(1997). The Balance of Payments. Criminal Justice Matters: Vol. 30, Prisons Today, pp. 29-31.

The Balance of Payments

Purpose




The aim of this paper is to examine the impact of corporate governance mechanisms on earnings management practice for a sample of Gulf Cooperation Council (GCC) Islamic banks (IBs) using a new model of earnings management.




Design/methodology/approach




First, the authors estimate discretionary accruals based on loan loss provisions discretionary loan loss provision (DLLP) using the procedure derived from Jones’ (1991) original model. Second, the authors run a multivariate regression model to check the linkage between corporate governance characteristics and discretionary loan loss provision. Finally, the authors use an additional sensitivity check analysis to assess whether the results are robust to the estimation procedure and to other exogenous factors.




Findings




Using as sample of 26 IBs pertaining to the GCC region with a total of 223 firm-year observations and a nine-year period (2004-2012), the results are conclusive and show that first, IBs with large Shariah Board size manage less DLLP. Secondly, Accounting and Auditing Organization for Islamic Financial Institutions membership positively impacts earnings management through DLLP in IBs. Third, there is a negative relationship between boards of director’s independence the extent to which IBs manage DLLP. Fourth, the existence of block holders positively affects earnings management by IBs. Fifth, there is a negative relationship between audit committee meetings and DLLP. Finally, institutional ownership and bank size have no effect on earnings management through DLLPs.




Research limitations/implications




In this research, the authors do not take into account all governance factors that are supposed to impact earnings management in IBs. Future research should explore the impact of additional IBs governance structures including chief executive officer bonus, experience, gender and the extent to which IBs use real earnings management with Murabaha, Mudaraba and Musharaka transactions.




Practical implications




The paper is a very useful source of information that may provide relevant guidelines in helping the future development of corporate governance of IBs. In addition, the findings could prove to be useful for regulators because they are responsible for the acceptable level of corporate governance standards. Thus, they must consider strengthening governance mechanisms either through new legislation or stronger enforcement where earnings management is of such magnitude to that serious impedes information transparency and financial reporting quality of IBs.




Originality/value




This study associates the corporate governance characteristics with earnings management by IBs. The study contributes to the growing body of literature on earnings management and corporate governance in IBs. It should be useful to researchers, regulators, investors, analysts and creditors as well as other players in the capital markets, as it presents a new and important aspect that needs to be accounted for when assessing the quality of IBs’ accounting information in GCC countries.

Did corporate governance mechanisms affect earnings management? Further evidence from GCC Islamic banks

Information and communication technologies (ICTs) open up new opportunities for rural young entrepreneurs to enhance their businesses. However, the challenges of adopting and using ICTs obstruct these businesses from growing into drivers for rural-economic development and job creation. The purpose of this paper is to seek to validate the technology acceptance model (TAM), which measures the volitional aspect of the ICT adoption behavior of young entrepreneurs in a rural community. In order to test the model, data are collected using self-administered questionnaires from 400 rural youth entrepreneurs. The structural equation modeling technique(SEM) was applied to assess the model. The results confirmed that TAM is robust enough to gauge the dimensions of young entrepreneurs’ adoption of ICT by way of the model accounting for 55 percent of the variance in intention to use ICT. They also indicated that attitude toward entrepreneurship partially mediated the relationship between ICT’s usefulness and entrepreneurial intention. This paper will serve to illuminate this model and reveal new knowledge perspectives. Policy makers could encourage rural youth entrepreneurs to use ICT in their businesses, which will in turn inspire other entrepreneurs to look up to these adopters and follow them, thus increasing the use of ICT in rural communities.

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A Test of the Technology Acceptance Model for Understanding the ICT Adoption Behavior of Rural Young Entrepreneurs

The study referred to the theory of planned behaviour in determining how the selected factors (innovativeness, proactive personality, need of achievement, internal locus of control, risk-taking propensity, lifestyle integration, social networking, resource and opportunity recognition, attitude towards entrepreneurship, subjective norms, and perceived behavioural control) influenced the entrepreneurial intentions and pre-start-up behaviour among the Asnaf millennials in Malaysia. This study collected cross-sectional survey data, which are quantitative data from 310 randomly selected Asnaf millennials from Kelantan, Malaysia using structured interviews. This study used Partial Least Squares Structural Equation Modeling PLS-SEM to analyse the data. The result confirmed the indirect influence (entrepreneurial intention) of attitude towards entrepreneurship, subjective norms, and perceived behavioural control on the pre-start-up behaviour. Findings revealed that all antecedents have a positive and statistically significant effect on attitude towards entrepreneurship, subjective norms, and perceived behavioural control, with an exception to risk-taking propensity. Hence, it is suggested that development programs and policies should enhance the innovativeness and opportunity recognition competency, provide access to working capital, and build a platform to promote entrepreneurial networking in increasing entrepreneurial intention among the low-income Asnaf millennials in Malaysia.

Predicting Entrepreneurial Intentions and Pre-Start-Up Behaviour among Asnaf Millennials

Mentoring entrepreneurship in a rural territory – A qualitative exploration of an entrepreneurship program for rural areas

Rural entrepreneurship is acknowledged as an important component that contributes to the economic development of a country. In Malaysia, until recent much attention has been given by the government to ensure the success of the program. Nevertheless, the development of the program has not meeting the government plan. Therefore, this study aims to explore the rural entrepreneurship program in Johor. Specifically the objective of the study is to identify entrepreneurs’ understanding towards the program and the effectiveness of the programs. The data of the study was captured using structured questionnaires involving 32 rural entrepreneurs who had participated in the Ministry of Rural and Regional Development programs. The study revealed that level of understanding of the program was high. The mean score of the five measurements of understanding (promotion awareness, promotion content, suitability of the program, program content and program activities) was 4.4. In term of the effectiveness of the program, although overall mean score was at high level (3.7) two aspects; integration and coordination found to be less effective with the average score of 2.3 and 2.4 respectively. It can be concluded although the entrepreneurs highly understood about the program, the program need further improvement in term of integration and coordination. It is hoped that this study can provide some information that can be used by the respective ministry in enhancing the rural entrepreneurship development program in Malaysia.

