Asian Journal of Business and Accounting 2022-01-15T00:14:14+08:00 Dr. Noor Sharoja Sapiei, Dr Yeong Wai Chung Open Journal Systems <p>The Asian Journal of Business and Accounting (AJBA) is an international refereed journal, published twice a year by the <a title="fba" href="" target="_blank" rel="noopener">Faculty of Business and Economics , (formerly known as Faculty of Business and Accounting)</a> <a title="um" href="" target="_blank" rel="noopener">University of Malaya</a>, Malaysia. Its aim is to publish scholarly business research on issues which are relevant to Malaysia and the Asian region, especially those providing practical implications to promote better business decision making and public policy formulation.</p> <p> The journal covers a broad spectrum of business and accounting areas and its sub-areas. A suggestive (not necessarily comprehensive) list of areas include: auditing, banking, business strategy, corporate governance, entrepreneurship, finance and investments, financial and management accounting, financial economics, human resource management, information management, innovation and technology management, international business management, marketing management, operations and production management, organisational behaviour, public sector accounting, risk and insurance, strategic management, taxation, and tourism and hospitality.</p> <p><strong>E-ISSN: 2180-3137</strong><br /><strong>Print ISSN: 1985-4064</strong><br /><strong>Publisher: University of Malaya</strong><br /><strong>Publication type: Print &amp; Electronic</strong><br /><strong>Publication frequency: 2 time(s) per year (June and December)</strong><br /><strong>Journal Website: <a href="" target="_blank" rel="noopener"></a></strong></p> <p> <img src="" alt="" width="111" height="102" /> <img src="" alt="" width="174" height="90" /> <img src="" alt="" width="173" height="50" /><img src="" alt="" width="188" height="65" /> <img src="" alt="" width="152" height="61" /></p> Editors' Notes 2022-01-15T00:14:14+08:00 Che Ruhana Isa Suhana Mohezar 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Impact of Managerial Entrenchment on Corporate Social Responsibility: The Moderating Role of Political Embeddedness and Board Independence 2021-04-15T14:50:18+08:00 Mah-a-Mobeen Ahmed Wahbeeah Mohti <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br />Research aims: This paper aims to examine how the political effectiveness and board independence moderate the effect of managerial<br />entrenchment on corporate social responsibility (CSR).<br /><strong>Design/Methodology/Approach:</strong> Data of non-financial firms from the BRIC countries for the period of 2010-2018 were obtained from<br />Thomson Reuters (asset 4) and financial reports. Panel regression model was employed to analyse the data.<br /><strong>Research findings:</strong> The results show that there is a positive relationship between managerial entrenchment and CSR. Political<br />embeddedness was found to strengthen the positive relationship between managerial entrenchment and CSR. Independent directors<br />was reported to weaken the relationship between managerial entrenchment and CSR.<br /><strong>Theoretical contribution/Originality:</strong> Theoretically, this study contributes to the literature on agency theory. The finding provides novel insights into how managerial entrenchment affects CSR activities. It also expands the body of knowledge on corporate governance and CSR by focusing on manager’s self-interest to shareholder’s interest.<br /><strong>Practitioner/Policy implication:</strong> Practically, this study provides valuable information to stakeholders, regulatory authorities and investors who wish to assess various antecedents of CSR.<br /><strong>Research limitation/Implications:</strong> Future study should consider comparing the developed and developing countries. Other aspects of CSR should also be considered for better understanding. This study sheds light on the relevance of promoting the social and environmental awareness mechanisms surrounding companies in addition to developing CSR policies focused on corporations of BRIC countries.<br /><br /><strong>Keywords:</strong> Corporate Social Responsibility, Managerial Entrenchment, Political Embeddedness, Board Independence, Agency Theory<br /><strong>JEL Classification:</strong> G02, G11</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting International Financial Reporting Standards Convergence and Value Relevance of Accounting Information: Evidence from ASEAN 2021-01-11T13:12:28+08:00 Kittima Acaranupong <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study aims to examine and compare the value relevance of accounting information of companies listed on the stock exchanges in Indonesia, Malaysia, the Philippines, Singapore, and Thailand, after the International Financial Reporting Standards (IFRS) adoption period.<br /><strong>Design/Methodology/Approach:</strong> This study utilised a regression model as the primary method of analysis. The regression model<br />was adopted from Ohlson (1995) and Feltham and Ohlson (1995). Value relevance was measured in terms of the relationship between<br />accounting information and stock price. The high trading volume and large market capitalisation listed companies of five member countries in the Association of Southeast Asian Nations (ASEAN) were used as samples for the study.