Labuan Bulletin of International Business and Finance (LBIBF)

ORGANIZATIONAL CHANGE AS A CONTRIBUTOR TO ORGANIZATIONAL LEARNING IN THE AIRLINE INDUSTRY OF MALAYSIA

Dean Nelson Mojolou, Stephen Laison Sondoh Jr, Toh Pei Sung — Sun, 31 Dec 2023 00:00:00 +0800

The Malaysia Airlines Industry is one of the most significant financial contributors to the country. It can significantly influence the transportation market globally, and Malaysia had the fourth largest air passenger traffic in the South and Southeast Asia region, after China, India, and Indonesia. The quality of this industry is defined by organizational transformation, which is influenced by various factors that might influence organizational learning and performance. This study investigates the relationship between five factors of organizational change: people, technology, structure, task and organization culture, and organizational learning. The Structural Equation Modelling (SEM) and the Statistical Package for the Social Sciences Version 26 analyzed the data collected from the sampling among 194 staff in Malaysia Airport. The researcher uses purposive sampling to collect the data and a survey questionnaire, including an online survey. The findings suggest significant relationships exist between technology, structure, and organizational culture toward organizational learning. In contrast, people and tasks have no significant relationship with organizational learning. The study's result will contribute to the previous literature pool on organizational change and work performance by testing Leavitt's and Borman's models. It also gives the airline industry guidance to address its organizational change program's weaknesses and strengths to improve its learning and performance.

EXPLORING DETERMINANTS OF ISLAMIC BANK BUSINESS STRATEGIES: INSIGHTS FROM AN EMERGING COUNTRY THROUGH QUALITATIVE RESEARCH

Sun, 31 Dec 2023 00:00:00 +0800

The objective of this paper is to explore the determinants, namely corporate structure, practitioners' roles, and promotional factors, influencing customers' intentions to engage in financial transactions with Islamic banks in the specific context of Bangladesh Islamic Banking (IBB). The study employs a qualitative approach, relying on recorded focus group interviews involving 60 Islamic bank customers (IBC), specifically focusing on their experiences with IBB's banking services and transactions. The findings underscore the pivotal role played by corporate structure, practitioners' roles, and promotional factors in shaping customers' decision-making processes regarding their intention to conduct financial transactions within the IBB. However, there are certain limitations to this research, and recommendations are provided for IBB to incorporate into their marketing strategies, with the aim of positioning Bangladesh as a prominent Islamic banking hub. This paper contributes to the existing literature by concentrating on the research pertaining to the intention of individuals, who currently maintain bank accounts with IBB, to engage in financial transactions. It delves into the three key attributes that draw this specific customer group towards selecting IBB, with a particular focus on the IBC for their banking transactions.

DETERMINATION OF TAX COMPLIANCE INTENTION AMONG TAX OFFICERS

Munusamy Marimuthu, Azwani AB Ghani — Sun, 31 Dec 2023 00:00:00 +0800

This study attempts to investigate the determinants of factors among Malaysian salaried group on their tax compliance in Self-Assessment System. A theoretical framework was developed based on the Theory of Planned Behavior. The objectives of the study are to determine the level and relationship of attitude, subjective norms, perceived behavior control (tax knowledge and enforcement of penalty) towards tax compliance intention in Self-Assessment System among tax officers. Questionnaires survey via online were used for data collection. Reliability analysis, factor analysis, descriptive analysis and multiple regression analysis were conducted using the data collected from 159 respondents chosen by convenience sampling techniques. The result of multiple regression analysis shows that the independent variables tested can explain 72.4% variances towards the intention of tax compliance in Self-Assessment System. Hence, the model used in this study were supported being suitable and it was able to predict the dependent variable; intention to tax compliance. From the research findings, it was found that independent variables that influence the intention towards tax compliance were attitude, subjective norm and tax knowledge.

REMITTANCES AND FINANCIAL DEVELOPMENT IN SUB-SAHARAN AFRICAN COUNTRIES

Sun, 31 Dec 2023 00:00:00 +0800

The influence of remittances on Sub-Saharan Africa's financial growth has drawn scholars' attention as a result of the dramatic rise in international remittances to less developed countries over the last 10 years, particularly Sub-Saharan Africa. Considering this, the study evaluated how remittances have affected financial sector development in Sub-Saharan Africa regional. The research used 32 Sub-Saharan African nations between the years 2000 and 2018 to test the dual gap model's claim that emerging economies may leverage foreign investment to close the investment-saving gap. The Arellano and Bond and Blundell and Bond dynamic GMM estimator was used to address the objective of the study due to the small sample size necessitated by the lack of data availability for several years. The study found that an increase in the influx of international remittances is the driving force for an increase in the level of financial development in the region. It is therefore recommended, among other things, that efforts be made to encourage Sub-Saharan Africans in the diaspora to remit funds to the region. Additionally, the financial services provided by financial institutions in the region should be enhanced, and the financial instruments and payment systems should be enhanced to facilitate the transmission of funds from abroad.

THE MODERATING EFFECT OF SHARIAH COMPLIANCE ON THE RELATIONSHIP BETWEEN CORPORATE RISK TAKING AND FIRM PERFORMANCE

Chia Chia Yong, Mohd Ashari Bakri — Sun, 31 Dec 2023 00:00:00 +0800

The aim of this study is to examine the moderating effect of Shariah compliance on the relationship between corporate risk-taking and firm performance. The study's data was acquired from DataStream (Thomson Reuters) and annual reports extracted from the Bursa Malaysia website. To analyze the data, the study used panel data analysis, specifically pooled OLS, random and fixed effect were employed. In order to identify the most appropriate model, the study employed the Breusch-Pagan-Lagrange multiplier (LM) test and Hausman test. Additionally, robust standard error estimation was utilized to address the possible presence of serial correlation and heteroskedasticity. The study reveals that Shariah compliance moderate the relationship between corporate risk taking and firm performance. The findings are useful to inform managers on how to tailor their investment strategies to the needs of their clients, especially to the needs of average-risk investors to make an informed decision as well as to who might consider shariah compliant portfolio as part of their investment diversification.

