scholarly journals Investigating factors that influence Malaysian auditors’ ethical sensitivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Razana Juhaida Johari ◽  
Md. Mahmudul Alam ◽  
Jamaliah Said
Keyword(s):  
Financial Reporting ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Ethical Culture ◽  
Ethical Sensitivity ◽  
Primary Role ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Audit Firms

Purpose The primary role of auditors is to offer fiduciary services to society and users of financial reporting. With this role, users placed their trust and depend on the ability and judgement made by the auditors during their auditing works. However, recent financial scandals involving high profile companies frustrated the public’s expectations, particularly in Malaysia. It is claimed that auditors are not having ethical sensitivity while executing their task in mitigating fraudulent financial reporting. Therefore, this study aims to examine the influences of ethical orientation, locus of control and the firm’s ethical culture on the auditors’ ethical sensitivity in Malaysia. Design/methodology/approach This study collected primary data based on a questionnaire survey among audit firms in the Klang Valley area and registered with Malaysian Institutes of Accountants. Findings The results showed ethical sensitivity has a significant negative relationship with relativism and in some cases has a significant positive relationship with idealism. Moreover, it found a significant positive relationship between ethical sensitivity and ethical culture. Originality/value This paper provides benefit to the audit firms, professional bodies, policymakers and academia in understanding the factors that might increase the sensitivity of auditors in dealing with ethical issues that could lead to fraudulent financial reporting in the company.

scholarly journals The Qualitative Characteristics of Accounting Information, Earnings Quality, and Islamic Banking Performance: Evidence from the Gulf Banking Sector

2020 ◽  
Vol 8 (2) ◽  
pp. 30
Author(s):  
Ibrahim Elsiddig Ahmed
Keyword(s):  
Financial Reporting ◽  
Positive Relationship ◽  
Banking Sector ◽  
Earnings Quality ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Annual Reports ◽  
Significant Positive Relationship ◽  
Qualitative Characteristics

The study aims to operationalize financial reporting quality in terms of the qualitative characteristics (QCs) as stated by the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) standards, as well as to investigate their association with earnings quality (EQ) and banking performance. The study uses secondary data extracted from DataStream to operationalize and measure the financial reporting quality in the annual reports of 25 out of the 27 Islamic banks in the Gulf Council Countries (GCC) for a 5-year period (2014–2018), meaning 125 annual reports were used. The study applies a manual content analysis to the annual reports to score all the items of QCs and operationalizes 25 measurement items that represent the six QCs. All items use 5-point Likert-type scales to compute the sub-score and the overall index through the Neural Network System. The findings of the model paths show a significant positive relationship between EQ and most of the QCs. The first hypothesis is partially accepted as there is a positive relationship between EQ and relevancy, reliability, prudence and general quality; however, there is no significant relationship between EQ and understandability and there is a significant negative relationship between EQ and comparability. Moreover, the study finds a significant positive relationship between EQ and ROA on one hand and EQ and ROE on the other hand (p-value = 0.00), meaning the second hypothesis is supported.

Organization-Based Self-Esteem Affects Employees' Exchange Relationship Perceptions and Extrarole Behavior

2016 ◽  
Vol 44 (3) ◽  
pp. 509-517 ◽  
Author(s):  
Yanhan Zhu
Keyword(s):  
Social Exchange ◽  
Positive Relationship ◽  
Mainland China ◽  
Negative Relationship ◽  
Self Esteem ◽  
Moderating Effect ◽  
Exchange Relationship ◽  
Significant Positive Relationship ◽  
Significant Negative Relationship ◽  
Practical Implications

The 2 types of exchange relationship perceptions—social exchange relationship perceptions (SERPs) and economic exchange relationship perceptions (EERPs)—constitute the primary concept for understanding individual behavior in the workplace. Using a sample of 581 employees from Mainland China, I explored the effects of SERPs and EERPs on employee extrarole behavior (ERB), as well as the moderating effect of organization-based self-esteem (OBSE) on the relationships between SERPs and ERB, and between EERPs and ERB. The results revealed a significant positive relationship between SERPs and ERB, a significant negative relationship between EERPs and ERB, and a significant moderating effect for OBSE. Theoretical and practical implications of these findings are discussed.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

