Purpose From 2000 to 2021, the Malaysian corruption perception index demonstrated a declining ten... more Purpose From 2000 to 2021, the Malaysian corruption perception index demonstrated a declining tendency, identifying Malaysia as a highly corrupt nation. Corruption in the nation has become a social cancer that has impacted the workplace and political climate. Using Dewey’s (1937) theory of education and social change, this paper argues that anti-corruption education is a tool for reforming the corruption culture of a nation. Consequently, the purpose of this study is to explore and understand the current anti-corruption education in Malaysian educational institutions. Design/methodology/approach The results of this study were derived from a qualitative content analysis of 20 Google News articles, an interview with the sole implementation agency, the Malaysian Anti-Corruption Commission (MACC) and a literature assessment of MACC publications. Due to a dearth of preceding study and journal publications on the topic, this type of qualitative content analysis of news has been applied in...
Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascert... more Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascertained as an efficient and useful one. This study aims at providing insights into how the three dimensions of market orientation namely, customer orientation, competitor orientation, and interfunction coordination affect the most important aspect of sustainability of microfinance institutions (MFIs), particularly the sustainable management performance of Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), as one of the largest MFIs in South East Asia. As a primary method of data collection, questionnaires were distributed to the top management level of TEKUN. The obtained data was subjected to statistical analysis using PLS-SEM, on a convenience sample of 110 of TEKUN’s top management personnel. The results provide empirical evidence that among the three dimensions of market orientation, only management sustainability of TEKUN is significantly influenced by customer orientation. The result of th...
Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and ... more Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and Terrorist Financing Act (AMLATFA) 2001, has investigated many cases involving individuals and businesses, which have violated the Act. Although many anti-money laundering initiatives have been carried out by the regulators, the number of investigations and charges has risen over the years and some of the cases have been left unsettled. This study focuses on the examination of cases and chargers under AMLATFA 2001 by Bank Negara Malaysia. The data were collected from the Enforcement Action reports of Bank Negara Malaysia on the investigated cases charged under the AMLATFA. 80 cases were reported in the Bank Negara Malaysia website and were classified into industries, sources of cases, status of the cases, and the amount of money laundered. The findings provide an insight to the money laundering cases investigated by BNM and the seriousness of the money laundering issue in the country. JEL...
The increasing trends of money laundering and terrorism financing crimes trigger academic researc... more The increasing trends of money laundering and terrorism financing crimes trigger academic research in this area from all parts of the globe covering the legal as well as the practical issues surrounding the crime. Money laundering and terrorism financing is claimed to be one of the biggest obstacle and caused difficulties to develop an effective international financial system. This is because the activities usually involve a series of financial transaction in several financial institutions across many different jurisdictions. The main objective of this study is to identify the elements of controlling mechanisms that might be influenced to reduce the level of money laundering and terrorism financing occurrence in Malaysian banking sector. The controlling mechanisms provided in this study are client due diligence practices, internal control procedures, AML/CFT training and awareness programs, corporate governance and perceived effectiveness of AML/CFT regulations. A survey was conduct...
Journal of Management Information and Decision Sciences, 2021
This study examines the factors influencing tax compliance among the e-commerce taxpayers in Mala... more This study examines the factors influencing tax compliance among the e-commerce taxpayers in Malaysia. Specifically, this study examines the effect of behaviourism, enforcement, and law clarity on tax compliance among the e-commerce taxpayers who are involved in the clothing and fashion business activities in Malaysia. Using questionnaire survey on e-commerce taxpayers, this study shows all factors chosen in this study positively influence tax compliance among the e-commerce taxpayers. The findings of this study provide understanding to the Inland Revenue Department on the need to increase the level of tax compliance among the e-commerce taxpayers. Therefore, it is important for the Inland Revenue Department to identify best practices that could be implemented so that the e-commerce taxpayers can become more aware and subsequently, assist them to become responsible citizens in helping the country in sustaining economic development.
To combat money laundering (ML)/terrorist financing (TF), Pakistan has joined the Asia Pacific Gr... more To combat money laundering (ML)/terrorist financing (TF), Pakistan has joined the Asia Pacific Group in May 2000. Pakistan has ratified and adopted twenty United Nations conventions and resolutions on organized and related crimes. However, these efforts were futile due to deficient legislation and insubstantial implementation caused by a lack of political commitment and will. Although a multi-agency approach for investigation and enforcement is in place to fight against ML/TF, the geographical location and variety of Pakistan's borders are natural obstacles in implementing a sustainable anti-money laundering (AML)/counter financing of terrorism regime. Further, the mutual evaluation report stated that Anti-money Laundering Act (AMLA) 2010's development demonstrates many inconsistencies and deficiencies, resulting in a feeble AML regime. FTAF has endorsed flaws in AMLA and related laws pointed by APG. Pakistan has convicted only one launderer on the implementation front, and assets confiscation is also negligible under AMLA. Moreover, without clarity and harmonization in AMLA, Pakistan finds it difficult to secure a stable position in financial action task force (FATF).
