Asian Journal of Business and Accounting <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">Universiti Malaya</a>, Malaysia. Its aim is to publish scholarly business research on issues which are relevant to the Asian region, particularly 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, consumer behavior, 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> Faculty of Business and Economics, Universiti Malaya en-US Asian Journal of Business and Accounting 1985-4064 Editorial Notes Noor Sharoja Sapiei Yeong Wai Chung Copyright (c) 2023 2023-12-31 2023-12-31 The Volatility and Risk-Return Trade-Off of Malaysian Islamic and Conventional Indexes During the Global Financial Crisis and COVID-19 Pandemic <p>Manuscript type: Research paper<br>Research aims: This study aims to investigate the volatility characteristics <br>and risk-return trade-off of Islamic and conventional indexes in the <br>Malaysian market. <br>Design/Methodology/Approach: The research covers the daily data <br>of the period from August 2007 to December 2022, divided into four <br>distinct periods: the full sample, the period during and after the 2007-<br>08 financial crisis, and the period during the COVID-19 pandemic. The <br>research employs a hybrid model that combines ARIMA with GARCH <br>family models. <br>Research findings: In this research, both Islamic and conventional indexes <br>in the Malaysian market demonstrate a memory effect, emphasising <br>the persistence of market volatility through the influence of past <br>volatility. Additionally, historical data, represented by lagged values, <br>significantly shape volatility, while negative shocks have an immediate and pronounced impact compared to positive shocks, providing valuable <br>insights for investors and risk management. Lastly, during the COVID-19 <br>crisis, the conventional index showed no leverage effect, and the Islamic <br>index lacked safe haven characteristics, making this crisis unique in the <br>Malaysian financial context. <br>Theoretical contribution/Originality: This research contributes to the <br>understanding of market volatility dynamics in the Malaysian context by <br>utilising a hybrid ARIMA-GARCH model. The identification of memory <br>effects, asymmetric responses, and the unique characteristics observed <br>during the COVID-19 crisis adds to the body of knowledge on financial <br>market behaviour. <br>Practitioner/Policy implication: The findings of this study have practical <br>implications for investors and supervisory entities operating in the <br>Malaysian market. Understanding the persistence of volatility and the <br>differential impact of positive and negative shocks can help investors <br>make more informed decisions, while regulators can use this information <br>to quantify and manage market volatility effectively. <br>Research limitation/Implications: The limitation of the present study is <br>that the results may be influenced by the selection of the sample period, <br>potentially yielding different outcomes depending on market conditions, <br>such as the presence of bull or bear markets, periods of high or low <br>volatility, or other contextual factors.</p> Foo Siong Min Nazrul Hisyam Ab Razak Fakarudin Kamarudin Nadisah Zakaria Copyright (c) 2023 2023-12-31 2023-12-31 1 43 10.22452/ajba.vol16no2.1 Market Timing and Asymmetric Information: How do Rights Issues and Private Placements Attract Investors to Overvalued Stocks? <p>Manuscript type: Research paper<br>Research aims: This study examines the background of selecting the <br>equity offering mechanism between rights issues and private placements <br>when facing asymmetric information and overvalued prices. <br>Design/Methodology/Approach: This research employs the concept <br>of information asymmetry and focuses on analysing market timing <br>data about stock offering transactions in Indonesia from 2000 to 2020. <br>This study uses regression analysis to examine the correlation between <br>information asymmetry and trade volume. Abnormal trade volume before <br>various offerings is subjected to regression analysis using generally used <br>proxies for information asymmetry. <br>Research findings: The conclusions of our research indicate that <br>companies that issue more shares than the overpriced stock tend to exhibit <br>a more excellent abnormal return value in the context of rights issues. <br>The sales volume indicates the company’s prospects derived from private <br>information obtained during the offering Theoretical contribution/Originality: There is a shortage of existing <br>literature about research that specifically investigates the identification <br>of SEO techniques that elicit negative market responses. Consequently, <br>this study explores the connection between the underlying motivations <br>driving the selection of stock offering mechanisms. <br>Practitioner/Policy implication: The distribution of profits in the <br>transaction indicates the company’s future policies. Before investing, <br>investors can acquire pertinent information on the company’s current <br>state, strategic goals, and prospects.