Browsing by Author "Islam, Ainul"

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Open Access
Auditor Independence and NAS: a Comparative Analysis of Selected Current Regulatory Frameworks
(Te Herenga Waka—Victoria University of Wellington, 2005) Islam, Ainul; van Zijl, Tony; Karim, Waresul
There is a widespread public perception that the provision of NAS undermines auditor independence. In order to protect auditor independence, the regulatory frameworks of many countries include regulations and guidelines which auditors are required to observe. This paper provides a comparative analysis of selected regulatory frameworks. Regulatory frameworks, with respect to independence, make distinctions between independence of mind and in appearance. It is clear from the analysis of the frameworks that the provision of NAS can threaten both independence of mind and in appearance. There are some NAS for which no safeguard seem to be adequate and which are therefore subject to prohibition. On the other hand, for some nonaudit services the threats are not so clearcut, and auditors are then required to apply professional judgment so that the seriousness of the threats is balanced against the effectiveness of specified safeguards.
Open Access
Consumption Taxes in Developing Countries – The Case of the Bangladesh VAT
(Te Herenga Waka—Victoria University of Wellington, 2011) Smith, Andrew M C; Islam, Ainul; Moniruzzaman, M
In common with many developing countries, Bangladesh faces problems in raising sufficient tax revenues to fund its economic and social development. To address this problem and to improve economic efficiency and growth, a major tax reform program was initiated in 1991 which centred on the introduction of a valued-added tax (VAT) to replace a range of narrowly-based consumption taxes. This paper revisit the basic structure of VAT system of Bangladesh and attempt to analysis the contribution and performance of VAT in Bangladesh as comparing to other developing countries and also attempt to identify and provide some suggestions in possible area where attention and improved performance are required to enhance the contribution of VAT in economic development of Bangladesh. The relevant data shows that the performance of VAT was quite satisfactory in the initial years - but subsequently VAT collection has remained stagnant at a certain level. As a result, VAT is unable to meet the objectives for which it was introduced. The reasons behind this performance are many, such as: a relatively small number of VAT tax-payers, a general lack of awareness, and a weak monitoring system etc. There is still scope for improving the revenue collection from VAT: by increasing the number of VAT taxpayers; reforming the VAT administration; creating intensive awareness among the people, revisiting the list of VAT exempted items and increasing the efficiency of the monitoring system.
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The impact of intellectual capital on firm performance among R&D engaging firms
(Te Herenga Waka—Victoria University of Wellington, 2016) Ariff, Arifatul Husna Mohd; van Zijl, Tony; Islam, Ainul
This thesis investigates the impact of aggregate intellectual capital (IC), and its elements, human capital, structural capital and tangible capital, on firm performance. In addition, the study also examines the impact of past research and development (R&D) activity on the relationship between IC and firm performance. The study employs the original and modified Value Added Intellectual Coefficient (VAICTM) models to measure IC. Firm performance is measured from two different perspectives: market and financial. The study uses a sample of 1,328 firm-year observations drawn from multinational firms which engaged in R&D activity over the period 2006-2013 and were listed on the U.S. stock exchanges. Using ordinary least squares regression, the study confirms that aggregate IC has a significant positive impact on both the market and financial performance of firms. Human capital has no significant impact on market performance, but it has a significant positive impact on financial performance. Structural capital and tangible capital each have a significant positive influence on both the market and financial performance of firms. In addition, the study finds that past R&D activity has a significant positive impact on the relationship between aggregate IC and both market and financial performance. However, the study finds mixed results for the role of past R&D activity on the relationship between the IC elements and firm performance. The study contributes to the existing literature by providing empirical evidence on the impact of IC on firm performance among multinational R&D engaging firms. The study also adds to the literature by providing empirical evidence on the role of R&D activity in influencing the relationship between IC and firm performance and thus enhances the current understanding of the role of IC and R&D. In addition, the study contributes to the methodology by proposing a modification to the original VAIC model and empirically tests the resulting modified VAIC model. The study thus provides empirical evidence of the impact of IC on the market performance and financial performance of firms. This evidence should be useful to firms in developing their IC and R&D policies, to users of financial statements in evaluating the benefits from IC among R&D engaging firms, and also to accounting standard setters in identifying the information on IC that should be included in financial reports.
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Intellectual Capital Efficiency and Firm Financial Performance: Evidence from South East Asian Countries
(Te Herenga Waka—Victoria University of Wellington, 2017) Ariff, Arifatul Husna Mohd; Islam, Ainul; van Zijl, Tony
This study applies a modified version of the Value Added Intellectual Coefficient (VAIC) model proposed by Pulic (1998; 2000) to investigate the impact of IC on financial performance of listed firms in five South East Asian (SEA) countries: Indonesia, Malaysia, Philippines, Singapore, and Thailand over the period 2006 to 2013. The sample employed consists of 16,039 firm-year observations. Financial performance is measured using return on equity and return on assets ratios. The study employs the VAIC model to measure aggregate IC efficiency and its elements: human capital efficiency, structural capital efficiency and tangible capital efficiency. The test results indicate that aggregate IC has a positive and significant impact on financial performance of listed firms in the five SEA countries. The results also show that, among the components of IC, human capital and tangible capital both have positive and significant impact on financial performance of listed firm in the five SEA countries. However, structural capital has a negative impact on financial performance of firms in all SEA countries other than Thailand, which contradicts the theoretical expectation.
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MMPA501: Professional Accounting: Financial Accounting
(Te Herenga Waka—Victoria University of Wellington, 2024) Islam, Ainul
Open Access
Provision of NAS and Auditor Independence: an Analysis Using Informativeness of Earnings
(Te Herenga Waka—Victoria University of Wellington, 2005) Khaled, Mohammed; Islam, Ainul; van Zijl, Tony; Karim, Waresul
Econometric analysis – using panel data methods – of data on securities traded on the Dhaka Stock Exchange, Bangladesh, over the period 1995-99 indicates that audit quality may not necessarily increase with auditor size. However, choice of a large auditor does seem to alleviate any negative impact of nonaudit services on the confidence of investors. A lesson from this seems to be that companies requiring a relatively large amount of nonaudit services from their auditor should find it worthwhile to hire a big audit firm albeit with a fee premium. Another interesting result is that companies declaring negative earnings do not appear to suffer any detriment to their share returns as the link between earnings and returns is significantly weakened when announced earnings are negative.