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">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> en-US (Dr. Noor Sharoja Sapiei, Dr Yeong Wai Chung) (Journal Administrator) Tue, 10 Jan 2023 15:35:48 +0800 OJS 60 Editorial Notes Che Ruhana Isa, Noor Sharoja Sapiei, Yeong Wai Chung Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Internal Audit Effectiveness in Insurance and Takaful Companies in Malaysia: A Study of Internal Auditors and Auditees’ Perceptions <p><strong>Manuscript type</strong>: Research paper<br /><strong>Purpose</strong>: This study examines the views of internal auditors and auditees on factors affecting internal audit effectiveness (IAE) in insurance and takaful companies in Malaysia. <br /><strong>Design/Methodology/Approach</strong>: A total of 240 respondents participated in a self-administered survey questionnaire. <br /><strong>Findings</strong>: Multiple regression analyses suggests independence as well as the resources of internal audit functions (IAF) and relationship with the audit committee is perceived to affect IAE. However, management support is perceived to be less significant in affecting IAE. Furthermore, independent t-test and eta squared analyses show that respondents perceive the factors that significantly affect IAE differently, with independent internal audits scoring the highest. <br /><strong>Research limitations/Implications</strong>: The respondents were only limited to internal auditors and auditees in insurance and takaful companies. <strong>Practical implications</strong>: Such empirical evidence is expected to be used by companies, regulators as well as researchers in understanding the prevailing factors affecting IAE in insurance and takaful companies. <strong>Originality/Value</strong>: The value of this study is grounded on limited studies of IAE in the financial industry, specifically insurance and takaful companies, and the analysis of both auditors and auditees’ views on the principal factors affecting IAE. </p> Noor Adwa Sulaiman, Nadratun Na’im Kamarudin, Suhaily Shahimi Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Does Gender Diversity Moderate the Nexus Between Board Characteristics and Earnings Management? <p><strong>Manuscript type:</strong> Research paper <strong>Research aims:</strong> This study examines the effect of board characteristics on earnings management and the moderating effect of gender diversity over this nexus by investigating 393 Bursa Malaysia listed companies from 2014 to 2018. <strong>Design/Methodology/Approach:</strong> This study applies the performance-adjusted Jones model (Dechow et al., 1996) and the performance-matched Jones model (Kothari et al., 2005) to measure accrual-based earnings management. <strong>Research findings:</strong> Based on the results, the agency theory fails to illustrate that board characteristics (i.e., defined by the attributes of board independence, board size, and non-CEO duality) are effective in reducing earnings management. On the other hand, the results show that gender diversity in independent directorship and board membership apparently reduces the level of earnings management. However, this research finds no significant moderating effect of gender diversity on the relationship between CEO duality and earnings management. <strong>Theoretical contribution/Originality:</strong> This study adds to the literature by demonstrating that the application of agency theory does not have a significant impact on reducing earnings management in the Malaysian context. Applying gender socialisation theory, the findings of this study show successful moderation of gender diversity in terms of reducing the level of earnings management. <strong>Practitioner/Policy implication:</strong> The results on gender diversity are likely of interest to policymakers to come up with regulations related to ensuring an increasing presence of female directors in the boardrooms to increase the board gender diversity. <strong>Research limitation:</strong> This study examines only three board characteristics under corporate governance, and measures only accrual-based earnings management. Moreover, the sample is restricted to only non-financial listed companies. </p> Tonoy Roy, Ervina Alfan Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Mean-Variance and Single-Index Model Portfolio Optimisation:Case in the Indonesian Stock Market <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> This study aims to compare the performance of meanvariance<br>and single-index models in creating the optimal portfolio.<br><strong>Design/Methodology/Approach:</strong> This study creates optimal portfolios<br>using the mean-variance and single-index models with daily stock return<br>data of 38 companies listed on the LQ45 index, IDX Composite index<br>and Bank Indonesia’s 7-Day (Reverse) Repo Rate from January 1, 2012 to<br>December 31, 2019. The two models are compared using the Sharpe ratio.<br><strong>Research findings:</strong> The result shows that the single-index model<br>dominates the Indonesian Stock Exchange (IDX), more so than the meanvariance<br>model. BBCA has the highest proportion for both mean-variance<br>and single-index portfolios.