<br>Research limitation: The present analysis has not considered the factors <br>of internal ownership or insider trading. These factors might serve as a <br>foundation for investigating the underlying incentives for issuing shares <br>with more precise market timing considerations.</p> Dewi Ratih Mamduh M. Hanafi Bowo Setiyono I Wayan Nuka Lantara Copyright (c) 2023 2023-12-31 2023-12-31 45 74 10.22452/ajba.vol16no2.2 Do Powerful CEOs Benefit Firm Performance in Pakistan? <p>Manuscript type: Research paper<br>Research aims: This study examines the impact of Chief Executive Officer <br>(CEO) power dimensions on firm performance. <br>Design/Methodology/Approach: A panel data of 110 Pakistani firms <br>listed on the Pakistan Stock Exchange for the period of 12 years (2008-<br>2019) was analysed using the GMM approach. <br>Research findings: The GMM regression results revealed significant <br>relationships. The analysis suggests that CEOs with considerable <br>structural, ownership, prestige, and expert power tend to exhibit <br>superior performance, as these factors are positively correlated with <br>firm performance. Conversely, CEO family power appears to have no <br>discernible impact on firm performance. Importantly, the robustness of <br>our findings underscores the consistent nature of these relationships. <br>Theoretical contribution/Originality: This study makes a valuable <br>contribution to the existing literature by demonstrating the positive <br>influence of CEO power on firm performance, which aligns with the <br>theoretical framework of the Approach/Inhibition theory of power. <br>The originality of this research stems from its examination of individual <br>dimensions of CEO power and their impact on firm performance, as well <br>as the inclusion of the additional dimension of family power. <br>Practitioner/Policy implication: The insight from this study suggests <br>that powerful CEO leadership is beneficial for firm performance and the <br>concentration of power at the CEO position should be seen positively <br>rather than the negative perspective provided by agency theory.</p> Kashif Arif Che Ruhana Isa Mohd Zulkhairi Mustapha Copyright (c) 2023 2023-12-31 2023-12-31 75 106 10.22452/ajba.vol16no2.3 Why/How are Integrated Reporting Practices Adopted/Diffused? Evidence From Public Listed Companies in Sri Lanka <p><br>Manuscript type: Research paper<br>Research aims: This study explores the factors affecting and the internal <br>mechanisms employed by companies to manage their integrated reporting <br>practices. <br>Design/Methodology/Approach: The qualitative study is conducted <br>through semi-structured interviews with 15 officers responsible for the <br>integrated reporting practices of public listed companies in Sri Lanka. <br>Research findings: The study found that relative advantage, <br>compatibility, complexity, trialability, and observability affect the <br>adoption of integrated reporting practices. Under the internal mechanism, <br>it was found that sustainability reporting helped the adoption, and <br>companies used their own ways to collect and manage information. <br>Despite the companies’ duration of practice, the constellations of <br>structures, cultures, and reporting practices with which integrated <br>reporting is managed change within the companies. Furthermore, the <br>study showed the success stories of integrated reporting.&nbsp;</p> <p>Theoretical contribution/Originality: The study is the first South <br>Asian and emergent market study to identify the enablers of integrated <br>reporting by employing the diffusion of innovation theory as the <br>theoretical foundation and internal mechanism. <br>Practitioner/Policy implication: This study provides insight into <br>the dynamic processes that operate within the framework of the <br>organisational change that has taken place from this perspective and <br>demonstrates how integrated reporting can be incorporated into the <br>organisational change process. The experience of these organisations <br>allows others that intend to embrace integrated reporting to choose the <br>optimal way to implement it and use integrated reporting.