Home Volume 3, No.3 October 2013

1. The Effect of Economic Globalization on Inflation in Selected Developing Countries

Nazar Dahmardeh, Elahe Mahmoodi, Majid Mahmoodi

Abstract

This paper investigates the effect of economic globalization on inflation for a panel of 21 developing countries over the 1993- 2010 years. One of the most salient economic events in the past two decades has been the remarkable decrease in inflation around the world. Global inflation has dropped from around 30 percent a year in the early 1990s to under 4 percent today. Is it possible that economic globalization and a higher degree of openness have helped drive down inflation? We use the economic dimension of KOF index as a proxy for economic globalization and overall the results of both OLS and DOLS estimators show inverse and significant relationship between economic globalization and inflation in these developing countries during 1993-2010.

Keywords: Economic globalization, inflation, Kof index, panel data.

 

Volume 3, No.3, October 2013 [345-357]

2. Corporate Enviromental Responsibility Desclosures of Shariah-Compliat Companies in Bursa Malaysia

 

Mohd Rashdan Sallehudin, Faudziah Hanim Fadzil

Abstract

The aim of this research is to investigate the disclosures and factors influencing of corporate environmental responsibility (CER) in the annual reports of Shariah-compliant companies listed in the Main Market of Bursa Malaysia. A total of 254 company annual reports for the year 2010 were analyzed. Regression analysis was used to examine the relationship between corporate environmental responsibility disclosure (CERD) and independent variables consisting of independent non-executive directors, Muslim chairman/president of the board, Muslim ownership structure, profitability, auditor types, company size and industry profile. Study findings suggest that there is a fair amount of CER disclosure amongst Shariah-compliant companies listed with Bursa Malaysia. The study revealed that the presence of a Muslim chairman/president, the type of auditors employed and a company's size have a significant relationship with CER disclosure. In contrast, the extent of CER disclosure is insignificant with regard to the proportion of independent non-executive directors on company boards, the level of Muslim ownership, profitability and industry profile. The research shows that the level of CER disclosures is different across sectors and is relatively low. This study provides evidence for regulatory bodies such as Shariah Advisory Council (SAC) of the Securities Commission Malaysia to look further at Shariah-compliance guidelines and to enforce new policies on environmental reporting.

Keywords: Corporate environmental responsibility, Shariah-compliant companies, disclosures, annual reports, independent non-executive directors, Malaysia.

Volume 3, No. 3, October 2013 [359-386]

3. Historical Review of Minimum Wage Policy in the Developed Countries: Implementation of National Minimum Wage Policy in Malaysia

Eng Poh Hwa, Mohd Syaiful Rizal Abd. Hamid, Md Norhayati Tahir

Abstract

Minimum wage is defined as the least pay rate which is paid by employers to employees and it can be calculated in terms of hours, days or months. The minimum wage policy had long been practiced in the developed countries such as New Zealand, Australia, United Kingdom and United States. The advantages and disadvantages of minimum wage policy are discussed and analysed in this research. The research studies the historical development and origin of minimum wage policy in developed countries, followed by the definition and general types of minimum wage. The method of study implemented in the research is systematic literature review to determine the key scientific contributions of a particular area. The research enables readers to better understand about the history and origin of minimum wage in the developed countries and implementation of minimum wage in Malaysia. Next, the research displays the minimum wage rates in the major countries in the world followed by the inflation rate and consumer price index (CPI) in Malaysia. The Malaysian government has to proceed with its implementation of minimum wage to generate an accurate conclusion over its feasibility. Therefore, the feasibility of minimum wage policy in Malaysia will be further researched.

Keywords: Minimum wage, historical events of minimum wage, economics issues.

Volume 3, No. 3, October 2013 [387-411]

4. The Effectiveness of On-The-Job Training in Increasing Employees' Knowledge, Skill and Attitudes among Private Sector Workers in Kuala Lumpur

Dashini Muthiah, Azlini Hassan

Abstract

This study examines the effectiveness of on-the-job training in increasing knowledge, skill and attitudes among private sector employees in Kuala Lumpur, Malaysia. There are three factors that have been created for this study that will influence the effectiveness of on-the-job training, namely, personnel commitment, trainer's qualification, and training time. A hundred respondents from the private sector participated in the study. The research objectives of the study were answered using descriptive, correlation and regression analysis. The study shows that personnel commitment and trainer's qualification were strongly related to the effectiveness of on-the-job training effectiveness. However, training time has no correlation with on-the-job training.

Keywords: Effectiveness, on-the-job training, personnel commitment, trainer' qualification, training time.

