Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)

This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure i...

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Main Authors: Rosnia Masruki, Khaled Hussainey, Doaa Aly
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2019
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Online Access:http://ddms.usim.edu.my:80/jspui/handle/123456789/18106
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Institution: Universiti Sains Islam Malaysia
Language: English
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spelling my.usim-181062019-04-16T08:16:20Z Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC) Rosnia Masruki Khaled Hussainey Doaa Aly Financial impact accountability, disclosure State Islamic Religious Councils This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure in the annual reports of SIRC, indicating accountability of SIRCs. This paper used the self-developed disclosure index that applies specifically for SIRC. Multiple regression was used to examine the financial determinants of the extent and quality of disclosure. The result of the regression models revealed that the extent and quality of SIRC disclosure is influenced by organisational characteristic, namely size. This study suggests that disclosure in the annual report, in particular the non-financial performance, increases with the amount of zakat collection, thereby demonstrating SIRC‟s responsibility. Next, the control variable of accessibility is found to be significantly related to financial statements. Obliged to produce financial statements, SIRC are more likely to disclose more information in the financial statements. This research finding has important implications for regulators, policy makers and top officials in SIRC, by monitoring the quality of disclosure, supporting the notion of public accountability, which appreciates the public‟s right to get inform about SIRC. Despite the voluntary disclosure of a non-financial report, SIRC should consider producing a comprehensive annual report for the discharge of their accountability and thus, encourage more funding. They should be more transparent to enhance accessibility, concerning the extent and quality of the disclosure. 2019-04-16T08:16:20Z 2019-04-16T08:16:20Z 2018-12 Article http://ddms.usim.edu.my:80/jspui/handle/123456789/18106 en Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
topic Financial
impact
accountability,
disclosure
State Islamic Religious Councils
spellingShingle Financial
impact
accountability,
disclosure
State Islamic Religious Councils
Rosnia Masruki
Khaled Hussainey
Doaa Aly
Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
description This paper aims to identify whether Malaysian State Islamic Religious Councils (SIRC) financial characteristics have a significant impact on the accountability of Malaysian State Islamic Religious Councils (SIRC). A content analysis approach was used to examine the extent and quality of disclosure in the annual reports of SIRC, indicating accountability of SIRCs. This paper used the self-developed disclosure index that applies specifically for SIRC. Multiple regression was used to examine the financial determinants of the extent and quality of disclosure. The result of the regression models revealed that the extent and quality of SIRC disclosure is influenced by organisational characteristic, namely size. This study suggests that disclosure in the annual report, in particular the non-financial performance, increases with the amount of zakat collection, thereby demonstrating SIRC‟s responsibility. Next, the control variable of accessibility is found to be significantly related to financial statements. Obliged to produce financial statements, SIRC are more likely to disclose more information in the financial statements. This research finding has important implications for regulators, policy makers and top officials in SIRC, by monitoring the quality of disclosure, supporting the notion of public accountability, which appreciates the public‟s right to get inform about SIRC. Despite the voluntary disclosure of a non-financial report, SIRC should consider producing a comprehensive annual report for the discharge of their accountability and thus, encourage more funding. They should be more transparent to enhance accessibility, concerning the extent and quality of the disclosure.
format Article
author Rosnia Masruki
Khaled Hussainey
Doaa Aly
author_facet Rosnia Masruki
Khaled Hussainey
Doaa Aly
author_sort Rosnia Masruki
title Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
title_short Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
title_full Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
title_fullStr Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
title_full_unstemmed Financial Impact on the Accountability of Malaysian State Islamic Religious Councils (SIRC)
title_sort financial impact on the accountability of malaysian state islamic religious councils (sirc)
publisher Universiti Sains Islam Malaysia
publishDate 2019
url http://ddms.usim.edu.my:80/jspui/handle/123456789/18106
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