/jurnalpengurusan Tue, 11 Oct 2022 06:53:16 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/an-empirical-study-of-auditors-switching-corporate-governance-and-financial-performances-of-malaysian-public-listed-companies-plcs/?utm_source=rss&utm_medium=rss&utm_campaign=an-empirical-study-of-auditors-switching-corporate-governance-and-financial-performances-of-malaysian-public-listed-companies-plcs Tue, 11 Oct 2022 06:53:16 +0000 /jurnalpengurusan/?post_type=article&p=5381 In the past years, regulators and the business communities had expressed worries about the alarming rate at which firms or corporations collapse due to the mismanagement and manipulation of resources as seen in the cases of Enron, WorldCom in the United States of America; and to be specific in Malaysia, the cases of Megan Media Holdings Berhad and Transmile Group. Auditor switching is evident and the disorder of auditor switching often takes place in Malaysia; however, as time goes by, it is decreasing. Thus, this paper seeks to empirically examine the effect of auditor switching and corporate governance on financial performance of Malaysian PLCs. Secondary data on a total number of 100 PLCs from years 2009 to 2013 are used. The results reveal that the effect of auditor switching on performance does not vary with duality role and the board size. However, the independent director does not cause a good firm performance. Nonetheless, auditors do not have a direct effect on financial performance since they are not directly involved with the management of the firms which negates the results of previous study. Therefore, this paper has vital impact in that regulators and the public need to be educated through awareness campaigns to emphasize on the auditors’ roles as agents in understanding the impact of the association between corporate governance and financial performance. Furthermore, auditor switching should embrace not only rotation of audit partners, but rotation of audit firms as well in view that this will help in infusing discipline from the top to the bottom of the audit firms and the companies.

]]> /jurnalpengurusan/article/board-size-chief-risk-officer-and-risk-taking-in-islamic-banks-role-of-shariah-supervisory-board/?utm_source=rss&utm_medium=rss&utm_campaign=board-size-chief-risk-officer-and-risk-taking-in-islamic-banks-role-of-shariah-supervisory-board Sat, 08 Oct 2022 04:37:37 +0000 /jurnalpengurusan/?post_type=article&p=1811 This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theory and resource dependence theory. The results of panel regression indicate that the appointment of a CRO as an executive board member reduces credit risk, implying that the appointment of a CRO as a risk expert in IBs enhances the management of risk and monitoring of risk-taking activities. Further, larger board is likely to reduce insolvency risk when an SSB has higher percentage of members with supervisory Shariah experience. Next, this study observes that larger SSB size and a higher percentage of members with Shariah supervision experience moderate the relationship between the CRO and insolvency risk. Overall, this study highlights the important role of board size, CRO and SSB in the risk-taking of Islamic banks, which have received little attention in the extant literature

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