Staff View: Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies

Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies

Corporate reporting is considered important because it provides information to assist internal and external corporate annual report users in making informed decisions. The high quality of financial reporting information is really significant, since employing this information can also lead to an incr...

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Main Authors:	Abdelhakhem Hamed Mohamed Ali Adaa, Mustafa Mohd Hanefah
Format:	Article
Language:	English
Published:	Universiti Sains Islam Malaysia 2019
Subjects:	Board size Shariah background board of director Muslim female Muslim ownership structure and the value relevance of accounting information
Online Access:	http://ddms.usim.edu.my:80/jspui/handle/123456789/18107
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spelling	my.usim-181072019-04-16T08:19:54Z Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies Abdelhakhem Hamed Mohamed Ali Adaa Mustafa Mohd Hanefah Board size Shariah background board of director Muslim female Muslim ownership structure and the value relevance of accounting information Corporate reporting is considered important because it provides information to assist internal and external corporate annual report users in making informed decisions. The high quality of financial reporting information is really significant, since employing this information can also lead to an increase in investment efficiency. Owners or shareholders need all necessary financial information for decision making. Nevertheless, even though they own the companies but the management is carried out by a pool of professionals – managers and directors. Thus, the directors set the directions and policies for the management team to run the company‟s daily affairs. The separation between ownership and managers in firms leads to the agency problem between them. This study looks into the relationship between corporate governance characteristics (the size of the board of directors, the number of Shariah background directors, number of Muslim female in board, Muslim ownership structure) and value relevance of accounting information. Findings show a positive association between board size and value relevance of accounting information in Malaysian Shariahcompliant firms. However, there is not enough evidence to prove Shariah background members on board can enhance the value relevance of accounting information. Regarding the relationship between the presence of Muslim female directors in the board and the value relevance of accounting information, the results reveal insignificant relationship. The findings also indicate that companies with large Muslim ownership are negatively significant for value relevance of accounting information. 2019-04-16T08:19:54Z 2019-04-16T08:19:54Z 2018-12 Article http://ddms.usim.edu.my:80/jspui/handle/123456789/18107 en Universiti Sains Islam Malaysia
institution	Universiti Sains Islam Malaysia
building	USIM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universit Sains Islam i Malaysia
content_source	USIM Institutional Repository
url_provider	http://ddms.usim.edu.my/
language	English
topic	Board size Shariah background board of director Muslim female Muslim ownership structure and the value relevance of accounting information
spellingShingle	Board size Shariah background board of director Muslim female Muslim ownership structure and the value relevance of accounting information Abdelhakhem Hamed Mohamed Ali Adaa Mustafa Mohd Hanefah Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
description	Corporate reporting is considered important because it provides information to assist internal and external corporate annual report users in making informed decisions. The high quality of financial reporting information is really significant, since employing this information can also lead to an increase in investment efficiency. Owners or shareholders need all necessary financial information for decision making. Nevertheless, even though they own the companies but the management is carried out by a pool of professionals – managers and directors. Thus, the directors set the directions and policies for the management team to run the company‟s daily affairs. The separation between ownership and managers in firms leads to the agency problem between them. This study looks into the relationship between corporate governance characteristics (the size of the board of directors, the number of Shariah background directors, number of Muslim female in board, Muslim ownership structure) and value relevance of accounting information. Findings show a positive association between board size and value relevance of accounting information in Malaysian Shariahcompliant firms. However, there is not enough evidence to prove Shariah background members on board can enhance the value relevance of accounting information. Regarding the relationship between the presence of Muslim female directors in the board and the value relevance of accounting information, the results reveal insignificant relationship. The findings also indicate that companies with large Muslim ownership are negatively significant for value relevance of accounting information.
format	Article
author	Abdelhakhem Hamed Mohamed Ali Adaa Mustafa Mohd Hanefah
author_facet	Abdelhakhem Hamed Mohamed Ali Adaa Mustafa Mohd Hanefah
author_sort	Abdelhakhem Hamed Mohamed Ali Adaa
title	Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
title_short	Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
title_full	Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
title_fullStr	Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
title_full_unstemmed	Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies
title_sort	board characteristics and muslim ownership structure on value relevance of accounting information: evidence from malaysian shariah compliant companies
publisher	Universiti Sains Islam Malaysia
publishDate	2019
url	http://ddms.usim.edu.my:80/jspui/handle/123456789/18107
_version_	1645154619578384384
score	13.222552

Board Characteristics and Muslim Ownership Structure on Value Relevance of Accounting Information: Evidence from Malaysian Shariah Compliant Companies

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