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Demographic and Lifestyle Profiles of Ethnocentric and Non-Ethnocentric Urban Malaysian Consumers Md Nor Othman*, Fon-Sim Ong And Heng-Wai Wong,
Abstract: The globalization of markets presents considerable challenges and
opportunities for domestic and international marketers. This has led
to a renewed interest in the effects of consumer ethnocentrism on
buying behaviour. The main objective of this paper is to investigate
the ethnocentric tendency among urban consumers in Malaysia.
Specifically, the paper endeavours to identify the psychographic and
demographic characteristics of ethnocentric and non-ethnocentric
consumers. This study employs a survey approach. In terms of data
collection technique, the study utilizes self-administered
questionnaires. The study finds that five out of six demographic
characteristics are significant to differentiate between the two
ethnocentric groups. In terms of lifestyle dimensions, six out of eight
dimensions are found to be significant. In general, the research results
show that ethnocentric consumers tend to be Malay, married, female,
have a low income and are mostly blue collar. They tend to be family
and home concerned as well as price conscious.
Board Independence, CEO Duality and Accrual Management: Malaysian Evidence Hafiza Aishah Hashim*, S. Susela Devi,
Abstract: This paper focuses on two important characteristics of board
effectiveness: (1) the proportion of independent non-executive
directors; and (2) CEO Duality. The objective of this study is to examine
whether the presence of a majority of independent non-executive
directors and the separation role between chairman and CEO, as
recommended in the Malaysian Code on Corporate Governance
(MCCG) 2000, effectively constrains the incidence of earnings
management as measured by income-increasing and incomedecreasing
discretionary accruals. Using data from the top 200 nonfinancial
companies listed on Bursa Malaysia’s Main Board and Second
Board for the year 2004, this study finds a positive significant result
of board independence when firms undershoot target earnings.
Although contradictory to the prediction of agency theory, the results
show that a higher proportion of independent non-executive directors
is associated with higher income-increasing earnings manipulations.
Neither board independence nor CEO Duality was found significant
in other models tested regarding income-increasing and incomedecreasing
earnings management. The results of this study cast doubt
on the notion that the independence of directors and the role
separation between the chairman and the CEO reduces the incidence
of earnings management activity, especially with highly concentrated
ownership as is typical in Malaysia.
Keyword: Accrual Management; Corporate Governance; Malaysia
The Efficiency Effects of Mergers and Acquisitions in Malaysian Banking Institutions Rasidah Mohd Said*, Fauzias Mat Nor, Soo-Wah Low And Aisyah Abdul Rahman,
Abstract: This paper analyses the efficiency and financial performance using
CAMEL-type variables, three years before and after the consolidation
programme for the domestic banking sector initiated by Bank Negara
as a result of the 1997 financial crisis. The results suggest that the
mergers did not seem to enhance the productive efficiency of the
banks as they do not indicate any significant difference. The financial
performance suggests that the banks are becoming more focussed on
their intermediation activities to generate high net interest income.
However, due to their conservative loan loss reserve policies and
cost inefficiencies after the merger, it has somehow resulted in the
loan growth and interest earning ratio variable giving a negative
impact on ROE.
Keyword: Bank Mergers; Efficiency; Performance; Data Envelopment Analysis; CAMEL Variables
Selection Approach to Assessing the Alignment between Business Strategy and Use of Multiple Performance Measures in Malaysian Manufacturing Firms Ruzita Jusoh*, Daing Nasir Ibrahim, Yuserrie Zainuddin,
Abstract: This paper reports the results of an empirical investigation into
alignment, by way of the selection approach, combining Miles and
Snow’s business strategies and use of multiple performance measures.
