Suchergebnisse

We investigate the effect of related party transactions (RPTs) on value relevance and informativeness of accounting earnings for firms based in East Asia. Using a hand-collected sample of 398 listed companies comprising 1194 firm-year observations from Hong Kong, Malaysia, Singapore and Thailand, we find that firms engaging more extensively in RPTs have significantly lower value relevance and lower informativeness of earnings both in the current year and subsequent year than firms engaging less in RPTs. Furthermore, the results indicate that the types of RPTs affect value relevance and informativeness of earnings differently in that the effect of simple and loans RPTs are more negative than complex transactions. The extent of the negative effect of RPTs is lower in Hong Kong and Singapore where investor protection is higher compared to the other two economies. These findings are robust to controlling for firm-specific attributes, corporate governance, ownership structure, earnings quality, and a variety of sensitivity tests. These results are consistent with the conflict of interest view that RPTs compromise the quality of accounting earnings and this leads to the reduction in earnings and market value relationship for firms that engage in RPTs.

Purpose
The purpose of this study is to examine the role of financial governance practices in influencing both financial management and Islamic work ethic practices to affect Islamic social enterprises (ISEs) accountability.


Design/methodology/approach
Questionnaires were administered to financial officers of 102 Malaysian ISEs. Data was analysed using Smart-PLS to examine the relationships between financial management, Islamic work ethic, financial governance and accountability.


Findings
Results of this study indicate direct relationship only exist between Islamic work ethic and accountability. The relationship between financial management and accountability are indirect through financial governance. Hence, the data proves that financial governance has a mediating role on both the relationships between financial management and Islamic work ethic with the accountability of the ISEs.


Research limitations/implications
The study has highlighted the greater role of financial management, Islamic work ethic and financial governance practices over accountability to achieve public trust, especially for Malaysian ISEs.


Practical implications
ISEs need to have good financial governance practices besides financial management and Islamic work ethic practices to achieve good accountability.


Originality/value
The study contributes to the field of management and social accounting by providing empirical evidence on the ISEs practices specifically on financial management, Islamic work ethic, financial governance and accountability. This framework thus presents amongst the first attempts in studying accountability issues in ISEs.