Employee fraud issues are commendable of discussion in the current global economy. According to P... more Employee fraud issues are commendable of discussion in the current global economy. According to PwC (2020), 68% of fraud is committed by employees in Malaysia, and 35% of it were committed by collusion with external parties. This indicates a tighter control is required to reduce the cases. In addition, the financial institutions are known to be susceptible to fraud cases, due to its nature of directly handling a huge amount of cash. Due to the rapid changes of technological development and increased in organized crime, fraudsters focus on financial institutions as their target. Thus, the adoption of a strategic approach is required to prevent, detect and combat employee fraud occurrences. The research aim is to examine the influencing factors of employee fraud in Malaysian financial institution. The research utilise the data obtained from questionnaire that polled public attitudes regarding the influencing factors of employee fraud occurrences by adopting the Fraud Pentagon Theory. The data was analysed to evaluate and determine the perception of employees working in financial institutions on the influencing factors of employee fraud occurrences. The research suggested that elements in the Fraud Pentagon Theory, namely pressure, opportunity, rationalization, capability and arrogance have significant positive influence on the employee fraud occurrences in the Malaysian financial institution.
Academy of Accounting and Financial Studies Journal, 2021
This study presents an evidence on the importance of auditor’s reputation, auditor’s fee and audi... more This study presents an evidence on the importance of auditor’s reputation, auditor’s fee and auditor’s skepticism to the quality of auditing earnings management. Using auditors from the Big 4 and non-Big 4 audit firms, a study was conducted to examine whether these characteristics of the auditors influence their audit quality on earnings management. The study was carried out using a questionnaire survey. The findings of the study suggest that auditor’s reputation and auditor’s fee do not necessary influence the quality of audit on earnings management. Rather, the auditor’s skepticism plays an important role in influencing the quality of audit on earnings management. The study implicates the auditors should have greater skepticism to gain better audit quality in auditing earnings management practices. The evidence provided in this study could help enforcement bodies such as SEC in probing companies that manipulate their earnings reflected in their financial statement.
Academy of Accounting and Financial Studies Journal, 2021
Recent fraud cases in Malaysia have become the most serious issue that is related to companies or... more Recent fraud cases in Malaysia have become the most serious issue that is related to companies or the public sector. In a company, asset misappropriation has become a major concern to the management of the company because asset misappropriation may seemingly be an insignificant behaviour that will not give so much impact to a company but if it is not treated, it will become worse and it will be difficult to solve. This study analyses the factors that affect asset misappropriation occurrence in a company. Specifically, this study examines the effect of leadership style, organisational culture and internal control on asset misappropriation in an organisation. Using questionnaire survey on 137 employees in a company, this study shows that all three factors; leadership style, organisational culture and internal control have significant influence on asset misappropriation occurrences in the company, although the effect is negative. The findings in this study provide insights on fraud to the management of the company. Consequently, this study can assist the management of the company to execute an effective internal control mechanism as well as establish policies pertaining to fraud activities to ensure that the recent case fraud involving the company will be the last one to occur. In addition, the findings from the study could also motivate employees to prevent any fraudulent activities.
Customer due diligence is a process of identification high risk customer which involve investigat... more Customer due diligence is a process of identification high risk customer which involve investigation and gathering of customer’s information for further assessments of customers profile to categorize customers according the type of risks. This study specifically targeted as niche group of first-line defence officers who are responsible to carry out effective customer due diligence procedure to detect and prevent financial institutions residing in Malaysia from money laundering risks. Though latest financial systems can identify the red flags of unusual activities or suspicious transactions, human intervention is still required for decision making processes. Thus, the quality of customer due diligence perform is vital to secure the financial institutions from vehicle of crimes for money laundering proceed. Hence, this study focuses on the factors affecting the competency of first-line defence officers to perform effective customer due diligence. Three contributing factors are examined namely, the first-line defence officers’ experience, education and training provided. This study shows that all the factors examined in this study influence the competency of first-line defence officers to perform effective customer due diligence. The findings suggest that the three factors studied influence the competency of first-line defence officers to perform customer due diligence procedure, thus strengthen the prevention of money laundering risks in financial institutions residing in Malaysia.
