Compliant Companies Research Articles

Determinants of Sharia Compliant Security Pricing: Evidance from an Emerging Market Kse-Pakistan (Doctoral Proposal)

Theoretically investment through stock market is not prohibited in Sharia how ever certain practices may be criticized including futures and forwards. Further more in order to invest in equity of a company by an IFI certain basic tests must be fulfilled by underlying firm including Halal business etc. Research problem of this study is What matters in security pricing of sharia compliant companies? Is it fundamental financial factors of company including EPS, Dividends, FCFs, P/B,or P/E? Or is it macroeconomic framework of a country including interest rates, inflation, Forex rates, industrial production/GDP and money supply etc.? This Doctoral Dissertation is in the Area of Security Pricing and planned to answer whether fundamentals or macroeconomic variables matter or both. Its sample size is 100 Companies, sample period is 10 years and includes both types of variable Macro and Micro. Seven hypothesis are developed and equal number of regression models are proposed for test.

Islamic norms for stock screening

PurposeThe purpose of this paper is to compare the criteria used among Islamic Indices, specifically between the Kuala Lumpur Stock Exchange Shari'ah Index (KLSESI) and the Dow Jones Islamic Market Index (DJIM) in screening a permissible company for investment purposes. The two controversial criteria examined are: level of debt and level of liquidity of company.Design/methodology/approachThe paper investigates the 642 companies listed on the Bursa Malaysia in 2006 as approved Shariah's compliant companies by the Shari'ah Advisory Council of the KLSE.FindingsOverall, the results reveal that the KLSESI does not use both the criteria set by the DJIM as its measures during the screening process. As for the level of debt criterion, the results show that 44.07 percent of the companies listed under the KLSESI are highly geared. These companies depend heavily on debt to finance their capital. However, the results for the level of liquidity criterion are not as extreme as the level of debt where it shows only 17 percent of the companies listed under the KLSESI are highly liquid. The results also indicate that if both criteria are compared concurrently, only 198 out of 565 companies listed under the KLSESI conform to the criteria set up by the DJIM.Research limitations/implicationsThe main reasons why the differences exist among Islamic Indices are due to micro‐factor as faced by Malaysian companies such as the limited amount of capital resources. The Shari'ah supervisory board of the respective indices represents the sole body that determines the rules or criteria to be used by each index. This explains why the indices differ from one country to another and efforts should be done by regulators in the respective countries to harmonize the differing criteria used.Originality/valueThe paper represents the first study that compares the criteria used by two different indices regarding Islamic capital investment in a developing country.

Emissions Allowances: Accounting and Public Policy Issues

ABSTRACT: This paper briefly describes cap and trade programs. Emission allowances in such programs can be used, sold, or retired by recipient companies. Such allowances provide value for the recipient organization and necessitate the determination of proper accounting for their receipt. The accounting suggested by IFRIC 3 is discussed and suggestions are made as to alternative methods to account for emission allowances. However, to truly provide companies with financial incentive to reduce emissions and to retire, rather than sell, their emission allowances, public policy needs to be changed to provide a tax incentive equivalent to the fair market value of retired allowances to compliant companies.

Evaluating company's performance using multiple discriminant analysis: the case of Shariah compliance companies

There are many tools that can be used to measure/evaluate the performance of a company and one of the most popular tools is using the financial ratios. This paper will explore the use of a combination of two different techniques using the time series data of share and market prices collected from Shariah compliance companies and cross-sectional financial ratios data of Shariah compliance companies. Share prices from 201 Shariah compliance companies listed in the Bursa Malaysia stock exchange were collected from 2000 to 2005 with their respective 2005 financial ratios. The Jensen Alpha technique is employed to classify the Shariah compliance companies in the Main Board Bursa Malaysia into two categories, i.e. performing and non-performing. Next, multiple discriminant analysis (MDA) technique is employed in identifying the ratio(s) that significantly influence the performing and non-performing companies. The MDA result shows that shareholders fund/share or net tangible asset ratio could differentiate significantly the non-performing and performing Shariah compliance companies.

An improved methodology to measure flag performance for the shipping industry

The subject of measuring the performance of registries has been a topic of policy discussions in recent years at the regional level due to the recasting of the European Union (EU) port state control (PSC) directive which introduces incentives for flags which perform better. Since the current method used in the EU region entails some shortcomings, it has therefore been the subject of substantial scrutiny. Furthermore, the International Maritime Organization (IMO) developed a set of performance indicators which however lacks the ability to measure compliance as set out in one of its strategic directions towards fostering global compliance. This article develops a methodology to measure flag state performance which can be applied on the regional or global level and to other areas of legislative interest (e.g. recognized organizations, Document of Compliance Companies). The proposed methodology overcomes some of the shortcomings of the present method and presents a more refined, less biased approach of measuring performance. To demonstrate its usefulness, it is applied to a sample of 207,821 observations for a 3-year time frame and compared to the current method.