<br><strong>Theoretical contribution/Originality:</strong> This study compares two popular<br>portfolio models in the Indonesian stock market.<br><strong>Practitioner/Policy implication:</strong> This study helps investors to create<br>optimal portfolios using a model that is more suited to the IDX.<br><strong>Research limitation/Implication:</strong> This study creates the optimal portfolio<br>without differentiating risk preferences (i.e., risk averse, risk moderate<br>and risk taker). In addition, this research only uses daily return data and<br>does not compare it with weekly and monthly data.&nbsp;</p> Adi Kurniawan Yusup Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Religiosity and External Whistleblowing Intention <p><strong>Manuscript type:</strong> Research paper<br>Research aims: This study explores the role of religiosity in external<br>whistleblowing intention by extending the attitude-behavioural-context<br>(ABC) theory to the whistleblowing context in Malaysia. A Muslim has<br>the responsibility to report any wrongdoing in their organisation to<br>protect public interest, as part of amr bil ma‘ruf wa nahy ‘anil munkar, or<br>enjoining good and forbidding evil.<br><strong>Design/Methodology/Approach:</strong> This study utilises a structured<br>questionnaire involving 185 Muslim auditors in Malaysia. A purposive<br>non-probability sampling technique was used, and the data was analysed<br>using SmartPLS 3.3.3.<br><strong>Research findings:</strong> The results reveal that religiosity positively influences<br>the perceived control, self-efficacy, and external whistleblowing intention<br>of Muslim auditors, but found no evidence to support the hypotheses<br>related to their attitudes. Further, perceived control and self-efficacy are<br>shown to positively influence attitude.<strong>Theoretical contribution/Originality:</strong> From the perspective of the ABC<br>theory, the findings suggest that self-efficacy and perceived control are<br>the contextual factors that strongly influence external whistleblowing,<br>and that religiosity can be added to extend the ABC theory in the<br>whistleblowing context.<br><strong>Practitioner/Policy implications:</strong> The findings are valuable to audit firms<br>in understanding the effect of religiosity to Muslim auditors to reveal<br>wrongdoings in their firms.<br><strong>Research limitation/Implications:</strong> This study is among the first to use<br>ABC theory to examine religiosity in the context of whistleblowing.<br>Hence, it fills the gap in the existing literature by illustrating how ABC<br>theory can be applied in the study relating to the ethical behaviour of<br>accounting professionals.</p> Tuan Mastiniwati Tuan Mansor, Akmalia M. Ariff, Abdul Hafaz Ngah, Hafiza Aishah Hashim Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 IFRS Convergence and Value Relevance of Indian Accounting Information: The Earnings-Returns Association Analysis <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> India has recently joined the accounting revolution by<br>implementing the International Financial Reporting Standards (IFRS)<br>through the convergence mode. This paper aims to examine the value<br>relevance of Indian accounting information by finding an association<br>between stock returns and the levels of earnings and changes in earnings.<br><strong>Design/Methodology/Approach:</strong> The study follows both relative and<br>incremental association approaches to investigate changes in the value<br>relevance of accounting information prepared using the IFRS converged<br>Indian Accounting Standards (Ind-AS), while also examining the impact<br>of their voluntary use. The study employs the Easton and Harris (1991)<br>model on accounting data collected from 2012-13 to 2019-20. The panel<br>data of 7,064 firm-year observations covers 883 firms listed on the<br>National Stock Exchange (NSE) and uses relevant econometric tests and<br>multivariate panel regressions to test the hypotheses.<br><strong>Research findings:</strong> The findings reveal a decline in the returns value<br>relevance following both mandatory and voluntary IFRS convergence.<br><strong>Theoretical contribution/Originality:</strong> The study is the first to document<br>the changes in value relevance based on stock returns since the IFRS<br>convergence process began in India.<br><strong>Practitioner/Policy implication:</strong> This line of research is significant<br>in Indian capital markets to unravel the effects of the new standards<br>on accounting as well as stock market variables. It has managerial<br>implications for firm and standard-setters. <strong>Research limitation:</strong> The value relevance results are based on the returns<br>model alone and the study does not analyse the price model.</p> Juao C. Costa, Lorraine Rayelle Gomes Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Causes of Customers’ Cognitive Dissonance and Product Return Frequency: A Malaysian Packaged Food Context <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> The cost and frequency of purchased product return are<br>of considerable concern to marketers and retailers. This paper examines<br>the post-purchase cognitive states that influence product return and the<br>drivers that cause cognitive dissonance.