The Macroeconomic Determinants and FDI: Evidence from 14 International Alliances

2021 ◽  
Vol 9 (2) ◽  
pp. 69-82
Author(s):  
Sujan Chandra Paul ◽  
Md Harun Or Rosid ◽  
Mohammad Rakibul Islam ◽  
Refat Ferdous
Keyword(s):  
Unemployment Rate ◽  
Positive Relationship ◽  
Robust Regression ◽  
Negative Relationship ◽  
African Union ◽  
G7 Countries ◽  
Significant Positive Relationship ◽  
Brics Countries ◽  
Arab League ◽  
Asean Countries

This study investigates the relationship between Foreign Direct Investment (FDI) and some macroeconomic variables such as Gross Domestic Product (GDP), Gross Capital Formation (GCF), Agriculture, Forestry, and Fishing (AFF), Industry, Import, Export, Inflation and Unemployment rate. Panel Data of 14 regional alliances countries from 1990-2018 were collected from The World Bank website. Robust regression models are used in this study. This research found that GDP had significant positive relationship with FDI in all regions except Arab League, EU and G7 countries. GCF had significant positive relationship with FDI in Arab League, BRI, GATT, NAFTA countries & negative relationship in APEC, G7 countries. AFF had significant positive relationship with FDI in BRICS, GATT countries & negative relationship in African Union, ASEAN, BIMSTEC, BRI, BRICS, SAFTA countries. Industry had significant positive relationship with FDI in African Union, BRI, NAFTA, OECD countries and negative relationship in BRICS, G7, G20 countries. Import had significant positive relationship with FDI in African Union, APEC, Arab League, ASIAN, BRI, G7, G20, GATT countries and negative relationship in BRICS countries. Export had significant positive relationship with FDI in BRICS countries and negative relationship in African Union, ASEAN, BRI, G20, GATT, OECD, SAFTA countries. Inflation had significant positive relationship with FDI in GATT, SAFTA countries and negative relationship in African Union, APEC countries. Unemployment rate had significant positive relationship with FDI in African Union, BRI, BRICS, EU, G20, GATT, OECD, SAFTA countries and negative relationship in ASEAN countries.

scholarly journals A Study of the Factors Determining Motivational Level of Employees Working in Public Sector of Bahawalpur (Punjab, Pakistan)

2014 ◽  
Vol 4 (3) ◽  
pp. 19 ◽  
Author(s):  
Atif Rafique ◽  
Muhammad Sadam Bin Tayyab ◽  
Muhammad Kamran ◽  
Nawab M. Ahmed
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Public Sector ◽  
Knowledge Transfer ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Training Effectiveness ◽  
Significant Positive Relationship ◽  
The Public ◽  
Level Of Significance

This study empirically examines the relationship between rewards, job satisfaction, Perceived training effectiveness, knowledge transfer and organizational commitment and employee’s motivation in the Public sector of Bahawalpur (Punjab, Pakistan).Our sample was public sector data was collected by using self-designed questionnaires. The sample size was 170 so 170 questionnaires were distributed and only 149 received. Analysis was done with the help of correlation coefficient and multiple regression analysis. Between (0.01 to 0.05) level of significance was checked. The result concludes that there is a significant positive relationship between intrinsic rewards and the employee’s motivation and also there is significant positive relationship between extrinsic reward and employee’s motivation. Job Satisfaction also has significant positive relationship with employee’s motivation. But on the other hand PTE (Perceived Training Effectiveness) have insignificant and negative relationship with Employee’s motivation. Employee’s motivation has significant positive relationship with knowledge transfer and also with Organizational Commitment. 

Shared values and organizational effectiveness: a study of the Nigerian banking industry

2014 ◽  
Vol 33 (7) ◽  
pp. 694-708 ◽  
Author(s):  
Edwinah Amah ◽  
Augustine Ahiauzu
Keyword(s):  
Organizational Effectiveness ◽  
Market Share ◽  
Positive Relationship ◽  
Banking Industry ◽  
Employee Involvement ◽  
Relevant Literature ◽  
Shared Values ◽  
The Body ◽  
Content Type ◽  
Significant Positive Relationship

