Edited by - OER@UMS Home

Edited by

Hock-Ann Lee Jude Woryanta Taunson

Norhamiza Ishak Nurul Izzati Abd Razak

Suzillah Sidek Tze Cheng Chew

4th Applied International Business Conference 2020

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This publication is made possible with the support of the Commonwealth of Learning, Canada.

AIBC2020: Book of Abstracts is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License: http://creativecommons.org/licenses/by-nc/4.0/ Pusat e-Pembelajaran makes no representation – express or implied, with regard to the accuracy of information contained in this book. Users of the information in this book need to verify it on their own before utilizing such information. Views expressed in this publication are those of the author(s) and do not necessarily reflect the opinion or policy of Universiti Malaysia Sabah. Pusat e-Pembelajaran shall not be responsible or liable for any special consequential, or exemplary problems or damages resulting in whole or part, from the reader’s use of, or reliance upon, the contents of this book. Published by: Pusat e-Pembelajaran Aras 5, Blok B, Bangunan FKI, Universiti Malaysia Sabah, Jalan UMS 88400 Kota Kinabalu, Sabah Malaysia Tel: 088-320000 ext. (207802) Fax:088-329230 http://oer.ums.edu.my Email: [email protected]


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TABLE OF CONTENTS Factors Influencing Road User in Using Mobile Applications to Report Errant Drivers: A Conceptual Model Severinus Tukah, Geoffrey Harvey Tanakinjal and Bonaventure Boniface…………………………………………….

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Predicting Financial Distress in an Emerging Market: Corporate Actions, Accounting Ratios, or Both? Azhar Mohamad, Imtiaz Mohammad Sifat, Mohamed Azad……………………………………………………………

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Brand Image and Halal Destination Loyalty: Are They Truly Linked? Suddin Lada, Haneffa Muchlis Gazali, Samsulbahri Mohd Nasir, Rahida Abd. Rahman, Tamrin Amboala……….....

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Online Zakat Payment Compliance of Gold Investment in Penang: An Empirical Investigation Muhammad Amir Syazwan Bin Mohd Sayuthi, Hanudin Bin Amin………………………………………………….....

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Bridging Business and Technical Perspectives in New Digital Product Development Rovanne Eleanore Bt Dann Effendy, Zamhar Iswandono Awg Ismail……………………………………………….....

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Self-Efficacy in Consumer-Style Decision Making of Online Shop between Employee and Entrepreneur Yayu Hizza Anisa, Amjad Shamin, Ibrahima Faye, Rizki Edmi Edison…………………………………………………

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Does Stock Liquidity Impede Firm Value Through Activist Blockholders? Yee-Ee Chia, Ricky Chia Chee Jiun, Jude Woryanta Taunson………………………………………………………….

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Socially Sustainable Supply Chain Management: A Systematic Literature Review Alesia S. Gugkang, Linda C. Hendry…………………………………………………………………………………….

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Entrepreneurial Orientation (EO), Market Orientation (MO) And SMEs Performance (P): A Conceptual Model Ambrose, J, and Tanakinjal, G.H……………………………………………………………………………………......

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Consumer Panic Purchase Behaviour and Movement Control Order (MCO): A Conceptual Model Geoffrey Harvey Tanakinjal, Rayner Alfred, Bonaventure Boniface, Stephen L. Sondoh Jr., Mori Kogid, Ryan Macdonell Andrias, James Silip, Christie Pei Yee Chin, Raymond Alfred………………………………………….......

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Does Dividend Policy Affect Firm Value in an Emerging Market: Evidence from Malaysia Mohd Ashari Bakri……………………………………………………………………………………………………....

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New Measure of Asnaf Muslimpreneur Success Model Hanudin Amin, Rizal Hamid, Najwa Mohd Khalil, Pg Mohd Faezul Fikri Ag Omar, Mohamad I’sa Abd Jalil, Mohd Fahmi Ghazali, Putera Aliif Al’Ain Jasni……………………………………………………………………………….

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Effects of Social Media Marketing on Repurchase Intention: The Mediating Roles of e-WOM and Brand Awareness Mohamad Isa Abd Jalil, Suddin Lada, Zakiah Hassan, Mohd Ashari Bakri …………………………………………...

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The Effect of Sensory Appeal Value to Mall Repatronage Intention in Kota Kinabalu Context: With Moderating Effect of Income Fasihah Farhanah Ahmad Farrid, Imelda Albert Gisip………………………………………………………………...

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Role of Macroeconomic Cyclical Indicators and Country Governance on Bank Non-Performing Loan Behavior in Emerging Asia Nurfilzah Arham, Mohd Shamlie Salisi, Rozita Uji Mohamed, Jasman Tuyon…………………………………………

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Effect of Credit Risk Management on Financial Performance of Commercial Banks Listed at The Malaysia Securities Exchange Siti Raihana Hamzah, Haneem Muhamad Anuar…………………………………………………………………….....

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The Moderating Effect of Sales Skills on Competency and Entrepreneurial Success Cooperative in East Malaysia Vvy Elvira Pengiran, Stephan L. Sondoh. Jr, Bonaventure Boniface…………………………………………………...

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Are Our Children Financially Illiterate? The Case in Kedah Muhammad Faris Omar, Hasniza Mohd Taib, Logasvathi A/P Murugiah, Rusmawati Ismail, Shri Dewi A/P Applanaidu……………………………………………………………………………………………………………….

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The Seriousness of COVID-19 in Southeast Asia Harvint Thevadass, Ricky Chee-Jiun Chia……………………………………………………………………………....

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Consumption Intention on Functional Food in Malaysia Flaviana Ivy Febian, Sharifah Nurafizah Syed Annuar………………………………………………………………....

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E-Wallet Usage Intention During the Covid-19 Pandemic: Evidence from Malaysia Haneffa Muchlis Gazali, Tamrin Amboala………………………………………………………………………………

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A Study on Southeast Asian Countries (Malaysia-Thailand-Philippines-Indonesia) Exchange Rates and Stock Prices Behavior Due to Pandemic Covid-19 Yugaindren Alagas, Ricky Chee-Jiun Chia……………………………………………………………………………...

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Consumer Preference for Local or Foreign Brands: The Role of Lifestyles in Understanding Consumer Preference in Kuching Ottilia Ting Yi Jun, Geoffrey Harvey Tanakinjal………………………………………………………………………..

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Shariah Gold Investments in Malaysia: Prospects and Challenges Hani Amirah Juisin……………………………………………………………………………………………………....

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The Presence of Day-of-the-Week Effect Upon the Performances of the Cryptocurrencies Tan Sze Kie, Ricky Chia Chee Jiun……………………………………………………………………………………...

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The Day-Of-The-Week Effect on Top Industrial Sector Companies in Euronext Evita Niki Albert, Ricky Chia Chee Jiun………………………………………………………………………………...

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Cultural and Non-Cultural Holiday Effect in Japanese and South Korea Stock Markets Renogadewi A/P Sandara Segaran, Ricky Chia Chee Jiun……………………………………………………………...

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Marine Conservation Area Under the Leadership of Sabah Park: Case Study of Tun Mustapha Park (TMP) Erica Joanne Reuben, Haijon Gunggut………………………………………………………………………………….

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Customer Segmentation using K-means Clustering: A Case Study of Starbucks Malaysia Zetty Ain Kamaruzzaman………………………………………………………………………………………………...

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Sabah’s Tourism and the Participation of the Sea Gypsy: Case of Semporna, Sabah Nor Atikah Hadzlan, Asri Salleh………………………………………………………………………………………...

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Poverty Alleviation: Gana Resettlement & Integrated Development (Grid) Oliverra M. Lim, Haijon Gunggut……………………………………………………………………………………….

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The Speed of Completing Payment Process: Comparison between Cash and E-payment for Offline Purchase at Fast-food Restaurants in Labuan F. T. Sharinah Puasa, Nurjeehan Ayub, Suzillah Sidek, Fithriah Ab Rahim………………………………………………….

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COVID-19’s Dynamic Relationships with Stock Markets of China, USA. vs. Malaysia Noor Azryani Auzairy, Kamaleswari Selvaraj, Muhammad Farhan Misron, Nor Widiya Wati Fandi, Aina Syazwani Md Nizam………………………………………………………………………………………………………………...

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Online Impulse Buying Based on Flow Theory: A Case Study in Selangor Reelaashinii A/P Lingakumaaran, Geoffrey Harvey Tanakinjal………………………………………………………...

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Factors Determining the Receptiveness of E-learning adoption among Secondary School Students’ During Movement Order Control (MCO) in Labuan Nurjeehan Binti Ayub, Nur Ateeqah Binti Asman, Sharinah Puasa……………………………………………………..

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Establishing Zakat on Oil & Gas in Malaysia Pg Mohd Faezul Fikri Ag Omar, Haneffa Muchlis Gazali, Samsulbahri Mohd Nasir, Nurul Izzati Abd. Razak, Norhamiza Ishak………………………………………………………………………………………………………....

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The Acculturation Effect on the Purchase Intention of Halal Food Products Among Non-Muslim Consumer Azaze @ Azizi Abdul Adis, Suddin Lada, Joehan Joehari William……………………………………………………...

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Factors Contributing to the Purchase of Energy-Efficient Appliances in Malaysia Teddy Lian Kok Fei………………………………………………………………………………………………….…..

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Using Unified Theory of Acceptance and Use of Technology to Understand the Behavioral Intention to Use E-wallet during the Pandemic of COVID-19 Sharinah Puasa, Tan JiaLe, Haneffa Muchlis Gazali, Nurjeehan Ayub………………………………………………...

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Factors Influencing Continuance Intention To Use E-wallet Noratikah H. Shukri, Emily H.T. Yapp…………………………………………………………………………….…….

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Cashless Payment in Malaysia Fatin Afiqah Azizan, Sharinah Puasa……………………………………………………………………………………

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Perceived Effectiveness of Accounting Information System (AIS): A Descriptive Study of the Malaysian Federal Government Sharinah Puasa, Sharifah Milda Amirul………………………………………………………………………………...

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The Impact of Monetary Policy on the Foreign Direct Investment Inflows in the Philippines Effa Shazila Binti Arian Sha, Tai-Hu Ling……………………………………………………………………………....

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Country Institutional Environments in Promoting Entrepreneurship: A Study on Developing Economies in Asia Tze Cheng Chew, Tarun Kanti Bose, Yaoyao Fan……………………………………………………………………....

