Finance, Accounting and Law in the Digital Age

Inhaltsverzeichnis

1. Frontmatter

2. Determinants of Investor’s Behaviour Towards Mudarabah Investment Deposits: A Case of Pakistan Islamic Banks

   Zalina Zainudin, Asfaq Ahmad

   Abstract

   Islamic banks in Pakistan use Mudarabah contract to attract investors’ deposits as an alternative to conventional term deposit products. The purpose of this study is to examine the factors affecting investors behaviours towards Mudarabah deposits. A quantitative approach is used to collect data from 354 respondents from five Islamic banks through a survey instrument. The variables used are Shari’ah governance, moral hazard, religiosity, awareness and interest rate as benchmark. The study shows that Shari’ah governance and interest rate as benchmark and religiosity have a positive relationship to the Mudarabah deposit product, while the moral hazard has negatively affected the Mudarabah deposit demand. Furthermore, the study found that knowledge and awareness mediate the relationship between Shari’ah governance, moral hazard/agency problem, religiosity, and investors’ behaviour towards the Mudarabah deposits. The findings would help the Islamic banks to improve the Mudarabah product structure to increase the market share of Mudarabah deposits.

3. Empowering the Digital Entrepreneurship Ecosystem in Malaysian Higher Education Institution (HEI) Towards Developing Income Generation

   Sabrinah Adam, Nursyazwani Mohd Fuzi, Mohd Zaidi Abd Rozan

   Abstract

   This study aimed to determine how well low-income household Bottom 40 (B40) students might generate income by utilizing the digital entrepreneurship ecosystem. Although several initiatives have been put in place to assist the B40 students in overcoming poverty, it has been shown that a number of factors influence their engagement in digital entrepreneurship. Therefore, this study will be conducted in four universities as a pilot study in order to better grasp this issue. This research enables the students to be digital entrepreneurs as a career of choice by having their own business as one of the strategies to generate income towards achieving the Envision 2030 Sustainable Development Goals. The Entrepreneurship Action Plan 2021–2025, which aims to build a competitive and sustainable entrepreneurial ecosystem, is in line with the study’s objectives. There will be 400 data gathered altogether. This study will use a mixed-method approach using sequential design whereby quantitative method will be carried out in the first phase follows by qualitative method. The quantitative approach will be conducted using online pre- and post-questionnaires. The Statistical Package for Social Science (SPSS) version 26 and Partial Least Squares-Structural Equation Modelling (PLS-SEM) analysis will be use at this stage to identify the integration between the relationship. Further, interview with the focus group is needed to obtain more information. The expected findings of this study are to provide a conceptual framework of the digital entrepreneurship ecosystem, which would benefit the crucial problem to be addressed holistically for B40 students in higher education institutions (HEI) in creating an income generation through digital entrepreneurship. This study contribution will be able to develop graduates with entrepreneurship mindset and choose entrepreneurship as a career of a choice in addressing the needs and uplifting the socioeconomic in line with the national agenda assisting the marginalized groups in Malaysia.

4. Restarting Start-Ups Post-COVID-19: The Case of Malaysian Start-Ups that Reshaped Its Business Performance

   Sabrinah Adam, Nur Atikah Aliah Md Akhir, Nursyazwani Mohd Fuzi

   Abstract

   Malaysian start-ups have started to open post-coronavirus disease 2019 (Covid-19) lockdowns, but they have run into a lot of problems and need to enhance their business performance. This study aims to identify the challenges Malaysian start-ups have in successfully functioning following COVID-19. The start-issues, ups which include those related to finances, human resource management, and marketing are the independent variables in this study. The dependent variable is the company performance following COVID-19. The analysis for this study will be done using a partial least squares-structural equation modelling (PLS-SEM) technique using a quantitative approach. The 200 active start-up firms in Malaysia will participate in the study. The expected findings showed that start-up businesses perform better when faced with financial obstacles, human resource management issues, and marketing challenges. The results of this study will be used as a reference to help start-up owners understand the effects of Covid-19 on organizations. This study’s contribution will offer a beneficial roadmap for how start-ups may learn and adapt after Covid-19 to survive in the market.