Purpose – The purpose of this paper is to examine the extent to which shared values influences organizational effectiveness and the extent to which shared values influences profitability, productivity, and market share. Design/methodology/approach – The correlational study adopted a cross-sectional survey design. Research questionnaires were administered; interviews were held with managers in the organizations studied. A total of 388 managers were randomly drawn from a population of 13,339 managers of all the 24 banks in Nigeria. The independent variable, “shared values” was measured by coordination and integration, agreement, and core values. The dependent variable, organizational effectiveness was measured by profitability, productivity, and market share. The measures used a five-point Likert scale ranging from 1-strongly disagree to 5-strongly agree. Spearman's rank correlation statistical tool was used to test the hypotheses. Findings – The result (ρ=0.555, p<0.05) (see Table II) shows a significant positive relationship between shared values and profitability. The result (ρ=0.504, p<0.05) (see Table III) shows a significant positive relationship between employee involvement and productivity. The result (ρ=0.359, p<0.05) (see Table IV) shows a positive relationship between employee involvement and market share. There is a significant positive relationship between shared values and organizational effectiveness. Research limitations/implications – The results cannot be generalized because the study was carried out only in the banking industry. Not all the questionnaires given out were retrieved. Some respondents were reluctant to give out information about their organizations because of fear that such information will get to their competitors. Relevant literature on the topic of African origin were scarce, thus most of the literature reviewed was from Europe and America. Practical implications – The results imply that increase in the level of shared values in organizations will enhance profitability, productivity, and market share. This means that “shared values” is associated with organizational effectiveness. Originality/value – The study provides increased understanding, prediction, and appreciation of human behaviour. It enables us analyse the relationship that exist between shared values and organizational effectiveness. The study significantly enhances the body of knowledge in this area of management as it provides reliable empirical results that can be used by scholars and practitioners. It will also help to alert managers on the implications of cultivating a culture of sharing values in the organization that can serve as a competitive advantage. The study will be a challenge to further research because of its findings.

Financial Performance Analysis of Nepalese Financial Institutions in the Framework of CAMEL

2020 ◽  
Vol 9 (1) ◽  
pp. 56-74
Author(s):  
Kedar Raj Gautam
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Capital Adequacy ◽  
Significant Positive Relationship ◽  
Management Efficiency ◽  
Significant Negative Relationship ◽  
Development Banks

Analysis of financial performance to detect financial health of finance companies, development banks and commercial banks as a whole is a less explored research in Nepalese context. This paper, therefore, attempts to examine the financial performance and factors influencing financial performance of Nepalese financial depositary institutions in the framework of CAMEL. This study is based on descriptive cum casual research design. This study is based on secondary data which was extracted from various publications published by Nepal Rastra Bank such as banking and financial statistics, financial stability report and bank supervision report. All commercial banks, development banks, and finance companies are taken as population of the study. The study deals with financial performance analysis of entire population covering five years from 2014/15 to 2018/19. The variables such as capital adequacy, assets quality, management efficiency, earnings and liquidity are used to analyze financial performance. Descriptive as well as pooled regression analysis was used to assess the relationship among the variables. Descriptive analysis shows that financial institutions in each category meet NRB standard regarding capital adequacy. On the basis of capital adequacy and earnings, finance companies stand at first, on the basis of assets quality, development banks stand at first and on the basis of management efficiency, commercial banks stand at first. Finance companies store high liquidity as compared to other class financial institutions. The regression analysis shows that return on assets, ROA has significant positive relationship with capital adequacy and ROE but ROA has significant negative relationship with assets quality. However, return on equity, ROE has significant positive relationship with assets quality and ROA but ROE has significant negative relationship with capital adequacy. Capital adequacy and assets quality play major role to maximize ROA and ROE of financial institutions.

Short-term performance of stocks after fraudulent financial reporting announcement

2019 ◽  
Vol 26 (2) ◽  
pp. 464-476 ◽  
Author(s):  
Mehmet Eryigit
Keyword(s):  
Financial Markets ◽  
Stock Returns ◽  
Financial Reporting ◽  
Abnormal Return ◽  
Fraudulent Financial Reporting ◽  
Short Term ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Company Stock

Purpose Availability of accurate and reliable information in financial markets helps investors make well-informed decisions on capital allocations which is beneficial for long-term economic growth. In this regards, the role of auditing firms that inspect the financial statements of the publicly traded companies in sound operation of financial markets has been increasing. The Capital Market Board of Turkey (CMBT) has the task and responsibility of investigating fraudulent information disseminated by the firms whose stocks are traded in Borsa Istanbul. The investigations can lead to monetary penalties if fraud is proven and the results are published by CMBT in its weekly bulletin. The present study aims to examine the effect of announcements of financial irregularities of companies in CMBT Bulletin on the performance of the relevant company stock in the short term. Design/methodology/approach This study uses abnormal return, cumulative abnormal return and cumulative average abnormal return as metrics and parametric, as well as non-parametric tests to ascertain whether the announcements of financial irregularities in company operations have any statistically significant effect on the return of its stock. Findings The results indicate that publication of the financial penalty news by CMBT in its bulletin has almost no statistically significant influence on the performance of the relevant companies’ stock in Borsa Istanbul. The findings indicate that either the investors in this particular markets do not consider such news relevant to long-term success of the firm or the announcement does not provide any new information and penalties have been priced into the stock before the announcement in the bulletin. Originality/value In literature there is no more research about the effect of the announcements of administrative monetary penalties and crime complaints on the stock returns.

