Business Administration and Business Economics

Krishna Moorthy · Nik Mohamad Zaki Nik Salleh · Ang Xin Jie · Chan Shu Yi · Lau Shin Wei · Loo Yian Bing · Yee Zhao Ying ·Millennial Asia ·2021

This study examines the social media usage of Malaysian millennials in planning their domestic holidays. This study integrated the theory of planned behaviour (TPB) and technology acceptance model (TAM) variables by adding electronic word-of-mouth (e-WOM), as it is a crucial factor influencing the travel industry nowadays. Data were collected from 301 Malaysians. The results show that e-WOM is the greatest antecedent influencing Malaysian millennials to use social media in planning their domestic holidays. Local tourism organizations such as Tourism Malaysia could gain an understanding of the issue through this study, and the promotion of local tourism through social media could be developed to reach millennials in Malaysia.

Maisyarah Stapah @ Salleh · Bayu Taufiq Possumah · Nizam Ahmat ·Jurnal Ekonomi Malaysia ·2018

This study investigates the determinants of Net Profit Margin (NPM) in Malaysia’s Islamic banking system for the period of 2011-2015 by using static panel data analysis. In Malaysia, conventional banks through its Islamic subsidiary banks are dominating the Islamic banking system in terms of total assets, total loans and total deposits. Therefore this paper attempts to investigate the impact of these Islamic subsidiaries of conventional banks towards the NPM. In relation to that, the impact of the conventional parent banks’ Net Interest Margin (NIM) towards its Islamic subsidiary banks’ NPM is also investigated. For the first objective, the displayed results shows positive relationship indicating that the Islamic subsidiaries of conventional banks’ NPM is higher than the full-fledge Islamic banks’ NPM. While the empirical results on the banks’ specific variables suggest that size, risk aversion and operating cost are positively related to NPM. However, credit risk tends to reduce NPM. Besides that, this study also finds that market concentrations and GDP growth will influence NPM in negative ways whilst inflation and Islamic stock market developments will increase NPM. Liquidity however is found insignificant to NPM. As for the second objective, the Islamic subsidiaries of conventional banks’ NPM is observed as being independent from its conventional parent banks’ NIM.

Mohd Yassir Jaafar · Anuar Nawawi · Ahmad Saiful Azlin Puteh Salin ·Pertanika Journal of Social Science and Humanities ·2019

This study is intended to examine the levels of directors’ remuneration disclosure among public-listed companies in Malaysia. It further aims to examine the relationship among total directors’ remuneration, directors’ education level, size of external auditors, and proportion of managerial ownership and directors’ remuneration disclosure. The analysis is conducted based on three models, which are constructed from the Malaysian Code on Corporate Governance (Model 1), Global Practices (Model 2), and a combination of both Malaysian Code on Corporate Governance and Global Practices (Model 3). This study found that the size of external auditors had a positive significant relationship, while the proportion of managerial ownership had a negative significant relationship with the disclosure. This study contributes to the improvement of policymaking and body of knowledge by highlighting the relationship between the selected corporate governance characteristics and directors’ remuneration disclosure in the context of Malaysia.

Fazli Wadood · Mohammed Emad Alshaikh · Fazal Akbar · Maqsood Mahmud ·Entrepreneurial Business and Economics Review ·2022

The main objective of this research is to integrate the resource-based view (RBV) to analyse how the relationship between firm performance and entrepreneurial orientation is mediated by outbound innovation among furniture firms in Malaysia.

Qian Long Kweh · Norazlin Ahmad · Irene Wei Kiong Ting · Cheng Zhang · Hasahudin Hassan ·Institutions and Economies ·2019 ·JEL: G34; L21

This study investigates the influences of board gender diversity and board independence on firm performance. Ordinary least squares, two-stage least squares and generalised method of moments are employed to test the relationships among board gender diversity, board independence, and firm performance in firms listed on Bursa Malaysia between 2010 and 2015. The regression results indicate that female directors and independent directors significantly and negatively affect firm performance, respectively. However, the interaction term of board gender diversity and board independence is statistically insignificant. Overall, managers must consider that board gender diversity and board independence may not have an interactive effect on improving the performance of their firms.