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Tax Avoidance and Its Determinants Among GLCs in Bursa Malaysia Nicholas Ian Biono, Ai-Yee Ooi…………………………………………………………………………………………

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Firm Value and Cultural Diversity of Board of Director for Malaysian Public Listed Companies Kan Hong Yee…………………………………………………………………………………………………………....

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Board Diversity and Price Informativeness for Malaysian Public Listed Firm Ai-Yee Ooi, Suzillah Sidek, Minah Japang…………………………………………………………………………..…..

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The Moderating Effects of Self-Efficacy on Entrepreneurial Capabilities and Homestay Program Performance Emira Syafika binti Abdul Manah, Imelda Albert Gisip, Sharifah Nurafizah Syed Annuar……..……………………...

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Factors Motivating the Adoption of E-payment in Cashless University Environment: A Comparative Study Involving Undergraduate Students and Employees in University Malaysia Sabah Aisyah Abdul Latip, Anath Rau Krishnan……………………………………………………………………………….

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Understanding the Gold-Inflation Nexus in Malaysia: A Time-Varying Perspective Mohd Fahmi Ghazali, Nurul Fasyah Mohd Ussdek, Hanudin Amin, Rizal Hamid……………………………………..

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PREFACE The 4th Applied International Business Conference 2020 (AIBC2020) is jointly organized by Labuan Faculty of International Finance, Universiti Malaysia Sabah and the China Construction Bank (CCB) which is held virtually on December 9-10, 2020. In line with the conference theme ”Business Analytics and Market Expectations”, AIBC2020 aims to address various issues related to how businesses are being pursued, information is being distributed and knowledge is transferred among international stakeholders. More than 60 papers were submitted to the conference. Finally, 50 papers have been accepted and hosted by AIBC2020. The papers cover a wide variety of topics, including sustainable development goals, redesigning thinking towards new era of technology businesses, education in technology, digital economy, sustainable tourism, fintech, human capital investment, psychology and marketing, green finance, poverty alleviation, economics and finance and Islamic banking and finance. The abstracts of these papers have been published in the Book of Abstracts. The editors hope that this book will provide valuable source of information on the issues of international business. Last but not least, we would like to express our gratitude to the entire conference committees and to the participants for their invaluable contributions to the success of conference. We wish you a most interesting conference. Editors Hock-Ann Lee Jude Woryanta Taunson Norhamiza Ishak Nurul Izzati Abd Razak Suzillah Sidek Tze Cheng Chew Universiti Malaysia Sabah December 2020


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Abstract ID: AIBC-2020-009-007

Factors Influencing Road User in Using Mobile Applications to Report Errant Drivers:

A Conceptual Model

Severinus Tukaha *, Geoffrey Harvey Tanakinjalb, Bonaventure Bonifacec

a,bLabuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan International Campus, Jalan Sungai Pagar 87000, Federal Territory of Labuan, Malaysia

cCenter for the Promotion and Knowledge of Language Learning, Universiti Malaysia Sabah, Jalan UMS, 88400, Kota Kinabalu,

*Corresponding author email: *[email protected]

Abstract

This study presents an extended technology acceptance model (TAM) that integrates innovation diffusion theory, perceived risk and cost into the TAM to investigate what determines road user acceptance of mobile applications. The purpose of this paper is to explore the intention to use mobile applications developed by the Road Transport Department (JPJ) of Malaysia. The model will be empirically tested using sets of road users all over the nation. The Partial Least Square (PLS) technique will be used to evaluate the causal model, and confirmatory factor analysis will be performed to examine the reliability and validity of the measurement model. This paper will act as a baseline study to discuss the variables chosen, and the hypotheses developed based on the proposed conceptual model. Keywords: TAM; IDT; Perceived Risk; Cost; Acceptance; Mobile Application


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Predicting Financial Distress in an Emerging Market: Corporate Actions, Accounting Ratios, or Both?

Azhar Mohamada , Imtiaz Mohammad Sifatb*, Mohamed Azadc

a,cInternational Islamic University Malaysia

bMonash University, Malaysia *Corresponding author email: * [email protected]

Abstract

This paper investigates the utility of corporate actions in predicting financial distress in the context of an emerging country: Malaysia. Recognizing the dominance of historical accounting ratios in distress prediction models, we set out to test if employing more current information in the form of corporate action fares better. To this end, we employ three logistic regression models on data from 54 firms and find that corporate actions, on a stand-alone basis, outperform pure accounting ratios and a pooled combination of both. The most significant corporate actions are frequency of capital issuance and shuffling of audit committees. These findings are novel for Malaysia and relatively scarce in broader empirical literature. Meanwhile, among the accounting ratios, working capital and sales volumes emerge as significant predictors of distress, both of which have extensive empirical precedents. Keywords: Financial Distress; Bankruptcy; Corporate Finance; Accounting Ratio


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Brand Image and Halal Destination Loyalty: Are They Truly Linked?

Suddin Lada*a, Haneffa Muchlis Gazalib, Samsulbahri Mohd Nasirb,

Rahida Abd. Rahmanc, Tamrin Amboalac

aFaculty of Business, Economics, and Accountancy bLabuan Faculty of International Finance

cFaculty of Computing and Informatics Universiti Malaysia Sabah


Abstract HALAL tourism is flourishing in its own right as an industry. Malaysia is the world's leading Halal industry, with Halal tourism destination making a significant contribution to overall economic growth. However, to secure this reputable image, Malaysia has to build a strong brand image groundwork for future sustainability. By obtaining a combination of brand image benefits and destination loyalty model, this study, therefore, aims to examine whether there is a significant relationship between brand image benefits (i.e., symbolic, functional, social, and experiential benefits) and destination loyalty among tourists visiting Malaysia as a brand of Halal tourism destination. A self-administered questionnaire was used to gather information from 300 selected respondents and analyzed it using Smart PLS. Results revealed that functional, experiential, and symbolic benefits have a significant relationship to loyalty among tourists visiting Malaysia as a halal tourism destination brand. The theoretical and practical implications of the results are discussed, and the research's future improvement is suggested. Keywords: Halal Destination, Symbolic, Functional, Social, Experiential Benefits, Loyalty


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Online Zakat Payment Compliance of Gold Investment in Penang: An Empirical Investigation

Muhammad Amir Syazwan Bin Mohd Sayuthi*, Hanudin Bin Amin

Labuan Faculty of International Finance, Universiti Malaysia Sabah, F.T. Labuan, Malaysia

*Corresponding author email: * [email protected]

Abstract This study examines the effects of patronage factors on the online zakat payments compliance among retail gold investors in Penang, Malaysia. The selection of these investors is because there is a growing trend of millennials to participate in a large number of gold investments online – implying there is a likelihood for them to be prospective zakat payers. Drawing upon Unified Theory of Acceptance and Use of Technology (UTAUT), this study evaluates patronage factors that are instrumental in determining online zakat payment compliance. Needless to say, gold investors who possess more than 85 gram of gold are entitled to pay zakat on their gold investments kept electronically. Data are collected from different states in Malaysia on 360 potential zakat payers who are investing in gold investments. The data are analyzed using Statistical Package for the Social Sciences (SPSS) to meet the research objective and the hypothesized relationships. The results obtained provide valuable insights for zakat authorities to manage zakat payment online among the growing number of retail gold investors. The limitations and directions for future studies are provided. Keywords: UTAUT; Gold Investors; SPSS


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Bridging Business and Technical Perspectives in New Digital Product Development

Rovanne Eleanore Bt Dann Effendy*, Zamhar Iswandono Awg Ismail

Universiti Malaysia Sabah, Labuan International Campus, F.T. Labuan, Malaysia


Abstract

With the development of digital product innovation, there is an importance of contributions from the collaboration of both business and technical viewpoints. This definition is extended to cover the situation where business and technical teams cooperate to develop digital product innovation together. Upon review, the technical viewpoint must lead the innovation process because the development of innovation requires technical knowledge and to strengthen the core competence for product development. It was found that there were differences among perspectives in the development process for a development team that can affect the projects. Based on technical viewpoint, problems arise when business perspectives cannot comprehend the complicated nature within the process of developing new innovation causing the product not meeting the expectations. Therefore, the aim of this research is to propose a method based on Soft Systems Methodology (SSM) to provide a solution or techniques in bridging the gap of understanding between business and technical perspectives. SSM is also important to prove the effectiveness of the proposed method within product innovation development. The expected finding of this research is a framework for adopting the proposed method in bridging the gap of understanding in innovation development. Therefore, the significance of this research is to bridge the gap of perspectives to form innovation ideas that lead to digital product innovation that is marketable, fulfill user’s needs and technically feasible. Keywords: Product Innovation; Multi-Perspectives; Technical Perspectives; Business Perspectives; Product Development;

Project Management; Innovation Culture; Soft System Methodology


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Self-Efficacy in Consumer-Style Decision Making of Online Shop between Employee and Entrepreneur

Yayu Hizza Anisaa, Amjad Shaminb, Ibrahima Fayeb, Rizki Edmi Edisona*

aNeuroscience Center - University of Muhammadiyah Prof. Dr. HAMKA

bCenter of Socio Transformative and Sustainable Lifestyle - Universiti Teknologi Petronas *Corresponding author email: * [email protected]

Abstract Online Shop has an important role in people's daily life. In deciding on buying products by using an online shop platform, it is known that self-efficacy is one of the major factors. Mostly the research was an attempt to know how self-efficacy can influence a person in making choices based on their culture, or gender. This study investigates how the level of self-efficacy in entrepreneurs and employees takes a role in consumer-style decision making. Participants were 48 persons among 35 employees and 13 entrepreneurs. The instrument used in this study is online transaction self-efficacy to measure Self- efficacy, and Consumer style inventory (CSI) to measure consumer-style decision making. All of the items were measured with Likert-type ranging from strongly agree to strongly disagree. Using path analysis, we found that self- efficacy has more impact on the employee than the entrepreneur in consumer-style decision making. We conclude that occupation is one of an important socio-demographic to Online Shop. Keywords: Self-Efficacy; Consumer-Style Decision Making; Online Shop; Employee; Entrepreneur


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Does Stock Liquidity Impede Firm Value Through Activist Blockholders?