Management Accounting and Control in Sharia Compliant Companies: The Case of Bena Alkhaleej from Bahrain

International companies have to take national cultural specificities into consideration. For the new economic powerhouse gulf region, a central cultural specificity is the Islam law Sharia. Both customers and companies might refrain from doing business with a non-Sharia compliant company. Sharia-compliance, from an internal perspective, changes the way management accounting operates and thus departs from existing knowledge research has produced. An action research approach of a single case study provides insights into the design of the management accounting activities as well as the management control system, given the influences of culture and Sharia-compliance. Concurring with Hofstede (2001), power distance prevents management accountants to directly contact top management. However, controls in general are rather loose, which is in line with the strong sense for communities within the company.

Performance ofShariahcompliance companies in the plantation industry

Purpose – The purpose of this paper is to identify the performing and non‐performing companies by using multiple discriminant analysis (MDA) and multiple regression and the ratios that could distinguish between the performing and the under‐performing companies.Design/methodology/approach – First, the study applied the α Jensen technique to classify the Shariah compliance companies into performing and non‐performing. Then, the results from the α Jensen technique with 20 financial ratios are applied to MDA in order to establish models that are used to identify non‐performing and performing companies.Findings – The growth turnover ratio is the only ratio that could discriminate between the performing and non‐performing companies in the plantation industry.Research limitations/implications – The paper only investigates a sector in the main board of Bursa Malaysia, which is the plantation industry. Future research may look into the whole Shariah counters in Bursa Malaysia.Practical implications – The paper cou...

Logistics, Security and Compliance: The Part to Be Played by Authorised Economic Operators (AEOs) and Data Management

Enhanced security, compliance and logistics management in both the private and public sectors (including Customs) is dependent on accurate, comprehensive data from trusted, compliant companies. Rather than building our international trade supply chain procedures on outdated paper-based systems and principles, developments in private sector technology and regulatory data requirements, such as the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), United Nations electronic Trade Documents (UNeDocs), and the World Customs Organization (WCO) Data Sets, are steering us towards a Cross Border Data Reference Model that will drive a Master Document and an Internet-based seamless data pipeline. This requires a re-think of our traditional way of managing the customs business and takes the Framework of Standards and the Authorised Economic Operator (AEO) concept to new heights of private, public partnerships, thereby removing the need for extra layers of border management bureaucracy and replacing them with new and exciting models for integrated border management.

Compliance in the Supply Chain: The Present and Future Implications of Sarbanes-Oxley for UK Businesses

Most recent research and press reports on Sarbanes-Oxley have focused on large, dual-listed companies and UK-based subsidiaries of US companies that have to comply with the regulation. Often, these companies have big compliance budgets and have been at the vanguard of Sarbanes-Oxley compliance in the UK. The key aims of this report are to estimate the current number of UK companies that have to be Sarbanes-Oxley compliant, but also how that number will grow over the coming decade, particularly given the impact of the supply chain. The wider impact of Sarbanes-Oxley through the supply chain is a key issue that many UK businesses will have to deal with, many of whom will not have realised the implications to date given their status as partners or suppliers of compliant companies. These supplier companies will need to reengineer their internal processes to provide data to meet the compliant companies' Sarbanes-Oxley reporting requirements. This report also examines UK organisations that will need to comply with Sarbanes-Oxley as a cost of doing business, raising capital or for general corporate governance best practice. The focus of this study is on UK companies, employing between 50 and 1000+ people. The research was informed by relevant studies and reports from the US, as well as conclusions drawn from telephone interviews with UK companies affected by Sarbanes-Oxley and a focus group of leading academics at Henley Management College.

Client Characteristics and Auditor Switch in an Audit Failure

This paper investigates whether companies use the auditor-switching announcement as a signal for its compliance with the accounting rules when their auditor's reputation gets hurt. Probing into the legendary Andersen-Enron audit failure, we hypothesize that the compliant company would be hurt more by its relation with Andersen and hence would dismiss Andersen earlier to signal its integrity. Our results indicate, for those of the clients with higher sales growth rate and higher possibility for financial distress, auditor-switching announcement seemed to be delayed. Besides, the fraction of companies choosing another Big 5 as a successor decreases as time elapsed.