5. Coping Behaviour Among High School Students Towards Social Media Anxiety: Experiences from Cluster and Non-cluster Schools in Malaysia

   Yukthamarani Permarupan, Syed Ali Fazal, Roselina Ahmad Saufi, Nur Fadiah Mohd Zawawi, Abdullah Al Mamun, Ali Saleh Alshebami, Abdullah Hamoud Ali Seraj

   Abstract

   Social media that has allowed people to share and access information instantly could be both a blessing and a curse depending on use. Addiction to social media has been found to cause harmful effects such as anxiety, especially among teenagers due to social media-related problems such as cyberbullying, sexual solicitation and exposure to explicit content. This study aimed to identify the coping behaviour among high school students towards social media anxiety. A quantitative research method with convenience sampling was used to obtain the outcomes for this study through questionnaires distributed to 395 respondents from five high schools around Kota Bharu, Kelantan, Malaysia. The data collected from this sample was analysed using SPSS version 24, which included descriptive analysis, reliability analysis, Pearson’s correlation analysis and regression analysis. The findings showed that the majority of the students from the cluster schools agreed that social media anxiety had affected their coping behaviour. Meanwhile, students from non-cluster schools described that their coping behaviour was not affected by social media anxiety. Based on these findings, several suggestions have been recommended for students, parents and schools to ensure intensive involvement in activities that can alleviate students from social media anxiety.

6. The Effect of Social Entrepreneurship Orientation Towards Sustainability Performance in Indonesia

   Noor Raihani Binti Zainol, Reni Mutiarani Saraswati

   Abstract

   To date, there have been limited discussions and constructs on the effect of the entrepreneurial orientation of social entrepreneurs on sustainability performance in emerging countries. Thus, the purpose of this study was to examine the social entrepreneurship orientations of proactiveness, risk taking, innovativeness, and socialness in relation to sustainability performance. The study was conducted with 171 Indonesian social entrepreneurs in selected urban cities to test the validity and reliability of social entrepreneurship orientation that incorporated social resources and capabilities as well as sustainability performance. The data was examined using the partial least square structural equation modelling (PLS-SEM) method. The convergent validity was assessed using factor loading and average variance extracted (AVE), while reliability criteria were assessed using composite reliability (CR) and Cronbach’s alpha. The Fornell-Larcker criterion and heterotrait-monotrait criterion (HTMT) were performed to establish the discriminant validity of the instruments. The findings of the PLS-SEM evaluation of validity and reliability suggested that the scales employed in this research are statistically valid and reliable. This study contributes to our knowledge and understanding of the relationship between social entrepreneurship orientation and sustainability performance. In addition, the study makes a significant contribution to the literature on policy formulation.

7. Corporate Governance Practices Affecting Performance: A Case Study of Malaysian Elderly Care Centres NGOs

   N. Fadzlyn, Filzah Md. Isa, Shafi Mohamad

   Abstract

   It is alleged that nongovernmental organisation (NGOs) are undergoing a crisis of confidence as they have become more secretive in their actions, thus making it increasingly difficult for their stakeholders to hold them accountable. Therefore, effective corporate governance is essential for NGOs as it relates to public affairs and managing shared resources. One of the most effective strategies for improving NGO performance is effective corporate governance. This study has investigated the corporate governance practices that influence the performance of NGOs, mainly in the Malaysian elderly care sector. The qualitative research approach and semi-structured interview technique have been adopted, and this study covered ten elderly care centres run by NGOs in Kuala Lumpur and Selangor, Malaysia. This study found that the implementation and promotion of corporate governance in Malaysian NGOs, particularly in the elderly care centres, is still lacking, primarily the transparency of financial reporting. These deficiencies have been recognised as major obstacles that the NGOs must overcome to establish effective corporate governance in this study. The study may provide useful information to policymakers, enabling them to formulate strategies to strengthen their regulatory framework so that it is more in line with the systems of other NGOs from other countries. In the same vein, this study recommended that the board of NGOs adopt corporate governance best practices to improve performance, accountability, transparency and protect the interest of stakeholders.

8. Saving Behaviour Among the University Students in Malaysia

   Uma Thevi Munikrishnan, Nor Aziyatul Izni, Aeshah Mohd Ali, Nur Ilyana Ismarau Tajuddin, Nur Faradilla Haron, Nor Asiah Mahmood

   Abstract

   Financial literacy is an important factor for university students in making judgment on their financial management, as their expenditure constitute a significant contribution to the overall consumer expenditure in Malaysia. Despite that, the saving behaviour of university students had never been stable, exacerbated by the lack of sufficient financial knowledge. This paper investigates the importance of financial literacy among university students and the crucial determinants of their saving behaviour. A total of 384 responses were collected from various states in Malaysia. The normality test, reliability test, Pearson correlation analysis and multiple regression analysis had been utilized. The result shows the significant relationship between independent variables of financial literacy, subjective norm, perceived-behavioural control and self-control towards mediating variable of saving intention and saving intention towards saving behaviour, except financial attitudes towards saving intention. The finding shows that financial literacy, financial attitude, subjective norm, perceived behavioural control and saving intention had positive correlation with saving behaviour, while self-control showed negative correlation with saving behaviour.

