Economic and market predictors of solvency of family takaful in Malaysia

2017 ◽  
Vol 8 (3) ◽  
pp. 334-344
Author(s):  
Muhamad Abduh ◽  
Syaza Nawwarah Zein Isma
Keyword(s):  
Annual Reports ◽  
Company Size ◽  
Profit Rate ◽  
Content Type ◽  
Factors Affecting ◽  
Dependent Variables ◽  
Investment Income ◽  
Equity Index ◽  
Reserve Ratio ◽  
Risk Retention

Purpose The purpose of this study is to empirically study firm-specific and economic factors affecting solvency of family takaful companies in Malaysia. Design/methodology/approach Data are extracted from the annual reports of six family takaful companies and Bloomberg for the period from 2008 to 2012. Equity-to-asset and equity-to-technical reserve ratio are used to measure solvency and thus become the dependent variables. Meanwhile, profit rate, Islamic index, company size, risk retention, contribution growth, investment income, takaful leverage, liquidity and expenses are the independent variables. Findings The determinants that are positively related to equity-to-asset ratio (EAR) of family takaful include contribution growth, investment income, takaful leverage, liquidity and Islamic equity index. Meanwhile, company size, risk retention, expenses and profit rate are negatively related to EAR of takaful. Equity-to-technical reserves ratio (ETR) of takaful are positively related to risk retention, contribution growth, investment income, takaful leverage, profit rate and Islamic equity index. The other variables including company size, liquidity, and expenses are negatively related to ETR of takaful. Originality/value This study explores factors affecting the solvency of family takaful, which to the best of the authors’ knowledge is still lacking empirical research which may improve the understanding of this issue.

scholarly journals Examining the Factors Affecting Firm Values : The Case of Listed Manufacturing Companies In Indonesia

2020 ◽  
Vol 3 (1) ◽  
pp. 62-72
Author(s):  
Erika Diana
Keyword(s):  
Earnings Management ◽  
Firm Value ◽  
Stock Exchange ◽  
Annual Reports ◽  
Company Size ◽  
Cash Holding ◽  
Manufacturing Companies ◽  
Financial Leverage ◽  
Factors Affecting ◽  
Panel Data Regression

Objective – This study aims to examine the effect of cash holding, earnings management, profitability, company size, and financial leverage on firm value in manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018.  Design/methodology – This study used hypothesis testing. Samples were selected using purposive sampling as many as 82 companies. Data obtained from annual reports and analyzed using panel data regression analysis method.  Results – The results showed that cash holding, earnings management, and profitability as inde-pendent variables, company size and financial leverage as control variables jointly affect the value of the company. Partially, earnings management has no effect on firm value, while cash holding, profitability, company size, and financial leverage have an effect on firm value.

scholarly journals Factors Affecting the Profitability of Insurance Companies in Albania

2016 ◽  
Vol 1 (1) ◽  
pp. 352
Author(s):  
Dorina Kripa ◽  
Dorina Ajasllari
Keyword(s):  
Growth Rate ◽  
Quantitative Methods ◽  
Performance Metrics ◽  
Annual Reports ◽  
Insurance Companies ◽  
Company Size ◽  
Factors Affecting ◽  
Fixed Assets ◽  
The Impact ◽  
A Company

Good performance of a company determines the position of the company in its market and the growth and consolidation of the market, giving as result the development of the economy as a whole. The importance of this topic further enhanced when dealing with insurance companies because: 1) insurance companies’ transfers risk in the economy 2) provide a mechanism to promote savings 3) promote investment activities. The growing importance of insurance companies in Albania and the importance of profitability as one of the key performance metrics of a company are the reasons why we decide to write this paper. The variation of profits between insurance companies over the years, within a country, leads to believe that internal factors play a major role in determining profitability. We have taken under study the impact of growth rate, liabilities, liquidity, fixed assets, volume of capital and company size on the profitability of insurance companies. The methodology used is based on quantitative methods and the data are provided by reliable sources such as annual reports of insurance companies’, FSA reports and NRC . We have taken under study 7 companies, including non-life and life insurance companies, from 2008- 2013. The results of the paper show that factors such as growth rate, liabilities, liquidity and fixed assets are the main factors affecting the profitability of insurers, where the growth rate is positively associated with profitability, while liabilities, liquidity and fixed assets are negatively correlated. Company size and the volume of capital are positively correlated with the profitability of insurance companies’, but their impact is statistically insignificant.