Siti Hajar Salwa Binti Ahmad Musadik (University Utara Malaysia (UUM)) · Ilhaamie Binti Abdul Ghani Azmi (Academy of Islamic Studies University of Malaya (UM)) ·Malaysian Journal of Consumer and Family Economics ·2019

Studies on impulse buying have been substantially conducted in developing countries by vast researchers. Nevertheless, such studies are in scarcity amidst Asian countries, particularly Malaysia. Besides, studies that have looked into the variables of materialism, sale promotion, money and time availability, and hedonic motivation are also rather sparsely carried out in the light of impulse buying behaviour. As such, this study examined the correlations between situational variables (sale promotion, money and time availability) and individual variable (materialism and hedonic motivation) with impulse buying behaviour among Muslim credit cardholders in Malaysia. In terms of instrument development, this study instrument consisted of 44 items adopted and adapted from prior studies. Questionnaires were distributed to 1,000 Muslim credit cardholders in Malaysia via purposive and snowball sampling techniques and only 635 were usable for final data analysis. The analysis was performed via Partial Least Square (PLS-SEM) analysis. The outcomes revealed that materialism, sale promotion, money and time availability, and hedonic motivation displayed significant positive correlations with impulse buying behaviour.

Sitara Karim · Farah Naz · Muhammad Abubakr Naeem (United Arab Emirates University, South Ural State University)) · Samuel A. Vigne ·Economic Analysis and Policy ·2022

With the continuous boom of FinTech, the similar features of different platforms provide effective solutions for small and medium enterprises. This study examines whether FinTech offers useful business mechanisms for SMEs in selected ASEAN countries. The ASEAN countries included in the study are Indonesia, Malaysia, Philippine, Singapore, and Thailand. The study employed factor analysis and segregated the FinTech-SME nexus into five factors. The responses of 300 SME owners were collected through interview questionnaires and surveys. We find that new FinTech and SMEs ‘collisions’ (our term for new utilization) during COVID-19 are the most important factors in the growth of FinTech and the strength of SMEs. Further, we utilized the Kruskal–Wallis test to validate our results and for ranking the factors alongside the ASEAN countries. We present useful implications for policymakers, regulatory bodies, ASEAN countries, and SMEs for welcoming FinTech solutions to facilitate digital transactions.

Kai Chen Goh · Nur Syahidah Said · Hui Hwang Goh · Ta Wee Seow · Sulzakimin Mohamed · Md Asrul Nasid Masrom ·Malaysian Journal of Consumer and Family Economics ·2019

Tourism industry in Malaysia has experienced continued growth due to Malaysia’s beautiful natural assets over decades. Tourism is largely depending on the clean environment, so the issues of operational hotel waste cannot be ignored. It is expected that customer behaviour while staying at the hotel can produce tonnes of waste. As a result, becoming a green customer is a step to cope with this problem. Green customers are people who committed about going green that will help to create a better environment. This concept is widely used in other countries but “limited” in Malaysia especially on green customers’ intention. Therefore, the theory of planned behaviour has been tested to define which factor is influencing the customer intention to practice green while staying at the hotel. This paper aimed to define which measurement items represent the factors of (attitude, subjective norm, perceived behaviour control and overall image). Confirmatory Factor Analysis (CFA) is used to validate the measurement model. The questionnaires are distributed and 210 respondents are received. The respondents are focussed to hotel customers in Malaysia. Data analysing is using Analysis of Moments Structures (AMOS) to confirm the unidimensional, validity and reliability for measurement model. Findings indicate most respondents perceived positive perception toward participating in green campaign favourably affect to practice green while staying at the hotel while the other factors were found no significantly generalise the finding. This highlighted the finding as to the emerging of group green customer in Malaysia still a long way to go.