9. Corporate Ethics and Financial Reporting Quality: A Thematic Analysis from Accountants’ Perspectives

   Nur Athirah Mohd Aluwi, Noorul Azwin Md Nasir, Hafiza Aishah Hashim, Mohd Zulkifli Muhammad, Noorshella Che Nawi, Mohd Nor Hakimin Yusoff

   Abstract

   A growing number of incidents concerning ethical misbehavior in business have recently attracted substantial attention in Malaysia. Despite the country’s declaration of a strong corporate governance policy, bolstered by the Malaysian Code of Corporate Governance (MCCG), unethical behaviors and a lack of integrity within corporations remain a concern. The problem’s pervasiveness has threatened the quality of Malaysian firms’ financial reporting. This research collects accountants’ viewpoints on the present implementation of corporate ethical practices among corporate governance practitioners, as well as the effect of corporate ethics commitment on financial reporting quality in Malaysian public listed companies. The data was gathered through semi-structured in-depth interviews with four (4) senior professional accountants from Malaysian publicly listed companies. Thematic analysis of the study identifies four themes: “corporate ethical values,” “corporate ethics commitment attributes,” “financial reporting quality features,” and “best practice of corporate governance.” The findings can be used to improve Malaysian public listed firms’ ethical corporate behavior and financial reporting quality.

10. Impact of Covid-19 Pandemic on SME Digitalization in Taiping, Perak

    Thushnitha A/. P. Damodaram, Md Zaki Muhamad Hasan, Rooshihan Merican Abdul Rahim Merican, Abdullah Muhamed Yusoff, Muhaammad Naqib Mat Yunoh, Abdul Aziz Mat Hassan, Norfazlirda Hairani, Mohd Afifie Mohd Alwi

    Abstract

    Digitalization refers to using digital technologies such as information, computer, communications, and connectivity technologies to drive the organization. Digitalization is seen as complex, expensive, and pointless. But digitalization does not fundamentally cruel costly gear and adds up to robotization. Therefore, this study is conducted to investigate the relationship between the impact of the Covid-19 pandemic on SMEs’ digitalization that may help SMEs effectively respond to public crises that involve three independent variables (customer behavior, government regulation, cost reach, and resources) with SME digitalization. Stratified sampling is used in data collection through questionnaires made using Google Forms and distributed through social media platforms such as Whatsapp and Facebook Pages. A total of 386 respondents were involved in this study which consists of SME business owners in Taiping, Perak. Reliability tests, normality tests, Spearman correlation analyses, and descriptive analyses were performed using SPSS version 25. The results of this study found that there is a weak and negligible relationship between independent variables and dependent variables.

11. Information Technology Utilization and Acceptance Framework for Private Clinic in Malaysia: CLIMS (Clinical Information Management System)

    Fahad Shah Bukhari, Juliana Jaafar, Shahrinaz Ismail

    Abstract

    This research focuses on developing a conceptual framework based on the IT acceptance and utilization level in private clinics in Malaysia. To understand the utilization and acceptance level, a chain of private clinic called U.n.i Klinik was selected to carry out the research. The study investigates current issues, challenges and the situation of IT systems by understanding the business process and observing the current system of the private clinic. Qualitative method interview and system observation was conducted to find out the current situation in the clinic. The interview questions were designed referring to popular models, i.e. TAM2, HOT-FIT and Delone and Mclean model. One of the U.n.i Kliniks in Kuala Lumpur was selected for interview, and the results show that variables, i.e. CLIMS functions, Utilization factors and Maturity factors, have positive impact on the system benefit and variables such as utilization factors consisting of TAM2 and quality attributes having the most impact on system benefit, followed by CMS functions and variables of maturity factors.