Yee-Ee Chia*, Ricky Chia Chee Jiun, Jude Woryanta Taunson

Labuan Faculty of International Finance, Universiti Malaysia Sabah, F.T. Labuan, Malaysia


Abstract

This study aims to examine the underlying channels through which stock liquidity affects firm value. Using an unbalanced panel firm fixed effects method, the negative effect of liquidity on blockholders theorizes that greater stock liquidity decreases the cost of exit and magnifies blockholders threat of exit when they are dissatisfied with firm performance. The results demonstrate that stock liquidity impedes firm value through the activist exit. We further use natural experiments of the global financial crisis of 2008 as an exogenous liquidity shock. Our findings remain robust, and they are not driven by reverse causality. Keywords: Liquidity; Blockholder Governance; Malaysia


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Socially Sustainable Supply Chain Management: A Systematic Literature Review

Alesia S. Gugkang*a, Linda C. Hendryb

a Labuan Faculty of International Finance, Universiti Malaysia Sabah, F.T. Labuan, Malaysia

b Lancaster University Management School, Lancaster University, United Kingdom *Corresponding author email: *[email protected]

Abstract

This paper presents a critical review of the relevant literature on socially sustainable supply chain management (SSCM). A systematic literature review of 291 papers that includes social sustainability published in peer-reviewed journals was conducted. The research contents of each papers were analysed to identify the common themes, theories and methods which has been employed in the extant literature. The findings of this paper include the discussion of key research gaps, with a specific focus on research areas in social sustainability in the supply chain that needs to be addressed. Finally, the discussion on the opportunities for future research is presented. Keywords: Social Sustainability; Socially Sustainable Supply Chain Management; Sustainable Supply Chain

Management; Supply Chain Management; Systematic Literature Review


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Entrepreneurial Orientation (EO), Market Orientation (MO) And SMEs Performance (P):

A Conceptual Model

Ambrose, J*, and Tanakinjal, G.H.

Labuan Faculty of International Finance Universiti Malaysia Sabah, Labuan International Campus

Jalan Sungai Pagar 87000, W.P. Labuan, Malaysia *Corresponding author email: * [email protected]

Abstract Small and Medium Enterprises (SMEs) are significant to the national economy, with 38.3 per cent of contribution towards Gross Domestic Product (GDP) in 2018. To date, Bumiputera SMEs achievement is less than 9 per cent of the GDP, the failure rate of SMEs are very high, and the start-up could not even survive the first three years of operation. Two significant factors that must be understood are the SMEs entrepreneurs and the market they are operating within. Past literature has indicated that both Entrepreneurship Orientation (EO) Market orientation (MO) and are interrelated with the overall performance of SMEs. EO and MO are organizational capabilities to the creation of a unique positional advantage which may positively affect performance. The purpose of this paper is to identify the gaps of why SMEs are not being successful and exploring measurement instruments related to EO and MO about organization performance (OP). Specific focus will be given towards EO and MO sub-dimensions in order to understand and develop a conceptual framework that can be used to investigate the relationship of EO and MO towards to OP. Keywords: Entrepreneurial Orientation (EO); Market Orientation (MO); SMEs Performance (P); Measurement Items


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Consumer Panic Purchase Behaviour and Movement Control Order (MCO):

A Conceptual Model

Geoffrey Harvey Tanakinjal*a, Rayner Alfredb, Bonaventure Bonifacec, Stephen L. Sondoh Jr.d, Mori Kogid e, Ryan Macdonell Andriasf,

James Silipg, Christie Pei Yee Chinh, Raymond Alfredi

aLabuan Faculty of International Finance, Universiti Malaysia Sabah, Jalan Sungai Pagar, 87000, WP Labuan b, f, hFaculty of Computing and Informatics, Universiti Malaysia Sabah, Jalan UMS, 88400 Kota Kinabalu, Sabah

cCentre of Promotion of Knowledge and Language Learning, Universiti Malaysia Sabah, Jalan UMS, 88400 Kota Kinabalu, Sabah

d, eFaculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Jalan UMS, 88400 Kota Kinabalu, Sabah gFaculty of Sustainable Agriculture, UMS Sandakan Campus, Locked Bag No. 3, 90509 Sandakan Sabah

iAllyssa Research Group, 88400, Kota Kinabalu, Sabah


Abstract The coronavirus pandemic (COVID-19) pandemic has caused fear among consumers for food shortages, and this fear is prompting consumers to panic buy goods, including personal protective equipment (PPE). This is due to the 2020 Malaysia Movement Control Order that was announced from March 18 to 31 to deal with the rise in Covid-19 cases. The 2020 Malaysia Movement Control Order, or Malaysia partial lockdown, a measure taken to combat the coronavirus pandemic (COVID-19). Consumer panic buying is different compared to normal consumer buying. Since the announcement of COVID-19 pandemic, fear and paranoia in the wake of Covid-19 pandemic gotten the best of Malaysian two days before the MCO was announced. This was amidst viral rumours of a lockdown being enforced following a spike in Covid-19 cases appears to have made some Malaysian dashing to their local grocers and supermarkets to stock up essentials goods and supplies. This brings the questions of what are the stages that consumers go through during panic buying. There are two main consumer decision buying process models that will be used in this study. This paper will attempt to develop a conceptual model with essential stages in consumer panic buying process. The objective of this paper is to propose a model that may be later tested to understand the process of consumers' panic purchase behaviour when faced with Movement Control Order (MCO). Keywords: Panic buying process; Coronavirus pandemic; COVID-19; Control movement order; Panic purchase behaviour


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Does Dividend Policy Affect Firm Value in an Emerging Market: Evidence from Malaysia

Mohd Ashari Bakri

Labuan Faculty of International Finance, Universiti Malaysia Sabah, 87000 F.T. Labuan, Malaysia

Corresponding author email: [email protected]

Abstract This study examines the relationship between dividend and firm value in Malaysia firms. The study uses unbalanced panel pooled Ordinary Least Square, panel fixed and random effect to examines the model. Using a sample from 747 firms across Malaysia from 2005 to 2019, the results reveal that dividend has a positive relationship with firm value proxy by Tobin's Q. The results are robust even after controlling for endogeneity concerns with regards to omitted variables bias and reverse causality. Keywords: Dividend; Firm Value; Emerging Markets; Malaysia


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New Measure of Asnaf Muslimpreneur Success Model

Hanudin Amin*a, Rizal Hamidb, Najwa Mohd Khalilc, Pg Mohd Faezul Fikri Ag Omard,

Mohamad I’sa Abd Jalile, Mohd Fahmi Ghazalif, Putera Aliif Al’Ain Jasnig

a,b,c,d,e Labuan Faculty of International Finance, Universiti Malaysia Sabah, Jalan Sungai Pagar, 87000, WP Labuan

fFaculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor gMajlis Ugama Islam Sabah


Abstract

This study is based on qualitative research that investigates new indexes to gauge mustahiq business success. Asnaf business is one of the methods used by zakat institution to help reduce poverty problem in Sabah, East Malaysia. We employ a maqasid theory as a baseline theory to generate new measures, which are then translated into a set of indexes to gauge mustahiq business success in the state. The battery items developed are validated by three (3) Shariah scholars in confirming their applicability to the current context. The model of the study is also shown to those Scholars for face validity and revisions. The developed battery items have been proven to be appropriate in representing their dimensions of interest. Rating is analysed in a percentile form and conclusion is derived accordingly. The actual survey includes seventeen mustahiq who have been assisted by the zakat institution in running their small and halal businesses in Sabah. The gauged success stories of their businesses have been moderate, implying the success has met the index score of more than 50 per cent. The results obtained are conducted at the exploratory level and for that more studies related are expected to be conducted in the future, where the coverage of the respondents used is larger to extend the findings, at least. Keywords: Maqasid al-Shariah; zakat; mustahiq; Sabah, East Malaysia


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Effects of Social Media Marketing on Repurchase Intention:

The Mediating Roles of e-WOM and Brand Awareness

Mohamad Isa Abd Jalil*, Suddin Lada, Zakiah Hassan, Mohd Ashari Bakri

Universiti Malaysia Sabah *Corresponding author email: [email protected]

Abstract

This study aims to investigate the effects of social media marketing strategy on repurchase intention in the context of Halal cosmetics among followers. Theoretically grounded in social media marketing theory, this study establishes these connections and examines the mediating roles of brand awareness and e-WOM. In line with the two core relationships (i.e. social media marketing strategy and repurchase intention), this research splits a holistic view of brand awareness and e-WOM and discusses their mediating effects. Based on the survey of 300 followers, the empirical results support H1 (SMM – Re-PI), H2 (SMM – BA), H3 (SMM – eWOM), and H4 (BA – Re-PI) implies that social media marketing strongly affects the consumer repurchase intention, brand awareness, and eWOM. However, H5 was rejected. For mediation effects, H4a (i.e. brand awareness) was supported, but at the same time, the study failed to accept H5a (i.e. eWOM). This study offers implications that significantly advance the theoretical and managerial literature on social media marketing strategy for the Halal cosmetic industry. Keywords: Social Media Marketing; Brand Awareness; E-WOM; Repurchase Intention


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The Effect of Sensory Appeal Value to Mall Repatronage Intention in Kota Kinabalu Context:

With Moderating Effect of Income

Fasihah Farhanah Ahmad Farrid*, Imelda Albert Gisip

Universiti Teknologi Mara Cawangan Sabah *Corresponding author email: [email protected]

Abstract

The focus of this study is to understand the effects of sensory appeal value to mall repatronage intention in Kota Kinabalu context. Sensory appeal value is classified as the experiential value effects, which are identified in the dimension of consumption values. This study also investigates the moderating effect of income with patron’s sensory appeal value in Kota Kinabalu shopping malls and mall repatronage intention. The purpose of this paper is to gaining a better understanding the factor of sensory appeal value moderated by income that influence patron’s intention which is contribute to literature by recognizing the factor. A quantitative study with sample size comprises 250 Kota Kinabalu patrons from the four major shopping malls with different characteristics in this city involving 1Borneo Hypermall, Suria Sabah, Karamunsing Complex and Imago is set to analyze the data. Results of this study found that sensory appeal value has a significant impact on mall repatronage intention. This indicates that positive sensory appeal value predicts an increase in the repatronage intention in the shopping mall. Apart from that, another important finding in this study is that sensory appeal value also has strong effect moderated by income of the patrons attracted to repatronize the mall. These findings strengthen one variable of experiential values from consumption values theory and behavioral intention which hold that sensory appeal value is important factor affecting mall repatronage intention. Lastly, this study provides essential understanding of the way contemporary Kota Kinabalu patrons can be effectively segmented and targeted by retailers and marketers among existing shopping malls with another soon to be developed around the city. Keywords: Provide Shopping Mall; Sensory Appeal Value; Income; Repatronage Intention; Kota Kinabalu; Malaysia