scholarly journals Enumeration of Salmonella and Campylobacter spp. in Environmental Farm Samples and Processing Plant Carcass Rinses from Commercial Broiler Chicken Flocks

2013 ◽  
Vol 79 (13) ◽  
pp. 4106-4114 ◽  
Author(s):  
Roy D. Berghaus ◽  
Stephan G. Thayer ◽  
Bibiana F. Law ◽  
Rita M. Mild ◽  
Charles L. Hofacre ◽  
...  
Keyword(s):  
Cohort Study ◽  
Environmental Samples ◽  
Broiler Chicken ◽  
Positive Relationship ◽  
Processing Plant ◽  
Sample Type ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Commercial Broiler ◽  
Campylobacter Spp

ABSTRACTA prospective cohort study was performed to evaluate the prevalences and loads ofSalmonellaandCampylobacterspp. in farm and processing plant samples collected from 55 commercial broiler chicken flocks. Environmental samples were collected from broiler houses within 48 h before slaughter, and carcass rinses were performed on birds from the same flocks at 4 different stages of processing.Salmonellawas detected in farm samples of 50 (90.9%) flocks and in processing samples of 52 (94.5%) flocks.Campylobacterwas detected in farm samples of 35 (63.6%) flocks and in processing samples of 48 (87.3%) flocks. There was a significant positive relationship between environmental farm samples and processing plant carcass rinses with respect to bothSalmonellaandCampylobacterprevalences and loads.Campylobacterloads were significantly higher thanSalmonellaloads, and the correlations between samples collected from the same flocks were higher forCampylobacterthan they were forSalmonella. Boot socks were the most sensitive sample type for detection ofSalmonellaon the farm, whereas litter samples had the strongest association withSalmonellaloads in pre- and postchill carcass rinses. Boot socks, drag swabs, and fecal samples all had similar sensitivities for detectingCampylobacteron the farm, and all were more strongly associated withCampylobacterloads in carcass rinses than were litter samples. Farm samples explained a greater proportion of the variability in carcass rinse prevalences and loads forCampylobacterthan they did forSalmonella. SalmonellaandCampylobacterprevalences and loads both decreased significantly as birds progressed through the processing plant.

The effect of auditor industry specialization and board independence on the cash flow reporting classification choices under IFRS: evidence from Taiwan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shuling Chiang ◽  
Gary Kleinman ◽  
Picheng Lee
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Negative Relationship ◽  
Cash Flows ◽  
Board Independence ◽  
Firm Level ◽  
Industry Specialization ◽  
Content Type ◽  
Auditor Industry Specialization ◽  
Board Of Director

Purpose This study aims to explore the relationship between audit partner and firm industry specialization and board of director independence on the decision by Taiwanese firms to use International Financial Reporting Standards (IFRS) flexibility concerning reporting interest income and expense and dividends received in different sections of the statement of cash flows. This flexibility existed in Taiwan for the first time in 2013, the year that Taiwan switched from its own generally accepted accounting principle to IFRS. Design/methodology/approach Using 2013 data for a sample of 1,227 firms, 354 of whom changed their reporting classification, this study examined the interaction effect of board independence and partner-level and firm-level auditor industry specialization on the cash flow reporting decision using logistic regression. Findings The results show there is a substitute relationship between board independence and partner-level industry specialization on the change in cash flow reporting classification, but a complementary relationship between board independence and firm-level auditor specialization. Further, both partner-level and firm-level auditor industry specializations have a complementary (but negative) relationship with board independence as to whether the firm is likely to report interest expense paid in the operating or financing activities sections. Practical implications An important implication is that knowing the levels of audit firm and partner specialization and how independent the board is, is useful for researchers and regulators in investigating auditor-client relationships and understanding the influences of variables investigated here on the outcome(s) of accounting policy and regulatory changes. Originality/value This study improved the field’s understanding of the impacts of audit partner and firm specialization, board independence and relevant interactions on cash flow reporting choices.

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