Developing Accountability Disclosure Index for Malaysian State Islamic Religious Councils (Sircs): Quantity and Quality

Masruki, Rosnia; Hussainey, Khaled; Aly, Doaa

doi:10.24191/mar.v17i1.757

Cited by 14 publications

(16 citation statements)

References 16 publications

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“…The present study views a comprehensive annual report as a means for the discharge of accountability, supporting many previous studies (For e.g. Masruki et al, 2018;Ntim et al, 2016;Coy et al, 2001) SIRC are constitutionally under the Ruler's jurisdiction in the state administration as a result of colonialism period in . The Ruler shall seek advice from the SIRC.…”

Section: Introductionsupporting

confidence: 87%

Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

Masruki

Hussainey

Aly

2018

JMIFR

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This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure in the annual reports of SIRC, indicating accountability of SIRCs. This paper used the self-developed disclosure index that applies specifically for SIRC. Multiple regression was used to examine the financial determinants of the extent and quality of disclosure. The result of the regression models revealed that the extent and quality of SIRC disclosure is influenced by organisational characteristic, namely size. This study suggests that disclosure in the annual report, in particular the non-financial performance, increases with the amount of zakat collection, thereby demonstrating SIRC’s responsibility. Next, the control variable of accessibility is found to be significantly related to financial statements. Obliged to produce financial statements, SIRC are more likely to disclose more information in the financial statements. This research finding has important implications for regulators, policy makers and top officials in SIRC, by monitoring the quality of disclosure, supporting the notion of public accountability, which appreciates the public’s right to get inform about SIRC. Despite the voluntary disclosure of a non-financial report, SIRC should consider producing a comprehensive annual report for the discharge of their accountability and thus, encourage more funding. They should be more transparent to enhance accessibility, concerning the extent and quality of the disclosure.

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Section: Introductionsupporting

confidence: 87%

Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

Masruki

Hussainey

Aly

2018

JMIFR

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“…However, Shariah control functions, namely Shariah Risk, Shariah Audit, Transparency and Disclosure and Shariah Review seemed to be reported less, which may contribute to Shariah accountability issues (Besar et al 2009). For that reason, this study highlights the importance of implementing quality disclosure and reporting to better discharge accountability of the reporting entity (Masruki et al 2018b). This analysis was further extended to differentiate the Shariah governance practices between local and foreign IBs in Malaysia.…”

Section: Data Analysis and Resultsmentioning

confidence: 95%

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

Masruki

Hanefah

Dhar

2020

AJAG

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Islamic banks in Malaysia must conform to Shariah rules in their operations. Islam's prohibition of usury is the main justification for the necessity of Islamic banks (IBs). Indeed, the implementation of Shariah governance through the Shariah Supervisory Board (SSB) is essential to monitor and govern the operations of IBs for ensuring the integrity, credibility and transparency of IBs. Failure to conform to good Shariah governance practices will result in the IBs' failure to uphold Shariah in their operations. The objective of this paper is to examine the Shariah governance practices of IBs in Malaysia. This study employs content analysis to identify the extent to which the Shariah governance is being practised by IBs. A disclosure checklist was developed based on a review of previous studies and regulations, namely the

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“…The results suggested that UK reports' overall quality is better than US 10-K reports, on average. Later, the QCs-based approaches developed by Beest et al (2009) and Braam and Beest (2013) were used by scholars (Agyei-Mensah, 2013;Chakroun and Hussainey, 2014;Dimi et al, 2014;Haarburger et al, 2020;Jerry and Saidu, 2018;Masruki et al, 2018;Mbobo and Ekpo, 2016; The usefulness of IFRScompliant reports Rashid, 2020;Tasios and Bekiaris, 2012) to assess the quality of information set in different contexts, such as financial reporting, corporate governance, and stock market research. Beest and Braams' seminal work on the quality measurement of annual reports allows for crosssectionally and longitudinally comparisons.…”

Section: Qcs Financial Reporting Quality and Ifrs Adoption In Sri Lankamentioning

confidence: 99%

The usefulness of IFRS-compliant reports: perceptions of Sri Lankan investors and lenders

Bandara

Falta

2021

ARA

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PurposeThis paper aims to examine differential perceptions of lenders and investors on (1) the use, perceived usefulness, importance and adequacy of annual reports, (2) the importance of qualitative characteristics (QCs) and (3) the perceived impact of International Financial Reporting Standards (IFRS) on financial reporting quality (FRQ) in Sri Lanka.Design/methodology/approachA questionnaire survey study of practising professionals consisting of Sri Lankan investors (N = 214) and lenders (N = 235).FindingsIn relation to (1), lenders and investors rank three out of ten information sources ahead of the remaining seven: both include annual reports and personal knowledge. However, the highest average response for lenders is direct communication with clients, and for investors, it is stock market publications. Within annual reports, both decision-makers identify financial statements as the most useful part. Concerning (2), they both identified understandability as the most important QC followed by timeliness. Relevance ranked last, surprisingly. In relation to (3), both groups perceived that the new IFRS reporting environment improved the FRQ compared to the previous Sri Lanka Accounting Standards regime.Practical implicationsRanking understandability as the most important QC in terms of decision usefulness contradicts IASB's categorisation. The authors provide empirical data on the perceived degree of success of adopting IFRS in a developing economy.Originality/valueThe authors design a decision-oriented (lending vs investing) and context-specific (IASB's financial reporting framework) questionnaire to examine the perceptions of key capital providers separately on the issues mentioned above in “Purpose” within a developing economy. The survey fits into two aspects of the decision-useful theory: useful to make what decisions and useful to whom.

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Developing Accountability Disclosure Index for Malaysian State Islamic Religious Councils (Sircs): Quantity and Quality

Cited by 14 publications

References 16 publications

Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

The usefulness of IFRS-compliant reports: perceptions of Sri Lankan investors and lenders

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