THE MODERATING EFFECT OF BOARD INDEPENDENCE ON THE RELATIONSHIP BETWEEN SUSTAINABILITY REPORTING AND FIRM PERFORMANCE

Jocelyn Mok, Mohd Ashari Bakri — Sun, 31 Dec 2023 00:00:00 +0800

The purpose of this study is to investigate the moderating effect of board independence on the relationship between sustainability reporting and corporate performance. The study examined a total number of top 200 firm in Malaysia (based on market capitalization) from the period of 2012 to 2021. The data for the study was obtained from DataStream and the annual report was extracted from Bursa Malaysia's website. To examine the data, the study used panel data analysis, specifically pooled OLS, random and fixed analysis were used. We also use robust standard error estimation as a robust analysis to mitigate the potential problems of serial correlation and heteroskedasticity. The study reveals that board independence play significant role in moderating the relationship between sustainability reporting and firm performance. The results indicate that board independence enhances corporate transparency in a way it promotes firm participation in sustainability reporting and as a results investor that value sustainability reporting stand and proposition would place better firm valuation. The results of the study shed light on how crucial board independence in enhancing the sustainability reporting and firm performance relationship. Additionally, it also helps managers tailor their investment strategies to the needs of their clients, especially to those investors that concern on sustainability reporting.

THE IMPACT OF ISLAMIC STUDIES BACKGROUND ON ENTREPRENEURIAL INTENTION: A THEORY OF PLANNED BEHAVIOUR APPROACH

Mohd Rashan Shah Robuan — Sun, 31 Dec 2023 00:00:00 +0800

This study investigates the influence of an Islamic studies background on entrepreneurial intention through the Theory of Planned Behaviour. Previous research has established the significance of motivational factors in entrepreneurial intention: personal attitude, subjective norm, and perceived behavior control. The questionnaire was distributed to 75 first-year faculty of Islamic Study students who took the basic entrepreneurship and in-novation course. The result was analyzed using SPSS 28 and Smart PLS4. The result showed that only personal attitude and perceived behavior control among Islamic major students significantly correlate with entrepreneurial intention. Surprisingly, perceived be-havior control demonstrated a stronger impact compared to other factors. Notably, sub-jective norm exhibited no significant relationship. This study recommends customizing educational approaches for students of Islamic studies backgrounds, emphasizing moti-vational aspects and skill development to foster their entrepreneurial intentions.

THE IMPACT OF MALAYSIAN INDICES PERFORMANCE AND COVID19 PANDEMIC ON RAKUTEN INVESTMENT PORTFOLIO RETURN

nurshila ahmad, Ezly Eve X Mas Latiun — Sun, 31 Dec 2023 00:00:00 +0800

The global outbreak of the COVID-19 pandemic in early 2020 had far-reaching consequences on various aspects of the global economy, including financial markets. Stock indices across the world experienced significant fluctuations and volatility as investors grappled with the uncertainty and economic disruption caused by the pandemic. In Malaysia, the impact of the pandemic on stock market performance was particularly noteworthy, with the Malaysian indices witnessing substantial swings. This study investigates the impact of the performance of Malaysian indices and the COVID-19 pandemic on the returns of the Rakuten Investment Portfolio. It utilizes monthly data from January 2017 to December 2023 and employs a time-series analysis to explore these relationships. Our findings reveal a significant influence of Malaysian indices performance on the returns of the Rakuten portfolio, signifying that market trends largely shape the portfolio's performance. The study underlines the need for robust risk management strategies and diversification to mitigate the adverse effects of market volatility and global crises on investment portfolio returns.

IMPACT OF TRADE OPENNESS, FOREIGN DIRECT INVESTMENT AND EXCHANGE RATE ON MANUFACTURING EXPORT IN MALAYSIA

Roziana Baharin, Norlena Shahperi, Kang Guangqin — Sun, 31 Dec 2023 00:00:00 +0800

Despite recent changes in the capitalist financial system and global production, export manufacturing is one part of exports that maintain a productive structure and is a key component of economic growth that can create employment and income prospects. The export manufacturing value in Malaysia grew by 22.3 percent to RM 1,306.7 billion in 2022, with electrical and electronic products contributing 30.2 percent. In order to identify and assess the impact of trade openness, foreign direct investment (FDI) and the exchange rate on Malaysia’s manufacturing exports, the present study uses empirical analytical methods. The study employed Autoregressive Distributed Lag (ARDL) regression analysis on annual time series data from year 1990 to 2021. The study's conclusions indicate that there is cointegration, or a long-term relationship, between Malaysia's manufacturing exports trade openness, FDI, and currency exchange rates. FDI positively and significantly affects the value of manufacturing exports. Trade openness is also significant and can contribute to higher economic growth and overall economic development. This study’s findings may be valuable to the government in improving Malaysia’s overall manufacturing export performance. However, governments must strike a balance between reaping trade gains and protecting domestic businesses from unfair competition or disruptions. Thus, Malaysia’s trade openness and FDI growth policies can be strengthened and intensified to achieve these objectives.