<br><strong>Design/Methodology/Approach:</strong> A total of 208 valid responses were<br>collected and analysed using SPSS v.22 and SmartPLS 3.2.8 software.<br><strong>Research findings:</strong> The findings indicate that emotional dissonance and<br>product dissonance were the main contributing factors determining<br>product return frequency. Switching barriers, customer opportunism<br>and customer attitude significantly affected the level of dissonance; the<br>consideration of liberal return policies and customer expectations of<br>product did not. Findings support the mediating hypothesis of emotional<br>dissonance, and show that product dissonance significantly affects<br>emotional dissonance. Importantly, emotional dissonance has a larger<br>impact on product return frequency than product dissonance.<br><strong>Theoretical implications:</strong> This study expands upon the existing literature<br>by providing valuable insight into understanding the external and<br>internal factors contributing to cognitive dissonance and product return<br>frequency. Importantly, the study contributes to the conceptualisation of the mediating role of emotional dissonance in consumer behaviour,<br>particularly in the retail context.<br><strong>Practitioner/Policy implications:</strong> The findings are useful in assisting<br>grocery marketers in designing and implementing effective customer<br>retention strategies and loyalty programmes. Pairing of right perceptions<br>about product quality, quantity and volume with cost would be effective<br>to reduce emotional dissonance, and retailers could highlight exclusive<br>product offerings to reduce product dissonance.<br><strong>Research limitation/Implication:</strong> Future studies could take into account<br>the influences of demographic variables and various communication<br>platforms which might cause differences in consumers’ product return<br>behaviours. This study only presents the findings of a cross-sectional<br>study. A longitudinal study could be conducted to compare consumers’<br>product return patterns and cognitive dissonance over a longer time<br>frame.</p> Ing Grace, Phang, Ricadonna Pei Ling, Zaiton Osman Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Environmental, Social and Governance (ESG) Committees and Performance in Thailand <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> The study aims to investigate the extent and level of<br>environmental, social and governance (ESG) performance of listed<br>companies in Thailand, and test for the relationship between ESG<br>committees and performance.<br><strong>Design/methodology/approach:</strong> Using the top 100 Thai listed companies<br>(364 firm-year observations) from the Stock Exchange of Thailand (SET),<br>the corporate annual reports during 2018 to 2021 are used to collect ESG<br>board committee characteristics, while ESG performance is collected<br>and measured by ESG scores from S&amp;P Capital IQ and Capital IQ<br>Pro databases. Descriptive analysis, correlation matrix, and multiple<br>regression are used to analyse the data.<br><strong>Research findings:</strong> The average performance score of ESG in Thailand<br>is 29.52. In addition, there was an increase of ESG performance by the<br>top 100 firms in Thailand during the period under study. There is a<br>significantly positive relationship between independent ESG committees<br>and ESG performance, while dual positions between top management and<br>ESG committees is negatively correlated with ESG performance.<br><strong>Theoretical contribution/originality:</strong> The findings of the relationship<br>between ESG committees and performance demonstrates that agency<br>theory can be used to explain the factors influencing ESG performance<br>by Thai listed companies.</p> Muttanachai Suttipun, Parnicha Dechthanabodin Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Short-form Video Content (SVC) Engagement and Marketing Capabilities <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> This study aims to investigate the role of short-form<br>video content (SVC) in the association between marketing capabilities,<br>influencers, and business brand engagement performance.<br><strong>Design/Methodology/Approach:</strong> Data was collected from 146 business<br>owners and managers of private businesses from the central business<br>district areas of the lower northern province of Thailand. A partial least<br>square structure equation modelling (PLS-SEM) analysis was performed<br>to examine the proposed relationships.<br><strong>Research findings:</strong> The findings indicate that SVCs enabled brand<br>engagement and resulted in increased satisfaction with the influencer<br>experience. The study found a positive relationship between marketing<br>capabilities, SVCs, influencers, and brand engagement performance.<br><strong>Theoretical contribution/Originality:</strong> This study also contributes by<br>providing empirical evidence of the mediation of short-form video<br>content in the relationship between marketing capabilities and brand<br>performance, thus suggesting that, in terms of the resource-based<br>view (RBV), SVCs integrated with marketing capabilities contribute to<br>fostering influencers to promote brand perception values into competitive<br>advantage, while influencers are reaffirmed as having a positive impact<br>on brand performance. <strong>Practitioner/Policy implications:</strong> This research also provides a practical<br>outlook for businesses to better understand the adoption of SVCs<br>at an initial stage and important practical implications for business<br>entrepreneurs, managers, and practitioners regarding the use of SVCs to<br>improve brand engagement performance.