Volume 3, No. 3, October 2013 [413-421]

 

5. The Mediating Role of Adaptability Cultural trait Approach on Transformational Leadership Style and Jib Satisfaction in the Work Enviroment: A Study on Malaysian GLCs

Arman Hadi Abdul Manaf, Muhammad Shahar Jusoh, Mohammad Harith Amlus, Mohd. Suberi Ab. Halim

Abstract

This study investigates the relationships between transformational leadership style, organizational culture, and attitudinal outcomes of job satisfaction of organizational members. Hierarchical multiple regression analysis is used to investigate the relationships between transformational leadership style, the mediating effect of organizational culture, and level of job satisfaction of organizational members. This study was conducted among corporate members at the mid-managerial levels in selected Government-linked companies (GLCs) under the GLC Transformation Programme (GTP), which are listed in Bursa Malaysia. The results showed that adaptability cultural trait has positively mediated the link between transformational leadership style and job satisfaction of members at their workplace. Traits in the culture practiced in an organization through leadership is the main element to design and to strategize on the way an organization works to deliver tangible and sustainable results in the future.This study contributes to the dynamics of the causative relations between the selected variables,and highlights the important role of transformational leadership and organizational culture in ascertaining the job satisfaction of corporate membersin the Malaysian context.

Keywords: Transformational leadership style, organization cultural traits, government-linked companies, job satisfaction, government transformation plan.

Volume 3, No. 3, October 2013 [423-448]

 

6. Regulatory Compliance of IFRS #7 of the Banks' Disclosures: A Case Study on of the Nationalized Commercial Banks of Bangladesh

Md. Ismail

Abstract

This paper is aim to scrutinize the existing reporting standard for the Nationalized Commercial Banks in Bangladesh and find out the extent of compliance by them. Banking industry's nature of operation is totally different from others. Recognizing this aspect some specific IFRSs (International Financial Reporting Standards) have been prescribed for them. One of which is IFRS # 7 (Financial Instruments: Disclosures) which was formulated by IASB in 2004 and obliged to comply from on after 1st January, 2007 n the Annual Reporting. Institute of Chartered Accountants of Bangladesh (ICAB) prescribed to comply with IFRS # 7 from on or after 1st January, 2010 in Bangladesh. Hence compliance of IFRS 7 is of immense importance here. Scrutinization has been operated on 4 Nationalized Commercial Banks. As per requirement, all the Nationalized Commercial Banks are required to comply with the standard to uphold the stakeholders' interest in spite possessing the large portion ownership by the Government. And the result of the study shows that all of the Nationalized Commercial Banks compliance almost 75.5% of the IFRS # 7 requirements. Finally this study recommend on the degree of compliance for the Nationalized Commercial Banks financial reporting.

Keywords: Compliance, IFRS, Bank, Nationalized Commercial Banks
Volume 3, No. 3, October 2013 [449-468]

 

 

7. Determinants of Customer Perceptions toward Online Shopping via Facebook: Malaysia Case Studies

Intan Maizura Abdul Rashid, Ku Amir Ku Daud

Abstract

New business practice through the Internet has adopted by the retailers, and has been generally known as e-commerce. Sellers and consumers can make a business deal through the Internet without face-to-face communication. Widespread of E-commerce has gross up the numbers of consumers to shop online, it's become a new trend around the world. The retailers have profited through this new channel and consumer has improved their lifestyle by using online services to purchase products. The purpose of this research is to examine determinants (e.g., perceived usefulness, perceived ease of use, perceived risk and perceived enjoyment) of customer perceptions toward online purchasing via Facebook (F-Commerce) among Asian region. This study makes some contributions, (1) this study tests determinants of customer perception of online shopping through F-Commerce to provide implications for Internet retailing and (2) provides ideas for online marketing strategy

Keywords: Facebook, f-commerce, purchase, consumers.

Volume 3, No. 3, October 2013 [469-494]

 

8. Usage of Sugarcane Bagasse as Concrete Retarder

Muhammad Azani Yahya, Mohammed Alias Yusof, Zulkifli Abu Hassan, Nazrin Daud, Nooraina Misnon, Siti Khadijah Che Osmi, Narita Ridzuan, Mohammad Yusrin Yahya

