This paper investigates the relationship between internal audit and the working capital management (WCM) of Malaysian public-listed firms. Good WCM is vital as it drives profitability. Anecdotal evidence suggests that the inventory conversion period is the most challenging part of WCM for Malaysian firms. In 2017, around RM71 billion in cash was locked up in working capital and thus suggesting that Malaysian public-listed firms are struggling with WCM. Based on this issue, we are therefore motivated to examine the association between the role of internal audit and WCM in publicly listed firms in Malaysia. Specifically, we would like to examine whether internal audit cost relates to better firms’ WCM. We proxy WCM by the cash conversion cycle (CCC) ratio. With a sample of 309 firm-year observations, we observed a negative and significant relationship between internal audit cost and CCC. The findings suggest that an increase in internal audit cost improves firms’ operational efficiency and effectiveness, hence improving firms' CCC ratios. Furthermore, we find consistent results on the influence of the internal auditor on two of three components of CCC, namely the inventory conversion and the receivables collection periods. Finally, our additional analysis demonstrates that CCC and internal auditing are critical components of firms' performance. By adding the role of internal audit in WCM, this study contributes to a further understanding of the role of internal auditor in agency theory. This study contributes to senior management of publicly listed firms that the cost incurred internal auditing function is an investment that helps improve WCM efficiency. Keywords: Cash conversion cycle; internal audit investment; WCM, public-listed firms; Malaysia

Based on social-system theories, our study analyzes the (i) influence of institutional and external stakeholder pressure on the adoption of corporate sustainability strategy and (ii) role of managerial motive in mediating the influence of external pressures on the adoption of corporate sustainability strategy. A questionnaire was developed to collect data from listed companies in Sri Lanka, and the data were analyzed using the covariance-based structural equation modeling technique. The results showed that the adoption of corporate sustainability strategy is positively influenced by external stakeholder pressures, whereas institutional pressures had no significant impact. The managerial motive was found to mediate institutional pressures, but it was not to mediate external stakeholder pressure on adopting corporate sustainability strategy. This is the first study from Sri Lanka to investigate the interplay between external forces and managers' internal motivations concerning adopting corporate sustainability strategy. External stakeholders and the institutional environment can call upon organizations to embrace a sustainability agenda in economies where adopting sustainability is purely voluntary. Managers may absorb the external pressures on sustainability and drive organizations to engage in sustainability initiatives. Keywords: Corporate sustainability strategy; institutional pressures; external stakeholder pressures; managerial motive; structural equation modelling

Researchers have doubted Islamic funds’ ability to provide promising financial returns due to the shariah screening procedures. Despite its popularity, Islamic funds are still in doubt to generate attractive returns. Survival of Islamic funds is highly contingent on their capacity to foresee Shariah compliance opportunities in economic shifts. Investors defer fund withdrawal of the worst-performing funds and anticipate the manager will adjust the fund's investing strategy for a future with higher yields. Thus, this paper aims to investigate investors’ reactions to the Islamic equity fund results (IEs) according to the opportunity motive of Warren Buffet. This is accomplished by evaluating the relationship between fund flow and performance. This allows us to determine whether investors behave toward the greatest and worst-performing funds by transferring cash into or out of the funds. This study uses panel data analysis to investigate 134 IEs from 2007 through 2019. The findings revealed that the link between fund flow and performance of IEs is incompatible with the asymmetric relationship, implying that the cash outflow for poorly performing funds declined. In contrast, cash inflow fell for funds that performed the best. Consistent with Warren Buffet’s advice. Keywords: Islamic equity funds; fund flow; fund performance; Warren Buffet

This research examines whether stock prices in the Indian stock markets follow a Geometric Brownian Motion (GBM). This study is keen on knowing if one can predict the simulated stock prices accurately against the actual stock prices. One-year, three-year, and five-year data of the historical stock prices of 50 stocks listed on the S&P BSE (Bombay Stock Exchange) Sensex 50 Index were employed as the base data to predict stock prices using the Monte Carlo simulation's GBM method. This study investigates whether there are statistically significant differences between the actual stock prices for three months and the simulated prices of the same period. This research has found that the GBM Monte Carlo simulation effectively predicts future stock prices for three months based on the historical data of stock prices of the past year. This study did not find significant differences between the actual and predicted stock prices when the simulation used the past one year's data. This research is original in the Indian context, as it situates the GBM method of Monte Carlo simulation in the premise of bounded rationality and efficient market hypothesis theories. There is thus the empirical evidence for bounded rationality and that the stock markets are not efficient. Keywords: Monte Carlo simulation; stock prediction tools; efficient market hypothesis; bounded rationality; geometric brownian motion

Intellectual capital is imperative for Islamic banks given their unique characterisctiscs in that they offer innovative Shariah-based solutions to the modern financial problems. This study therefore examined the influence of corporate goverance on intellectual capital disclosure (ICD) practices of Islamic banks. Data from a sample of 33 Islamic banks for the period 2012 to 2018 were collected. A self-developed ICD checklist was used to measure the extent of IC information disclosed in the annual report. This paper also examines the relationship between ICD practices and several corporate governance components which includes board size, board meeting, board independence, board gender, board expertise, audit committee size, audit committee meeting, audit committee independence, audit committee gender and audit committee expertise. Our results revealed that having an effective corporate governance structure is essential, as it is able to influence the ICD practices of Islamic banks. However, instead of focusing on the role of the board, our paper highlights the importance role of audit committee functions. Specifically, the results suggest that larger or reasonable audit committee size tends to have varied skills and expertise among the audit committee members, resulting in more information by allowing for greater diversity of backgrounds and viewpoints. Gender diversity in audit members’ profiles will also encourage the board to be more effective and creative in generating innovative ideas, hence more IC will be created. This study adds to the empirical studies on corporate governance from Islamic banks’ perspectives covering several countries. It also introduce the Shariah capital, as one of components in the IC index to respond to the peculiarities of Islamic on intellectual capital. Keywords: Islamic banks; intellectual capital disclosure; corporate governance.