Corporate governance provides a fundamental framework to oversee corporate conduct and ensures tr... more Corporate governance provides a fundamental framework to oversee corporate conduct and ensures transparency of institutions like banks. In case of Islamic banks, it adds additional importance as the profit sharing (with the depositors) system enhances the chance of agency problem for such institutions. Again, risks are inherent in institutions like Islamic banks, which necessitate the investors to get proper information about the risk encountered by the banks in which they invest. Thus, corporate governance and risk disclosures bear utmost importance. Since Malaysian banking industry has already experienced a favorable growth of Islamic banking and Bangladesh is observing a rapid growth of popularity of Islamic banking, a comparative study has been undertaken between Malaysian and Bangladeshi Islamic banks regarding corporate governance and risk disclosures in annual reports. Content analysis technique has been applied to facilitate the comparison. Both quantity and quality of risk reporting of the sample companies have been evaluated. A corporate governance disclosure index has been developed by following the guidelines provided by Bangladesh Security and Exchange Commission (BSEC) and the principles laid down in the "Guidelines on Corporate Governance for Licensed Islamic Banks in Malaysia" to explore and compare the degree of good corporate governance and relevant disclosures in the annual reports. It is hypothesized that corporate governance and risk disclosure will vary between Malaysian and Bangladeshi Islamic Banks. It is also argued that the corporate risk disclosures will be positively associated with the quality of the firm"s corporate governance mechanisms. Results are generally supportive of hypotheses. At the end, implications for theory and practices are discussed in the study.
International Journal of Business & Management Sciences, 2019
Due to worldwide spread of financial scandals, forensic accountants who can competently identify ... more Due to worldwide spread of financial scandals, forensic accountants who can competently identify and detect irregularities and frauds is much needed. Therefore, a questionnaire survey was conducted to examine whether competencies and situational support factors enhance the performance effectiveness of forensic accountants in Malaysia with 91 respondents. The results show that competencies and situational supports have a positive relationship with the performance effectiveness of forensic accountants. It contributes to the understanding on the need for competencies and situational supports from organisations, such as team members, technology and integrated facilities, aiding forensic accountants in performing their task efficiently and effectively.
Considering the importance of good corporate governance in the banking industry, the study has be... more Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board's structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.
International Journal of Management and Applied Science, 2018
This study investigated asset misappropriation among bank employees based on fraud diamond theory... more This study investigated asset misappropriation among bank employees based on fraud diamond theory. Primary data were collected and analysed using 320 questionnaires survey among the employees of top three largest banks in Malaysia. The findings revealed that all the four elements of the Fraud Diamond Theory, namely rationalization, capability, pressure and opportunity, contribute to asset misappropriation. The findings imply that in order to minimize asset misappropriation, it is important for banking industries to reduce opportunity, financial and work pressure and employees negative rationalization through stronger internal control, segregation of duties and fair work assignment. Hence, this study has contributed to the literature on asset misappropriation occurrence which is not widely discussed especially in the context of the banking industry in developing country.
International Journal of Economics and Management, 2016
Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and ... more Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and Terrorist Financing Act (AMLATFA) 2001, has investigated many cases involving individuals and businesses, which have violated the Act. Although many anti-money laundering initiatives have been carried out by the regulators, the number of investigations and charges has risen over the years and some of the cases have been left unsettled. This study focuses on the examination of cases and chargers under AMLATFA 2001 by Bank Negara Malaysia. The data were collected from the Enforcement Action reports of Bank Negara Malaysia on the investigated cases charged under the AMLATFA. 80 cases were reported in the Bank Negara Malaysia website and were classified into industries, sources of cases, status of the cases, and the amount of money laundered. The findings provide an insight to the money laundering cases investigated by BNM and the seriousness of the money laundering issue in the country.
International Journal of Economics and Management, 2016
Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascert... more Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascertained as an efficient and useful one. This study aims at providing insights into how the three dimensions of market orientation namely, customer orientation, competitor orientation, and interfunction coordination affect the most important aspect of sustainability of microfinance institutions (MFIs), particularly the sustainable management performance of Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), as one of the largest MFIs in South East Asia. As a primary method of data collection, questionnaires were distributed to the top management level of TEKUN. The obtained data was subjected to statistical analysis using PLS-SEM, on a convenience sample of 110 of TEKUN's top management personnel. The results provide empirical evidence that among the three dimensions of market orientation, only management sustainability of TEKUN is significantly influenced by customer orientation. The result of this paper further enhances the literature in understanding the long-term sustainable performance-based market orientation. Findings are useful for policy makers, management of microfinance institutions, practitioners, and academics to enhance the microfinance system. Managerial implications and suggestions for future research are also included.