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Abstract ID: AIBC-2020:045-031

Role of Macroeconomic Cyclical Indicators and Country Governance on Bank Non-Performing Loan

Behavior in Emerging Asia

Nurfilzah Arham*, Mohd Shamlie Salisi, Rozita Uji Mohamed, Jasman Tuyon

Faculty of Business and Management, University of Technology MARA, Malaysia


Abstract Non-Performing Loan (NPL) remains as an important element of credit risk in emerging Asia banking. This research theoretically and practically examined the role of macroeconomic cyclical variables in influencing the level of bank’s NPL in Asia emerging countries. Theoretically, the procyclical and countercyclical perspectives used as the underlying theory to understand the role of macroeconomic cyclical indicators in influencing bank NPL in Asia. Practically, this research extended the previous studies on macroeconomic cyclical model by introducing interaction of macroeconomic cycle indicators with country governance and their influence on bank NPL. The proposed empirical model is used to examine the roles of country governance in mitigating the negative effects of macroeconomic cycles on bank credit risk. This study employed panel regression analysis methods to examine the relationships of microeconomics and country governance variables on bank NPL by using Principal Component Analysis as interaction tools by analyzing 10 countries in emerging Asia from 2010 to 2018. The interaction analysis provides new insights on the role of country governance to mitigate the negative effect of economic cycle shocks. It is found that the country governance decreased the effect of total external debt/GDP, inflation rate, and unemployment rate on bank NPL. Thus, country governance has significant impact on mitigating the bank NPL. The geographical coverage of the research data is limited to 10 emerging Asia countries. This research contributes to the extension of bank NPL research that would be valuable to inform theory, practice and policy related to management of the bank NPL in emerging countries of Asia. This article provide new insights on the interaction role of governance in managing bank credit risk. Keywords: Bank Credit Risk; Bank NPLs; Emerging Asia; Macroeconomic Cyclical Indicators.


21


Effect of Credit Risk Management on Financial Performance of Commercial Banks Listed at The

Malaysia Securities Exchange

Siti Raihana Hamzah*, Haneem Muhamad Anuar

Universiti Sains Islam Malaysia

*Corresponding author email: [email protected]

Abstract Bank performance is important to all banking institutions as it provides public trust and confidence for the entire system. It is, at the same time, able to contribute to a healthy national economy and works fine. Therefore, financial institutions, including banks, should maintain performance, financial strength and stability as they play an important role in economics. In real term, since banking institutions’ main activity is credit creation, thus maintaining strong performance is very challenging. Credit creation comes with the most critical risk deemed by many, which is credit risk. Credit risk needs to be managed with prudent as it may impacts negatively onto the performance. It is thus important to study how various banks manage credit risk for effective policy. Due to that, the main objective of this study is to find the effect of credit risk management on the performance of commercial banks. The credit risk management measurement will be proxied with four ratios which are capital adequacy ratio, loss given default ratio, loan loss provision ratio and non-performing loans ratio. These ratios will be tested against the performance or the return of the shares of the commercial banks listed on the Malaysian Securities Exchange. This research uses panel data regression on the data that has been obtained from 2010 – 2019. Adopting a 5 percent test of hypothesis, the study found a statistically significant relationship between non-performing loan ratio, capital adequacy ratio, loan loss provision ratio and loss given default ratio onto bank stock performance in Malaysia. The study concluded that, at 5 percent significance level; the credit risk management of the banks has no significant effect on bank stock performance in Malaysia for the period under study.

Keywords: Credit Risk Management; Banks Performance; Non- Performing Loan; Capital Adequacy Ratio; Loan Loss Provision Ratio; Loss Given Default Ratio


22


The Moderating Effect of Sales Skills on Competency and Entrepreneurial Success Cooperative in East

Malaysia.

Vvy Elvira Pengiran*, Stephan L. Sondoh. Jr, Bonaventure Boniface

Universiti Malaysia Sabah


Abstract Co-operative is crucial as a catalyst in generating economic development, especially for the poverty reduction among rural population. Despite their importance to the economy, the literature review however indicates that research emphasis on these organizations remains limited and neglected within the local context. This study attempted to investigate the moderating effect of sales skill on competency and entrepreneurial success. The data for the study was collected from 277 co-operatives by using questionnaire. The findings provide guidance for the co-operative to boost its performance in order to transform the nation to be the high financial gain. Keywords: Sales Skills; Competency; Entrepreneurial Success; Co-Operative


23


Are Our Children Financially Illiterate? The Case in Kedah

Muhammad Faris Omar*, Hasniza Mohd Taib, Logasvathi A/P Murugiah,

Rusmawati Ismail, Shri Dewi A/P Applanaidu

Universiti Utara Malaysia *Corresponding author email: * [email protected]

Abstract

The bankruptcy case and financial literacy seems to be a serious issue in Malaysia. Bank Negara Malaysia (BNM) reported that level of financial literacy among Malaysian was at 36% compared to other developed country, which is at 59%. Further, the number of bankruptcy cases continuously increases from year to year. Thus, in order to overcome this issues BNM launched the “5 Years National Strategy for Financial Literacy” programmed from 2019 – 2023 to nurture the right values start from school children. In order to ensure this program successfully implemented, a further study required to measure the determinants factor toward children financial literacy. Thus, the main objective of this paper is to identify the level of children financial literacy in Kedah and analyze the significant factors that influenced their level of financial literacy. This study surveyed 320 primary school students in Kedah, aged from 7 to 12 years old using both face to face and online method. The measurement of the level of children financial literacy used based on passing rate indicator provided by Chen, Volpe and Pavlicko (1996); where >80% is high level of financial literacy, 60%-79% is moderate level of financial literacy and below 60% is low level of financial literacy. Results show that children in Kedah is highly financially literate. Besides that, there are significant different in children financial literacy according to their parent education level, parental income, student class group and school location. Based on linear regression model, results showed that saving behavior, spending behavior, peer role, school involvement, parent role, and technology are significantly influence children financial literacy. These findings are in line with Family Financial Socialization Agents Theory and Consumer Socialization Agents Theory. Keywords: Financial Literacy; Bankruptcy; Saving Behavior; Spending Behavior; Financial Socialization Agents


24


The Seriousness of COVID-19 in Southeast Asia

Harvint Thevadass*, Ricky Chee-Jiun Chia

Universiti Malaysia Sabah, Malaysia


Abstract

This paper aims to identify and rank the seriousness of the COVID-19 in the 11 Southeast Asia countries. To identify and rank the seriousness of the COVID-19, this study calculated the ratio by taking into consideration of the total population and country’s size. The results show that before considering total population and country size the ranking of the countries was only based on total cases and deaths. For instance, Indonesia was ranked 1st in both ranking of total cases and total deaths. But after considering total population, Indonesia ranked 5th in terms of total cases and 2nd place in terms of total deaths. Besides, after considering country size, Indonesia ranked 3rd place in terms of total cases and total deaths. This shows that total population and country size does affect the actual ranking of the 11 Southeast Asia countries. The research will be very helpful for the students, researchers, investors and for the academicians. Keywords: COVID-19; Coronavirus Disease; WHO; Investors Sentiment.


25

Abstract ID: AIBC-2020- 052-036

Consumption Intention on Functional Food in Malaysia

Flaviana Ivy Febian*, Sharifah Nurafizah Syed Annuar

Faculty of Business and Management, Universiti Teknologi Mara Sabah Branch Kota Kinabalu Campus, Malaysia


Abstract

In recent years, the trend of consumer consumption has changed which customers need food that helps prevent illness, improve mental health, and improve the quality of life. Functional foods are those food products which, in addition to providing the required nutritional requirements, provide essential nutrients needed for good health and which potentially have a positive impact on human health. There are four variables which are perceived barriers, perceived benefits, cue to action and intention are analyzed in this study. SPSS 24 and Smart PLS 3.0 were used to analyze the collected data. The results show that perceived barriers and perceived benefits have positive relationships on intention to consume towards functional foods. However, cue to action found to have a negative relationship on intention to consume towards functional foods. Therefore, the acts of the manufacturer promoting functional foods by encouraging health benefits that influence customer intention. In order to ensure that customers achieve the nutritional benefits and eventually shape consumer-positive healthy eating behaviors, manufacturers must also be responsible for the statements of the health capabilities provided in a product. Keywords: Functional Food; Intention; Malaysia


26


E-Wallet Usage Intention During the Covid-19 Pandemic: Evidence from Malaysia

Haneffa Muchlis Gazalia, Tamrin Amboala*b

aLabuan Faculty of International Finance

bFaculty of Computing and Informatics Universiti Malaysia Sabah


Abstract The main aim of this study is to investigate the factors that influence the intention to use e-wallet during the covid-19 pandemic. This study offers a conceptual model to understand the intention of e-wallet during the covid-19 pandemic in Malaysia. This study extended Technology Acceptance Model with perceived benefits and perceived risk to understand the usage intention of e-wallet during the covid-19 crisis. The current study is conceptual in nature and lacks empirical evidence. The findings will help the e-wallet system provider to design and implement a better user friendly and a more accepted system. This study extends the understanding of TAM to emerging contexts such as the intention of e-wallet. Future research should be carried out to establish the relationship between the identified variables in this study. Keywords: E-Wallet; Covid-19; TAM; Perceived Benefits; Perceived Risk; Malaysia


27


A Study on Southeast Asian Countries (Malaysia-Thailand-Philippines-Indonesia)

Exchange Rates and Stock Prices Behavior Due to Pandemic Covid-19

Yugaindren Alagas*, Ricky Chee-Jiun Chia

Universiti Malaysia Sabah, Malaysia *Corresponding author email: * [email protected]