<br>Research limitations/Implications: Although much effort was taken to <br>ensure that the study comprised successful IR businesses that displayed <br>best practices in IR, this research study was confined to a small number <br>of 15 public listed companies who participated.</p> Nawarathna Liyanage Erandi Abeywardana S.M. Ferdous Azam Kevin Low Lock Teng Copyright (c) 2023 2023-12-31 2023-12-31 107 141 10.22452/ajba.vol16no2.4 Financial Integration and Variance Decomposition of Asian Stock Market: Evidence from India <p><strong>Manuscript type</strong>: Research paper<br><strong>Research aims:</strong> International investments made in non-integrated <br>economies provide benefits of portfolio diversification, but investment <br>made in integrated economies may lead to oscillations due to volatility <br>spillover. Therefore, the knowledge of market linkage of an economy is <br>imperative for investors, as well as regulators. In this context, the present <br>paper investigates the financial integration of the Indian stock market <br>with China, Hong Kong, Japan, UK and USA. <br><strong>Design/Methodology/Approach:</strong> To examine the financial integration in <br>the long run, closing daily indices of leading stock markets of respective <br>countries have been analysed through the Johansen cointegration method <br>over a period of 20 years from 2002 to 2022. The vector error correction <br>model has been applied to examine whether market equilibrium can <br>be restored after an infusion of shock. The short run linkage has been <br>investigated through a causality test. Further the possibility of volatility <br>spillover has been examined through variance decomposition and impulse <br>response function. <br><strong>Research findings:</strong> The results show cointegration among the selected <br>markets, which indicates the possibility of convergence towards market <br>equilibrium in the long run. The stock markets of India and USA were <br>observed to have a bidirectional causal relationship indicating lesser <br>chances of benefits from international portfolio diversification. The results reveal the sensitivity of the Indian stock market to innovations in the UK <br>and USA. However, no significant influence of the Hong Kong, Japanese, <br>and Chinese stock markets has been observed on the Indian stock market. <br>Further, the Indian stock market has a significant contribution to the <br>volatility of other stock markets, except the Chinese stock market. <br><strong>Theoretical contribution/Originality:</strong> The present study is crucial owing <br>to two prominent reasons. Firstly, the linkage between various financial <br>markets is very dynamic and needs to be studied in the present context. <br>Secondly, the linkage of Indian economy with other countries has <br>increased manifolds in recent few years so it will be fruitful to analyse <br>the linkage of Indian economy with other economies. <br><strong>Practitioner/Policy implications:</strong> The findings are useful to investors <br>while designing international portfolios to reap diversification benefits. <br>The results are fruitful for market regulatory bodies to mitigate the <br>adverse impact of volatility spillover. <br><strong>Research limitation/Implications:</strong> The study can be extended to other <br>markets, monthly data and different sub-periods</p> Nikhil Bhardwaj Nishi Sharma Anupreet Kaur Mavi Copyright (c) 2023 2023-12-31 2023-12-31 143 178 10.22452/ajba.vol16no2.5 The Influence of Employee Competence and Use of Information Technology on Financial Accountability with the Success of Information Systems as Moderating Variables <p><strong>Manuscript type</strong>: Research paper<br><strong>Research aims:</strong> This study aims to determine the influence of employee <br>competence and the use of information technology on financial <br>accountability, and also the role of moderation in the success of the <br>information system and how it impacts financial accountability vis-à-vis <br>the use of information technology. <br><strong>Design/Methodology/Approach:</strong> This research was implemented with <br>a casual setting for the Local Government Work Unit (LGWU) finance <br>department employees in Bantul Regency. Samples were taken from 150 <br>employees with accidental sampling. Data collection was carried out <br>using questionnaires. Data analysis was performed using the PLS-SEM <br>method. <br><strong>Research findings</strong>: Employee competence and the use of information <br>systems have a positive and significant effect on financial accountability. <br>The information systems' success did not moderate the influence of <br>information technology itself on financial accountability. <br><strong>Theoretical contribution/Originality:</strong> This research provides new insight <br>into the role of moderation in the success of information systems on the <br>influence of information technology on financial accountability.