Tax non-compliance among SMCs in Malaysia: tax audit evidence

2014 ◽  
Vol 15 (2) ◽  
pp. 215-234 ◽  
Author(s):  
Nor Azrina Mohd Yusof ◽  
Lai Ming Ling ◽  
Yap Bee Wah
Keyword(s):  
Negative Impact ◽  
Annual Reports ◽  
Company Size ◽  
Corporate Tax ◽  
Marginal Tax Rate ◽  
Content Type ◽  
Tax Rate ◽  
The World ◽  
Tax Audit ◽  
Tax Research

Purpose – The pervasiveness of tax non-compliance remains a serious concern to most tax authorities around the world. The negative impact of tax non-compliance on the economy and the evolving nature of the Malaysian corporate tax system have motivated this study. The purpose of this paper is to examine the determinants of corporate tax non-compliance among small-and-medium-sized corporations (SMCs) in Malaysia. Design/methodology/approach – This study used economic deterrence theory to analyze and test 375 tax-audited cases finalized by the Inland Revenue Board of Malaysia in 2011. Findings – Multiple regression results revealed that marginal tax rate, company size and types of industry exerted significant effects on corporate tax non-compliance. The services and construction industries were noted to be the predominant industries engaged in tax non-compliance. The amount of concealed income unearthed during tax audit indicates clearly that there is widespread tax non-compliance in Malaysia and the quantum of tax lost through tax non-compliance is quite high. Research limitations/implications – This study only sampled SMCs audited in 2011, hence, care has been exercised in generalizing the findings. Practical implications – This study affirms that marginal tax rate, company size and types of industry are the main factors influencing compliance behavior of SMCs. The findings provide important insights not only to the Malaysian tax authority, but also to tax authorities and tax researchers in other parts of the world given that tax non-compliance of SMCs is a prevalent and universal problem. For example, with regard to the finding that marginal tax rate and company size are linked to non-compliance, it can be surmised that tax authorities ought to divert resources to firms with such characteristics when conducting audits. Originality/value – Most tax research tax examining corporate tax non-compliance used financial data from annual reports to predict tax non-compliance, which are not very accurate. This study used actual tax audit cases obtained from the tax authority which are reflective of the actual situation. This study complements the scant existing literature by empirically evaluating the factors that influenced corporate tax non-compliance in a developing country like Malaysia.

Implications of Shariah on the voluntary disclosure of Indonesian listed companies

2014 ◽  
Vol 12 (1) ◽  
pp. 76-98 ◽  
Author(s):  
Peni Nugraheni ◽  
Hairul Azlan Anuar
Keyword(s):  
Voluntary Disclosure ◽  
Annual Report ◽  
Quality Measurement ◽  
Annual Reports ◽  
Company Size ◽  
Religious Activities ◽  
Content Type ◽  
Significant Difference ◽  
The Relationship

Purpose – The purpose of this paper is to investigate and compare the extent of voluntary disclosure in the annual reports of Shariah- and non–Shariah-compliant companies in Indonesia. Further, the study examines the relationship between voluntary disclosure and company characteristics (i.e. size of company, profitability, type of auditor, type of industry and ownership structure). Design/methodology/approach – Voluntary disclosure was measured using a disclosure index with 30 items and content analysis of the 2009 annual report. Statistical analysis included descriptive, Mann–Whitney U and regression. Findings – The result revealed that there is a statistically significant difference in the quantity and quality of voluntary disclosure value of Shariah- and non–Shariah-compliant companies. For regression results, the company size significantly influences the quantity of voluntary disclosure while the quality of voluntary disclosure is affected by company size and type of industry. Research limitations/implications – Although this study only analyses voluntary disclosure in the annual report for a single year (2009), it is hoped to provide a description of the voluntary disclosure in Shariah- and non–Shariah-compliant companies. Practical implications – The findings might be used by regulators to set regulations that encourage the quantity and quality of disclosure practice of Shariah-compliant companies to expand the scope of disclosure related to religious activities. Originality/value – This study measures voluntary disclosure using the disclosure index based on Indonesian regulations and the quantity and quality measurement of Shariah-compliant companies, which may differ from previous Indonesian studies.

Factors affecting the voluntary disclosure: a study by using smart PLS-SEM approach

2018 ◽  
Vol 60 (6) ◽  
pp. 1498-1508 ◽  
Author(s):  
Md. Abdur Rouf ◽  
M. Akhtaruddin
Keyword(s):  
Voluntary Disclosure ◽  
Structural Equation ◽  
Reliability And Validity ◽  
Listed Companies ◽  
Annual Reports ◽  
Equation Modeling ◽  
Bench Mark ◽  
Content Type ◽  
Factors Affecting ◽  
Leadership Structure

Purpose This paper aims to examine the factors affecting the voluntary disclosure in the annual reports of listed companies in Bangladesh. Design/methodology/approach The study is based on a sample of 96 listed non-financial companies in Dhaka Stock Exchanges over the period of 2013 to 2016. The study used partial least squares structural equation modeling tool to analyze data which provides evidence of reliability and validity. It also used an unweighted relative disclosure index for measuring voluntary disclosure. Findings The empirical results show that corporate governance (board leadership structure and ownership structures) and firms characteristics (total assets and total sales) are significantly positive correlated with the voluntary disclosure. Originality/value The finding of the study will be a bench mark or the board for policy makers and implementers in torching the avenues of improvement in raising the level of corporate voluntary disclosure in annual reports of listed companies in Bangladesh.