Abstract This study examines the relationship between Southeast Asian countries exchange rates and stock prices behavior on pre and present of pandemic covid-19. The Southeast Asian countries used in this research are Malaysia, Thailand, Indonesia and Philippines. Furthermore, the exchange rates analyzed in this paper which are MYR, THB, IDR and PHP. In addition, the stock prices used in this paper which are FTSE Malaysia KLCI Stock (KLSE), SET Index Thailand Stock (SETI), FTSE Indonesia Stock (FTWIIDNL) and FTSE Philippines Stock (FTWIPHLL). The data is analyzed by daily data by utilizing simple regression model. Moreover, the data was taken from Investing.com and Yahoo Finance.com database. In more detail, it describes how exchange rates and stock prices will react on pre and present covid-19 pandemic. This can have a huge implication for a country's economy that will appreciate or depreciate. Furthermore, exchange rate fluctuations, especially in the currency exchange movement before and after the covid-19 pandemic, should be given serious attention to addressing the uncertainties inherent in the economies of the countries involved in this research. This research attempts to evaluate the exchange rate and stock prices relationship behavior in Southeast Asian countries reaction on pre and present of pandemic covid-19. It is possible to identify the behaviors of exchange rate and stock prices to prevent fluctuations, specifically during pre and present pandemic covid-19 currency exchange movements. Furthermore, the results will be useful for investors and respective person towards this to explain the market. For forthcoming research, it may possibly be extended by analyzing exchange rate and stock prices relationship on pre and post pandemic covid-19. Keywords: Pandemic Covid-19; Exchange Rate; Stock Prices; Currency Movements; Regression Model; Volatility;

Southeast Asian Countries


28


Consumer Preference for Local or Foreign Brands:

The Role of Lifestyles in Understanding Consumer Preference in Kuching

Ottilia Ting Yi Jun*, Geoffrey Harvey Tanakinjal

Labuan Faculty of International Finance, Universiti Malaysia Sabah, Jalan Sungai Pagar, 87000 WP Labuan


Abstract

The present market scenario shows a visible change in consumer preference to technologically superior branded products. The changing habits of consumers purchasing behaviour told that luxury goods are now being apparent as necessities with disposing of higher incomes being spent on lifestyle products. Brand selection becomes more complex and critical in a global market place, whether the brand may be local or global. The purpose of this study is to examine the relationship between lifestyle and consumer preferences for local or foreign brands. Malaysian Gen Y-ers tend to have a general feeling of belonging to national and local brands. Such conduct helps to determine several lifestyle dimensions that effect on the consumers' preference. This research analysed the selected lifestyle profiles and researched on consumer preference for local and foreign brands. The researcher collected a total of 200 respondents, randomly from the citizens of Kuching city through a Google survey form. Statistical Package for the Social Sciences (SPSS) and Smart PLS were used to process the data. In this research, eight lifestyle dimensions to be tested on the significance of consumer brand preference. The results indicated that only one factor is substantially related to customer preference: individuals who have a cost-consciousness lifestyle choose to choose Sugarbun (local brand) rather than KFC (foreign brand). This finding will provide some implications in benefiting both local and foreign marketers currently working in or planning to penetrate the Kuching business in the near future, which may help enhance the productivity and sustainability of selling in this market by connecting their products to different consumer lifestyle groups. For future research, this study can be used as a reference that can be built in numerous ways, so that the evolution of lifestyle dimensions and constructs can be discussed by real phenomena that exist. Keywords: Brand Preference; Lifestyle; Consumer Behaviour.


29


Shariah Gold Investments in Malaysia: Prospects and Challenges

Hani Amirah Juisin

Labuan Faculty of International Finance, Universiti Malaysia Sabah, Malaysia

*Corresponding author’s email: [email protected]

Abstract Malaysia encompasses three types of offerings in gold investment platform. The often and traditional way of gold investing is through physical gold investment. As based on the development of the banking system, Gold Investment Account (GIA) or Gold Savings Account (GSA) was emerging beginning from the year of 2010. Since the launching of the first-ever Shariah compliance gold account from Kuwait Finance House (KFH) in Malaysia, a few banks and gold services provider also take a step offering their new product of gold account. As such, Al-Rajhi Bank, Bank Muamalat, Public Gold, and to name a few which based on the Shariah principle. Following the advancement in financial technology (FinTech), blockchain has launched for the sake of convenience in terms of time and cost of gold storing. For instance, HelloGold. Among of these platforms, the Shariah-compliant products and services are vital to choose, use and implement in Muslims daily life. The banks and gold services provider must adhere to the needs of the Shariah principle in buy and sell of gold. The reason is to avoid the breaching on the Shariah law as well as biased to one party. Therefore, this paper discussed the prospects and challenges to choose and invest in the gold investment platform. It perhaps may help and shed some light towards Shariah gold investment. Keywords: Challenges; Gold Investment; Muslim; Malaysia; Prospects; Shariah Compliance


30


The Presence of Day-of-the-Week Effect Upon the Performances of the Cryptocurrencies

Tan Sze Kie*, Ricky Chia Chee Jiun



Abstract

This paper investigates the performance of the top ten listed cryptocurrencies (Bitcoin, Ethereum, Tether, XRP, Bitcoin Cash, Cardano, Bitcoin SV, Litecoin, Chainlink, and Binance Coin) ranked by their market capitalization to discover whether there is a presence of Day-of-the-Week effect in the market. The OLS regression analysis with dummy variables is used to identify the presence of the Day-of-the-Week effect upon the cryptocurrencies. Whereas the statistical significance in the data of the dummy coefficients provide insights information of any possible anomalies in the cryptocurrency markets. The finding implies that there is an abnormal high return pattern only on Monday for Bitcoin (BTC) which is in line with the previous research while there are Friday effect upon several of the other cryptocurrencies which shows a constant pattern of high positive return on Friday. Additionally, this study disregards Thursday as it shows insignificancy due to the inconsistency in the results. It was said that cryptocurrency markets have become an even more efficient market compared to the year when it was newly introduced into the market back in 2009. However, by detecting the presence of market anomaly, it has aided the investors in implementing trading strategies to gain profit from the market. Hence, this paper is an extend research of the previous study by contributing to a lengthier data span (2013-2020) and wider range of cryptocurrencies. Keywords: Day-of-the-Week Effect; Cryptocurrency; Bitcoin


31


The Day-Of-The-Week Effect on Top Industrial Sector Companies in Euronext

Evita Niki Albert*, Ricky Chia Chee Jiun



Abstract

This paper aims to examine the presence of the day-of-the-week effect among the top listed industrial sector companies in EURONEXT 100 index in terms of the earliest available dataset of daily stock returns which are 1ST June 1992 until 27TH March 2020. Daily closing prices are analyzed using the graphs, descriptive statistics, and multiple regression method. Over the years, Euronext have merged with different stock exchange markets in order to expand its liquidity in stock returns and offered financial services. During the period of its available dataset from June 1992 to March 2020 which cover 27 years and 4 months including the Global Financial Crisis happened. Therefore, this paper also shows the impact of Global Financial Crisis towards the top listed industrial sector companies in EURONEXT 100 index. The datasets are divided into three different economic conditions which are Pre-GFC, GFC, and Post-GFC. Result shows Monday, Tuesday and Friday have significant effects among the 7 top listed industrial sector companies in EURONEXT 100 index. The outcome of this study is to provide an insight of individual company data instead of all EURONEXT 100 index data. This study however does not include the volatility and behavioural relationship between the presence of the day-of-the-week effect. Keywords: Euronext Stock Market; Daily Effects; Global Financial Crisis


32


Cultural and Non-Cultural Holiday Effect in Japanese and South Korea Stock Markets

Renogadewi A/P Sandara Segaran*, Ricky Chia Chee Jiun



Abstract

The paper investigated the existence of cultural and non-cultural impact in Japanese and South Korea stock markets consisting four stock indexes which are Nikkei 225, JASDAQ, KOSDAQ and KOSPI. Descriptive statistics and Ordinary Least Square (OLS) with dummy variables are adopted to examine the average returns and associated with the cultural and non-cultural behavior. Results obtained from the descriptive statistics indicate positive results for Nikkei 225 and significant results for post-holiday. For JASDAQ, the highest holiday return is achieved on the pre-holidays and OLS results shows insignificant for pre- and post-holiday effects. The results for KOSDAQ and KOSPI also have the similar results that showing insignificant pre-holiday and post-holiday effects. Moreover, it is found that the cultural behavior effects the trading activities as Japan stock markets has more cultural holidays compared to South Korea stock markets which shows zero returns on the trading days. Holiday effect happens in Japanese stock market but only in terms of post-holiday effect, while pre-holiday effect does not happen. As the previous researches said by Hisashi Tanizaki, it is supported that the Japanese stock market is more volatile in its price and the results were consistent for Nikkei 255 and the average returns are higher before the day holidays occurs. Comparing in both 4 indexes, South Korea stock markets has irregular patterns of trading anomalies compared to the Japanese stock markets, yet their cultural holidays are similar in both countries. This holiday and cultural influences can be explained with the arguments from the trading behavior where both countries have their own cultural and traditional days affecting the trading returns in the stock markets. Keywords: Holiday Effects; Nikkei 225; JASDAQ; KOSDAQ; KOSPI


33


Marine Conservation Area Under The Leadership of Sabah Park:

Case Study of Tun Mustapha Park (TMP)

Erica Joanne Reuben*, Haijon Gunggut

Universiti Teknologi MARA


Abstract The biggest marine conservation area in Malaysia, Tun Mustapha Park (TMP) was finally been established on May 19, 2016. This study focuses on the leadership of Sabah Park in the process of gazetting the Tun Mustapha Park (TMP). The study is important in order to understand the scope of work of Sabah Park as the lead actor involved in establishing TMP. This study used qualitative approach and most of the data were obtained from literary sources. The main scope of work of Sabah Park in the process of establishing TMP are leading the overall initiative to establish TMP Steering Committee including in fisheries management, marine habitat protection through collaborative management, shoreline management and control of land-based pollution, livelihoods and enterprise management, and education and awareness. Thus, the leadership of Sabah Park has been crucial in the agenda setting of the TMP as well as the completion of more than 13 years of negotiation, lobbying, capacity building, scientific discovery and community outreach before the establishment of TMP. Keywords: Sabah Parks; Government Agency; Marine Conservation Area; Marine Park; Tun Mustapha Park (TMP)


34


Customer Segmentation using K-means Clustering: A Case Study of Starbucks Malaysia