</p> <p><strong>Practitioner/Policy implications:</strong> This study suggests that local <br>governments can continue to improve employee competence through <br>the use of information technology. One actionable way would be to <br>make budget allocations for the maintenance and repair of the current <br>information technology facilities and infrastructure. <br><strong>Research limitation/Implication:</strong> While previous research has focused on <br>the use of information technology in enhancing financial accountability, <br>these results show that the success of information system is a moderating <br>predictor of accountability</p> Sukhemi Marti Widya Sari Copyright (c) 2023 2023-12-31 2023-12-31 179 205 10.22452/ajba.vol16no2.6 Do Social Media Marketing Activities Enhance Customer Satisfaction and Co-Creation <p><strong>Manuscript type</strong>: Research paper<br><strong>Research aims</strong>: The main objective of this research is to examine the role <br>of Social Media Marketing Activities (SMMA) in enhancing customer <br>satisfaction and co-creation of local brands from the Schematic Perspective <br>Theory. Specifically, this research aims to analyse the effect of SMMA on <br>brand awareness and brand image, and the impact of brand image on <br>customer satisfaction and customer co-creation. <br><strong>Design/Methodology/Approach</strong>: This research was designed with <br>a survey method which involved 316 respondents, and the data was <br>analysed using partial least squares structural equation modeling, with <br>the WarpPLS 7.0 software.<br><strong>Research findings:</strong> The findings indicated that the effect of SMMA is <br>positively significant on customer brand awareness and brand image. And <br>brand image, in turn, has a positively significant effect on satisfaction, <br>and satisfaction has an impact on customer co-creation. This research <br>also found that satisfaction has an important role in mediation, that also <br>stimulates customer co-creation. <br><strong>Theoretical contribution/Originality</strong>: This study theoretically contributes <br>to the relationship between customer satisfaction and co-creation in the <br>context of SMMA, based on Schematic Perspective Theory and Social <br>Exchange Theory (SET). However, the research focus on SET on the effect <br>of customer satisfaction on customer co-creation is secondary.</p> <p><strong>Practitioner/Policy implications</strong>: The implication of this research is <br>very important for companies to design their own SMMA based on <br>interactivity and customisation attributes. Customer satisfaction is a <br>necessary condition for enhancing customer co-creation. <br><strong>Research limitation/Implications</strong>: To enhance the understanding of the <br>complex relationship among the variables, we suggest examining the <br>effects of SMMA directly on customer satisfaction, and the possibility <br>of reciprocal relationship between customer satisfaction and customer <br>co-creation.</p> Indra Listyarti Tatik Suryani Faza Faikar Cordova Copyright (c) 2023 2023-12-31 2023-12-31 207 230 10.22452/ajba.vol16no2.7 Factors Influencing Indonesians' Intentions to Use the Tokopedia Online Marketplace <p><strong>Manuscript type:</strong> Research paper<br><strong>Objective:</strong> Many factors influence people’s intention to use online <br>marketplaces, especially Tokopedia in Indonesia. The purpose of this <br>study is to explain these influencing factors of usage intention by <br>simulating the impact of innovativeness, mobility, perceived ease of use, <br>and perceived usefulness. <br><strong>Research Design and Methods:</strong> A quantitative approach was used <br>through an online survey and resulted in 250 responses which were <br>analysed with a structural equation model to test construct reliability, <br>average convergent validity, and structural model fit. <br><strong>Findings:</strong> According to the findings, mobility, innovativeness, perceived <br>utility, and perceived simplicity of use are characteristics that influence <br>user intention. The perception of utility has the biggest influence on the <br>intention to use something, whereas perceived ease of use has the least.