Factors affecting profitability in Malaysia

2018 ◽  
Vol 45 (3) ◽  
pp. 442-458 ◽  
Author(s):  
Ali Saleh Alarussi ◽  
Sami Mohammed Alhaderi
Keyword(s):  
Firm Size ◽  
Listed Companies ◽  
Annual Reports ◽  
Current Ratio ◽  
Content Type ◽  
Leverage Ratio ◽  
Factors Affecting ◽  
Turnover Ratio ◽  
Equity Ratio ◽  
Total Sales

PurposeThe purpose of this paper is to examine the factors affecting profitability in Malaysian-listed companies. It has been argued that profitability is the main pillar for any company to survive in the long run. Although profitability is the primary goal of all business ventures, scant attention has been paid to the factors that affect profitability in developing countries. This study investigates the factors affecting profitability in Malaysian-listed companies.Design/methodology/approachThis research is based on five independent variables that were empirically examined for their relationship with profitability. These variables are: firm size (as measured by total sales), working capital (WC), company efficiency (assets turnover ratio), liquidity (current ratio) and leverage (debt equity ratio and leverage ratio). Data of 120 companies listed on Bursa Malaysia covering the period from 2012 to 2014 were extracted from companies’ annual reports. Pooled ordinary least squares regression and fixed-effects were used to analyze the data.FindingsThe findings show a strong positive relationship between firm size (total sales), WC, company efficiency (assets turnover ratio) and profitability. The results also show a negative relationship between both debt equity ratio and leverage ratio and profitability. Liquidity (current ratio) has no significant relationship with profitability.Research limitations/implicationsDue to the time limitation, the data includes only 120 companies listed in bursa Malaysia and covers the period from 2012 to 2014.Practical implicationsThese results benefit internal users (such as mangers, shareholders and employees). They can realize the determinants of enhancing the profitability of their company after the depreciation of the Malaysian currency and therefore concentrate more on the factors that enhance their companies’ profitability. On the other side, other external users (such as investors, creditors, new established companies, tax authority) also may get advantages of these results. It is clear that those users concern about the profitability of companies and the determinants of their profitability after the currency’s depreciation.Originality/valueThis study differs than previous studies in many ways: first, it focuses on non-financial listed companies in Malaysia. Previous studies have concentrated on companies in the financial sector, such as banking and financial institutions or on industrial organizations. Second, this study analyzes the data in companies’ annual reports for a three-year period from 2012 to 2014. During this period, the economy in Malaysia was fluctuating due to currency depreciation. Third, the study used both return on equity and earnings per share as indicators of profitability. Fourth, the results of the study provide empirical evidence that large size firms with efficiently managed assets can improve operating income and ultimately enhance profitability. Last but not least, this study applies the resource-based theory and the trade-off theory.

The contributing factors of intellectual capital disclosures in agriculture and mining sectors of Indonesia and Thailand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saarce Elsye Hatane ◽  
Josua Tarigan ◽  
Elenne Stefanie Kuanda ◽  
Elizabeth Cornelius
Keyword(s):  
Human Capital ◽  
Content Analysis ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Annual Reports ◽  
Contributing Factors ◽  
Minority Shareholders ◽  
Content Type ◽  
Factors Affecting

Purpose This study aims to examine the factors affecting intellectual capital disclosure (ICD), especially in the agriculture and mining sectors in Indonesia and Thailand. Additionally, this study discusses the difference in ICD levels between Indonesia and Thailand. Design/methodology/approach The sample used is companies listed on the Indonesia Stock Exchange and Stock Exchange of Thailand from 2013 to 2017. The method used is a content analysis of 380 annual reports (150 from Thailand and 230 from Indonesia). This study uses a panel regression model. Variables tested are firm size, market shares, minority shareholders, profitability, leverage and the focus on ICD components such as human capital disclosure, structural capital disclosure and relational capital disclosure. Findings IC disclosures in financial statements are generally oriented to past events and focus more on the human capital component. Overall, ICDs in Thailand are more qualified than in Indonesia. The findings support the stakeholder and legitimacy theories. It was found that the greater the company’s resources, the higher the quality of disclosure of all intellectual capital (IC) components. Conversely, when associated with the position in the market, companies reduce the disclosures. As the company has gained the government’s legitimacy, management’s passion for revealing more about its ICD is diminishing. Research limitations/implications This study focuses on the agriculture and mining sectors in Indonesia and Thailand. The annual report is the primary medium to observe IC in qualitative and quantitative ways, yet firms would use other means to disclose their IC. This study deploys the content analysis method, in which the determination of scores is based on the researchers’ judgment. Originality/value This study contributes to the ICD-related literature by focusing on the agriculture and mining industries and multinational scopes. The ICD valuation is extended to the quality of disclosures, in which numerical and monetary figures also support the disclosures. This study also examined minority shareholders’ role in ICD quality, which is infrequent in ICD literature.