Abstract

Concrete is the most common material used in building construction nowadays. The production process of concrete also includes additional ingredients other than aggregates, cement and water. This additional ingredient was known as concrete admixture. One of the most frequent concrete admixtures used is retarder. Retarding admixture is one of the famous admixture used because it can retard the hydration process of the concrete thus, prolong the setting time especially in hot weather concreting. This condition will offer extra time for transportation and also for concrete placement. Other than that, for multiple batch of concrete placement, the extension of setting time will avoid cold joints from happening. However, the high demand of admixture causes the price in the market increased. Therefore, the use of sugarcane bagasse as a natural admixture for concrete is suggested. The concrete produced by adding sugarcane bagasse was tested in terms of setting time by using the standard penetration test for concrete. For hardened concrete, the concrete was also tested in terms of mechanical properties which include compressive strength test, tensile strength test and flexural strength test. The results show that the concrete added with sugarcane bagasse has longer setting time up to four hours instead of only two hours for normal concrete. The strength of hardened concrete also increased when added with sugarcane bagasse. Therefore, as the conclusion, sugarcane bagasse can be used as a natural concrete retarder based on the results obtained.

Keywords: Sugarcane bagasse, natural admixture, concrete retarder.

Volume 3, No. 3, October 2013 [495-503]

 

9. Intelectual Capital and Corporate Financial Performance: A Comparative Examination of Some Selected Malaysian and Foreign Companies

Hussen Bin Nasir

Abstract

Intellectual Capital (IC) is recognized as a key strategic asset for organizational performance in the competitive organizations. In this study, the performance of those companies will be measured and compared using both the intellectual capital and corporate financial performance between intellectual capital (IC) and some financial ratios of selected Malaysian and foreign companies and to find out whether there is any relationship between intellectual capital and some financial performance such as Return on assets, Return on Equity and Earning per share in the first place and which ratio has the more significance relationship to intellectual capital in the second place. Pulic's Value Added Intellectual Coefficient (VAIC) model is utilized as efficiency measure indicator, Human Capital Efficiency (HCE), Capital Employed Efficiency (CEE) and VAICTM. The regressions model explores the relationships between intellectual capital and its contribution to the financial performance of firms in both current and future years. The results reveal that intellectual capital has got a considerable influence on some financial ratios of the selected Malaysia and foreign companies.

Keywords: Intellectual capital, performance measure, VAIC.

Volume 3, No. 3, October 2013 [505-517]

 

10. Kajian Terhadap Peranan Faktor Kewangan Sebagai Faktor Penyebab Kepada Kegagalan Firma Kontraktor Bumiputera Dalam Industri Pembinaan di Malaysia

Mohd. Suberi Ab. Halim, Md. Shariff M Haniff, Hudden Nasir, Arman Hadi Abdul Manaf

Abstrak

Tujuan utama penyelidikan ini adalah untuk menilai peranan faktor kewangan dalam menentukan kejayaan atau kegagalan firma kontraktor dalam industri pembinaan di Malaysia. Para ilmiah dalam industri pembinaan telah memberi penekanan kepada tiga faktor utama yang menyebabkan kegagalan firma kontraktor iaitu faktor kekurangan modal, firma kontraktor menikmati untung yang tidak realistik daripada projek yang mereka laksanakan dan mereka menanggung bebanan hutang yang tinggi. Akibat daripada situasi tersebut, banyak firma kontraktor telah dilaporkan gagal dalam perniagaan mereka. Keputusan dari beberapa penyelidikan terdahulu juga telah memperlihatkan peratusan kegagalan firma kontraktor adalah lebih tinggi berbanding firma-firma di dalam industri lain. Untuk mencapai hasrat kajian ini, pendekatan kuantitatif telah digunakan sebagai kaedah kajian. Tinjauan menggunakan borang soal selidik telah dilakukan dalam kalangan firma kontraktor yang dipilih. Sejumlah 250 borang soal selidik telah diedarkan. Keputusan daripada kajian ini menunjukkan prestasi buruk/kegagalan firma kontraktor sangat dipengaruhi sepuluh faktor utama iaitu; berlaku kenaikan harga bahan binaan semasa pembinaan, harga kontrak yang rendah, projek tidak dapat disiapkan mengikut jadual, firma kontraktor memulakan perniagaan dengan modal asas kecil, bayaran kemajuan lewat dibayar oleh pihak klien, firma terlalu bergantung kepada kreditor untuk membiayai projek, firma kontraktor sukar untuk mendapat pinjaman bank, kelewatan firma menerima bayaran kemajuan, kos kewangan yang tinggi dan modal asas firma kecil. Pengurusan kewangan yang tidak cekap dan faktor kekurangan modal adalah signifikan terhadap prestasi buruk firma kontraktor.

Kata kunci: Kegagalan kewangan, industri pembinaan.

Volume 3, No. 3, October 2013 [519-535]