Zetty Ain Kamaruzzaman*

Universiti Malaysia Pahang


Abstract

Understanding your customers is a vital step in building your business. Good customer management comes from good customer measurement. With the latest advent of customer analytics, businesses nowadays can fully understand their customers at different stages of customer buying experience, detecting patterns from customer data, predicting actions their customers will take, and then making decisions about how to improve their business to attract more customers and keep the customers they already have. The objective of this paper is to perform customer segmentation of Starbucks Malaysia and to determine which segments are the most profitable. Customer segmentation is a powerful technique to understand the patterns that differentiate your customers. A customer segment is a grouping of customers that share certain characteristics. In this paper, k-means clustering algorithm is used to segment the customers of Starbucks Malaysia based on their income and spend data. From the clustering analysis, we can derive the optimum number of clusters and understand the underlying customer segments to identify the statistical patterns of Starbucks customers. This research will contribute theoretically where this research can uplift the theoretical foundation of customer analytics and practically towards Starbucks Malaysia and other organization marketing teams where they can understand their customers better and can increase their revenue with the improved marketing campaigns. Keywords: Customer Analytics; Customer Segmentation; K-means Clustering


35


Sabah’s Tourism and the Participation of the Sea Gypsy: Case of Semporna, Sabah

Nor Atikah Hadzlan*, Asri Salleh

Faculty of Administrative Science & Policy Studies,

Universiti Teknologi MARA (Sabah), Kota Kinabalu Campus


Abstract Semporna in Sabah is popular for its eco-tourism. However, Semporna is also home to a large concentration of the stateless sea gypsy, known among the locals as the Pala’uh. Although the law in general, prohibits the participation of the stateless in tourism activity, the very presence of the sea gypsy itself in Semporna has attracted many tourists to come to the district. This provides opportunities for employment and sources of income for the sea gypsy, among other things. Yet, due to their stateless status, this also exposes the sea gypsy to exploitation and abuse of their human rights. Based on data collected from key-informant interviews and secondary sources, the article overviews the participation of the Pala’uh in Sabah’s tourism. The article finds that since Malaysia needs to come up with a specific policy to regulate the participation of the Pala’uh in tourism as the latter somehow continues to be one of the tourists’ attractions in Semporna despite the general prohibition. That said, on the grounds of historical and cultural, the Pala’uh deserves a special attention to the related laws governing their participation in tourism so as to allow them for basic access and means to sustenance of livelihood and protection from exploitation and crimes. Keywords: Sabah’s Tourism; Sea Gypsy; Stateless; Human Rights; Semporna; Pala’uh; Exploitation


36


Poverty Alleviation: Gana Resettlement & Integrated Development (Grid)

Oliverra M. Lim*, Haijon Gunggut

Universiti Teknologi MARA (UiTM)


Abstract

This study focuses on Gana Resettlement and Integrated Development (GRID) Project as a model for poverty alleviation in Kota Marudu, Sabah. GRID is also known as community Forestry Project of Lingkabau Forest Reserve (LFR). The GRID Project is developed to improve the standard of living of households in Kg. Gana. Various programs had been introduced under GRID to alleviate poverty such as agropolitan project and Gana eu-redd++ project. GRID Porject consists of two phases: The first phase in 1998-2000 and the second phase in 2001-2010. The GRID Project is to improve the living condition of households in Gana. Primary data were based on observation were done within the 10 areas or villages under GRID Project and interview with several community members from Kg. Gana. Secondary data were obtained from newspaper reports, Annual Reports (Social Forestry Report) and other secondary data. It was found that the GRID project contributed to improved basic infrastructure, better access to education, healthcare, job opportunity and other services in Kg. Gana. Thus, preliminary evaluation suggests that the GRID Project is successful in alleviating poverty in Kg. Gana. Keywords: GRID; Poverty Alleviation; Kg. Gana; Rural Development; Sabah


37


The Speed of Completing Payment Process: Comparison between Cash and E-payment for Offline

Purchase at Fast-food Restaurants in Labuan F. T.

Sharinah Puasa*, Nurjeehan Ayub, Suzillah Sidek, Fithriah Ab Rahim

Labuan Faculty of International Finance, Universiti Malaysia Sabah, Malaysia *Corresponding author email: * [email protected]

Abstract

E-payment in Malaysia has rapidly grown at e-commerce platform and offline purchases. Globally, Malaysia is currently ranked 19th for e-payment adoption. The main reason for e-payment gaining popularity is due to the benefits such as convenience, safety, transparency, time and cost-saving. Besides, people wariness on the risk of COVID-19 transmission through cash increases the use of e-payment, which mainly because of its contactless payment mechanism. However, whether the e-payment offers faster payment completion time as compare to cash is debatable. Studies on the technical effectiveness of payment methods are limited. Also, none of the previous literature examined the technical effectiveness of cash payment and e-payment. Thus, this study aims to fill the gap by comparing the speed of payment completion time between cash payment and e-payment. This study applied a qualitative method using observation technique focusing on offline purchases at fast-food restaurants in Labuan Federal Territory. Primary data was collected from a random sampling of 60 customers. The cash payment in this study refers to the payment made by cash notes and coins. On the other hand, e-payment refers to e-wallet and credit/ debit card - pin and payWave. The result of this study found the e-payment - payWave credit/ debit card method is the fastest payment with the contactless process. In contrast, e-payment using credit/ debit card with pin recorded the most delayed, and none of the observed customers is using the e-wallet. Interestingly, the cash payment method recorded a fast and consistent payment completion time. Also, customers are more incline to use cash payment compared to e-payment. Keywords: Payment Systems; E-wallet; Cashless


38


COVID-19’s Dynamic Relationships with Stock Markets of China, USA. vs. Malaysia

Noor Azryani Auzairy*, Kamaleswari Selvaraj, Muhammad Farhan Misron, Nor Widiya Wati Fandi, Aina Syazwani Md

Nizam

Faculty of Economics and Management, Universiti Kebangsaan Malaysia


Abstract

This paper investigates the dynamic relationships of COVID-19 daily positive and death cases with stock market performances of China, the United States and Malaysia. We are to explore on the possible differences on the relationships and impact among the three countries due to their different responses on the pandemic. Global and each country daily positive and death COVID-19 cases are applied together with Shanghai, New York and Kuala Lumpur Stock Exchange Composite Indices in the Multiple OLS Regression, Granger Causality, Johansen Cointegration and Vector AutoRegression from 1st May 2019 until 31st August 2020. Exchange rates, interest rates, crude oil prices and gold prices are used as controlled variables. In terms of causality effect, the findings obviously portray that China’s stock market, in which its government and people have been strictly responding on the outbreak, has not been affected by the outbreak. On the other hand, the U.S., which has been more relaxed, we can see that both global and country positive and death cases have significant effect on its composite index returns. Malaysia’s stock market returns generally have been mainly influenced by the country’s covid death cases. The results also indicate that the stock market performances of Malaysia and the US could affect the number of positive and death cases of COVID-19, in which, we have to be much more pre-cautious while struggling for economic recovery. Keywords: COVID-19; Stock Markets; China; USA; Malaysia


39


Online Impulse Buying Based on Flow Theory: A Case Study in Selangor

Reelaashinii A/P Lingakumaaran*, Geoffrey Harvey Tanakinjal

Labuan Faculty of International Finance, Universiti Malaysia Sabah,

Jalan Sungai Pagar, 87000 WP Labuan *Corresponding author email: * [email protected]

Abstract Digital shopping activities can be categorized as impulse buying when introduced to stimulating indications; consumers frequently render spontaneous and abrupt transactions intuitively. Such buys are related to deep desire and enjoyment, which is known as impulse buying. In the online purchasing, customers who are unregulated while subjected to e-stores online stimulus who primarily involved in the sudden movement are given more importance in online impulse buying. Impulse buying requires a specific and complicated shopping experience which engaged in a psychological state where unplanned sales are allowed as such choices are impossible for them to monitor. The purpose of this study is to addresses the difference in personal characteristics in terms of having a shopping experience. Malaysian online consumers are mainly acquiring this impulse buying in this modern world of global technology. Such conduct helps to define many cognitive causes for impulse buying. This research analyzed the theory of the concepts of impulse buying, particularly those factors that decide the purchase of impulse buying and aims to enhance awareness and discuss the purchase of impulse buying based flow theory. In addition, the research also aims at investigating how flow theory and consumer satisfaction are related. This study aimed at researching the causes of impulse buying focused on the theory of flow. The researcher collected a total of 210 usable responses from Selangor. The data were processed using SPSS. The results indicated that Task Skill, Task Challenge, Satisfaction were significant to Flow State. Flow State and Gender were significant towards Online impulse Buying, while only satisfaction is not significant to Online Impulse Buying. Future research can include more exhaustive geographical coverage and provide a comparison between online and offline impulse buying. Keywords: Online Impulse Buying; Task Skill; Task Challenge; Flow State; Satisfaction; Gender


40

Abstract ID: AIBC 2020:065-054

Factors Determining the Receptiveness of E-learning adoption among Secondary School Students’

During Movement Order Control (MCO) in Labuan.

Nurjeehan Binti Ayub*, Nur Ateeqah Binti Asman , Sharinah Puasa

Labuan Faculty of International Finance, Universiti Malaysia Sabah Kampus Antarabangsa Labuan (UMSKAL), Jalan Sungai Pagar, 87000 Wilayah Persekutuan Labuan Malaysia


Abstract

The outbreak of Coronavirus (COVID-19) pandemic has triggered the implementation of lockdown in many countries including Malaysia. Most governments around the world have temporarily closed educational institutions in an attempt to control the spread of the COVID-19 pandemic and this including Schools as well. Due to the current crisis of the pandemic online learning has becoming an important role for all students to continue their learning activities at home during lockdown. The purpose of this study is to investigate the receptiveness of online learning adoption among secondary school students’ during movement order control (MCO) in Labuan. Most importantly, the study is aim at gauging a clear picture about e-learning systems that will enable school management to receive useful knowledge about the performance of their online learning education during lockdown. The measure factors involved self-efficacy, perceived ease of use, perceived usefulness and ICT facilities as the main factors influence the receptiveness of e-learning adoption. Theory of Technology Acceptance Model (TAM) will be used to evaluate the students’ adoption in online learning. Sekolah Menengah St. Anne in Labuan Federal Territory will be the target population in this research study, which no previous research been investigated on that area. The study will be using self-administered questionnaires through online which is Google Form to collect data from students. However, there are only 109 out of 150 questionnaires are usable for analysis. The result shows that self-efficacy, perceived usefulness, and ICT facilities has a significant relationship towards the receptiveness of e-learning adoption among students in Sekolah Menengah St. Anne during MCO in Labuan. Perceived ease of use shows no significant relationship as students are not familiar and had no experience with online learning. Keywords: E-learning; Technology Acceptance Model; Movement Control Order (MCO); Secondary School, Pandemic COVID-19.


