMSs, and related environmental audit functions, are being treated as quality assurance tools for the betterment of environmental performance, or as impositions to be complied with so as to maintain the credential of ISO 14001 certification per se. Seeks to throw light on this legitimacy theory issue by providing evidence about management’s motivation behind, and strength of support for, the EMS auditing function at ISO 14001‐certified sites. Obtains evidence about the objectives for the EMS auditing function, the resources committed to it and the perceived benefits arising from meeting the requirements for certificatio...

Environmental disclosure quality: examining the impact of the stock exchange of Malaysia’s listing requirements

Purpose - – The purpose of this study is to investigate the environmental disclosure (ED) quality of public-listed companies (PLCs) in environmentally sensitive industries (ESI) in Malaysia in 2005 and 2009 (two years before and two years after the mandatory corporate social responsibility (CSR) requirement of Bursa Malaysia (BM)). BM (The Stock Exchange of Malaysia) has made CSR, including ED in annual reports mandatory since 2007. This study compares environmental reporting (ER) before and after the 2007 mandatory reporting requirement to determine if this command and control mechanism has had any effect on the quality of ED. Design/methodology/approach - – The quality of ED was measured using a disclosure quality index adapted from various prior studies. The index consists of a total of 46 disclosure items grouped into 9 categories. Content analysis was utilized to extract data from the annual reports of 164 PLCs in ESI. Findings - – Overall, the quality of ED improved in 2009 from that of 2005. More importantly, companies disclosed more quantitative environmental information in 2009 than in 2005. However, the average quality of ED was still low in 2009 compared to the overall potential score. Results provide some support for legitimacy as well as institutional theories. Research limitations/implications - – The sample of the study consisted of listed companies in ESI only; the results cannot be generalized to other companies in non-environmentally sensitive sectors. Practical implications - – Prior studies that used data before the mandatory CSR requirement by BM found ED in annual reports mainly declarative in nature, generally low on quality and with little quantifiable data. The results of the present study provide evidence of the positive impact of mandatory environmental reporting on ED quality. Originality/value - – The use of a multi-theoretical perspective may offer a more meaningful explanation of ER behavior in Malaysia. The results of the study would provide the impetus for regulatory agencies in developing countries to perhaps consider legislating ER. The findings provide some evidence to support the influence of legitimacy and institutional factors behind improved ED of Malaysian PLCs. This outcome exhibits a positive influence on the government efforts in promoting sustainability. Finally, the study contributes to present a more up-to-date account of environmental commitment undertaken by Malaysian corporations through their environmental reporting, after the CSR mandatory listing requirement took effect in 2007.

Efficiency of Islamic banks in selected member countries of the Organisation of Islamic Conference

This study aims to investigate the relative efficiency amongst Islamic banks in selected OIC member countries from 2002 to 2006, by observing performance of 25 Islamic banks in 14 countries. It employs DEA method by using intermediation approach. Additionally, regression is used to find the correlation between efficiency scores and some of the performance indicators. The result shows that during 2002-2006, Islamic banks in the OIC-LDCs were the most efficient ones. Lastly, efficiency level of Islamic banks in the study was significantly and positively influenced by ETAR, ROA, and LDR. In contrast, efficiency score is negatively related to OEOI.

PROCEDIMENTOS DE CONTROLE INTERNO NAS MESQUITAS EM MALÁSIA

One of the most discussed issues in Brazil recently has been the substitution of the Statement of Origins and Applications of Funds for the Statement of Cash Flow. This substitution is included in the project to change Law no 6.404/76, known as the “Law for Public Companies”. Thus it seems necessary to discuss the Statement of Cash Flow, mainly its disclosure method: direct or indirect. The theory indicates that the Direct Method is simpler to understand than the Indirect Method. However, the Indirect Method is considered to be more informative because it reconciles earnings and cash. This paper analyses the opinions of academics, market analysts and accountants, and with the objective of identifying whether one of the disclosure methods is preferred. The results indicate that there is no specific