Lower profitability leads to the undercapitalization problem which leads to low of retained earnings, and consequently to over-dependence on debt financing, rather than with internally generated equity. This paper examined the moderating effect of audit committee financial expertise on the relationship between ownership structure and profitability of listed financial institutions in Nigeria. The study utilizes a sample of 29 listed firms from 2006 to 2015. Driscoll and Kraay’s standard errors estimation was employed overcome the heteroscedasticity, autocorrelation and cross-sectional dependence problems. The results established that audit committee financial expertise has a significant positive influence on profitability. Likewise, CEO and foreign ownership have a positive influence on profitability. However, these positive relationships turned out to be negative due to the presence of audit committee financial expertise as a moderator. Although executive ownership has a negative influence on profitability, this is upturned to the positive relationship with the presence of an audit committee financial expert. It is recommended that the regulators should strengthen the power of the audit committee to safeguard or protect the interest of other shareholders.
This paper examines the influence of audit committee (AC) attributes on audit fees (AUF) of 440 firm-year observations of listed companies in Nigeria for five year period (2012 to 2016). A multiple regression was employed in estimating the model using robust standard errors. We explore and improve prior literature of same relations by using additional variables (AC legal experts, AC stock ownership and AC chair independence). The study found that (AC size, AC financial accounting experts, AC legal experts and AC stock ownership) are positively associated with AUF in their quest for greater audit assurance. The study also established that female AC and AC chair independence act as substitute to audit quality which praises that higher internal control will be accredited to lower audit process. The findings and inferences are also consistent with complementary hypothesis of audit quality (payment of high fees in an exchange for better audit efforts. Our result is conclusive and robust for the inclusion of the foregoing AC attributes that were limitedly explored by prior studies in this relationship. Our study provides an insight on the importance of AC legal experts; AC stock ownership and AC chair independence to the current and potential stakeholders who are the direct users of financial reports. The study informs regulators and policy makers the potential influence of these unique AC attributes on auditors’ price which is one of the most crucial drivers of audit quality.
Malaysian private higher education institutions are currently operating in a competitive education market. Their profitability and viability are being compromised by uncertain levels of student loyalty. Therefore, it is imperative for managers of private higher education institutions to be aware of the drivers of their students’ loyalty. This study aims to investigate the significant effects of reputation (university management, academic and media reputation) and relationship benefits on student loyalty in private higher education institutions in Malaysia and to determine the mediating effects of satisfaction on the aforementioned relationships. The methodology utilises primary data obtained from questionnaire administered to a sample of 400 students from several private higher education institutions using stratified random probability sampling. Multiple regression technique and mediation analyses were employed to analyse the data via SPSS statistical package. The results revealed that reputation and relationship benefits had significant effects on student loyalty. Empirical evidence concludes that university management and relationship benefits have significant effects on students’ loyalty, whilst academic and media reputation did not. Satisfaction was found to mediate the relationship between the independent variables and student loyalty. The study concludes with the discussion and implications, as well as limitations and suggestions for future research.
This paper examines the relationship between education and economic growth in Malaysia from 1984 to 2012 which is motivated by the issue of the inefficiency of government’s expenditure on education. Specifically, this paper investigates how education levels affect Malaysia’s economic growth directly and indirectly through mediators such as unemployment, fertility and technology innovation via mediation analysis. The empirical results show that primary and tertiary education affects economic growth positively, while secondary education gives a negative effect. It is also discovered that the impact of all education levels on economic growth via indirect effects is higher than the direct effects. Tertiary education has the largest total effect among the other education levels on economic growth and its indirect effect on economic growth through lowering unemployment and fertility and increasing technology innovation is found to be significant.
The Markov switching vector autoregressive model is a dynamic stochastic system with stochastic autoregressive parameters. This model able to measure a time varying problem when the variables undergoing regime switching. Structural change or shock is an ordinary fact in time series data. Some shocks have an important role under specific regimes in examining the business cycle contraction. Excluding changes in regime for the measurement of variance decomposition may produce biased results. Moreover, the parameters in the time series model might also have a structural change. Therefore, linear models are no longer suitable to be used in analyzing the financial model; and nonlinear time series models that are Markov switching models are proposed to solve these kinds of problems. A two regimes Markov switching vector autoregressive model is used in this study to analysis the time series data. The regime is dependent heterogeneous with varying the variance to detect every change of the business cycle. The correlations between oil price, Malaysia, Singapore, Thailand and Indonesia stock price are examining using Markov switching model. The result shows that the regimes dependent models suitable to employ in study the asymmetric business cycle; and oil price have a negative relationship with the changes of the four selected Asian stock markets.