Nur Sa’adah Muhamad · Syahnaz Sulaiman · Khairul Akmaliah Adham · Mohd Fuaad Said ·Pertanika Journal of Social Science and Humanities ·2019

Halal tourism, which arises from the growth in the number of Muslim travellers world-wide and the rapid development of halal industry, is defined as the engagement of any object or action by Muslim travellers that conforms to the Islamic teachings and facilitates the practice of the religion. As such, the application of halal concept in tourism, including in its development and marketing, must be guided by the Islamic principles. With the purpose to understand the current state of knowledge and practice, we reviewed the literature on halal tourism that has been published in high-tier academic journals. Based on the review, we identified the emergent themes and the knowledge gaps for future research. Among others, we found that the industry is booming with increased participations from Muslimminority countries. However, there seems to be variations in the practice, perhaps due to the complexity of the market needs. The implementation of halal tourism by Muslimminority countries is the most pressing issue due to the need to ensure that the process and the service offered strictly comply with the requirements of Islamic teachings, while at the same time, to ensure that the countries are able to develop their halal sectors into competitive industries. Understanding the implementation of halal tourism is an important agenda for future research to ensure that the service provided addresses the fundamental issue of Muslims’ obligations to adhere to the Islamic teachings in all aspects of their lives including while travelling.

Muhammad Hafiz Abd Rashid · Muhammad Iskandar Hamzah · Amirul Afif Muhamat · Aida Azlina Mansor · Rahayu hasanordin ·Journal of Asian Finance, Economics and Business ·2022 ·JEL: M10, M30, M31

Studies examining the interplay between brand transgression and brand forgiveness is notably sparse especially in the context of Southeast Asian banking customers. The purpose of this research is to add to the existing literature by examining the impact of brand transgression, which is represented by negative past experience image incongruence, and corporate wrongdoing on brand forgiveness among Islamic banking customers in Malaysia. The increasing surge in interest in unfavorable brand relationships has sparked concerns about its impact on brand forgiveness. As a result, this theoretical argument, which lacks empirical proof, has to be statistically tested. The current study was conducted utilizing a non-probability purposive sampling technique among clients in the Klang Valley who had poor experiences with Islamic banking services. Data analysis included descriptive statistics, exploratory factor analysis, and multiple regression on a total of 211 valid replies. The findings show that two elements of brand transgression, image inconsistency, and corporate wrongdoing, have a major impact on brand forgiveness. However, the other dimension namely negative past experience was found to be non-significant to brand forgiveness. Research implications and directions for future studies are also discussed in this paper.

Noryati Ahmad · Wan Evva Wan Suriea · Ummu Naziha Mohd Ariffin ·Malaysian Journal of Consumer and Family Economics ·2019

In Malaysia, the insurance industry is operated by conventional insurance companies and Islamic insurance companies (or better known as Takaful.). Even though the nature of business of these two types of companies is almost similar however at operational and investment level, Islamic insurance companies must be in tune with the Shariah principles. Policyholders, investors and regulators are interested in the performance of these companies. Hence, this study aims to investigate the determinants of investment performance of Islamic and conventional insurance companies in Malaysia. Company-specific factors (company size, solvency margin and liquidity) and macro factors (GDP, interest and profit rates, equity returns and inflation) are independent variables employed in the study. A panel regression was estimated on 11 Islamic and 14 conventional insurance companies in Malaysia from the year 2006 to 2015. Interestingly empirical findings revealed that only liquidity and lagged GDP statistically significant relationship with the investment performance of Islamic insurance companies. On the other hand, in addition to liquidity and lagged GD, the investment performance of conventional insurance companies is also statistically and significantly influenced by interest rate and equity returns. These findings provide policyholders, investors as well as regulators with pertinent information related to an appropriate decision made on Islamic and conventional insurance companies.