12. Comprehensive Supervision Platform (CSP) on Padlet as Open Educational Resources Initiative: Our Experience

    Norizan Mohamad, Hasiah Mohamed Omar, Norulhidayah Isa, Mohd Talmizie Amron

    Abstract

    Completing a final year project (FYP) in computing discipline is often regarded as a challenging task for all the parties involved, i.e., the undergraduate students, supervisors, examiners, and lecturers. Lack of a comprehensive guideline in project supervision that provides the benchmarking best practices in executing FYP process contributes to the challenges. Often, this results into disagreements due to inconsistency in approaches and discrepancy in assessments among evaluators. Therefore, a comprehensive guideline should be made available to all parties that should cover related activities from determining the project’s topic and scope and report writing up to the project evaluation, supported by the relevant examples to meet the project requirements. This article discusses our attempt to promote open educational resources (OERs) using Padlet tool. Comprehensive Supervision Platform (CSP) was built upon the aim to share the best practices as a comprehensive guideline to all parties involved in FYP supervision. We participated in the recent 2022 International Virtual e-Content Development Competition where the assessment of CSP was done by a panel of jury through a virtual session, based on multi-criteria format. CSP was awarded with Silver award recognition under Educator’s category. We believe that the award represents itself the significant contribution of CSP as open resources within the academic community and demonstrates that the use of educational technology helps to disseminate educational resources, most importantly accessible to all.

13. Qarḍ al-Ḥasan for SME Financing Using Non-permissible Earnings: Islamic FinTech Solutions for Yemeni IFIs

    Abdellah Ali Ahmed AL-Melahi, Auwal Adam Sa’ad

    Abstract

    Non-permissible earning is an income that comes undesirably from the profits acquired as a result of the Islamic financial institutions dealing with conventional or central banks or a non-acceptable Islamic banking product by the Shari’ah committee of Islamic financial institutions. This study aims to review and discuss automating the non-permissible earnings of Islamic banks in Yemen, which is proposed to be utilized for SME financing needs. The study initiated a model on how Islamic banks can channel these unused sources of income to support SMEs in Yemen. The proposed initiative suggests the use of FinTech mechanism by using artificial intelligence (AI) technology to automate the financing activities. The model used for this initiative is the Qarḍ al-Ḥasan financing. The study follows a series of approaches to achieve its objectives. A descriptive approach was used to study subject matter. The study uses the comparative analytical approach to analyze and compare the annual financial reports issued by the largest Islamic banks in Yemen. The study finds the Islamic banks possessed a very good opportunity to financing SMEs by channeling the non-permissible earnings through a specific Qarḍ al-Ḥasan platform. The study concludes with a number of recommendations including the creation of a platform that will serve as a special fund generator specifically for SME financing depending on the non-permissible earnings of the Islamic banks. The study also proposes the use of artificial intelligence technology to help in executing the financing model. The study has also recommended a special supervisory policy and regulations that would guide and support the proposed model, which is named Qard al-Hasan financing via FinTech (QAFF).

14. Toward Faith-Based Financing for Poverty Alleviation: The Influence of Religiosity on Entrepreneurship

    Reazul Islam, Mohammad Rafiqul Islam, Muhammad Khalilur Rahman, Noor Raihani Zainol, Mohd Salahudin Shamsudin

    Abstract

    This paper presents the findings of an empirical study that measured the mediating impacts of religiosity and the moderating impacts of microfinance experience on the relationship of Mudarabah, Musharakah, and Musharakah Mutanaqisah (MM & M) Shariah rules and Shariah business knowledge with entrepreneurship to comprehend whether these trust-based equity products could be offered to underprivileged Muslims. A survey instrumenting structured questionnaire was carried out on 400 female members of Amanah Ikhtiar Malaysia (AIM) in the Selangor district. Collected data from underprivileged Muslim microentrepreneurs were statistically analyzed using the structural equation modeling (SEM) technique. Findings showed that religiosity has a full mediating impact on the relationship between Shariah rules and entrepreneurship and a partial mediating impact on the relationship between Shariah business knowledge and entrepreneurship. That implies religious microentrepreneurs apply Islamic business principles in business activities and gain higher benefits. Further, the results of moderation of microfinance experience suggest that clients with different lengths of experience will yield similar entrepreneurial outputs. Based on the findings, it could be assumed that offering trust-based micro-equity financial products to underprivileged Muslim women entrepreneurs would be sheerly viable. The outcomes of this study will help microfinance institutions introduce new financial products for poverty alleviation while enriching their product portfolio. It may open new opportunities for further research as well.