<br><strong>Research limitation:</strong> First, this study was limited by its focus on primary<br>data collected using a survey approach. Therefore, future research<br>may need to emphasise more subjective rather than objective research.<br>Second, as this study focuses on top executives and higher levels of<br>marketing managers, it could introduce potential biases. Further research,<br>through the use of multiple informants (i.e., IT managers, lower-level<br>frontline staff, etc.) in each business with well-rounded perspectives,<br>could provide a deeper insight into the issues regarding such initiatives.<br>Finally, more constructs related to the proposed research framework can<br>be investigated.</p> Darlin Apasrawirote, Kritcha Yawised, Maneerut Chatrangsan, Paisarn Muneesawang Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 What Should Companies Do to Improve Brand Awareness Through Instagram? The Lens of Signalling Theory <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> This study investigates potential factors of electronic<br>service quality dimensions on the improvement of brand awareness<br>among customers through the social media platform Instagram.<br><strong>Design/Methodology/Approach:</strong> The study involves 398 respondents<br>across Java Island, Indonesia, and employed a PLS-SEM approach to<br>analyse the data.<br><strong>Research findings:</strong> The findings indicate that the electronic service quality<br>dimensions of Instagram, in terms of content relevance, content quality,<br>information quality and contact availability, significantly improve brand<br>awareness.<br><strong>Theoretical contribution/Originality:</strong> This study contributes to the<br>electronic service quality and brand awareness literature by validating<br>four potential service quality dimensions of Instagram that are effective<br>instruments for improving brand awareness.<br><strong>Practitioner/Policy implication:</strong> This study offers managerial<br>recommendations for companies that see Instagram as a prospective social<br>media tool for enhancing brand awareness. Companies should focus<br>on managing their Instagram accounts by providing relevant content,<br>qualified content, qualified information, and ensuring the availability of<br>their contact details.<br><strong>Research limitation/Implications:</strong> To enhance generalisability, we suggest<br>future studies examine how brand awareness improvement could be<br>made across social media accounts with broader customer segments,<br>either SMEs or big corporations.</p> Tatik Suryani, Abu Amar Fauzi, Mochamad Nurhadi Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800 Power of Tax Authorities, Tax Morale, and Tax Compliance: A Mediation Analysis in East Malaysia <p><strong>Manuscript type:</strong> Research paper<br><strong>Research aims:</strong> This paper aims to scrutinise the association between the<br>power-based model (power of tax authorities) and sociopsychological<br>factors (tax morale) in the theoretical framework of the tax compliance<br>model<br><strong>Design/Methodology/Approach:</strong> A survey was completed by 116 selfemployed<br>and salaried individuals in East Malaysia. Partial Least Squares-<br>SEM (PLS-SEM) was employed to analyse the data.<br><strong>Research findings:</strong> The results show no impact of the power of tax<br>authorities (coercive and legitimate power) on tax compliance. Only the<br>coercive power of tax authorities has a significantly positive effect on tax<br>morale. However, a significant negative relationship was found between<br>tax morale and tax compliance. Finally, tax morale is proven to mediate<br>coercive power and tax compliance.<br><strong>Theoretical contribution/originality:</strong> The study adds to the body of<br>knowledge by including the power of tax authority and tax morale in<br>a tax compliance model. Theoretically, this study contributes to the<br>literature that moral consideration should not be overlooked in its<br>mediating value between the power of tax authorities and tax compliance.<br><strong>Practitioner/policy implications:</strong> The present study provides novel<br>insight into how tax administrators, especially the Inland Revenue Board<br>of Malaysia (LHDN), utilise their power to influence tax morale and tax<br>compliance. <strong>Research limitation:</strong> The study’s limitation is that only a minority of<br>higher-income and self-employed respondents participated. Future<br>research should consider expanding the existing tax compliance model to<br>be tested in a different region. Besides, other sociodemographic variables<br>can be used as possible moderators in future studies.</p> Mohd Allif Anwar Abu Bakar, Mohd Rizal Palil, Ruhanita Maelah, Mohd Helmi Ali Copyright (c) 2022 Sat, 31 Dec 2022 00:00:00 +0800