THE JOURNAL OF APPLIED MANAGEMENT ACCOUNTING RESEARCH

Table of Contents

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SPECIAL ISSUE ON INTERNATIONAL MANAGERIAL ACCOUNTING

ARTICLES

Malaysia: Governance – Reporting

By Mohamed Akhtaruddin, Monirul Alam Hossain, Mahmud Hossain and Lee Yao

Abstract

This study investigates empirically the extent of corporate governance and voluntary disclosure by listed firms in Malaysia. The governance factors examined are Board size, proportion of independent non-executive directors (INDs) on board, outside share ownership, family control, and percentage of audit committee members to total members on the board. Our results suggest a positive association between Board size and voluntary disclosures and between proportion of INDs and voluntary information. However, the extent of voluntary disclosure is negatively related to family control, and the ratio of audit committee members to total members on the board is not related to voluntary disclosures. The findings of our study have policy implications for Malaysia as well as for other East Asian countries because of the similarities in the socio-cultural environment and ownership structure of firms in these countries.

Keywords
Corporate Governance, Voluntary Disclosure, Corporate Annual Report, Listed Firms, Bursa Malaysia

USA: Marketing-Finance

By Paul Sergius Koku

Abstract

This study examines the relationship between the stock market’s reaction and the information content of new product announcements/ information in the computer industry through the use of the event study methodology. The results show that the stock market reacts positively to detailed, as opposed to nondetailed, new product announcements/ information in the computer industry. Whilst the firms’ financial variables were not significant in explaining variability in the excess market returns when detailed new product announcement/ new product information is released; the size-adjusted advertising budget was significant when nondetailed new product announcement/new product information is released. The results also suggest that the market forces appear to be efficient in utilising publicly available information in the computer industry and are capable of policing computer manufacturers with respect to the information that they provide to the public, hence no additional external intervention is needed.

Keywords

Information Content, New Product Announcement, Computer Industry, Event Study Methodology, Efficient Market Hypothesis

Australia: Cost Management

By Suzanne Byrne Erle Stower and Paula Torry

Abstract

It has been asserted that Activity-Based Costing (ABC) is a procedure which improves the accuracy of product/service costing and also assists managers in understanding and evaluating how resources are used across a firm’s value-chain in delivering strategic outcomes. However worldwide adoption rates of ABC are relatively low and, it is claimed that the rate of new adoptions is declining. This could suggest that ABC is not perceived as being successful in delivering expected benefits. Based on a similar research study in the US, this project surveyed a number of Australian organisations to gauge whether they perceived their ABC implementation to be successful or not. The findings indicate that Australian organisations that have fully implemented ABC view it as successful compared with traditional cost management systems, the results being similar but stronger than those found in the US study. This raises the question of why are existing adoption rates relatively low, and the rate of new adoptions allegedly declining.

Keywords
Information and Knowledge Management, Performance Measurement and Management, Data Acquisition and Analysis

Thailand: Finance-Investment

By Ranjith Appuhami

Abstract
A firm can undertake corporate investments arising from growth opportunities only if it has the required level of liquidity. A clear understanding of the complex relationship between corporate investments and liquidity could help firms to gain benefits from growth opportunities. While the study supports several previous studies on the sensitivity of investments to liquidity, it more importantly contributes to the literature on working capital by showing the dual-role of working capital in relation to corporate investments. Drawing upon Shulman and Cox’s (1985) Net Liquidity Balance (NLB) and Working Capital Requirement (WCR) as proxy for net working capital, the study develops a model to test the two hypotheses. Using the data collected from listed service firms in the Thailand Stock Exchange, the study found that while NLB has a significant positive relationship with corporate investments, WCR has a significant negative relationship with corporate investments. The study also finds that firms manage WCR efficiently during growth opportunities in order to enhance NLB.

Keywords
Capital Expenditure, Working Capital, Net Liquidity Balance, Working Capital Requirement

United Arab Emirates: Supply Chain – Logistics

By Ahmed Abel-Maksoud and Mustapha Kawam

Abstract

In a highly competitive market like United Arab Emirates (UAE), cost and quality of services offered to customers are found to be critical in competitiveness for freight forwarding and logistics (FFL) firms. This paper presents a case study that analysed the value creating variables for the UAE office of an international FFL. Five variables were identified by top management as value creating, these are: staff responsiveness, staff professionalism, internal operations, customer satisfaction and loyalty. The study utilises the statistical path analysis technique in testing for the proposed cause – and – effect relationships amongst the above five value creating variables. The findings significantly contribute in identifying value creating variables of FFL firms, and how these firms could utilise the causal links concept to better manage their value creating variables. The findings highlight the importance of monitoring the level of performing value creating variables in a freight forwarding and logistics firm as perceived by its customers.

Keywords
Value Creating Variables, Balanced Scorecard, Customer Loyalty and Satisfaction, Freight Forwarding and Logistics Firms

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