This paper aims to measure the retirement wealth adequacy among population in Malaysia based on 7743 samples from Household Expenditure and Income Survey (HEIS) 2014. The determinants of retirement wealth adequacy are also examined using the OLS regression. The HEIS2014 contains information on household income and expenditure data, together with socio-economic and demographic characteristics of each household head such as age, education level and occupational group. The retirement wealth adequacy is projected using a wealth-need ratio, which is equal to the projected wealth (or income) accumulated in working years divided by the projected total needs (or consumptions) in retirement years. A wealth-need ratio of equal or larger than one indicates that an individual’s retirement wealth is adequate. Based on life cycle hypothesis which states that retirees should retire with a maintained lifestyle, a 70% replacement ratio is used in this study to project the total consumptions throughout retirement years. We also project the total consumptions by implementing different replacement ratios for different salary classes in Malaysia to take into account heterogeneity of consumptions among households. The results show that all households (or 100%) have wealth-need ratio of one or more if we use 70% replacement ratio. However, the percentage of households who have wealth-need ratio of equal or larger than one reduces to 88% when we use different replacement ratios for different income classes. The results from the wealth-need ratio indicates that the following demographic and socio-economic groups have higher percentage of adequate retirement wealth; age 30-35, single (not married), work in management field, degree education, live in region 4 (Pulau Pinang, Selangor, Kuala Lumpur, Putrajaya), and work in private sectors.
Cross-border migration between Timor Leste and Indonesia continuously occurs and becomes an important public problem, although the government of Indonesia firmly implements policy to restrain it. This research examined the influence of government policy on individual decision of Timor Leste people to migrate across the border to enter Indonesia. It used quantitative method to analyse causal correlation between government policy and individual decision to migrate across the border of the two countries. Research subjects amounted to 165 including Timor Leste migrants, immigration and security officials in the cross border points. Data obtained from questionnaire were analysed through descriptive statistic, Pearson correlation and simple linear regression techniques. This research found that passport/visa service is very expensive, the implementation of regulations on immigration services is very strict, while the providing of safe atmosphere, fair security and immigration service to migrants is at high level. Social, cultural and economic benefits being obtained in Indonesia are very important criteria, while clarity of objective, commitment to attain the objective, expenses of migration, security assurance, availability of transportation tools and infrastructures are important criteria that determine individual decision to migrate across the border of the two countries. This research also found that government policy has weak correlation, but have positive influence on individual decision to migrate across the border of the two countries, and its influence is 12.9%. The government of Indonesia needs to improve the quality of its public policy to manage the cross-border migration effectively and efficiently.
The objectives of Halal Industry Master Plan (2008 – 2020) are to serve Malaysia as the global reference centre for Halal integrity know-how and being the global leader in the innovation, production and trade of a number of halal-related sectors. This paper aimed at Halal Consumption Pattern Determinants in Malaysia. The direct determinants of the halal consumption pattern are Muslim lifestyle, risk perception and trust. The determinants of Muslim lifestyle are perceived behavioural control, government policy and religiosity. Additionally, Muslim lifestyle predicts risk perception and trust. The total of 244 data was collected from Muslim consumers in Muslim population Malaysia which stratified from the five Malaysian regions: Central, North, South, Eastern peninsular and East Malaysia presented by Johor, Wilayah Persekutuan, Kedah, Kelantan and Sabah. The data was analyzed through SPSS and Partial Least Square (SEM-PLS). The finding indicated that all the direct relationships were significant except for the government policy towards Muslim Lifestyle and Risk Perception towards Halal Consumption pattern. The sequential mediating effect of religiosity shows significant result while others were not significant. The model had explained 42.2% of Halal Consumption Pattern (r2=0.422). The implication of the finding was discussed therein.
The aim of this research which was carried out throughout the Peninsular of Malaysia is to identify the level of citizenship knowledge among secondary school students in Peninsular Malaysia according to gender and ethnicity. Citizenship knowledge among students which is under investigation is comprised of three aspects, namely the establishment of a sovereign country, democratization and ethnic diversity. The research design was a survey using a quantitative approach. The instrument used for this research was a questionnaire while the number of respondents recruited for this study was 1812 secondary school students from various ethnic groups in Peninsular Malaysia. The data were analyzed using descriptive statistics and inferential analysis of Manova by using SPSS software. The findings show that the level of citizenship knowledge among the students based on two of the aspects studied, namely the establishment of a sovereign country and democratization, are at a moderate level while the ethnic diversity aspect is at a medium high level. Overall without citizenship knowledge, students are at a moderate level. The findings also show that there are significant differences in citizenship knowledge of students based on gender and ethnicity. With regards to gender, it is found that male students show higher levels of citizenship knowledge with regards to the aspect of the establishment of a sovereign country and democratization compared to female students. In the meantime, female students showed higher levels of knowledge in terms of ethnic diversity than male students. With regards to ethnicity, Malay students showed higher levels of citizenship knowledge on democratization and ethnic diversity compared to Chinese and Indian students. Meanwhile, Indian students show the highest level of knowledge in terms of the establishment of a sovereign country compared to Malay and Chinese students. The findings of this study can affect the education process of the country in producing knowledgeable and skilled citizens in line with the aspiration of the National Education Philosophy in Malaysia. Hence, the implementation of citizenship education needs to be improved in order to increase the level of students’ citizenship knowledge.