41


Establishing Zakat on Oil & Gas in Malaysia

Pg Mohd Faezul Fikri Ag Omar*, Haneffa Muchlis Gazali, Samsulbahri Mohd Nasir, Nurul Izzati Abd. Razak, Norhamiza

Ishak



Abstract

Zakat as one of the pillars in Islam plays a vital role in a nation’s socio-economic development and its people’s prosperity. It can be classified into zakat fitrah and zakat mal (property or wealth). Zakat on minerals falls under the latter type of zakat. However, the practice of zakat on minerals is quite vague in Malaysia just as the case is in the Islamic world. Moreover, certain minerals have been recently explored with some specialized mechanisms that are yet to be discussed and developed. Oil and gas are clearly minerals; the same applies to gold and silver, thus its zakat should be paid upon its extraction, although this is not the case in Malaysia. This study aims to discuss the establishment of zakat specifically on oil and gas in Malaysia. This is a conceptual paper that proposes the idea of establishing zakat on oil and gas, as both are valuable minerals and supposedly subject to zakat. Further, a content analysis has been used in the study and found that oil and gas subject to zakat guided by the Quranic verse and scholarly deduction by Muslim scholars. Its zakat requires nisab but not haul, analogically deduced with zakat on agricultural produces. Even though zakat on minerals is compulsory as other zakat mal, its exercise on oil and gas is yet to be thoroughly implemented despite Malaysia is considered as an oil-producing Muslim country. Benefits of zakat as compared to taxation and its role towards socio-economic development were highlighted to maximise the true potential of zakat. This study contributes to a deep understanding of zakat on oil and gas practically and academically. Despite being limited in literature, this is a breakthrough study that sheds light for extensive discussions on zakat on oil and gas. Several recommendations are also discussed in this study. Keywords: Zakat; Oil and Gas; Zakat on Minerals; Socio-Economic Development; Zakat Collection


42


The Acculturation Effect on the Purchase Intention of Halal Food Products

Among Non-Muslim Consumer

Azaze @ Azizi Abdul Adisa, Suddin Lada*b, Joehan Joehari Williamc

a,bFaculty of Business, Economics, and Accountancy cLabuan Faculty of International Finance

Universiti Malaysia Sabah


Abstract This study aims to identify the intention to purchase Halal food products among non-Muslim consumers in Malaysia, moderated by the acculturation effect. A structured close-ended questionnaire was used to gather data through the random distribution of 397 non-Muslim consumers from the Alumni network of several private higher education institutions in Malaysia. The collected data was analyzed through the structural equation modeling (SEM) technique using partial least squares (PLS) with SmartPLS 3.0. The result indicated that attitude, subjective norms, and perceived behavioral control were positively influenced by the purchase decision of Halal food products among non-Muslim consumers in Malaysia. Apart from that, the acculturation effect moderates the relationship between attitude and intention to purchase. This finding will contribute to academics, Halal food makers, and government in understanding the Halal food purchase intention among non-Muslim consumers in Malaysia. The outcome of this study can be used as an input for Halal entrepreneurship in terms of marketing and operation strategy. On the government aspect, this study also provides an implication on national public policy and strategic economic planning in developing overall national Halal policy. The social harmonization among the multiple races in Malaysia is partially contributed through the acculturation effect. The acculturation effect has been reflected through the food choice decision among Malaysians, despite different religious belief and home culture background. Keywords: Malaysia; Theory Of Planned Behavior; Attitude; Subjective Norm; Perceived Behavioral Controlled;

Acculturation; Halal Food Products


43


Factors Contributing to the Purchase of Energy-Efficient Appliances in Malaysia

Teddy Lian Kok Fei

Faculty of Accountancy and Management,

Universiti Tunku Abdul Rahman, Malaysia


Abstract

There has been a growing realization of the adverse impacts of climate change as the problem continues to grow more serious. One promising area for greenhouse gas mitigation is through the use of energy-efficient appliances. This study identified the factors that contribute to the use of energy-efficient appliances in Malaysia. It utilized variables from the theory of planned behavior (TPB), which are attitude, subjective norms and perceived behavioral control. This basic model is extended with the additional variables of habit, environmental concern, environmental knowledge, and energy efficiency policy to explain purchase of energy efficient appliances. Apart from direct effects, indirect effects due to habit are also tested, using partial least squares methodology. The findings show that habit is the most important direct variable contributing to purchase of energy-efficient appliances. Other influential variables are attitude, perceived behavioral control and environmental concern. Together, these four variables explain 65.4 percent of the variance in purchase of energy-efficient appliances. Furthermore, habit also mediates the effects of perceived behavioral control, subjective norms and environmental knowledge on purchase of energy efficient appliances. Overall, the study points to the importance of including both habitual and intentional variables in understanding purchase of energy-efficient appliances. The limitations and implications of the study are discussed. Keywords: Climate Change; Energy-Efficient Appliances; Theory Of Planned Behavior; Habit; Energy-Efficiency

Policy


44


Using Unified Theory of Acceptance and Use of Technology to Understand the Behavioral Intention to

Use E-wallet during the Pandemic of COVID-19

Sharinah Puasa*, Tan JiaLe, Haneffa Muchlis Gazali, Nurjeehan Ayub

Labuan Faculty of International Finance, Universiti Malaysia Sabah, Malaysia *Corresponding author email: * [email protected]

Abstract

Pandemic COVID-19 has changed the way people interact. This study aims to investigate the level of consumers’ behavioral intention to use e-wallet during the pandemic of COVID-19 and examine the factors influencing the behavioral intention by applying the Unified Theory of Acceptance and Use of Technology (UTAUT) in the context of COVID-19 situation in Malaysia. An online survey was conducted to gather the primary data from consumers in Kuala Lumpur. The main finding reveals that consumers' intention to use e-wallet during the pandemic of COVID-19 is at a moderate level. Furthermore, this study found that Performance Expectancy and Effort Expectancy have a significant positive influence on consumers’ intention to use e-wallet during the COVID-19 pandemic. Performance expectancy loads the strongest relationship with consumers' intention to use e-wallet during the pandemic situation. These results add to a growing body of knowledge by providing evidence on the level of consumers’ intention and factors influencing the consumer’s intention. The evidence reported in this study shows Performance Expectancy and Effort Expectancy as critical factors of behavioral intention to use e-wallet as both factors remain significant during the pandemic situation. Keywords: E-wallet; Behavioral Intention; COVID-19 Pandemic.


45


Factors Influencing Continuance Intention To Use E-wallet

Noratikah H. Shukri, Emily H.T. Yapp*



Abstract E-wallet or digital wallet is one of a payable system without the use of cash or credit. This payment method had attracted a lot of users, particularly among Malaysian, especially during this COVID-19 Pandemic. However, what determines users intention to continue to use e-wallet remains unknown. Therefore, this study proposes a research framework that could help to answer this research question. Through the use of expectation–confirmation model (ECM), this research proposes that perceived usefulness, satisfaction, users habit, enjoyment and subjective norms could influence users continuance usage intention. Besides, users confirmation could influences users perceived usefulness and their satisfaction. The data will be collected through online self-administrative questionnaires among the Malaysian who have experiences using e-wallet during the COVID-19 Pandemic. Data then will be analyzed using SPSS and Smart PLS. The result will contribute to the understanding of the behaviour of Malaysian on e-wallet usage. In addition, it will also be useful for e-wallet organisation to establish better strategies for their current users and potential users. Keywords: E-wallet; Continuance Intention; Expected- confirmation Model


46


Cashless Payment in Malaysia

Fatin Afiqah Azizan*, Sharinah Puasa



Abstract

The barter system has been used before the existence of physical money. Introduction to the money system has made it easier for people to do business. People are no longer need to bring along the heavy bags of grains as an exchange for a business transaction. They can pay using notes and coins. After decades of the development of the banking system, notes, coins, and cheques are the main instruments for money transactions among buyers and sellers. After that, rapid growth in technology has created cashless methods that are essential in promoting the use of the electronic devices for buying and selling transactions. The use of electronic payment has reduced notes and coins usage. Because of the rapid development of technology, Business to Consumer (B2C) electronic trade (web-based business) has gotten an enormous and fundamental section of the newly advanced economy, which is purchasing goods and services by the buyers and making payments through the internet. Mostly the business conducted online in Malaysia has provided several payment methods to the buyers to purchase goods or services and the development of technology in Malaysia has improved the way business operated. With this technology, consumers can experience a smooth payment transaction. This paper discussed several types of cashless payment, including barter system, bank cards, mobile payment, Financial Process Exchange (FPX), direct debit, internet banking, mobile banking, and cheque. Keywords: Cashless; Electronic Payment; Payment System.


47


Perceived Effectiveness of Accounting Information System (AIS): A Descriptive Study of the Malaysian

Federal Government

Sharinah Puasa*a, Sharifah Milda Amirulb

aLabuan Faculty of International Finance, Universiti Malaysia Sabah, Malaysia bFaculty of Business, Economic and Accountancy, Universiti Malaysia Sabah, Malaysia


Abstract

Accounting Information System (AIS) is an integral part not only in business processes but also in government operations. While most of the governments around the world have been moving towards digitization for operational and communication purposes, AIS plays significant roles for greater operating effectiveness. Hence, it is essential to measure AIS effectiveness. Nevertheless, there exist inconsistencies when it comes to assessing AIS effectiveness due to diverse measurements. Also, the divergent in AIS effectiveness measurements is arguably due to its dynamic nature which depending upon how it is defined. However, such existing AIS measurements are not well justified. It leads to incomparability and lack of generalization. Therefore, this study revisits the existing literature to list the AIS effectiveness criteria. A quantitative method using survey questionnaire was conducted to obtain internal users’ perception towards AIS in the context of the Malaysian Federal Government. Interestingly, satisfaction scale was applied to represent the level of effectiveness highlighting the conceptual definition of effectiveness (i.e. fulfilling users’ requirements). This study emphasized that high satisfaction level indicates a highly effective system and vice versa. The result provides descriptive findings on the level of AIS effectiveness in the context of the Malaysian Federal Government. Overall, this study found a moderate level of AIS effectiveness of the Malaysian Federal Government based on the system users’ satisfaction towards six (6) criteria: Ease of Use; Processing Speed; Accurate Information; Complete Information; Relevancy of Information for the Use in making Decision; Improve Decision Making Process. The result offers evidence on the need for AIS improvement or users’ attention on the specific criteria (i.e. system processing time, the accuracy of the information in the system and relevancy of the information for the use in decision-making) that require top management’s concern. In reality, continuous improvement is crucial to sustain system effectiveness. Keywords: Accounting Information System (AIS); System Effectiveness; User Satisfaction.


