Search results

This paper aims to investigate the effect of product offering and other service quality (SQ) dimensions on the satisfaction of the customers of both Islamic and conventional banks, using evidence from an oil-based economy that is based on a prolonged SERVQUAL model with 11 dimensions and other statistical analysis methods.

The data were collected from 461 Islamic and conventional bank customers in Qatar via a survey and several tests were used to test certain hypotheses. Component analysis, factor analysis and gap and ascendency analysis were used in this study. Afterward, a correlation analysis and regression model were used to examine the hypotheses and validate the instruments used.

The results show that regardless of the type of bank, customers always have greater expectations of the services than they had perceived. A customer’s expectation of the product on offer is the only dimension that is significantly different in relation to the two types of banks. However, reliability, competence, responsiveness, credibility and empathy dimensions are significantly different of the two types of banks in customers’ perception of quality. In addition, the results suggest that both types of banks need to concentrate their efforts on the product offering, competence and courtesy dimensions.

The size of our sample of Islamic and conventional banks is unequally balanced. Future studies might therefore choose an equally balanced sample.

Bank managers in both types of banks need to continue improving the quality of their service including product offering and to adopt advanced methods to enhance customer satisfaction (CS) and reduce the gaps in quality in the dimensions used. Furthermore, managers in both types of banks need to put more emphasis on product offering, competence, courtesy and communication if they wish to improve SQ. Moreover, Islamic banks must guarantee that they possess competent, highly trained personnel who are familiar with Islamic finance products, so as to enhance the quality of service and attract customers.

To the best of the author’s knowledge, this is the first study to investigate the effect of product offering and other dimensions of SQ on CS in both Islamic and conventional banks by using 11 dimensions of SQ. In addition, it provides evidence of gaps in SQ, at the dimensions level, for both types of banks in an oil-based economy. The results of this study are valuable in helping decision-makers and bank managers who wish to raise the level of SQ and improve CS and in validating the results from other countries with a dual financial system.

The objective of this paper is to examine the determinants (i.e. firm size, profitability, leverage, type of audit firm and industry type) of intellectual capital (IC) disclosure in the annual reports of Malaysian listed companies.

The data were collected from the 2006 annual reports of the selected listed companies; and analyzed using descriptive statistics, t‐test, correlation and regression analyses.

The paper found that firm size, profitability, industry type are determinants of IC disclosure (ICD) in the annual reports of Malaysian listed companies, while leverage and type of audit firm did not statistically influence ICD.

The paper only used data from the 2006 annual reports. However, the findings have highlighted the importance of ICD determinants based on data from an emerging economy (i.e. Malaysian economy).

The paper provides empirical evidence on the current practices and determinants of ICD in the annual reports of the Malaysian listed companies. This evidence would help in understanding and determining factors that influence the extent of ICD. Subsequently, it could assist in enhancing ICD in the annual reports.

The paper contributes by extending the limited ICD literature in Malaysia. Furthermore, the paper has tested more determinants, deemed to influence ICD, compared to prior Malaysian studies. In addition, the paper used a larger sample size with a wider industry coverage compared to previous Malaysian literature.

This paper aims to examine the effects of intellectual capital (IC) disclosure in the annual reports of listed companies in Bursa Malaysia (BM) on their market capitalization (MCAP).

The paper uses secondary data for listed companies on BM for the years 2002 and 2006. A disclosure index was used to measure the extent of IC information disclosed in the annual reports. The MCAP data were obtained from the Bloomberg database. The data were analyzed using correlation and regression analyses.

The paper finds that the extent of IC disclosure by Malaysian‐listed companies has a positive significant effect on their MCAP. In addition, the paper found that there is significant positive impact of the control variables (i.e. book value, net profit, firm size and leverage) on the MCAP.

Although the paper was focused on the IC information and MCAP data for two years (i.e. 2002 and 2006), it provides empirical evidence that IC disclosure does affect the MCAP of companies. Hence, it means that the IC information is picked up by the market. Future research may incorporate more control variables and years.

The findings provide empirical evidence that IC information disclosed by the Malaysian‐listed companies positively affects their MCAP. These findings can be considered to be useful for these companies and work as a signal towards the need for more IC disclosure. In addition, the findings could be useful for the regulatory bodies, e.g. the Malaysian Accounting Standards Board and BM, perhaps to develop guidelines on IC disclosure to enhance transparency and increase confidence in the capital market.

The paper is considered the first empirical study to examine the effects of IC disclosure in the annual reports of Malaysian‐listed companies on their MCAP.

This paper aims to determine whether the “true and fair view override” (TFVO) principle is relevant and applicable in Islamic accounting. In addition, the paper examines the roles that TFVO could play in Islamic accounting and auditing.

A qualitative research method was used based on documentary and textual analysis of the Shari’ah fundamentals (Islamic legal sources) and relevant accounting standards and regulations.

The paper found that the TFVO is relevant and applicable in Islamic accounting and auditing and not contradictory to the rules of the Shari’ah. Therefore, the concept is acceptable for use in Islamic accounting. Moreover, based on the several roles played by the TFVO, in the Islamic context, the practicality of this concept in Islamic accounting provides further justification for its continued usage.

The findings of the paper provide a basis to support the inclusion of the TFVO in Islamic accounting standards, as well as possible usage by Islamic financial institutions (IFIs). Thus, regulators of IFIs and Islamic accounting standards setting bodies can consider it in their challenging task of standardizing accounting practices due to the different interpretations of transactions from the various Madhahib and multiple accounting concepts and practices. In addition, the discussion in the paper reminds accountants and auditors of IFIs and Islamic organizations that providing a true and fair view (TFV) is paramount; thus an override of inapplicable accounting standards and regulation is allowed, but not Shari’ah. Thus, TFVO can assist accountants to record transactions that reflect the economic reality of the IFIs, especially prior to accounting regulations keeping pace with the rapid business environment.

The paper has highlighted a very important issue relating to the TFV, specifically the TFVO, from the Islamic perspective. The paper is considered as the first paper that contextually analyses this issue based on Islamic legal sources using a qualitative approach. In addition, the paper has contributed to the literature in Islamic accounting and auditing.

This paper aims to investigate preparers' and users' perceptions on the usefulness of intellectual capital (IC) information disclosed in annual reports of listed companies. In addition, it aims to examine the significant differences in the perceptions of usefulness of IC information and IC categories of the preparers and users.

The paper used a questionnaire survey method to collect the data (i.e. primary data). The questionnaires were distributed to companies (i.e. chief financial officers and accountants) as preparers, and brokers (i.e. analysts) and banks (i.e. credit officers) as users. The data were analysed using descriptive statistics, t‐test and ANOVA.

The paper found that both preparers and users perceive the IC information disclosed in the annual reports of listed companies to be useful for their decision making purposes. Furthermore, the paper found that there are significant differences in the perception of usefulness between preparers and users.

The paper only focused on certain preparers' and users' perceptions. Nevertheless, it provides evidence that IC information is useful for decision‐making purposes. Future research on this issue may include more users.

The findings provide evidence that IC information disclosed by listed companies is perceived to be useful by preparers and users. In addition, it provides evidence that there is significant difference between the perceptions of the usefulness of IC information by preparers, users and amongst the different user groups. Thus, these findings could be useful for regulatory authorities in Malaysia (e.g. Malaysian Accounting Standards Board and Bursa Malaysia) for the improvement of the disclosure practices (e.g. voluntary basis) by the Malaysian listed companies and enhance transparency in the capital market.

The paper can be considered as the first empirical study to examine the usefulness of the IC information from both views; preparers and users in Malaysia. In addition it contributes to the limited literature on IC in Malaysia.