Purpose From 2000 to 2021, the Malaysian corruption perception index demonstrated a declining ten... more Purpose From 2000 to 2021, the Malaysian corruption perception index demonstrated a declining tendency, identifying Malaysia as a highly corrupt nation. Corruption in the nation has become a social cancer that has impacted the workplace and political climate. Using Dewey’s (1937) theory of education and social change, this paper argues that anti-corruption education is a tool for reforming the corruption culture of a nation. Consequently, the purpose of this study is to explore and understand the current anti-corruption education in Malaysian educational institutions. Design/methodology/approach The results of this study were derived from a qualitative content analysis of 20 Google News articles, an interview with the sole implementation agency, the Malaysian Anti-Corruption Commission (MACC) and a literature assessment of MACC publications. Due to a dearth of preceding study and journal publications on the topic, this type of qualitative content analysis of news has been applied in...
Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascert... more Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascertained as an efficient and useful one. This study aims at providing insights into how the three dimensions of market orientation namely, customer orientation, competitor orientation, and interfunction coordination affect the most important aspect of sustainability of microfinance institutions (MFIs), particularly the sustainable management performance of Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), as one of the largest MFIs in South East Asia. As a primary method of data collection, questionnaires were distributed to the top management level of TEKUN. The obtained data was subjected to statistical analysis using PLS-SEM, on a convenience sample of 110 of TEKUN’s top management personnel. The results provide empirical evidence that among the three dimensions of market orientation, only management sustainability of TEKUN is significantly influenced by customer orientation. The result of th...
Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and ... more Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and Terrorist Financing Act (AMLATFA) 2001, has investigated many cases involving individuals and businesses, which have violated the Act. Although many anti-money laundering initiatives have been carried out by the regulators, the number of investigations and charges has risen over the years and some of the cases have been left unsettled. This study focuses on the examination of cases and chargers under AMLATFA 2001 by Bank Negara Malaysia. The data were collected from the Enforcement Action reports of Bank Negara Malaysia on the investigated cases charged under the AMLATFA. 80 cases were reported in the Bank Negara Malaysia website and were classified into industries, sources of cases, status of the cases, and the amount of money laundered. The findings provide an insight to the money laundering cases investigated by BNM and the seriousness of the money laundering issue in the country. JEL...
The increasing trends of money laundering and terrorism financing crimes trigger academic researc... more The increasing trends of money laundering and terrorism financing crimes trigger academic research in this area from all parts of the globe covering the legal as well as the practical issues surrounding the crime. Money laundering and terrorism financing is claimed to be one of the biggest obstacle and caused difficulties to develop an effective international financial system. This is because the activities usually involve a series of financial transaction in several financial institutions across many different jurisdictions. The main objective of this study is to identify the elements of controlling mechanisms that might be influenced to reduce the level of money laundering and terrorism financing occurrence in Malaysian banking sector. The controlling mechanisms provided in this study are client due diligence practices, internal control procedures, AML/CFT training and awareness programs, corporate governance and perceived effectiveness of AML/CFT regulations. A survey was conduct...
Journal of Management Information and Decision Sciences, 2021
This study examines the factors influencing tax compliance among the e-commerce taxpayers in Mala... more This study examines the factors influencing tax compliance among the e-commerce taxpayers in Malaysia. Specifically, this study examines the effect of behaviourism, enforcement, and law clarity on tax compliance among the e-commerce taxpayers who are involved in the clothing and fashion business activities in Malaysia. Using questionnaire survey on e-commerce taxpayers, this study shows all factors chosen in this study positively influence tax compliance among the e-commerce taxpayers. The findings of this study provide understanding to the Inland Revenue Department on the need to increase the level of tax compliance among the e-commerce taxpayers. Therefore, it is important for the Inland Revenue Department to identify best practices that could be implemented so that the e-commerce taxpayers can become more aware and subsequently, assist them to become responsible citizens in helping the country in sustaining economic development.
To combat money laundering (ML)/terrorist financing (TF), Pakistan has joined the Asia Pacific Gr... more To combat money laundering (ML)/terrorist financing (TF), Pakistan has joined the Asia Pacific Group in May 2000. Pakistan has ratified and adopted twenty United Nations conventions and resolutions on organized and related crimes. However, these efforts were futile due to deficient legislation and insubstantial implementation caused by a lack of political commitment and will. Although a multi-agency approach for investigation and enforcement is in place to fight against ML/TF, the geographical location and variety of Pakistan's borders are natural obstacles in implementing a sustainable anti-money laundering (AML)/counter financing of terrorism regime. Further, the mutual evaluation report stated that Anti-money Laundering Act (AMLA) 2010's development demonstrates many inconsistencies and deficiencies, resulting in a feeble AML regime. FTAF has endorsed flaws in AMLA and related laws pointed by APG. Pakistan has convicted only one launderer on the implementation front, and assets confiscation is also negligible under AMLA. Moreover, without clarity and harmonization in AMLA, Pakistan finds it difficult to secure a stable position in financial action task force (FATF).