scholarly journals Factors influencing corporate social responsibility disclosures in Nepalese banks

2020 ◽  
Vol 5 (2) ◽  
pp. 209-224
Author(s):  
Gopi Bidari ◽  
Hadrian Geri Djajadikerta
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Banking Sector ◽  
Annual Reports ◽  
Global Reporting Initiative ◽  
Content Type ◽  
Factors Affecting ◽  
Csr Disclosure ◽  
Corporate Social

PurposeThis paper examines the relationship between selected firm-specific variables and the extent of corporate social responsibility (CSR) disclosures made by Nepalese banks.Design/methodology/approachA content analysis approach of the banks' annual reports is applied using a CSR disclosure index based on the Global Reporting Initiative guidelines. The factors identified in this study – bank size, bank age and bank profitability – are analyzed against the extent of CSR disclosures in the Nepalese banks using multiple regression.FindingsThe main finding from the content analysis indicates that the extent of CSR disclosures made by Nepalese banks in their annual reports is mostly descriptive, with charity and donation being the most disclosed items. The main findings from the correlation and regression analyses show that there are positive and significant relationships between both bank size and profitability and the extent of CSR disclosures in the Nepalese banks, while bank age is a partial determinant.Originality/valueBanks have a significant role in the Nepalese economy. This study offers insights into the CSR disclosure practices of Nepalese banks, examines the potential factors affecting CSR disclosure and expands the pool of CSR knowledge in the developing country context, especially in the banking sector.

Structural and Relational Intellectual Capital Assets Disclosure in Nigeria: An Empirical Evaluation

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Peter Okoeguale Ibadin ◽  
Killian Osikhena Ogiedu
Keyword(s):  
Intellectual Capital ◽  
Empirical Evaluation ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Company Size ◽  
Audit Firm ◽  
Capital Assets ◽  
Dependent Variables ◽  
Industry Sectors ◽  
The Relationship

The study investigates the determinants of structural and relational intellectual capital assets disclosure by quoted companies in Nigeria. Specifically, it examines the relationship between the level of disclosure (structural and relational) and specific characteristics, such as company size and age, leverage, audit firm size, ownership concentration, type of industry, foreign activity of company, and so on. The study employs content analysis to examine the annual reports of the sampled companies. Two models with Disclosure of structural intellectual capital assets and Disclosures of relational intellectual capital assets as dependent variables respectively were used. A panel of 157 companies in 33 industry sectors was analysed for the period 2006 to 2010. The study found that leverage was positively and significantly related to disclosure of structural intellectual capital assets but was insignificantly related to disclosures of relational intellectual capital assets. Foreign activities of company and size of auditing firm were positively related to disclosures of relational intellectual capital assets. Size of audit firm was positively related to disclosure of structural intellectual capital assets. Age of company was found to be positively related to disclosure of structural intellectual capital assets and disclosures of relational intellectual capital assets.

Determinant of Audit Report Lag Among Mining Companies in Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 68
Author(s):  
Sari Angriany Natonis ◽  
Bambang Tjahjadi
Keyword(s):  
Stock Exchange ◽  
Sampling Technique ◽  
Annual Reports ◽  
Fiscal Year ◽  
Company Size ◽  
Audit Report ◽  
Public Accounting ◽  
Audit Opinion ◽  
Accounting Firm ◽  
Mining Companies

Time period in completing the audit work until the date of publishing audit report is called audit report lag. BAPEPAM requires each of going-public companies to publish their annual reports not later than three months after the fiscal year ends. The aim of this research was to determine the effect of profitability, solvency, company size, audit opinion, and size of public accounting firm on audit report lag at mining companies listed on Indonesia Stock Exchange during the period of 2013-2017. As many as 12 samples were obtained through purposive sampling technique. The data analysis technique used was the multiple regression analysis. The results showed that the profitability and company size negatively affected the audit report lag, while the other variables, such as solvency, audit opinion, and size of public accounting firm, had no significant effect on the audit report. The result of simultaneous test showed that all independent variables influenced audit report lag with 32.8% of determination coefficient.

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