Preliminary study of rural entrepreneruship development program in malaysia

Globalization and trade liberalization have changed to tremendous challenges and threat for Malaysian companies to strive in ASEAN. Quality is crucial aspect for companies to maintain and expanse their business in competitive market. Thus, many companies have implemented Total Quality Management (TQM) to improve their companies to the higher level of business performance. ASEAN countries have implemented Asean Free Trade Agreement (AFTA) by eliminating tariffs amongst the countries to ensure ASEAN to be more effective and efficient in terms cost. Nevertheless, AFTA is an advantage for multinational companies especially foreign companies because they have much resources such technology and technical capability. The study of AFTA as a moderator is less done in previous research. The main contribution of this study is to determine the effect of AFTA as a moderator. Based on 1500 surveys, final received response is 327 surveys which equal to 21.8% of response rate. However, 8 surveys have been excluded because of common method bias and missing value issue. The final usable question is 319 which equal to 21.3%. The result shows that AFTA has significant impact on relationship between TQM and business performance as moderator. The Structural Equation Modeling (SEM) techniques were applied to determine the effect of AFTA as moderator on TQM performance model.

The impact of ASEAN free trade agreement as moderator on TQM performance model in Malaysia: Survey result

Small and medium enterprises (SMEs) in Malaysia particularly dominated by Chinese SMEs is acknowledged as a drive for economic growth and industrial development of the country. Despite the contributions made by the Chinese SMEs to Malaysian economic, very few studies, especially in relation to business strategy, have conducted involving the Chinese SMEs. This study is therefore, was embarked to explore business strategies of Chinese SMEs. Using Porter’s five forces model, qualitative methodology, in particular personal interviews have been conducted involving fifteen (15) owners of Chinese Food Manufacturing SMEs in Penang. Responses were analysed using MS Excel based on Miles and Huberman (1994) model. This study revealed that majority of the Chinese SMEs involved in this study have adopted more than one Porter’s components as their business strategies. In fact, Porter’s component found to be a complex framework and each component is interrelated from one to another. Among the five Porter’s components, the substitution product found to be the most important component, followed by buyer’s component. From this study, it can be concluded that the relative strength of Porter’s components support in improving competitive advantage and identifying the optimal strategy under this competitive market. This study has provided better understanding on business strategy of SMEs in particular the Chinese SMEs in Malaysia

Business Strategy of Small Medium Enterprises (SMEs): A Case Study among selected Chinese SMEs in Malaysia

Despite the fact that there is a close link between GDP and the balance of trade, limited studies focussed on the oil and non-oil dichotomised effects of net exports or balance of trade on the GDP. This study therefore, painstakingly investigates specifically the impact of oil and non-oil balance of trade on Malaysia and Nigeria GDP. Data were collected for period 1971-2010 and regression equations defining oil, non-oil and total balance of trade as independent variables and GDP as dependent variable is employed to analyse data. Augmented Dickey-Fuller Tests equation was employed to perform unit root tests for stationary and cointegration tests. From the analysis, oil, nonoil and total balance of trade contributes immensely to the Malaysia GDP. Contrary, only the oil and total balance of trade impact positively on the Nigeria GDP. The Nigeria non-oil balance of trade on the whole has performed below expectation thereby impacting adversely on the Nigeria GDP. Though Nigeria total balance of trade show better results, sectoral impact of the non-oil sector is much more significant a determinant of the quality of a country’s GDP. This study therefore recommends that Nigeria should enhance her export promotion strategies and diversify her economy far away from crude oil.

Do Oil And Non-Oil Balance of Trade Impact Similarly on Malaysia and Nigeria GDP?

Islamic banks offer services based on the dictates of Shari’ah law, which advocates for the system of banking void of oppression of any of the contracting parties through the abolition of interest (Ribaa). This study aims at investigating the level of customer satisfaction on one of the Islamic bank products (Wadi’ah) and to examine the relationship between the product’s characteristics and customer satisfaction. The study adopted the Kano theory of customer satisfaction using four characteristics of the products (perceived quality, Cost, Convenience and Compliance). The quantitative technique of data collection was adopted using a questionnaire to gather information from the customers of the Islamic bank, and Partial Least Square (PLS-SEM) was used in the data analysis. The results show that the satisfaction level of perceived quality of Wadi’ah product was found to be moderate, and the cost of maintaining Wadiah account has its satisfaction level as high, the result also show that customers were satisfied in using the Wadi’ah product with convenience, and in the case of compliance, the customers were satisfied that the activities in Wadiah were in line with the principles of Shari’ah.

Ahmad Kaseri Ramin

Papers

Preliminary study of rural entrepreneruship development program in malaysia

The impact of ASEAN free trade agreement as moderator on TQM performance model in Malaysia: Survey result

Business Strategy of Small Medium Enterprises (SMEs): A Case Study among selected Chinese SMEs in Malaysia

Do Oil And Non-Oil Balance of Trade Impact Similarly on Malaysia and Nigeria GDP?

The effect of Wadiah product quality attributes on customer satisfaction: the case of Jaiz Bank Nigeria Plc