Employee fraud issues are commendable of discussion in the current global economy. According to P... more Employee fraud issues are commendable of discussion in the current global economy. According to PwC (2020), 68% of fraud is committed by employees in Malaysia, and 35% of it were committed by collusion with external parties. This indicates a tighter control is required to reduce the cases. In addition, the financial institutions are known to be susceptible to fraud cases, due to its nature of directly handling a huge amount of cash. Due to the rapid changes of technological development and increased in organized crime, fraudsters focus on financial institutions as their target. Thus, the adoption of a strategic approach is required to prevent, detect and combat employee fraud occurrences. The research aim is to examine the influencing factors of employee fraud in Malaysian financial institution. The research utilise the data obtained from questionnaire that polled public attitudes regarding the influencing factors of employee fraud occurrences by adopting the Fraud Pentagon Theory. The data was analysed to evaluate and determine the perception of employees working in financial institutions on the influencing factors of employee fraud occurrences. The research suggested that elements in the Fraud Pentagon Theory, namely pressure, opportunity, rationalization, capability and arrogance have significant positive influence on the employee fraud occurrences in the Malaysian financial institution.
Academy of Accounting and Financial Studies Journal, 2021
This study presents an evidence on the importance of auditor’s reputation, auditor’s fee and audi... more This study presents an evidence on the importance of auditor’s reputation, auditor’s fee and auditor’s skepticism to the quality of auditing earnings management. Using auditors from the Big 4 and non-Big 4 audit firms, a study was conducted to examine whether these characteristics of the auditors influence their audit quality on earnings management. The study was carried out using a questionnaire survey. The findings of the study suggest that auditor’s reputation and auditor’s fee do not necessary influence the quality of audit on earnings management. Rather, the auditor’s skepticism plays an important role in influencing the quality of audit on earnings management. The study implicates the auditors should have greater skepticism to gain better audit quality in auditing earnings management practices. The evidence provided in this study could help enforcement bodies such as SEC in probing companies that manipulate their earnings reflected in their financial statement.
Academy of Accounting and Financial Studies Journal, 2021
Recent fraud cases in Malaysia have become the most serious issue that is related to companies or... more Recent fraud cases in Malaysia have become the most serious issue that is related to companies or the public sector. In a company, asset misappropriation has become a major concern to the management of the company because asset misappropriation may seemingly be an insignificant behaviour that will not give so much impact to a company but if it is not treated, it will become worse and it will be difficult to solve. This study analyses the factors that affect asset misappropriation occurrence in a company. Specifically, this study examines the effect of leadership style, organisational culture and internal control on asset misappropriation in an organisation. Using questionnaire survey on 137 employees in a company, this study shows that all three factors; leadership style, organisational culture and internal control have significant influence on asset misappropriation occurrences in the company, although the effect is negative. The findings in this study provide insights on fraud to the management of the company. Consequently, this study can assist the management of the company to execute an effective internal control mechanism as well as establish policies pertaining to fraud activities to ensure that the recent case fraud involving the company will be the last one to occur. In addition, the findings from the study could also motivate employees to prevent any fraudulent activities.
Customer due diligence is a process of identification high risk customer which involve investigat... more Customer due diligence is a process of identification high risk customer which involve investigation and gathering of customer’s information for further assessments of customers profile to categorize customers according the type of risks. This study specifically targeted as niche group of first-line defence officers who are responsible to carry out effective customer due diligence procedure to detect and prevent financial institutions residing in Malaysia from money laundering risks. Though latest financial systems can identify the red flags of unusual activities or suspicious transactions, human intervention is still required for decision making processes. Thus, the quality of customer due diligence perform is vital to secure the financial institutions from vehicle of crimes for money laundering proceed. Hence, this study focuses on the factors affecting the competency of first-line defence officers to perform effective customer due diligence. Three contributing factors are examined namely, the first-line defence officers’ experience, education and training provided. This study shows that all the factors examined in this study influence the competency of first-line defence officers to perform effective customer due diligence. The findings suggest that the three factors studied influence the competency of first-line defence officers to perform customer due diligence procedure, thus strengthen the prevention of money laundering risks in financial institutions residing in Malaysia.
