/jurnalpengurusan Sun, 09 Oct 2022 15:38:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/board-of-directors-information-asymmetry-and-intellectual-capital-disclosure-among-banks-in-gulf-co-operation-council/?utm_source=rss&utm_medium=rss&utm_campaign=board-of-directors-information-asymmetry-and-intellectual-capital-disclosure-among-banks-in-gulf-co-operation-council Sun, 09 Oct 2022 15:38:13 +0000 /jurnalpengurusan/?post_type=article&p=4603 The main thrust of this paper is to examine the intellectual capital (IC) disclosure of 137 listed banks in Gulf Co-operation Council (GCC) nations using a content analysis approach. Instead of examining the effect of board characteristics in isolation from each other, this study extends previous research on the determinants of IC disclosure by considering board effectiveness score in relation to IC disclosure. Moreover, this study extends previous studies in board-IC disclosure relationship by investigating the hypothesized impact of information asymmetry in moderating this relationship. Our findings show that IC disclosure is positively associated with the effectiveness of board of directors. In addition, our study provides evidence that the level of information asymmetry in GCC bank moderates the relationship between board effectiveness and IC disclosure. The finding is important for policymakers as it confirms that the effectiveness of board of directors in protecting the investors depends on the level of information asymmetry.

]]> /jurnalpengurusan/article/underinvestment-and-value-relevance-of-earnings-management/?utm_source=rss&utm_medium=rss&utm_campaign=underinvestment-and-value-relevance-of-earnings-management Sun, 09 Oct 2022 15:00:46 +0000 /jurnalpengurusan/?post_type=article&p=4540 The aim of this study is to examine whether earnings management among underinvestment firms is positively related to share price. Firms are said to have high growth opportunity but is unable to fund investment projects due to liquidity constraints because of the information asymmetry between the firm and the investors. As a result, firms have to provide high quality accounting information (i.e. value relevant information) to reduce information asymmetry and hence be free from liquidity constraints. One type of accounting information that can be provided is discretionary accrual (proxy for earnings management). The sample of this study is firms listed on the Main Board of Bursa Malaysia from year 2001 to 2007. We use Ohlson’s model to examine the value relevance of earnings management. We separate earnings into managed and unmanaged earnings. Panel data regression analyses were performed to examine the role of underinvestment on the relationship between earnings management and share price. We also examine the value relevance of earnings management using the return model. The results from the panel data regression analysis indicate that earnings management increases the value relevance of accounting information. Further, underinvestment moderates the relationship between earnings management and share price. Nevertheless, the results suggest that earnings management among firms can decrease the value relevance of accounting information. In general, it is concluded that underinvestment weakens the relationship between earnings management and share price/return, hence it motivates managers to convey opportunistic earnings management.

]]> /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.

]]> /jurnalpengurusan/article/moderating-effects-of-governance-quality-on-the-relationship-between-stock-liquidity-and-dividend-in-emerging-market-countries/?utm_source=rss&utm_medium=rss&utm_campaign=moderating-effects-of-governance-quality-on-the-relationship-between-stock-liquidity-and-dividend-in-emerging-market-countries Sat, 08 Oct 2022 06:05:29 +0000 /jurnalpengurusan/?post_type=article&p=1900 The paper examines the moderating effects of governance quality on stock liquidity and dividend relationship. Past empirical studies on the link between stock liquidity and dividend suggest there are mixed findings between them. A negative relationship suggests stock liquidity and dividend are a substitute which aligns with the liquidity hypothesis. On the other hand, a positive relationship between stock liquidity and dividend suggests stock liquidity informational effect increases a firm’s incentive to pay dividends. Moderating factors could have contributed to such mixed findings. Therefore, this study suggested governance quality could be one of the moderating factors that contributed to the inconsistency findings. Governance quality has been known to mitigate information asymmetry that made firm pay more dividends by formulating and promoting sound policies. Thus, this study aimed to ascertain the moderating factors of governance quality on the relationship between stock liquidity and dividend. By using a sample from 22 emerging market countries, we adopted logistic panel random effect to estimate the model. Adopting the governance quality measurements developed by the World Bank, our empirical results found that political stability, government effectiveness, regulation quality and control of corruption are among the factors that moderated the relationship between stock liquidity and dividend.

]]> /jurnalpengurusan/article/information-asymmetry-and-industry-4-0-among-small-and-medium-enterprise-sme-in-malaysian-halal-industry/?utm_source=rss&utm_medium=rss&utm_campaign=information-asymmetry-and-industry-4-0-among-small-and-medium-enterprise-sme-in-malaysian-halal-industry Fri, 07 Oct 2022 03:02:22 +0000 /jurnalpengurusan/?post_type=article&p=1744 This study attempts to investigate the participant(s) halal industry information asymmetry issues and their intention, if any, to mitigate it. Additionally, this study also investigates the moderating effects of their perceptions towards industry 4.0 adoption and their intentions of using industry 4.0 to mitigate information asymmetry. This research is exploratory research. We adapted the questionnaire based on “Agency Theory and the Technology Acceptance Model” by combining management and technology literature into single-sourced literature. The research using the SmartPLS software “Partial Least Squares (PLS)” modelling and the 2-step approach to test the model development. The concepts of private information, hidden information, and the lack of perfect information have facilitated these companies’ top management intentions to mitigate these information asymmetry issues. The results also show that the top management of halal industry has the intention to reduce information asymmetry through industry 4.0 adoption as they perceived industry 4.0 is useful, easy to use, is cost affordable, and provides a high system and content quality.

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