15. Examining the Wasta Scale Reliability and Validity

    Yousif Abdelrahim, Aliah Zafer, Omaima Al Badry, Marim Alenezi

    Abstract

    In this research, the authors examine the reliability and validity of the Wasta scale. Wasta is an interpersonal connection and social network ingrained in a tribe, family, friends, and other relationships. The researchers collected their primary data (N = 408) from male and female workers in private firms in the Middle East and North Africa via SurveyMonkey. In this study, the authors used both Hedonism and the social identity theory to support the argument of using Wasta and EFA and CFA in SPSS 26, the analysis of moment structure (AMOS 26), the structural modeling equation (SEM), and the Gaskin Excel sheet to review and examine the scale reliability and validity. The model fit measurement indices exhibit that all respective question loadings show increased convergent validity for the scale items. Also, the coefficient alpha (Cronbach’s alpha) scores Mojamala (0.767), Somah (0.753), and Hamola (0.902) are all above 0.70 confirming the scale reliability of the seven items. Finally, with the standardized regression weight > 0.5, the inter-construct correlation of the three dimensions indicates the reliability and discriminant validity of the scale.

16. How Has the COVID-19 Pandemic Influenced University Students’ Performance Negatively through Mental Health and Well-being Problems: The Case of Saudi Students

    Yousif Abdelrahim, Aliah Zafer

    Abstract

    This research study examines the influence of the Covid-19 quarantine on students’ academic performance—the Grade Average Point (GPA)—among university students in Saudi Arabia while having online classes and exams during 2020, 2021, and 2022 school years. The authors got their primary data from 30 undergraduate university students (17 males and 13 females) who willingly responded to one-on-one and face-to-face semi-structured interviews. The authors used the grounded theory analysis approach and thematic analysis to analyze the data. The study results show that lockdown during the COVID-19 pandemic has caused and increased levels of students’ stress, anxiety, frustration, boredom, anger, and well-being issues among university students, which, in turn, have negatively influenced students’ academic performance. The results also show several other factors that have contributed to the student’s declining academic performance including lack of academic help, absence of socialization, scarcity of physical activities, and worries about getting an admirable job. In addition, this study develops a conceptual framework for the relationship between COVID-19, levels of students’ stress, anxiety, frustration, boredom, anger, and well-being of university students’ academic performance. The newly developed model illustrates how researchers can anticipate academic dwindling performance, specifically their GPAs during the pandemic. Researchers can use this study benchmark for further qualitative and quantitative research studies. Moreover, the study outcomes could be used as approaches for policymakers, university administrators, and faculty members when considering exams, homework, and assignments. Finally, the study results could help administrators consider other non-temporary and cosmetic solutions such as a pass/fail option to keep the students’ GPA not affected by the COVID-19 pandemic and its consequences.

17. China’s Economic Development and Response to COVID-19

    Han Yue, Nur Haiza Nordin, Nur Naddia Nordin

    Abstract

    While the coronavirus outbreak has been relatively stable in China, the proportion of infections in other countries has risen rapidly internationally, at a time when the pandemic has had a huge economic impact on global value chains and even caused tourism disruption. In the process of fighting the epidemic, China was the first to adopt strict and effective personnel control measures to prevent its large-scale spread, but even so, the impact of the epidemic will continue while the output will be sharply reduced. How China’s economy can adapt to local conditions to achieve the transformation of a resilient economic system under different circumstances will be a process of sudden convergence and conflict between theory and reality.

18. From the Perspective of Sustainable Development Concept: Research on Enterprise Environmental Accounting Information Disclosure Mechanism and Influencing Factors

    Xia Fang, Noorshella Che Nawi, Siti Afiqah Zainuddin

    Abstract

    Exporting Chinese companies have issues of low added quality and great energy usage, which limit their potential. The sustainable growth of exports is being supported by a variety of environmental management approaches. Companies’ growth in the latest days has been influenced significantly by environmental information disclosure (EID). When it comes to EID, this research is based on financial information from Chinese firms. For this investigation, certain hypotheses are developed, and also variables are measured. Furthermore, the correlation and multicollinearity test and Bartlett’s test are employed to perform the statistical analysis. Finally, the performance of this research is examined and compared with certain existing research. Exporters are more likely to make decisions based on environmental information if it is made available. EID has a negative influence on exports, while development, funding, and subsidies have a positive impact on trade. These research findings are depicted in the graphical formation by employing the Origin tool.