Corporate governance provides a fundamental framework to oversee corporate conduct and ensures tr... more Corporate governance provides a fundamental framework to oversee corporate conduct and ensures transparency of institutions like banks. In case of Islamic banks, it adds additional importance as the profit sharing (with the depositors) system enhances the chance of agency problem for such institutions. Again, risks are inherent in institutions like Islamic banks, which necessitate the investors to get proper information about the risk encountered by the banks in which they invest. Thus, corporate governance and risk disclosures bear utmost importance. Since Malaysian banking industry has already experienced a favorable growth of Islamic banking and Bangladesh is observing a rapid growth of popularity of Islamic banking, a comparative study has been undertaken between Malaysian and Bangladeshi Islamic banks regarding corporate governance and risk disclosures in annual reports. Content analysis technique has been applied to facilitate the comparison. Both quantity and quality of risk reporting of the sample companies have been evaluated. A corporate governance disclosure index has been developed by following the guidelines provided by Bangladesh Security and Exchange Commission (BSEC) and the principles laid down in the "Guidelines on Corporate Governance for Licensed Islamic Banks in Malaysia" to explore and compare the degree of good corporate governance and relevant disclosures in the annual reports. It is hypothesized that corporate governance and risk disclosure will vary between Malaysian and Bangladeshi Islamic Banks. It is also argued that the corporate risk disclosures will be positively associated with the quality of the firm"s corporate governance mechanisms. Results are generally supportive of hypotheses. At the end, implications for theory and practices are discussed in the study.
International Journal of Business & Management Sciences, 2019
Due to worldwide spread of financial scandals, forensic accountants who can competently identify ... more Due to worldwide spread of financial scandals, forensic accountants who can competently identify and detect irregularities and frauds is much needed. Therefore, a questionnaire survey was conducted to examine whether competencies and situational support factors enhance the performance effectiveness of forensic accountants in Malaysia with 91 respondents. The results show that competencies and situational supports have a positive relationship with the performance effectiveness of forensic accountants. It contributes to the understanding on the need for competencies and situational supports from organisations, such as team members, technology and integrated facilities, aiding forensic accountants in performing their task efficiently and effectively.
Considering the importance of good corporate governance in the banking industry, the study has be... more Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board's structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.
International Journal of Management and Applied Science, 2018
This study investigated asset misappropriation among bank employees based on fraud diamond theory... more This study investigated asset misappropriation among bank employees based on fraud diamond theory. Primary data were collected and analysed using 320 questionnaires survey among the employees of top three largest banks in Malaysia. The findings revealed that all the four elements of the Fraud Diamond Theory, namely rationalization, capability, pressure and opportunity, contribute to asset misappropriation. The findings imply that in order to minimize asset misappropriation, it is important for banking industries to reduce opportunity, financial and work pressure and employees negative rationalization through stronger internal control, segregation of duties and fair work assignment. Hence, this study has contributed to the literature on asset misappropriation occurrence which is not widely discussed especially in the context of the banking industry in developing country.
International Journal of Economics and Management, 2016
Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and ... more Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and Terrorist Financing Act (AMLATFA) 2001, has investigated many cases involving individuals and businesses, which have violated the Act. Although many anti-money laundering initiatives have been carried out by the regulators, the number of investigations and charges has risen over the years and some of the cases have been left unsettled. This study focuses on the examination of cases and chargers under AMLATFA 2001 by Bank Negara Malaysia. The data were collected from the Enforcement Action reports of Bank Negara Malaysia on the investigated cases charged under the AMLATFA. 80 cases were reported in the Bank Negara Malaysia website and were classified into industries, sources of cases, status of the cases, and the amount of money laundered. The findings provide an insight to the money laundering cases investigated by BNM and the seriousness of the money laundering issue in the country.
International Journal of Economics and Management, 2016
Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascert... more Among all the efforts that have been conducted to alleviate poverty, microfinance has been ascertained as an efficient and useful one. This study aims at providing insights into how the three dimensions of market orientation namely, customer orientation, competitor orientation, and interfunction coordination affect the most important aspect of sustainability of microfinance institutions (MFIs), particularly the sustainable management performance of Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), as one of the largest MFIs in South East Asia. As a primary method of data collection, questionnaires were distributed to the top management level of TEKUN. The obtained data was subjected to statistical analysis using PLS-SEM, on a convenience sample of 110 of TEKUN's top management personnel. The results provide empirical evidence that among the three dimensions of market orientation, only management sustainability of TEKUN is significantly influenced by customer orientation. The result of this paper further enhances the literature in understanding the long-term sustainable performance-based market orientation. Findings are useful for policy makers, management of microfinance institutions, practitioners, and academics to enhance the microfinance system. Managerial implications and suggestions for future research are also included.