<br /><strong>Research findings:</strong> The main results demonstrate that earnings are value relevant information in four countries (Indonesia, Malaysia,<br />the Philippines, and Thailand). However, the book value of equity is value relevant information for only three countries (Indonesia,<br />Singapore, and Thailand). Contradicting findings are obtained because of the high correlation between earnings and book value of<br />equity. The results of the comparative value relevance of earningsand book value of equity indicate that the value relevance of earnings in Malaysia is more than that of Thailand, while the value relevance of earnings in the Philippines and Singapore is less than that of Thailand. However, the value relevance of earnings in Indonesia is not different from Thailand. In addition, the value relevance of book value of equity in Indonesia, the Philippines, and Singapore is more than that of Thailand, while the value relevance of book value of equity in Malaysia is not different from that of Thailand.<br /><strong>Theoretical contribution/Originality:</strong> The findings contribute to the accounting theory and literature by indicating that the IFRS adoption enhances the value relevance of accounting information, especially in ASEAN countries.<br /><strong>Practitioner/Policy implication:</strong> The results provide policy directions to the accounting standard setting bodies of five countries in ASEAN for further improvement in their local accounting standards.<br /><strong>Research limitation/Implication:</strong> The accounting information quality in this research was measured only in terms of value relevance. In addition, the study considers the high market capitalisation firms in only five countries, which limit the generalisation of the results to other countries.<br /><strong>Keywords:</strong> ASEAN, International Financial Reporting Standards, Value Relevance<br /><strong>JEL Classification:</strong> M41, G14</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting External Audit Fees and Fair Value Disclosures among Jordanian Listed Companies: Does the Type of Corporate Industry Matter? 2021-06-17T12:38:25+08:00 Esraa Esam Alharasis Colin Clark Maria Prokofieva <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This paper investigates industry differences associated with audit fees charged by Jordanian external auditors, who<br />provide assurance for clients’ financial disclosures following the introduction of the fair value accounting (FVA) instrument.<br /><strong>Design/Methodology/Approach:</strong> The study uses 2408 firm-year observations among Jordanian firms for the period between 2005–2018, and employs the ordinary least squares (OLS) regression method.<br /><strong>Research findings:</strong> A significant and positive difference in the correlation between the proportion of FVA and audit prices was evident<br />for the finance industry vs. non-finance industries. Specifically, the moderating impact of the industry type was positively (negative)<br />correlated in relation to the Level 2 (Level 1) fair-valued assets, but not significant for Level 3 assets.<br /><strong>Theoretical contribution/Originality:</strong> This study is an opportunity to document important empirical evidence for a country with varied economic features, regulations, and an environment which is considered representative of Arab countries and the Middle East (ME), i.e., Jordan. It introduces an updated model on audit fees and new empirical evidence addressing the gap among auditing literature works by investigating the post-implementation cost of FVA amongst different industries. This study pioneers audit research<br />and triangulates the agency, signalling and stakeholder theories associated with the fair value model.<br /><strong>Practitioner/Policy implication:</strong> The findings provide policymakers and standard setters with updated empirical evidence on the implications of fair value disclosure (FVD). It provides guidance on audit fee determinants arising from fair value financial reporting. The outcomes are meant to assist Jordanian authorities for supervising the audit profession, as well as regulating and auditing these fair value practices.<br /><br /><strong>Keywords:</strong> Auditing Fair Value Accounting, Audit Fees, Corporate Industry Type, Developing Countries, Fair Value Disclosure, Jordan<br /><strong>JEL Classification:</strong> M41, M42</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Improving Voluntary Compliance Using Power of Tax Administrators: The Mediating Role of Trust 2021-06-13T17:58:15+08:00 Siti Fatimah Abdul Rashid Rosiati Ramli Mohd Rizal Palil Amizawati Mohd Amir <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study examines the mediating role of reasonbased trust and implicit trust in the relationship between different social powers (namely coercive, reward, legitimate foundation and persuasive power) and voluntary tax compliance motivations<br />(namely voluntary and committed cooperation).<br /><strong>Design/Methodology/Approach:</strong> A quantitative research design using survey questionnaires was applied to 388 professional taxpayers. Structural equation modelling (SEM) using AMOS Graphics was employed to analyse the data.