The purpose of stressing the importance of risk management among construction companies is to reduce the effects of risk on projects and make the construction activities more profitable, completed to quality standards, time and budget. This significant deliberation has stimulated various research interests by construction companies, specifically viewing the risk in construction activities that affect project performance; (time overrun, cost overrun and low quality) as the significant risks attached to the projects from the global point of view. Using Partial Least Squares- Structural Equation Modeling approach, this study validates construction risk management (CRM) as a construct from the perspectives of 238 local, national and multi-national construction companies in Nigeria. A cross-sectional survey was conducted where data was gathered from companies through a structured questionnaire. Findings from this study disclosed that effective communication, team competency and skills with active leadership have a significant influence on construction risk management (CRM) practices of the Nigerian construction companies.
The issue of credit risk among financial institutions has become de rigueur matter for many years particularly among risk managers, market players, regulators and academia in Malaysia. The negligence over specific credit risk factors in credit risk management could herald to the balance sheet loss as what happened in the US mortgage prime crisis. This paper is presented primarily to investigate the long run and short run relationship between credit risk and bank specific factors such as capital adequacy(CAR), loan loss provisioning(PROV) and risky assets (RWA) across different types of banks comprising Islamic banks, Islamic banking windows, commercial banks and investment banks in Malaysia. The application of heterogeneous panel model namely Pooled mean group (PMG) will allow for heterogeneity effect across non-homogenous banking operations. From our findings, it is evident that an increase in capital level reduces default problem for Islamic banking windows. Further, we find positive association between RWA and NPL and also between PROV and NPL which implies that loan loss provisioning could be important signal of risk taking behaviour. Besides that, our results also suggest that the nature of credit risk among Islamic banks in Malaysia are still following market force given by the fact that their credit risk management routines still follow the conventional practices.
Customer loyalty has been a vital concern for every institution as attracting new customers costs more than maintaining the current ones. Therefore, every institution is more inclined in gaining loyal customers. This study attempts to determine the factors affecting customer loyalty toward Tabung Haji, Malaysia as TH has nearly lost the trusts of its customers due to the issues occurring recently. Concerns have been circling the decision of TH to purchase a plot of land in the Tun Razak Exchange, jeopardizing TH image and performance due to the assumption that TH have utilized their savings improperly and exhaust all of their savings unknowingly. The study was carried out by distributing questionnaires to 120 random depositors of Tabung Haji. Service quality, customer satisfaction and trust are the factors that have been investigated in this study. The study showed that customer satisfaction is the most significant factor in influencing customer loyalty in Tabung Haji. The SPSS software is used to analyze the data gathered from the respondents.
The purpose of this study is to examine the barriers of the implementation of human resource management and information technology on enforcement actions in five local governments in Kedah, Malaysia that have been selected. By identifying the barriers that influences enforcement actions would lead to efficiency in managing organisational resources. This study employed semi-structured interview with 13 top management officers to gain insight on enforcement execution. The Nvivo application was used to identify the most relevant theme as informed by the data. The finding indicates that the internal resource management, specifically Human Resources and Information Technology greatly influences the effectiveness and successfulness of enforcement action in local governments. The study indicated that the lack of Human Resources and Information Technology are among the barriers to the effectiveness of the enforcement action in selected Malaysian local government.
Drawing upon the Higher Education Leadership Academy Model, a prior proposition was made that Al-Qalb is one of the relevant dimensions in the institutional leadership competencies in higher education institutions. The objective of this study is to examine the content validity of Al-Qalb as one of the dimensions to be incorporated in the institutional leadership competencies framework and measure an analysis of previous literatures related to leadership competencies in the higher education institutions context was carried out to identify and examine relevant attributes in explaining and understanding the construct. The results provide adequate evidence of content validity of Al-Qalb as one of the leadership competencies items based on content validity index (CVI) analysis. This suggests the usability and content validity of the items of Al-Qalb, as one of the leadership competencies elements in the Malaysian higher education institutions.
Obesity is becoming a serious problem in Malaysia as it has been rated as the highest among Asian countries. Many factors have contributed to obesity and sedentary behavior is one of the cause. The objective of the research is to analyze the impact of sedentary behavior to prevent weight gain among adult population in Malaysia. The system dynamics (SD) approach of stockflow diagram was used to quantitatively model the impact of eating and activity behavior on the complex of human weight regulation system. The modeling stage involved with the experimentation process where the developed model was used to investigate the impacts of changes in duration and frequency of sedentary behaviour on weight and prevalence of obesity implications. In this paper, the baserun results is presented where it shows that with increase in energy intake along with increase in sedentary behavior, the results is on weight gain. This is because the excessive of positive balance energy which accumulate in daily process will results to the increase in a weight trend for a long period if the excess energy is not burning.This paper provides evidence on the usefulness of SD optimization to assist in decision making related to achievement in population weight target. SD applied in this research is relatively new in Malaysia and has a high potential to apply to any feedback models that address the behavior cause to obesity.
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