Mohd Rizal Palil

Background/Introduction: Directors’ and officers’ (D&O) liability insurance is widely believed to shape corporate decision-making, yet how it influences corporate innovation is unclear. One stream of the literature links D&O insurance to innovation, and another links it to corporate risk-taking, but the channel connecting the two has been assumed rather than tested. Objectives: This study asks whether corporate risk-taking mediates the relationship between D&O insurance and corporate innovation in Chinese A-share listed firms, and how much of the total effect that channel carries. Materials and Methods: We estimated a three-equation stepwise mediation model based on a firm-year panel of 24,122 observations covering 5004 firms from 2018 to 2024, using firm and year fixed effects with firm-clustered standard errors. The indirect effect was assessed with a Sobel test and a firm-clustered bootstrap, and seven robustness checks addressed measurement, timing, and selection. Results: D&O insurance is positively associated with both corporate risk-taking and R&D intensity, and risk-taking is positively associated with R&D intensity. Risk-taking carries about 18.5 per cent of the total effect, so mediation is partial and the direct path is the larger route. Conclusion and Implications: The evidence favours the monitoring view of D&O insurance over the moral-hazard view and shows that general risk tolerance is only one of the channels involved. D&O coverage is best treated as a governance instrument with a measurable but partial link to innovation.

This research aimed to investigate the effect of debt levels and the moderating role of a country’s institutional factors influencing the choice of fair value models in ASEAN property and real estate companies. The examination of a country's institutional factors as a moderating variable was important since debt policy reflects corporate strategy and national governance. Logistic and moderation regression analyses on 328 companies from 2018 to 2023 showed that higher levels of corporate debt reduced the probability of adopting the fair value model, as inflated asset valuations were avoided. The moderating influence of the country's institutional factors increased the negative effect. Furthermore, this research added empirical evidence about using positive accounting and new institutional theory to explain the selection of policies in cross-country research because the complexity of developing and implementing standards was different. The results showed that developing countries did not use the fair value model, following the inability to maintain banking trust as the primary source of funding. The Ministry of Finance and similar authorities in the five ASEAN countries should coordinate with professional associations to prepare accounting systems and relevant regulatory documents, as well as support reducing the gap between IFRS and local standards to create favorable conditions for companies in applying IFRS in the future.

Memahami Tingkah Laku Pematuhan Cukai Dalam Kalangan Individu Penggajian Kumpulan Pertengahan (M40): Impak Elemen Ganjaran Cukai

Memahami Tingkah Laku Pematuhan Cukai Dalam Kalangan Individu Penggajian Kumpulan Pertengahan (M40): Impak Elemen Ganjaran Cukai

The aim of this study is to bridge a critical gap in the literature by exploring the factors that underpin the entrepreneurial success of ASNAF (ASNAF) individuals within the Malaysian context. ASNAF individuals, being eligible for zakat, represent a unique segment of entrepreneurs whose ventures intertwine Islamic finance principles, socio-economic challenges, and the pursuit of sustainable growth. Through a comprehensive empirical investigation, the purpose of this study is to provide nuanced insights into the specific drivers that contribute to the success of ASNAF-led enterprises and offer actionable recommendations for fostering inclusive entrepreneurship. This study used a quantitative survey involving 250 ASNAF entrepreneurs in Malaysia to capture their diverse experiences. By using factor analysis, five factors were subsequently identified as key drivers for entrepreneurs’ success. These factors are record-keeping, capital, employees, marketing strategy, and online business. The anticipated findings of this research include a nuanced understanding of the factors driving ASNAF entrepreneurial success, contributing to both academic knowledge and practical implications for policymakers, financial institutions, and the ASNAF community. This study aims to create an environment that supports long-term growth, social responsibility, and inclusive economic development among ASNAF people in Malaysia by shedding light on the untapped potential at the intersection of Islamic finance and entrepreneurship.

Every company will face complexity, change, and increasingly fierce business competition that occurs not only in large companies but also in Micro, Small, and Medium Enterprises (MSMEs). Achieving competitive advantage for MSMEs requires assistance and guidance from external parties, both government and private, through the Corporate Social Responsibility (CSR) program. This study examines the effect of CSR programs on the innovation ability, learning orientation, and performance of MSMEs. The ability of Innovation and learning orientation to mediate the relationship between CSR programs and the performance of MSMEs. This study's population is the MSME owners receiving CSR program assistance from the government (BUMN) and the private sector in Tulungagung, Blitar, Malang, Batu, and Sidoarjo districts, with a research sample of 165 MSME owners. Based on Structural Equation Modeling (SEM), the study results show that companies or governments that provide CSR program assistance to SMEs contribute to increasing innovation capabilities. For companies or governments, it is necessary to have a model of CSR assistance. Assistance is related to providing training on how to improve product quality, providing understanding on compliance with legal standards in business management, providing understanding on the formation of a comprehensive code of ethics in business management, and providing understanding about the contribution of SMEs to charity. MSME owners are expected to maximize innovation by adopting new products and developing new product variations. In addition, SME owners need to find solutions to improve the production process and start adopting other MSME production processes to be better than their competitors.