<br /><strong>Research findings:</strong> The findings on the mediating role of trust in the relationship between coercive and persuasive power with intended voluntary tax compliance align with the extension of the Slippery Slope Framework (eSSF). The reason-based trust was found to mediate the relationship between coercive power and committed cooperation partially. The analysis also indicates that implicit trust<br />partially mediates the relationship between persuasive power and voluntary cooperation. Furthermore, the analysis confirms that both<br />reason-based and implicit trust partially mediate the relationship between reward power with voluntary cooperation and committed<br />cooperation. About legitimate foundation power, only implicit trust seems to mediate the relationship with committed cooperation<br />partially. However, the analysis shows inconsistent mediation for this relationship.<br /><strong>Theoretical contribution/Originality:</strong> This study highlights the importance of tax administrators’ power, especially reward and<br />persuasive power, as means to instil trust in tax administrators to improve voluntary tax compliance.<br /><strong>Practitioner/Policy implication:</strong> This study offers interesting insights to tax administrators, specifically the Inland Revenue Board Malaysia (IRBM), to improve voluntary tax compliance by using the power of IRBM with aims to foster trust in IRBM.<br /><strong>Research limitation/Implications:</strong> The limitation of this study is that it studies voluntary tax compliance as voluntary cooperation and<br />committed cooperation, representing taxpayers’ intention to comply. Therefore, future studies should consider extending this study by<br />assessing the relationships to include actual behaviour.<br /><br /><strong>Keywords:</strong> Coercive Power, Implicit Trust, Power, Reason-based Trust, Reward Power, Slippery Slope Framework, Tax Compliance, Trust<br /><strong>JEL Classification:</strong> H21</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Accounting Treatments for Cryptocurrencies in Malaysia: The Hierarchical Component Model Approach 2020-10-23T15:23:43+08:00 Yap Kiew Heong Angeline Wong Siew Chin Teoh Teng Tenk Melissa Zakiah Saleh <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study examines the influences of technological factors, risks and regulatory framework on the accounting treatments for cryptocurrency in Malaysia.<br /><strong>Design/Methodology/Approach:</strong> This study employs a structured questionnaire to solicit data about the accounting treatments for<br />cryptocurrency. Data were collected from 391 accounting and finance professionals and analysed using partial least squares structural<br />equation modelling (PLS-SEM).<br /><strong>Research findings:</strong> The results of this study show that technological factors, risks and regulatory frameworks are positively associated<br />with the accounting treatments for cryptocurrency.<br /><strong>Theoretical contribution/Originality:</strong> This study has expanded the existing literature by focusing on the accounting treatments forcryptocurrency using the accounting conceptual framework as the theoretical argument.<br /><strong>Practitioner/Policy implication:</strong> The findings imply that audit, tax and accounting professionals need to address the valuation and reporting of different classes and types of cryptocurrencies as their usage continue to rise. The core competencies of these professions are being disrupted by these changes; hence, these professions need to evolve and work with strategic partners/technology experts to offer cryptocurrency related advisory services.<br /><strong>Research limitation/Implications:</strong> The researchers consider three factors namely technological, risks and regulatory frameworks that<br />influence the accounting treatments for cryptocurrency. Future researchers may consider working with industry leaders to develop<br />objective guidelines for cryptocurrencies, using comparative analysis of alternative accounting treatments to examine how this impacts financial results.</p> <p><strong>Keywords:</strong> Digital Currency, Cryptocurrency, Accounting, Malaysia, Blockchain Technology<br /><strong>JEL Classification:</strong> E42, G28, M41</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Value Creation with Big Data in Marketing: An Empirical Evidence on SMEs 2022-01-11T01:29:42+08:00 Sampurno Wibowo Yuyus Suryana Umi Kaltum <p><strong>ABSTRACT</strong><br><strong>Manuscript type:</strong> Research paper<br>Research aims: This study investigates the impact of big data marketing on the ability of SMEs to create value through the relationship quality.<br><strong>Design/Methodology/Approach:</strong> Data were collected from 150 SMEs in West Java. Structural Equation Modelling (SEM) was employed to test the research model.<br><strong>Research findings:</strong> The results of the study indicated that big data use for marketing purposes had a positive impact on value creation and relationship quality. Surprisingly, this study demonstrated insubstantial evidence to associate relationship quality with value creation. The effect of relationship quality as a mediator between big data use and value creation was also not significant.