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Malaysian Management Journal (MMJ) Vol. 3 No. 1 June 1999

Cognitive Decision Process: The Context of Auditors' Diagnostic Reasoning
Zakaria Abas
School of Accountancy
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
Based on a cognitive psychology framework, this article provides an insight into how auditors perform diagnostic reasoning tasks through an analytical review (AR) process. AR refers to the diagnostic process of identifying, investigating, and resolving unexpected fluctuations in account balances and other financial relationships in financial statements. Auditors perfuming AR typically follow four distinct components of a diagnostic, sequential and iterative (DS1) process, namely: mental representation, hypothesis generation, information search, and hypothesis evaluation. Through the DS1 process, auditors are able to recognize and detect errors and irregularities in financial statements for the purpose of presenting a true and fair view of financial reporting, with the intention of communicating quality and reliable economic information of an enterprise to users.
 

 
Money Supply, Stock Prices and the Efficient Market Hypothesis: The Case of Malaysia
Muzafar Shah Habibullah & Ahmad Zubaidi Baharumshah
Department of Economics
Universiti Putra Malaysia
 
Abstract Ɩ Full Text
The purpose of the present study is to investigate the empirical relationships between money supply and stock prices in the Kuala Lumpur Stock Exchange (KLSE) using monthly data that span from January 1978 to September 1992. More specifically, we tested market informational efficiency in the KLSE by testing the causal relationships between money supply and stock prices using the co-integration technique. In the analysis, we used alternative monetary aggregates namely, the Simple-Sum and Divisia monies. Results from- our error-correction model suggest that market informational efficiency hypothesis can be rejected for KLSE with respect to the growth of money supply (for both Simple-sum and Divisia monetary aggregates).
 

 
Institutional Shareholdings and Financial Characteristics of Malaysian Listed Companies
Shamsul Naharabdullah, Mohd Azlan Yahya & Faisol Elham
School of Accountancy
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
This study attempts to investigate the extent to which the financial characteristics of firms are related to institutional shareholdings. The primary motivation to carry out the study comes from an earlier paper by Hessel and Norman (1992), which showed that seven financial ratios discriminated between strongly-held and institutionally-neglected firms. As an extension of the study, the present study seeks to investigate the seven financial ratios among Malaysian companies by identifying differences in the means of the seven ratios between a group of companies with substantial institutional shareholdings against another group of companies with negligible institutional shareholdings. The findings, from a sample of KLSE listed companies, broadly support the findings by Hessel and Norman (1992), in which firms with significant institutional shareholdings exhibited a significantly higher profitability ratio against firms that were neglected by institutional investors.. This suggested that institutional investors placed greater emphasis on a firm's short-term results. Our evidence also did not indicate institutional shareholders' direct involvement in ensuring a firm's long-term growth and competitiveness, as shown by the insignificant differences in the mean of growth ratio between firms that had significant institutional shareholdings and those that were neglected by institutional investors.
 

 
An Insight into Members' Satisfaction with their Union: A Comparative Case Study of Malaysian and American Unions
Husna Johari
School Of Management
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
This study examines the importance of the various facets of satisfaction with union representation in determining overall satisfaction with the union. samples of union members from Malaysia and the USA are used in this study. generally, overall union satisfaction is specified as function of union members ' expectation concerning union efforts and the perceived outcomes of union performance on (1) 'bread and butter' issues (such as wages and benefits), (2) quality of work issues (such as job interest and workers' voice in the employing organization), and (3) member-union relations (such as the quality of communication between union leaders and members). the results indicate that all the faces are important determinants of overall satisfaction with union representation. however, in the case of WMUPU (Malaysia) the results showed a greater emphasis on aspects like bread and butter, and member-union relations while the OPE1U(USA) findings relate more to issues on quality work life.
 

 
Multi Layer Perceptron Modelling in the Housing Market
Ku Ruhana Ku Mahamud, Azuraliza Abu Bakar & Norita Md. Norwawi
School of Information Technology
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
The study examines the use of multi layer perception network (MLP) in predicting the price of terrace houses in Kuala Lumpur (KL). Nine factors that significantly influence the price were used in this attempt. Housing data from 1994 to 1996 were presented to the network for training. Tested results from the model obtained for various years were compared using regression analysis. The study provides the predictive ability of the trained MLP model that can be used as an alternative predictor in real estate analysis.
 

 
Behaviour of Stock Returns in the KLSE: A Test of the Random Walk Hypothesis
Ahmadu Umaru Sanda, Abdul Ghani Shafie & G.S. Gupta
School of Management
Universiti Sains Malaysia
 
Abstract Ɩ Full Text
A sample of 224 companies listed in the Kuala Lumpur Stock Exchange was taken for the period 1991-96. The serial correlations tests of varying lags and the runs tests were employed to test for the random walk theory. The bulk of the results tilts towards the rejection of non-randomness, lending weight to the argument that the stock market has no memory, and casting doubt upon the usefulness of technical analysis.
 

 
Segmenting Hotel Guests: The Case of Five Star Hotels in Langkawi
Azilah Kasim, Hisham Dzakiria & Lim Kong Teong
School of Management
Universiti Utara Malaysia
 
Abstract Ɩ Full Text
Segmentation is a very important element in the overall process of target marketing for tourism products as it assists in obtaining information on the segments of tourist that exist in the population served. Knowing the segments is imperative to help decide the type and amount of resources that should be allocated to target the desired segments. This study segmented five star hotel guests in Langkawi using sociodemography and psychography as segmentation bases. Applying Ward's Minimum Variance Method as the clustering technique, the findings of this research indicated that there are three categories of tourists that the participating hotels need to consider when designing their marketing strategies. The three clusters were the Fun and Excitement Holiday Seeker, the Active Weekend Holiday Seeker, and the Quiet and Meaningful Elitist Holiday Seeker: The characteristics of each cluster were described and a comparison of sociodemographic characteristics across clusters was made. Suggestions on how to best target each identified cluster were also provided.