Ullmann’s (1985) Stakeholder theory states that the implementation of Corporate Social Responsibility (CSR) has an influence on the achievement of a company’s economic performance. This research examines the influence of CSR on employees (CSR-E) including the salary and welfare, education, work safety and gender equality on sales growth and human resource efficiency. This research compares three types of perusahaanes, namely natural resource, manufacture, and service perusahaanes listed on the Indonesian Stock Exchange. It is hoped that the results of this research can provide a solution regarding the importance of implementing CSR-E and its influence on companies’ business performance, so that companies are much more motivated to implement CSR-E. This research uses descriptive and quantitative data analysis techniques where SPSS application was used to analyze 297 annual and financial reports of companies listed on the Indonesian Stock Exchange from 2015, 2016 and 2017. The research found that CSR-E for work safety had an influence on human resource efficiency in manufacturing companies and CSR-E salary and gender equality had a significant influence on sales growth and natural resource efficiency in service-based companies. Implementing CSR-E is an important requirement for manufacturing and service companies. It is because manufacturing and service perusahaanes are companies with a high risk of pollution and work accident rates. The controlled variable for the number of workers has an influence on sales growth and human resource efficiency. Workers are the substantial party for the company because they are directly involved in the daily basis company’s operational activities in an effort to achieve the company’s financial performance.

This paper aims to determine factors contributing to the tax aggressiveness among incentivised electrical and electronic (E&E) companies in Malaysia. The specific objectives were to examine whether characteristics of incentivised companies, such as size, profitability, leverage, capital intensity, and ownership, influence tax aggressiveness. It employs correlation analysis, multiple regression, and independent sample t-test to test a sample of 230 incentivised E&E companies (from 2017 to 2019). The findings suggested that only profitability, leverage, and capital intensity significantly influence tax aggressiveness, while size and ownership were insignificant towards tax aggressiveness.   Keywords: Tax incentive; tax aggressiveness; tax incentive; electrical & electronics

Isu ketirisan hasil cukai negara disebabkan oleh masalah ketidakpatuhan yang berpanjangan memberi signal akan kemungkinan terdapatnya elemen lain yang perlu diberi perhatian dalam strategi pematuhan sedia ada. Tahap moral cukai yang tinggi terutamanya individu adalah penting dalam meningkatkan tingkah laku pematuhan cukai. Moral cukai merupakan motivasi dalaman untuk memenuhi tanggungjawab percukaian yang boleh didorong dengan strategi pematuhan yang diguna pakai oleh pentadbir cukai. Isu berkaitan peningkatan moral cukai melalui ganjaran cukai khususnya di negara sedang membangun kurang mendapat perhatian dalam kalangan pengkaji. Kajian ini dijalankan bagi mengenal pasti hubungan strategi pematuhan terhadap moral cukai dalam kalangan pembayar cukai individu di Malaysia. Penumpuan diberikan terhadap tiga strategi sedia ada yang diguna pakai di Malaysia iaitu penguatkuasaan (audit dan penalti cukai), pendidikan cukai serta layanan oleh pentadbir cukai di samping meneroka potensi penerapan elemen ganjaran cukai dalam usaha bagi mendorong moral cukai. Data kajian dipungut menggunakan instrumen soal selidik yang dihantar kepada pembayar cukai individu melibatkan ahli akademik Institut Pengajian Tinggi Awam seluruh Malaysia. Berpandukan kepada 501 maklum balas yang diterima, analisis dijalankan bagi menjawab objektif kajian. Hasil analisis regresi berganda menemui strategi penguatkuasaan, pendidikan cukai serta ganjaran cukai terbukti mampu meningkatkan moral cukai individu di Malaysia. Namun, strategi layanan pentadbir cukai yang tidak signifikan memberi isyarat akan keperluan penambahbaikan dalam mutu perkhidmatan yang diberikan. Kajian ini berjaya menambah literatur berkaitan moral cukai dengan mengesahkan pengaruh strategi pematuhan terhadap moral cukai di samping menyerlahkan potensi pelaksanaan ganjaran cukai sebagai salah satu strategi dalam persekitaran percukaian di Malaysia. Penemuan kajian ini dapat dijadikan platform dalam menyalurkan input yang relevan kepada pentadbir cukai serta pembuat dasar khususnya Lembaga Hasil Dalam Negeri Malaysia (LHDNM) dalam menilai, menambahbaik serta merangka strategi pematuhan dengan misi membudayakan pematuhan cukai terutamanya dalam kalangan pembayar cukai individu.. Kata kunci: moral cukai; pentadbir cukai; ganjaran cukai; pendidikan cukai; penguatkuasaan

Air travel taxes have been practised in numerous nations for decades, but are rarely mentioned in existing literature, although some researchers have explored indirect taxes from the airline industry’s standpoint. This research is attempting to fill this gap in the literature using a systematic literature review to better understand airline travel taxes. In the absence of systematic air transport and taxation studies, this systematic literature study was employed to achieve a goal. The goal was to consolidate aviation tax information from countries that are implementing these taxes. The primary objective was to consolidate the knowledge and perspective of different scholars on air travel taxes to understand the purposes and types of taxes in the airline industry. The need for this research was to significantly influence social acceptance and to enhance the knowledge and understanding of the public regarding the airline industry and its related taxes. This study also strived to clarify issues of air passenger taxes by reviewing 18 out of 1,010 articles published from 2007 to 2019 that fit the inclusion criteria from online databases namely Web of Sciences, Scopus, Wiley, EBSCOhost, and Taylor & Francis. This study has identified two considerations in imposing air travel taxes: economic growth and sustainable development. In addition, five sub-themes were found, namely, revenue-raising, tourism strategies, fundraising initiatives, environmental, and pandemic. The findings explained the importance of air travel taxes and the purpose of tax imposition based on the selected articles. Nonetheless, further studies are needed by investigating air travel taxes studies in Asia Pacific regions. Keywords: Taxation; tax; levy; aviation; air passenger; passenger carrier; air travel; air transport; airlines