<br><strong>Theoretical contribution/Originality:</strong> This study extends on existing literature by providing empirical evidence showing the importance of big data in stimulating value creation and relationship quality in the Indonesian culinary industry.<br><strong>Practitioner/Policy implication:</strong> The outcome of this research suggests SMEs to quickly adapt to the dynamic business environment by investing in big data, as it has the potential for high business value. The use of big data can also facilitate SMEs to better manage their relationships with customers. The ability of small businesses to use data is a crucial factor in creating new development for business continuity, accompanied by establishing relationships based on data.<br><strong>Research limitation/Implications:</strong> To increase the generalisability of this study, future research needs to consider collecting data from different types of populations and countries.<br><br><strong>Keywords:</strong> Big Data Marketing, Relationship Quality, Value Creation, SME, Culinary<br><strong>JEL Classification:</strong> M12</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting MSME Perceptions towards Internet Use: A Comparison of Before and During the COVID-19 Outbreak in Indonesia 2021-07-29T16:13:06+08:00 Luthfina Ariyani Wati Hermawati Rahmi Lestari Helmi Ishelina Rosaira Andi Budiansyah <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This paper aims to identify and compare MSME perceptions on Internet use in their business processes before and<br />during the COVID-19 outbreak in Indonesia.<br /><strong>Design/Methodology/Approach:</strong> This study employs a web-based survey involving 464 respondents from across MSME owners<br />in Indonesia. A paired sample t-test was used to compare the perception which was delineated under the technology, organisation,<br />environment (TOE) framework.<br /><strong>Research findings:</strong> The results show significant changes in the Internet use among 464 MSMEs “before” and “during” the COVID-19<br />outbreak. Overall, we categorised the perception into three groups, namely (1) positive before the COVID-19 outbreak, (2) positive amid the COVID-19 outbreak, and (3) negative for both before, and amid the COVID-19 outbreak.<br /><strong>Theoretical contribution/Originality:</strong> This study seeks to extend the theory of technology adoption, and its intended use, by understanding the phenomena from a different point of view, by identifying how the MSME’s perceptions of technology changed during the presence of the COVID-19 outbreak, by comparing aspects of the Internet adoption on the conditions before, and during the pandemic.<br /><strong>Practitioner/Policy implication:</strong> This study suggests future strategies to encourage better Internet adoption and use among MSMEs based on the three aforementioned categories.<br /><strong>Research limitation/Implications:</strong> Further research may address much more on the adoption variables, and consider more geographic distributions of the samples.<br /><br /><strong>Keywords:</strong> Technology Adoption, TOE Framework, Internet, MSME, COVID-19<br /><strong>JEL Classification:</strong> O32</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Effect of High Performance Work System (HPWS) on Service Employees Performance in the Automotive Retail Industry 2021-05-04T15:12:27+08:00 Rashida Mat Rani Normy Rafida Abdul Rahman Nurul Aqilah Mohd Yusak <p><strong>ABSTRACT<br />Manuscript type:</strong> Research paper<br /><strong>Research aims:</strong> This study investigates the effects of perceived high performance work system (HPWS) on employee performance<br />in the Malaysian automotive service industry. It also attempts to examine the mediating roles of perceived organisational support and<br />psychological empowerment in the relationship between HPWS and employee performance.<br /><strong>Design/Methodology/Approach:</strong> Data were collected from 391 employees working in automotive after sales service centres in Kuala<br />Lumpur and Selangor. Multiple regression analysis was performed to examine the proposed relationships.<br /><strong>Research findings:</strong> The findings demonstrated substantial evidence of the relationship between perceived HPWS and employee performance. This relationship was mediated by perceived organisational support and psychological empowerment.<br /><strong>Theoretical contribution/Originality</strong>: This study extends on the existing literature by investigating how perceived HPWS can lead to<br />employee performance within the context of the service sector.<br /><strong>Practitioner/Policy implications:</strong> The outcome of this research suggests that human resource practitioners in the automotive service<br />industry should pay attention to the implementation of HPWS to survive in today’s business environment. In developing HPWS, employees’ perceptions of HRM practices should be carefully evaluated in order to achieve a win-win situation. The perception of employees on HPWS can improve their performance if organisations provide the necessary support and empowerment.