• Communicated accountability by faith-based charity organisations

      Yasmin, Sofia; Haniffa, Roszaini M.; Hudaib, Mohammad (2014)
      The issue of communicated accountability is particularly important in Faith-Based Charity Organisations as the donated funds and use of those funds are often meant to fulfil religious obligations for the well-being of society. Integrating Stewart¿s (1984) ladder of accountability with the Statement of Recommended Practice guidance for charities, this paper examines communicated accountability practices of Muslim and Christian Charity Organisations in England and Wales. Our content analysis results indicate communicated accountability to be generally limited, focusing on providing basic descriptive information rather than judgement-based information. Our interviews with trustees and preparers of Trustee Annual Reports in Muslim Charity Organisations identified the reasons being due to high donor trust and consequently weak demand by stakeholders for the latter type of information, as well as internal organisational issues related to the organisational structure and culture, lack of internal professional expertise and high accountability cost.
    • Corporate governance structure and performance of Malaysian listed companies.

      Haniffa, Roszaini M.; Hudaib, Mohammad (2006)
      This study investigates the relationship between the corporate governance structure and performance of 347 companies listed on the Kuala Lumpur Stock Exchange (KLSE) between 1996 and 2000. We found board size and top five substantial shareholdings to be significantly associated with both market and accounting performance measures. In addition, we found a significant relationship between multiple directorships and market performance while role duality and managerial shareholdings are significantly associated with accounting performance. The result is robust with respect to controls for gearing, company size, industry membership and growth opportunities.
    • Culture, corporate governance and disclosure in Malaysian corporations

      Haniffa, Roszaini M.; Cooke, T.E. (2002)
      Evidence from research conducted on corporate accounting indicates that the interaction of environmental factors influences disclosure practices. The purpose of this study is to examine the importance of various corporate governance and cultural (race and education) characteristics, in addition to firm-specific factors, as possible determinants of voluntary (non-mandatory accounting and non-accounting information) disclosures in the annual reports of Malaysian listed corporations. The results of the regression analysis indicate significant associations (at the 5 percent level) between two corporate governance variables (viz. chair who is a non-executive director and domination of family members on boards) and the extent of voluntary disclosure. This finding has implications for corporate governance policy formulation by the Malaysian Institute of Corporate Governance (MISG). One cultural factor (proportion of Malay directors on the board) is significantly associated (at the 5 percent level) with the extent of voluntary disclosure suggesting that governmental focus on culture may solicit a response to secrecy from those who feel threatened.
    • Exploring the ethical identity of Islamic financial institutions via communication in the annual reports.

      Haniffa, Roszaini M.; Hudaib, Mohammad (2007)
      Islamic Banks (IBs) are considered as having ethical identity, since the foundation of their business philosophy is closely tied to religion. In this article, we explore whether any discrepancy exists between the communicated (based on information disclosed in the annual reports) and ideal (disclosure of information deemed vital based on the Islamic ethical business framework) ethical identities and we measure this by what we have termed the Ethical Identity Index (EII). Our longitudinal survey results over a 3-year period indicate the overall mean EII of only one IB out of seven surveyed to be above average. The remaining six IBs suffer from disparity between the communicated and ideal ethical identities. We further found the largest incongruence to be related to four dimensions: commitments to society; disclosure of corporate vision and mission; contribution to and management of zakah, charity and benevolent loans; and information regarding top management. The results have important implications for communication management if IBs are to enhance their image and reputation in society as well as to remain competitive.
    • The impact of culture and governance on corporate social reporting

      Haniffa, Roszaini M.; Cooke, T.E. (2005)
      Our aim is to increase understanding of the potential effects of culture and corporate governance on social disclosures. The ethnic background of directors and shareholders is used as a proxy for culture. Corporate governance characteristics include board composition, multiple directorships and type of shareholders. The dependent variable, disclosure in annual reports of Malaysian corporations, is measured by an index score as well as in terms of number of words. Our results indicate a significant relationship between corporate social disclosure and boards dominated by Malay directors, boards dominated by executive directors, chair with multiple directorships and foreign share ownership. Four of the control variables (size, profitability, multiple listing and type of industry) were significantly related to corporate social disclosure with the exception of gearing. This study has public policy implications for Malaysia as well as a number of other countries in the Asia¿Pacific region.
    • Intellectual capital disclosure and corporate governance structure in UK firms

      Li, Jing; Pike, Richard H.; Haniffa, Roszaini M. (2008-01)
      This paper investigates the relationship between intellectual capital disclosure and corporate governance variables, controlling for other firm-specific characteristics, for a sample of 100 UK listed firms. Intellectual capital disclosure is measured by a disclosure index score, supported by word count and percentage of word count metrics to assess the variety, volume and focus of intellectual capital disclosure respectively. The independent variables comprise various forms of corporate governance structure: board composition, ownership structure, audit committee size and frequency of audit committee meetings, and CEO role duality. Results of the analysis based on the three measures of intellectual capital disclosure indicate significant association with all the governance factors except for role duality. The influence of corporate governance mechanisms on human, structural and relational capital disclosure, based on all three metrics, is also explored.
    • Intellectual Capital Disclosure in Knowledge Rich Firms: The Impact of Market and Corporate Governance Factors

      Li, Jing; Pike, Richard H.; Haniffa, Roszaini M. (2007)
      Intellectual capital disclosure (ICD) in corporate annual reports has received growing European attention. To date, few studies have undertaken systematic analysis of the factors influencing the decision to disclose Intellectual Capital (IC) related information in annual reports. The purpose of this paper is to examine whether the level of hidden value (market-to-book ratio), share price volatility, listing age, board composition, ownership structure, audit committee size and directors’ shareholding, in addition to other firm specific factors influence ICD in 100 UK listed knowledge-rich firms. The dependent variable is measured by a 183 item index score, supported by word count and percentage of IC word count metrics to assess the extent, volume and focus of ICD respectively. Results of the analysis based on the three measures indicate significant association with hidden value, using market-to-book ratio as a proxy, and listing age. We further find firm size, share price volatility, director shareholding, audit committee size, and ownership concentration to be associated with ICD in a manner consistent with theoretical expectations. The implications of these findings, hitherto largely untested, are explored from a number of theoretical perspectives.
    • Intellectual Capital Disclosures in Corporate Annual Reports: A European Comparison

      Li, Jing; Pike, Richard H.; Haniffa, Roszaini M. (2006)
      The extent of intellectual capital (IC) disclosures in corporate annual reports has received increasing attention in recent years. This paper is an exploratory study that considers the efficacy of various IC disclosure measures. It draws on annual reports of leading firms within the financial services sector in nine Western European countries. Content analysis was employed to produce measures based on disclosure indexes and word count to assess the variety, volume and focus of IC in annual reports. Disclosure scores were computed using three forms of presentation - any form, numerical form (reflecting more ‘objective’ disclosure), and all forms. Generally, we found that the form of disclosure index did not significantly affect IC sample rankings and were broadly in line with the IC word count rankings. However, very different rankings emerged when using the focus measure (IC word count as a percentage of total word count in Annual Report). We argue that this measure of relative importance is an important measure, particularly because firm size is typically positively associated with disclosure. Variation in the form of IC (human, structural, relational) is also explored. The paper then reports the findings of a time series analysis of the IC disclosure practices within a UK bank over a 10-year period. Significant variation in IC disclosure was found, with a strong movement in IC content from human capital to relational capital. These findings are discussed.