/jurnalpengurusan Sun, 09 Oct 2022 08:27:01 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/whistleblowing-disclosure-policy-and-cost-of-equity-in-asean-5-publicly-listed-companies-a-new-establishment-of-regional-whistleblowing-disclosure-scoring-index/?utm_source=rss&utm_medium=rss&utm_campaign=whistleblowing-disclosure-policy-and-cost-of-equity-in-asean-5-publicly-listed-companies-a-new-establishment-of-regional-whistleblowing-disclosure-scoring-index Sat, 08 Oct 2022 16:24:34 +0000 /jurnalpengurusan/?post_type=article&p=3108 Healthy corporate governance is necessary for attracting investor participation and alleviating corruption. Akin to other developing nations, two major challenges arise. First, Increasing foreign direct investments (FDIs) and second, controlling corruption are faced by all countries in the Association of South East Asian Nations (ASEAN) for their economic development. Phenomenal practices of whistleblowing policies in developed countries, especially in Europe and the US, have become crucial elements for modern corporate governance. Such practices also play important roles in detecting fraud and enhancing FDI and GDP growth. The aims of this study are twofold: to uncover the extent of the effects of whistleblowing disclosure quality on cost of equity (COE) and to propose whistleblowing disclosure scoring index as a new mechanism to integrate whistleblowing disclosure policy in the ASEAN region. Furthermore, a proposal for promulgating a comprehensive whistleblowing policy with inclusive internal and external programmes, which are necessary for establishing strong corporate governance, is presented. Empirical results confirm that whistleblowing disclosure quality has a significant negative relationship with COE. Our finding suggests that a uniform and comprehensive whistleblowing policy is needed to strengthen the best practices of ASEAN Corporate Governance Codes.

]]> /jurnalpengurusan/article/fair-value-accounting-and-the-cost-of-equity-capital-of-asian-banks/?utm_source=rss&utm_medium=rss&utm_campaign=fair-value-accounting-and-the-cost-of-equity-capital-of-asian-banks Sat, 08 Oct 2022 10:45:34 +0000 /jurnalpengurusan/?post_type=article&p=2497 The cost of equity is a measure of the required return by investors. It is desirable for firms, especially banks, to lower the cost of equity. There are a number of factors related to the quality of information disclosed that could influence the cost of equity. The accounting regulators aim to improve the quality of information by requiring assets to be valued at fair value. However the application of fair value accounting potentially increases information asymmetry, especially if fair value is estimated and subjected to the judgment of the preparers of financial statements. This asymmetric information problem potentially lowers the information quality and increases investors’ estimation risk and thus influences the cost of equity capital. Therefore, this research investigates the effect of fair value accounting on the cost of equity capital for a sample of Asian banks since banks hold a relatively larger proportion of assets at fair value. Using the generalized method of moment model for dynamic panel data, this research finds significant and positive relationship between assets at fair value and the cost of equity. The results found are similar for both quoted and unquoted assets. Thus although to regulators, fair value accounting provide relevant and timely information to investors, assets at fair value are perceived to be risky and as a consequence investors require higher returns.

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