The selection approach (Drazin & Van de Ven, 1985) defines fit (or
alignment in this paper) in terms of predictable correlations between
Miles and Snow’s business strategies and the use of multiple
performance measures. Utilizing the four balanced scorecard (BSC)
perspectives of performance measures, the correlational analysis
provides empirical evidence that the usage of three perspectives of
the BSC measures, namely, customer, internal business process, and
innovation and learning, are significantly correlated with the degree
to which firms emphasize prospector strategy and analyzer strategy.
However, the usage of financial measures is not significantly
correlated with the degree to which firms emphasize prospector
strategy and analyzer strategy. No evidence is found of an alignment
between the usage of all perspectives of the BSC measures and the
degree to which firms emphasize defender strategy.
Intra-Market Price Discovery in an Emerging Stock Market: Vector Fractionally-Integrated Error Correction Model and Toda-Yamamoto Level VAR Approaches A. Mansur M. Masih* And Rumi Masih,
Abstract: The study investigates the price discovery process by which
markets attempt to find equilibrium prices among a system of
disaggregate daily spot share price indices relating to the Malaysian
Stock Exchange using a VAR. Specifically: (i) a vector fractionallycointegrated
error-correction model is proposed and estimated to
investigate the short-run dynamics accounting for the long-run
information via a fractionally-integrated error-correction term; and
(ii) the Toda-Yamamoto (1995) [k + d(max)]th-order VAR procedure
to specify a ‘level’ VAR containing integrated and cointegrated
processes of arbitrary orders is adopted to uncover the long-run
driving forces behind stock market linkages. The results are
interpreted in the context of the price discovery process among
spot stock prices. Our findings indicate consistently that the price
discovery process was focused on the palm oil market in Malaysia in
the sense that this market played, relatively, the leading role (both in
the short- and long-term) being the most exogenous of all. In
particular, we demonstrate that previous research, by using ordinary
difference VARs either by intent or lack of support of cointegration
in the standard sense, ignored an important component of linkages
displayed over the long run.
Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence Kin Gan* And Zakiah Saleh,
Abstract: This paper examines the association between Intellectual Capital (IC)
and corporate performance of technology-intensive companies
(MESDAQ) listed on Bursa Malaysia by investigating whether value
creation efficiency, as measured by Value Added Intellectual Capital
(VAICTM), can be explained by market valuation, profitability, and
productivity. Correlation and regression models were used to
examine the relationship between corporate value creation efficiency
and firms’ market valuation, profitability and productivity. The
findings from this study show that technology-intensive companies
still depend very much on physical capital efficiency. The study also
suggests that individually, each component of the VAIC commands
different values compared to the aggregate measure, which implies
that investors place different value on the three VAIC components.
The results also indicate that physical capital efficiency is the most
significant variable related to profitability while human capital
efficiency is of great importance in enhancing the productivity of the
company. This study concludes that VAIC can explain profitability
and productivity but fails to explain market valuation.
Work Value Congruence and Satisfaction at Work: Is this Western Concept Applicable to a Developing Country such as Malaysia? Kamarul Zaman Ahmad*,
Abstract: This study aims to fulfil two literature gaps in the person-environment
fit theory, in particular the supply-value fit or S-V fit relating to work
congruence. Firstly, previous research in S-V fit tended to look mainly
at autonomy and supervision style. However, there appears to be no
reported research that has simultaneously investigated, in a single
study, the effects of the discrepancy between the perceived and desired
levels of work quantity, variety, power, responsibility and
concentration required for the job and its relationship with satisfaction
at work. Secondly, the S-V fit theory has been relatively established
in developed countries such as America and Britain. However, it
would be interesting to discover whether the theory is also applicable
among workers in small isolated towns in a developing country such
as Malaysia. Questionnaires were distributed and collected from two
hundred and eighty respondents working in small towns in Peninsular
Malaysia. Support for the S-V fit theory was obtained, as results
suggested that the greater the discrepancy between the supplies and
values of work quantity, variety, power, responsibility and
concentration required at work, the lesser was the satisfaction.
Keyword: Job Satisfaction, Person-Environment Fit, Supply-Value Fit
