Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia

The accountability of Shariah-compliant companies is essential to ummah to ensure the quality of earnings and enhance performance. This study examined the association of accounting conservatism, which is a proxy for accounting quality and the financial performance of Shariah-compliant companies in M...

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Published in:Humanities and Social Sciences Letters
Main Author: Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
Format: Article
Language:English
Published: Conscientia Beam 2020
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85092204783&doi=10.18488%2fJOURNAL.73.2020.83.280.297&partnerID=40&md5=8e823836b8b5c85a692e8bfe19152a9a
id 2-s2.0-85092204783
spelling 2-s2.0-85092204783
Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
2020
Humanities and Social Sciences Letters
8
3
10.18488/JOURNAL.73.2020.83.280.297
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85092204783&doi=10.18488%2fJOURNAL.73.2020.83.280.297&partnerID=40&md5=8e823836b8b5c85a692e8bfe19152a9a
The accountability of Shariah-compliant companies is essential to ummah to ensure the quality of earnings and enhance performance. This study examined the association of accounting conservatism, which is a proxy for accounting quality and the financial performance of Shariah-compliant companies in Malaysia. Financial statements with high quality assist in better decision making, thus preventing fraud activities and misappropriation of assets. The data consisted of 144 firm-year observations of Shariah-compliant companies from 2012 to 2017. The results revealed that accounting conservatism is a feature of financial statements of Shariah-compliant companies in Malaysia and accounting conservatism had a positive association with financial performance. The findings gave insights on the accounting quality and performance of the Islamic capital market in Malaysia. This study contributes to the knowledge of financial reporting quality by explaining the ethical behavior of companies using stewardship theory. © 2020 Conscientia Beam. All Rights Reserved.
Conscientia Beam
23125659
English
Article
All Open Access; Bronze Open Access
author Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
spellingShingle Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
author_facet Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
author_sort Fariz N.M.; Mohammed N.F.; Zulkepli N.S.; Kamaluddin A.
title Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
title_short Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
title_full Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
title_fullStr Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
title_full_unstemmed Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
title_sort Accounting conservatism and financial performance: Accountability of shariah compliant companies in Malaysia
publishDate 2020
container_title Humanities and Social Sciences Letters
container_volume 8
container_issue 3
doi_str_mv 10.18488/JOURNAL.73.2020.83.280.297
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-85092204783&doi=10.18488%2fJOURNAL.73.2020.83.280.297&partnerID=40&md5=8e823836b8b5c85a692e8bfe19152a9a
description The accountability of Shariah-compliant companies is essential to ummah to ensure the quality of earnings and enhance performance. This study examined the association of accounting conservatism, which is a proxy for accounting quality and the financial performance of Shariah-compliant companies in Malaysia. Financial statements with high quality assist in better decision making, thus preventing fraud activities and misappropriation of assets. The data consisted of 144 firm-year observations of Shariah-compliant companies from 2012 to 2017. The results revealed that accounting conservatism is a feature of financial statements of Shariah-compliant companies in Malaysia and accounting conservatism had a positive association with financial performance. The findings gave insights on the accounting quality and performance of the Islamic capital market in Malaysia. This study contributes to the knowledge of financial reporting quality by explaining the ethical behavior of companies using stewardship theory. © 2020 Conscientia Beam. All Rights Reserved.
publisher Conscientia Beam
issn 23125659
language English
format Article
accesstype All Open Access; Bronze Open Access
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