Physical distancing is believed to contain the spread of COVID-19 virus. With data provided by COVID-19 Community Mobility Reports from Google, this study examines the mobility patterns at different stages of Movement Control Order (MCO) and investigates whether lower mobility reduces the number of new cases, death cases, and recovery rate. This research also covers the time spent in places such as i) retail and recreation, ii) grocery and pharmacy, iii) parks, iv) transit stations, v) the workplace, and vi) residential areas. As each of these types of places has distinct epidemiological characteristics, they may spread transmission differently. This study also correlates the stock market with mobility patterns of Malaysians in order to evaluate the effectiveness of lockdowns on COVID-19 incidents and its impact on the stock market, in this case; Kuala Lumpur Composite Index (KLCI). Findings of this study highlight the effects of pandemic COVID-19 on stock market daily performance by utilizing prospect and uncertainty theory in predicting the short-term impacts of the epidemic. Keywords: COVID-19; Malaysia; MCO; mobility; KLCI

The purpose of this study is to investigate the relationship between Intellectual Capital (IC) and Social Performance and to further examine whether Sharia Supervisory Boards (SSB) moderate this relationship. This study employed a longitudinal sample of Islamic banks in two countries leading Islamic banking industries in the south-east Asia region, Malaysia and Indonesia, with a sample of 31 Islamic banks during the period 2008-2020. Panel data regression model analysis was applied to test the study research hypotheses. The findings revealed that IC has a positive impact on the social performance of Islamic banks, demonstrating that greater utilization of IC leads to improved social performance. SSB meeting frequency has a positive impact on the social performance of Islamic banks, indicating that the more active the boards are, the more SSB can perform the social performance. Meanwhile, the gender diversity of SSB members has does not influence Islamic banks' social performance. On the moderating role of SSB aspects, which are SSB meeting frequencies representing SSB activities in monitoring and SSB gender diversity, both proven to strengthen the relationship between IC and Islamic banks' social performance. Overall, this research contributes to a better understanding of the impact of IC and SSB governance in improving Islamic banks' social performance functions. This study implies that Islamic banks should be more aware of their intellectual capital resources and the monitoring role of SSB so that the Islamic banks can perform their social functions more optimally. Keywords: Intellectual Capital (IC); sharia supervisory boards; ssb meeting frequency; ssb gender diversity; social performance; islamic banks

A sound tax system improves government revenue by encouraging voluntary tax compliance to ensure good tax awareness among citizens. However, many issues arise with regard to tax collection. As these issues remain unresolved, the government needs to frequently implement a tax amnesty programme which is not sustainable or cost-effective in the longer run. Tax awareness becomes a significant factor in managing tax compliance behaviour within contemporary literature. Hence, this paper aims at ascertaining the effects of Special Voluntary Disclosure Programme (SVDP), the role of Inland Revenue Board Malaysia (IRBM), and demographic factors on tax awareness among Malaysian taxpayers. This paper used Smart PLS version 3 to run the data. The results confirmed that SVDP, IRBM's role, and public/ private sectors’ employment are crucial in influencing tax awareness. These findings have implications for tax policies, such as developing tax knowledge programmes and raising public awareness among individual taxpayers in Malaysia. Keywords: Special voluntary disclosure programme; tax administration; tax awareness; tax reform

Public procurement fraud by government officials has resulted in a sizeable loss of public funds, subsequently smearing a bad reputation of a local institution in the eyes of the public. The appropriate parties and the government as the trustees of public funds should tackle the presence of the propelling elements in driving government officials to engage in fraudulent behaviour. Besides, they should also ensure to eradicate, or at the least, prevent the problem from worsening. Therefore, this study attempted to determine the effect of fraud diamond analysis on public procurement fraud. Fraud Diamond is measured by perceived pressure, rationalisation, opportunity, and capability. The researchers gathered primary data through a survey using 165 questionnaires distributed to the government officials of all 27 ministries at the Federal level. Several statistical techniques such as descriptive statistics, correlation, and regression analysis were used to analyse the data from the survey. Four hypotheses were developed, and the findings showed that perceived pressure, perceived rationalisation, and perceived capability significantly influenced public procurement fraud by government officials, hence being accepted. In contrast, the perceived opportunity was rejected. This study aids academics, legislators, lawmakers, sociologists, psychologists, and those engaged in financial crime scene investigation, such as authorities and regulators, to understand the reason behind the fraudulent behaviour of fraudsters. Keywords: Capability; fraud diamond theory; opportunity; procurement fraud; pressure; rationalisation

The rising trend of Non-Performing Loans (NPLs) in the banking sector of Bangladesh epitomises a common phenomena of loan default that mostly arises from unwillingness to repay tendency of the borrowers who usually fit into the defined higher class of the society. An appropriate governance and control framework can effectively control this growing trend of NPLs, supplemented by the loan default culture. In view of this setting, this paper looks for the impact of audit committee independence, director ownership, external audit quality, CEO power, and bank size to control NPLs. After identifying two endogenous variables in a system of linear equations, this paper employs the system generalized method of moment (GMM) approach of regression analysis. This paper finds the significance of audit committee independence, director ownership, and external audit quality in controlling NPLs. However, this paper finds no significant impact of CEO power on lowering NPLs. Bank Size, measured in relative sense, has non-linear impact on NPLs. This paper recommends that the existing governance guidelines and BASEL-II accords fail to boost up the asset quality that controls NPLs and ensures capital adequacy. Keywords: Bangladesh; banking sector; CEO power; NPLs