AHMAD FAHMI SHEIKH HASSAN · ADI FAZULI MAMAT · YUSUF KARBHARI · MUSLIM HAR SANI MOHAMAD ·International Journal of Economics and Management ·2018 ·JEL: M42; M41;G34

This study examines the effectiveness of an Audit Committee (AC) operating in a large government statutory body in an emerging economy, namely the Inland Revenue Board of Malaysia (IRBM). This study is timely, as previous studies focussing on AC effectiveness in relation to the public sector are sparse. Data collection was through in-depth interviews with key individuals involved in the IRBM governance process, including AC members, senior management and external auditors. The study finds existence of a weak AC governance function that inadequately oversees financial reporting and internal control systems. We find the independence of AC members questionable, as a communication gap exists between AC members and the external auditor. In particular, the study highlights that top management should ensure that its AC fulfils its assigned role and that urgent attention is given to issues on composition, appointment and diligence of its AC members. We conclude that the IRBM should consider improving independence by appointing an external independent AC member(s) from either the big four or an influential industry expert to provide the necessary input and expertise to ensure that public confidence continues.

Kean-Siang Ch'ng · Suresh Narayanan ·Malaysian Journal of Economic Studies ·2019

It is widely held that risk preferences differ between the three ethnic groups in Malaysia with the Chinese having the highest preference for risk and Malays having the lowest. This has been used to explain the Chinese preference for, and success in, business ventures relative to Malays. However, this assumption has never been tested in a controlled environment. Three hundred working adults from the three groups were recruited and participated in two-choice lottery games with real monetary reward and risk. The results were analysed using the framework of cumulative prospect theory. The outcomes indicate that broad generalisations regarding inter-ethnic risk tolerance are inaccurate. Malays were less risk averse than the Chinese or others when facing choices with the possibility of losing but became more risk averse only when facing choices with the possibility of winning. Malays were also more willing to take greater risk to reduce possible loss than to settle for a sure gain, compared to the others.

SOH WEI NI · ANNUAR MD NASSIR · CHENG FAN FAH ·International Journal of Economics and Management ·2018 ·JEL: M42; M41

A corporate cash holding is significant element in the cash and liquidity management. Corporations with higher excessive cash reserves will benefit when high liquidity makes it easier for managers to transfer funds among several of the corporations’ expenses and debts, and allows for more flexibility in managing daily operational activities. However, it raise some issue as firm with higher cash holdings tend to explore to higher agency cost due to the conflict of interest between ownership and management. This study employs data envelopment analysis (DEA) estimation and two-stage regressions model. The findings conclude that the firm size, firm growth, and gross domestic product (GDP) are statistically significant for firm efficiency in both markets. The cash holdings help improve firm efficiency as the adjusted R-square is significantly increased for all models. However, the cash holdings are not related to the efficiency of high-cash holding firms for these two stock exchanges. The contribution of cash holdings to firm efficiency is higher, and even double for a developed market compared with a developing market (Bursa Malaysia), which shows that the development stage of a country impacts on cash holdings’ contribution to firm efficiency.

Ummu Kolsome Farouk · Mok Siew Wing ·Malaysian Journal of Consumer and Family Economics ·2019

The purpose of this research is to understand why a co-founder chose to establish a non-governmental organization (NGO) type social enterprise, the challenges he faced in managing its social and financial sustainability, and the initiatives he took to negotiate those challenges. A narrative approach was used in this qualitative single case study to analyse the self-accounts of the co-founder, and the various internal and external information. The primary drivers of the co-founder's establishment of an NGO type social enterprise were his recognition of an opportunity to redress the prevalence of social ills adversely affecting children, his extensive experience on social issues impacting children, and the successful establishment of his first NGO. Primary challenges faced by the co-founder were notably in terms of maintaining the social relevance of his NGO and securing both its financial sustainability and future scalability. The research is limited by the fact that it is a narrative study, based upon the lived experience, of the co-founder of an NGO type social enterprise. Hence, although the generalizability of the findings is compromised, it can still be placed in the context of past research, in the area of social entrepreneurship in general, underpinned by Malaysia’s social entrepreneurship landscape. This paper provides evidence on how the co-founder of an NGO type social enterprise assessed its developmental stage, measured its success, and paved its path toward becoming a centre of excellence.