<br />Research limitation: Since the data were collected from the automotive service industry in Malaysia, the results may need to be<br />interpreted cautiously, due to the issue of generalisability.<br /><br /><strong>Keywords:</strong> High-Performance Work System (HPWS), Human Resource Practices, Perceived Organisation Support (POS), Psychological Empowerment (PE), Service Employee Performance (SEP)<br /><strong>JEL Classification:</strong> M12</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Influence of Cognitive Ability, Money Management Skills, and Cultural Norms on the Financial Literacy of Women Working in the Cottage Industry 2021-02-11T13:46:48+08:00 Aqsa Fazal Hadi Hassan Khan Bilal Sarwar Wahab Ahmed Noor Muhammad SM Nabeel ul Haq <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research article<br /><strong>Research aims:</strong> This study investigates the impact of cognitive ability, money management skills, and cultural norms on the financial<br />literacy of women working in the cottage industry.<br /><strong>Design/Methodology/Approach:</strong> The study employs a crosssectional research design. Quantitative data were collected through<br />questionnaires and analysed using Smart-PLS.<br /><strong>Research findings:</strong> The results revealed that cognitive ability and money management was positively related to financial literacy. There was also substantial evidence to demonstrate the negative effect of cultural norms on financial literacy.<br /><strong>Theoretical contribution/Originality:</strong> The findings provide empirical evidence on the importance of cognitive ability, money management skills, and cultural norms on financial literacy among women in the cottage industry.<br /><strong>Practitioner/Policy implication:</strong> The government should emphasises policies that not only provide education, but also training and programmes that would improve cognitive functions. Cultural norms need to be changed in such a way that females being held accountable for financial decisions from an early age. There is a need to recognise, inspire, and empower women in the field of the cottage industry.<br /><strong>Research limitation/Implications:</strong> This study uses a cross-sectional research design. Future researches can supplement the existing<br />study by conducting studies with longitudinal research design and interviews.<br /><br /><strong>Keywords:</strong> Cottage Industry, Cognitive Ability, Culture, Financial Literacy, Money Management Skills, Sustainability Development<br /><strong>JEL Classification:</strong> C83, C88, G53</p> <p> </p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting Determinants of Islamic and Conventional Banks Profitability: A Contingency Approach 2021-03-19T11:39:43+08:00 Yara Ibrahim Sofri Yahya <p><strong>ABSTRACT</strong><br /><strong>Manuscript type:</strong> Research paper<br />Research aims: The purpose of this study is to investigate the determinants of Islamic and conventional banks profitability in the<br />Middle East and North African (MENA) regions.<br /><strong>Design/Methodology/Approach:</strong> This study utilises multiple regression analysis using a panel data model to identify profitability<br />determinants through convenience sampling of Islamic and conventional banks across eight countries operating in the MENA region,<br />between 2008 to 2016.<br /><strong>Research findings:</strong> This study found that the profitability of conventional banks measured by ROAE was higher than that of the<br />Islamic banks. Furthermore, the liquidity and financial risk were proven to have a negative significant relationship with profitability,<br />while the diversification strategy and human capital efficiency had a significant positive relationship with Islamic banks. The moderation effect of economic development was positive in terms of liquidity and financial risk, but negative on the diversification strategy. For conventional banks, cost leadership strategy had a significant negative relationship with profitability. The external variables including inflation rate and industry concentration had a significant effect on profitability. The moderation effect of economic development was negative with regards to the cost leadership strategy, and positive with regards to the financial risk-taking strategy.<br /><strong>Theoretical contribution/Originality:</strong> This study is supported by relatively new theories in the field of finance, using the contingency<br />theory, and resource-based view theory. By utilising the added economic value for measuring the Islamic bank’s profitability, in addition to the investigation on the moderation effects of the country’s income level, this is deemed a relatively new method.<br /><strong>Practitioner/Policy implication:</strong> This study will benefit bank managers in selecting their strategies and capabilities wisely to improve their bank’s profitability.<br /><strong>Research limitation/Implications:</strong> The existence of political and economic crisis during the research scope and the sample size was<br />greatly affected by the unavailability of data.</p> <p><strong>Keywords:</strong> Banking, Conventional, Islamic, Profitability, MENA Region<br /><strong>JEL Classification:</strong> G21</p> 2021-12-31T00:00:00+08:00 Copyright (c) 2021 Asian Journal of Business and Accounting