Mazlina Mustapha

Agency theory and managerial ownership: evidence from Malaysia

Purpose - The purpose of this paper is to investigate the effect of managerial ownership in relation to agency theory in the Malaysian business environment. In addition to examining the total managerial shareholdings, this study also investigates the association between direct and indirect managerial shareholdings with agency costs. Design/methodology/approach - The data for the study is obtained from two sources, namely primary (questionnaire) and secondary (annual reports) data. The sample companies are 235 companies listed on Bursa Malaysia for the financial year ended 2006. Multiple regression analysis is used to estimate the relationship between the variables. Findings - The results of the study indicate that managerial ownership in various segments has an inverse relationship with total monitoring costs as predicted in agency theory. This finding is consistent with earlier studies in western countries and supports the convergence of interest hypothesis. Originality/value - This study gives a unique contribution to corporate governance studies relating to the effect of ownership structure in relation to agency theory in Malaysian companies, one of the countries in Asia. Previous studies claimed that it is unknown whether the agency theory findings in western countries have equal impact in Asian organizations. Previous literature also indicates that there is a possibility that given the cultural differences, the typical nature of agents in agency theory may not be the case with regard to non-western countries. Thus, this study provides evidence that support prior research findings in western countries relating to the effect of managerial ownership on the agency relationship which is reflected in its agency costs.

Tourism Supply Side: The Case of Niah Cave’s Swiftlets

Often studies on tourism come from the consumer perspective. However, this study focuses on the supply side of the industry using the wonders of Niah Cave which is located in interior Sarawak, Malaysia. Amongst others, Niah Cave has hundred thousands of swiftlet population and the world’s famous archaeological site to attract tourists. This article explores a venue whereby the tourism’s supply side, in this instance, the swiftlet population could be bridged with the industry’s consumer side. The evolvement of sustainability conscious consumers, particularly in the millennium era results in the advocation of consumption in a more sustainable manner, irrespective whether the products are man-made or in the forms of the natural environment. An interpretative research method with the like of observation and semi-structured in-depth interviews formed the data gathering tool. The Niah Cave was explored in late January 2017. Findings show that Niah Cave was literally on the tourist map due to its world’s famous archaeological site. The huge population of swiftlets with their nests attracted harvesters for decade. The processes of harvesting these nests which remarkably endured through climbing bamboo ladders and dangling ropes from cave ceilings, hundreds feet from the cave floor, charmed tourists.

Internal Audit in Malaysian Public Sector: Qualitative Approach

Internal audit is recognized as an important cornerstone in achieving good corporate governance. It should be considered as an integral part of an effective system of corporate governance. Among others, internal auditors play the role in evaluating the risk and monitoring the internal control system, as well as assisting the management in monitoring the effectiveness and efficiency of the operations. This paper examines the perception of the public agencies on the work done by their internal audit departments. Their perception on the audit itself, the improvements on operating efficiency after the audit, the effectiveness of the recommendations and the content of the report issued are sought. This study was conducted in one of the important ministries in Malaysia. This is a qualitative study where thirty public servants from ten government agencies were interviewed, ranging from supporting staff to managerial levels. The findings indicate that all the interviewees agree that their internal audit departments have contributed to the improvement of their internal control systems and it is an important department for their agencies. Among others, the internal audit department is seen as the party which encourages preventive actions, improves the transparency and the flow of their work processes and helps to bring positive changes to their agencies. However, they also highlight the constraints that they have to face in order to comply with the recommendations and rules and regulations in their agencies.

Ethical Sensitivity and Ethics Education: Case of Accounting Students

This paper investigates the importance of ethical sensitivity and ethical exposure of accounting students in a public university in Malaysia. In addition, this study also explores how attending ethic class would further affect their ethical sensitivity. Data was obtained from questionnaires and interviews.