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
Forensic accounting has been around for a long time, even if it was not always known as such. It ... more Forensic accounting has been around for a long time, even if it was not always known as such. It utilises accounting, auditing, and investigative skills to assist law enforcement in addressing and battling financial-related crime. In contrast to traditional accounting, the primary role of a forensic accountant is to provide accounting analysis, interpretation, summary, and presentation. Forensic accounting assists in resolving disputes in an organisation and assisting in preparing financial evidence for use in court, among other things. In other words, it is the amalgamation of roles between an auditor and a private investigator. In addition to solid analytical capabilities such as quantitative techniques, a creative mentality, strong writing and communication skills, a forensic accountant must understand the nature of an organised operation and its internal control systems, detect threats in companies, and have insight from a law enforcement officer. Similar to a financial audit, the forensic investigation includes a planning stage, evidence gathering and review stage, and a client report. Globalisation has made IT a vital part of a contemporary organisation, particularly accounting. Though technology helps organisations to grow, there are still some vulnerable areas that need attention, such as financial crime. It is believed that most financial crimes are committed using computers and digital technology, thus changing how forensic accountants conduct their investigations. Investigating many transactions more efficiently, detecting patterns, finding documents that need additional examination and obtaining early insights are all benefits of computerised analysis for forensic accountants. Detecting financial crime in the age of big data, on the other hand, needs new skillsets beyond traditional forensic accounting skills – tech- talent. Therefore, a forensic accountant needs to have a forward-thinking mindset, too – favouring innovation and development in maximising the use of machine learning to detect, assess and respond to financial crimes. Additionally, this can be performed before the crime is committed. Hence, the forward-thinking mindset makes thinking ahead and understanding criminals’ minds part of the financial accountants' new skillsets. As a result, these new skillsets enable the mitigation of financial crimes more effective and efficient.
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
Poor workmanship and its links to ethical actions are widespread in the building industry. Constr... more Poor workmanship and its links to ethical actions are widespread in the building industry. Construction players, including contractors and designers, are considered exposed to infringements of the law and liable for damages. The purpose of this paper is to provide a better awareness of ethical problems while building an open drainage system and its link to legal obligations. In combination with unstructured interviews and analyses of documents, the data have been obtained largely via naturalistic observation. The absence of attention to ethical practices has been proven to have harmful effects. Drainage failures were caused by missing elements (such as concrete bases and rubble packs) and by faulty construction of the drainage system, which complicates the financial situation and the contractor's time during construction. The acts of the contractor relate to fraud and negligence. The research reveals concepts of ethical blindness and unethical pro-organisation for more empirical research in future. In addition, increased emphasis on the Fraud Triangle and teleology might produce informative conclusions that are relevant to the attention and conduct of many parties. A proper construction of the drainage system is essential to avoid financial or legal after-effects.
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
The research explores and understand the causes of bribery among law enforcement officers in Mala... more The research explores and understand the causes of bribery among law enforcement officers in Malaysia. This qualitative study investigates the factors contributing to the occurrence of corruption in the Malaysian context by observing the level of transparency, internal policies and discretionary power within the organisation, as well as to understand the essence of the working culture process among different positions of employees. The data and information were collected through semi structured interview and review internal documents. In this exploratory study, the causes of bribery among law enforcement officers in Immigration Department of Malaysia (JIM) become the focus issues and several themes emerged as to why people are corrupt which include power and responsibility, opportunity, salary, immorality and lifestyle. The findings contribute to Malaysia by a policy makers, regulators, practitioners and anti-corruption authorities in addressing the problem.