48


The Impact of Monetary Policy on the Foreign Direct Investment Inflows in the Philippines

Effa Shazila Binti Arian Sha, Tai-Hu Ling*



Abstract

The aim of this study is to examine the impact of monetary policy imposed by government of the Philippines in attracting the foreign direct investment (FDI) inflows for a sample period of quarterly time series data spanning from 1990 to 2019. We applied the ARDL bounds cointegration model to investigate the short and long-run impact of monetary policy on the FDI inflows. In this study, there are six monetary related explanatory variables including size of economy, inflation rate, interest rate, trade openness, and exchange rate have been identified. The empirical results from ARDL show that market size and trade openness have long-run positive impact on the FDI inflows, while inflation, interest rate and the appreciation of exchange rate have long-run negative impact in attracting FDI inflows. Keywords: Monetary Policy; Foreign Direct Investment; ARDL Bound test


49


Country Institutional Environments in Promoting Entrepreneurship:

A Study on Developing Economies in Asia

Tze Cheng Chew*a, Tarun Kanti Boseb, Yaoyao Fanc

aUniversiti Malaysia Sabah, Malaysia bKhulna University, Bangladesh cSun Yat-sen University, China


Abstract

Previous studies have shown that country institutional environments play an important role in explaining why entrepreneurs in one country may have a competitive advantage over entrepreneurs in other countries and how specific country-level institutional differences contribute differently to levels and types of entrepreneurship. Hence, drawing on the institutional theory, this study aims to assess the perceptions on the regulatory, cognitive, and normative institutional dimensions that may promote entrepreneurship in a sample of 701 business students from three Asian’s developing economies: Malaysia, Bangladesh and China. In general, the overall institutional environments level for Malaysia and China are perceived as favorable for entrepreneurship whereas Bangladesh is perceived as relatively unfavorable for entrepreneurship. Moreover, results suggest that there is a statistically significant difference in country institutional environments between Bangladesh and Malaysia, as well as between Bangladesh and China. These results are important because it shows diversity within institutional environment among countries in the same Asia region and developing economies context. Implications for future research and public policy are discussed. Keywords: Entrepreneurship; Institutions; Institutional Environment; Developing Countries; Asia


50


Tax Avoidance and Its Determinants Among GLCs in Bursa Malaysia

Nicholas Ian Biono*, Ai-Yee Ooi



Abstract

This study is to examine the correlations between tax avoidance and its determinants among the Government-linked companies (GLCs) in Bursa Malaysia within the period of 2014 to 2019. While GLCs plays a very important role in the economic and social development of Malaysia, GLCs can be associated with tax avoidance activities. The benefits for GLCs are higher than the associated costs for tax avoidance and the potential managers' rent extractions are the only viable costs of tax avoidance, while GLCs benefit from higher cash flows avoided in the context of taxation. Plus, a potential penalty by tax authorities due to the fiscal audit exercise for GLCs is not feasible due to their political connections. Hence, this study will investigate the level of tax avoidance and its possible determinants for the GLCs to be involved in tax avoidance activities. This study used book-tax difference (BTD) as a proxy for tax avoidance where higher BTD indicates higher tax avoidance. Panel data regression analysis was performed to meet the objectives of the study. The findings suggest that leverage, market-to-book, firm’s age, and firm’s political connection are significantly correlated with tax avoidance among GLCs in Bursa Malaysia. The findings would assist the government or the policymakers to build strategic rules and regulations for the GLCs to pay taxes to maintain the social and economic stabilization and development in Malaysia. Keywords: Tax avoidance; GLCs; Malaysia; Bursa Malaysia Exchange


51


Firm Value and Cultural Diversity of Board of Director for Malaysian Public Listed Companies

Kan Hong Yee

Labuan Faculty of International Finance

Universiti Malaysia Sabah-Labuan International Campus Jalan Sg. Pagar, 87000 Labuan, Malaysia


Abstract Cultural diversity is an important issue in a firm especially when the firm operates in a multicultural society country such as Malaysia. Given the scarcity of empirical research as well as the inconclusive findings, this study aims to examine the impact of the cultural diversity of the board of directors on the firm value in Malaysian public listed firms. The data are manually collected from the annual report of all Malaysian Public Listed Companies throughout the years of 2014 to 2019. Board cultural diversity is defined as the ethnic diversity of directors that catogarized into five groups such as Malaysian Malay, Malaysian Chinese, Malaysian Indian, Malaysia others and foreigner. The degree of ethnic diversity is measured by Blau’s index while the firm value is measured by Tobin’s Q. Fixed effect model is found as the most appropriate model in our analysis. The finding shows a positive relationship between cultural diversity and firm value, suggesting that a higher level of cultural diversity increases firm value. The positive link between cultural diversity and firm value is aligned with the agency theory and resource dependency theory from the empirical studies. Nevertheless, this study provides an insight into the firms’ shareholders and decision-makers to promote a higher level of cultural diversity in a firm as it contributes positive impacts to the firm value. Keywords: Cultural Diversity; Firm Value; Malaysia


52


Board Diversity and Price Informativeness for Malaysian Public Listed Firm

Ai-Yee Ooi*, Suzillah Sidek, Minah Japang

Labuan Faculty of International Finance

Universiti Malaysia Sabah-Labuan International Campus Jalan Sg. Pagar, 87000 Labuan, Malaysia


Abstract

This study examines the relationship between the diversity of board members and the price informativeness in the top 100 Malaysian public listed firms. By incorporating a series of the corporate governance and firm characteristic control variables, our findings indicate a negative relationship between the ethnic diversity and price informativeness, suggesting that a less diverse board led to a more informative stock price. Nevertheless, gender diversity shows no significant impact. When the sample is divided into board with foreign director(s) and without foreign director, we find that the influence of ethnic diversity on price informativeness does not hold in former firms. Our overall results imply that less ethnic diversity in the board reduce internal disagreement during board meeting. The existence of foreign directors mitigates the disagreement and thus undermines the influence of board ethnic diversity on price informativeness.

Keywords: Ethnic; Gender; Top 100 firms


53


The Moderating Effects of Self-Efficacy on Entrepreneurial Capabilities and Homestay Program

Performance

Emira Syafika binti Abdul Manah*, Imelda Albert Gisip, Sharifah Nurafizah Syed Annuar

Universiti Teknologi Mara *Corresponding author email: * [email protected]

Abstract

Recently, economic sector at Labuan Federal Territory (F.T), Malaysia has slowed down due to the depletion of main resources such as oil and gas. So, it’s economy planning to change gradually to the tourism sector with the Labuan Development Blueprint 2030. The Homestay Program is one of the tourism sector initiatives. This program gives profit and many benefits to community and generally to this country. Unfortunately, the inconsistent trend numbers of arrivals at Labuan F.T and number of arrivals at Homestay program at Labuan F.T has affected the performance of the Homestay program. The success performance of the Homestay Program may have many factors as well as the internal approaches. Thus, this study aims to determine the moderator effects of self-efficacy on entrepreneurial capabilities to the registered Homestay Program performance in Labuan F.T context. This study use census survey method. A self-administrated questionnaire is developed with Five-point Likert scale questionnaire and Google Form link with 1 represent a response of “Strongly Disagree” till 5 represent “Strongly Agree” are used then distribute to registered homestay operators at this island. All the data was analysed by using IBM SPSS Statistics 24.0. The finding of this study through “Two-Way Interactions” the self-efficacy does effect to the relationship between entrepreneurial capabilities and Homestay Program performance. Keywords: Entrepreneurial Capabilities; Homestay Program Performance; Self-Efficacy


54


Factors Motivating the Adoption of E-payment in Cashless University Environment: A Comparative

Study Involving Undergraduate Students and Employees in University Malaysia Sabah

Aisyah Abdul Latip*, Anath Rau Krishnan

Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan, Malaysia. *Corresponding author email: * [email protected]

Abstract

The initiative to encourage the use of E-payment in a university environment is too focused on the students, and not on the whole community in the varsity. Hence, this study examined the factors that motivate the adoption of E-payment among the two different populations in Universiti Malaysia Sabah (UMS), namely the undergraduate students and the university employees. The study was established based on the Unified Theory of Acceptance and Use of Technology (UTAUT), where the influence of four independent variables i.e., convenience, social influence, security and speed factor on the adoption of E-payment, was investigated. The data required for the study were collected from a sample of 137 and 63 UMS students and employees, respectively. The collected data were then analysed using Smart PLS version 3. The results suggest that convenience, security and speed play a significant role in motivating the adoption of E-payment among the UMS undergraduate students and employees. In general, the results show that all the independent variables except the social influence have a significant impact on the E-payment adoption among the whole community of UMS. However, interestingly, the detailed multigroup analysis result indicates that social influence has a significant, larger influence on the employees than that of the students. The results of this study could help the E-payment service providers and entrepreneurs to understand better the aspects that should be concerned when delivering the service” the self-efficacy does effect to the relationship between entrepreneurial capabilities and Homestay Program performance. Keywords: E-payment; Employees; Undergraduate Students; UTAUT; UMS


55


Understanding the Gold-Inflation Nexus in Malaysia: A Time-Varying Perspective

Mohd Fahmi Ghazalia, Nurul Fasyah Mohd Ussdekb; Hanudin Aminc; Rizal Hamidd

aFaculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, Selangor

b,c,dLabuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan, Malaysia


Abstract

The main objective of this study is to examine the roles of gold as a hedge or a safe haven against inflation in Malaysia. We propose the standard and quantile techniques in the volatility models, with the time-varying conditional variance of the regression residuals based on the TGARCH specifications. We found that gold only plays a minor role as a hedge and safe haven against inflation since their returns do not evolve with the same rhythm as inflation. The rolling regression results, on the other hand, reveal that the incidents of shelter against purchasing power loss only occasionally occur at different times and not consistently across holding periods. We conclude that gold does not have the ability to secure Malaysian investment during high inflationary periods and at all the time. Thus, Malaysian investors should hold a well-diversified portfolio to earn sustainable returns and protection from purchasing power loss. Keywords: Gold; Inflation; Hedge; Safe Haven; Quantile; Rolling Regression

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