<br><strong>Implications and Recommendations:</strong> These findings have significance <br>for online marketplaces, such as Tokopedia in Indonesia, in terms of <br>developing and improving application performance based on user <br>demands.</p> <p>&nbsp;</p> Yeni Rafita Sihombing Jaka Permana Copyright (c) 2023 2023-12-31 2023-12-31 231 256 10.22452/ajba.vol16no2.8 Investigating the Impact of Social Media Marketing Activities on Customer Satisfaction with the Mediating Role of Brand Equity and Perceived Value <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims</strong>: In today’s businesses, social networks are seen as an <br>applicable instrument for influencing consumer behaviour, raising <br>awareness, connecting with consumers, and improving service quality <br>and satisfaction. The present study analyses the effectiveness of social <br>media marketing activities to expand the use of XX insurance online <br>services and it investigates how social marketing initiatives affected <br>consumers’ satisfaction using brand awareness and perceived value as <br>mediating factors. <br><strong>Design/Methodology/Approach:</strong> This research used an experimental <br>study, using a survey method (questionnaire distribution), to confirm the <br>hypotheses and discover its management concepts, and uses Structural <br>Equation Modeling (SEM). <br><strong>Research findings:</strong> The results showed that the social media marketing <br>activities variable (entertainment, interaction, trendiness, customisation, <br>perceived risk) has a positive and significant impact on customer <br>satisfaction, with brand image, brand awareness, perceived value, <br>and social identity serving as mediating factors. Social identity has an <br>influence on perceived value as well as social marketing initiatives do <br>have on consumer satisfaction. </p> Seyed Masoud Mirbabaei1 Bahareh Ahmadinejad Maryam Hajmalek Mohsen Shojaeifard Elias Laalkazemian Copyright (c) 2023 2023-12-31 2023-12-31 257 279 10.22452/ajba.vol16no2.9 Extending the Theory of Planned Behavior to Examine Factors Influencing Intention to Purchase Halal Chocolate Among Malaysian Muslims <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> The purpose of this study is to examine factors influencing <br>intention to purchase halal chocolate among Muslim consumers in <br>Malaysia by extending the classical Theory of Planned Behaviour (TPB). <br>This study specifically investigates the influence of attitude, subjective <br>norms, perceived behavioural control, halal knowledge, habit, and <br>religiosity on the intention to purchase halal chocolate. <br><strong>Design/Methodology/Approach:</strong> A total of 252 valid responses were <br>obtained through convenience sampling and analysed using SmartPLS <br>4.0.<br><strong>Research findings:</strong> The results indicate that attitude, subjective norms, <br>and religiosity are the factors that influence purchase intention for halal <br>chocolate, while perceived behavioural control, halal knowledge, and <br>habit do not. Subjective norms have the strongest influence on purchase <br>intention for halal chocolate, followed by attitude. <br><strong>Theoretical contribution/Originality:</strong> The findings contribute to the <br>growing literature on halal food and consumer behaviour. In particular, <br>the study provides empirical evidence on the importance of attitudes, <br>subjective norms, and religiosity in influencing purchase intentions for <br>halal chocolate. <br><strong>Practitioner/Policy implications:</strong> This study could serve as a basis for <br>halal chocolate manufacturers, retailers, exporters, and importers to <br>better understand Malaysian Muslim customers and the factors that <br>drive them to purchase halal chocolate. Furthermore, the government and <br>related agencies, such as the Malaysian Cocoa Board (MCB), could devise <br>strategies to re-establish and strengthen the country’s cocoa industry, <br>allowing Malaysia to reclaim its position as the world’s leading cocoa <br>producer.<br><strong>Research limitation/Implication:</strong> This study includes six variables that <br>influence halal chocolate purchase intention. Future studies could include <br>other internal and external factors influencing purchase intention, such as <br>the role of the halal certification logo</p> Wan Rasyidah Wan Nawang Syadiyah Abdul Shukor Amalina Mursidi Anita Ismail Copyright (c) 2023 2023-12-31 2023-12-31 281 311 10.22452/ajba.vol16no2.10