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
The health industry in Zimbabwe is competitive in reference to international standards. The medic... more The health industry in Zimbabwe is competitive in reference to international standards. The medical insurance, as apart of the healthcare industry, is adversely affected from the high rate of double billing fraud perpetrated against them and this leads to the societies funding fraudulent claims. The aim of the study was to investigate fraud-detecting techniques that are employed in Zimbabwe's health insurances in order to reduce double billing fraud. A quantitative research methodology was followed during this study, which adopted a survey research approach. With the assistance of PASW Statistics 18 software and NVivo 11. the empirical data was analyzed. The study revealed that the present fraud detecting techniques employed by the medical aid societies are ineffective in detection and prevention of double billing fraud. Consequently, ineffectiveness in detection and prevention of double billing fraud has led to an increase in costs due to inflated claims, increased costs of operations realization of less revenue from insurance premiums, reputational damage among other effects. We recommend that an all-encompasing approach should be followed to detect and alleviate double billing fraud against these societies. This approach should encompass a budget which should be allocated by the societies to teach and make awareness about the causes and effects of double billing fraud to employees, members and service providers. A specialized team of research and developers must be established by the Association of Healthcare Funders in Zimbabwe to further look into double billing fraud and proffer new solutions in the fight against such fraudulent acts. Implementing the recommendations from the study will assist healthcare funders to scale back the funds exhausted in fraudulently billed claims, in turn improving their financial feasibility and decreasing the financial contribution for member
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
The research examines the dominant factors that influenced individuals on the misappropriation of... more The research examines the dominant factors that influenced individuals on the misappropriation of assets in the Malaysian Army. The research uses the Diamond Fraud Theory as a theoretical framework and examines the reasons for the failures and the weaknesses of the internal control system. The research provides mitigation strategies to improve the present practices for preventing asset misappropriation in the organisation. A total of 12 valid responses were obtained from military personnel serving in various departments and units in the Malaysian Army, who were asked for their thoughts on related issues. The analysis results showed that military personnel who were involved in misappropriating assets due to the pressures they faced, the opportunity that existed in those situations, their ability to rationalise their actions, and the capability of their critical positions. However, the results suggested that the extent to which the perpetrators would misappropriate assets depends on their perception of the strength of the internal control systems in their departments or units. The research contributed to the body of knowledge in the areas of occupational fraud by focusing on asset misappropriation, an area that has received the least amount of research and highlighted the significant roles of internal controls in reducing the occurrence of asset misappropriation. The research findings are very beneficial for academic researchers, which provide in-depth recommendations for conducting research with different approaches and enriching the emerging discourse on asset misappropriation fraud, as well as beneficial for any agencies in determining the best mitigation strategies to mitigate the occurrence of asset misappropriation fraud.
11th International Conference on Financial Criminology (ICFC) 2021, Aug 2021
The issue of love scam is a raising concern for all,especially during the era of pandemic where p... more The issue of love scam is a raising concern for all,especially during the era of pandemic where people started staying home more often and start utilizing social media and dating applications to connect with other in look for romantic relationship. Nonetheless, fraudsters are abusing the fraudster by assuming fake profiles on these platforms in search for victims for their personal gains. Hence, this study aims to discuss the control mechanism and the available awareness information or message that is available on these platforms as prevention measures against the common techniques used by fraudster against victims. This study adopts the structure of qualitative research through ethnography to gain experience as a user on the platform. Interview is conducted with Cybersecurity Malaysia to gain a perspective about the traits of victims and modus operandi of fraudster to instrument love scam. This study found that there are weaknesses prevent in the registration process of the platforms that show opportunity to the fraudster to look for victims. The awareness information and message on the platform is inefficient and ineffective to curb the issue despite effort from the enforcement agencies and supporting agencies. The study concluded that the registration process is the key risk area that has allowed fraudster to abuse the platforms to instrument the scam.
Malaysia has embarked on several transformation programmes in the past decade. Initiatives to imp... more Malaysia has embarked on several transformation programmes in the past decade. Initiatives to improve public service delivery has saved the government of Malaysia vast sums of money. Beyond the financial gain, transformation programmes also drove the government to focus on good governance, which includes characteristics such as transparency, accountability, equity, inclusiveness, effectiveness and efficiency, among others. This concept paper discusses how the government has used massive engagement process to include its stakeholders in the process of planning and decision-making as a means for instituting good governance in the transformation programmes. For university transformation programme, the paper discusses the role of University Board Governance in enhancing good governance at public universities. However, for these initiatives to be accepted by the stakeholders as good governance, it is essential for the policymakers to implement the suggestions derived from the citizen's participation and that the University Board does carry out its stated fiduciary duty.
Women entrepreneurs have been acknowledged to play critical roles for bringing their ideas and ca... more Women entrepreneurs have been acknowledged to play critical roles for bringing their ideas and capabilities towards successful achievement of the SME development. The highest number in small business ownership among women is showed as a path to economic empowerment and personal growth. Nevertheless, the failure in small business is due to weak in business management likes poor in financial management owners have little knowledge in business. This is because they are poor in financial management in new business start-ups. Therefore, the success of small business indicates by examining multiplicative effect of various constructs of financial management practices like financial reporting, accounting information system, working capital management, financing and investing. Apart from that, the business' financial performances might also stalk from inadequacies in the theories applied such as contingency theory, packing order theory and knowledge-based theory. The study has also identified that the survival rate can be maintained through theories application and the external effect as complement factors. The findings indicate that cash management is important for business survival. In addition, the small businesses in particular, women entrepreneurs are very unique in managing their cash by having their own fund in order to finance the business expenses, new business start-up and personal needs. Women entrepreneurs will find the alternative of financing to avoid borrowings.
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Papers by Norazida Mohamed