JAMAR Winter 2012


JAMAR Information

Table of Contents

Determining The 'Plus' In Cost-Plus Pricing: A Time-Based Management Approach 

This study focuses on methods for determining the contribution margin in cost-plus pricing (CPP). The key assumption is that, in manufacturing companies, the use of contribution margin per hour in pricing and profitability analyses provides stronger adherence to the goal of optimizing global earnings than the percentage contribution margin approach.

Three different methodological approaches were adopted in this study: (a) review of relevant literature for pricing, (b) action research (single case study in a manufacturing company aiming at understanding the environment complexity of pricing) and (c) critical reflections to shape a conceptual proposal.

Findings show that a pricing model based on the contribution margin per hour offers stronger adherence for optimizing global earnings if compared to contribution margin in percentage terms. The evidence from this study fills, therefore, an important void in the pricing literature.

Reinaldo Guerreiro
Edgard B. Cornachione Jr.
Carlos Roberto Kassai




Adaption-Innovation at Work: A New Measure of Problem- Solving Styles

The study introduces a new measure of adaption versus innovation problem solving style (labelled the AI-W) that is validated using professional accountants. The AI-W consists of nine items and non-proprietary in comparison to the Kirton Adaption-Innovation Inventory (KAI) of 32 items which is proprietary.

An analysis of data from a large sample of practicing accountants suggests that reliability, construct validity, and discriminant validity are high. As expected, the AI-W is not highly correlated with dimensions of the Big-Five personality types. The study also shows that accountants in general prefer an adaptive problem solving approach to an innovative approach and that auditors and tax preparers tend to have more adaptive scores than consultants and system personnel. The implications of the study are also discussed.

Yin Xu
Brad Tuttle






Corporate Governance Failure to Influence the Communication of Key Financial Data over Turbulent Times

This study analyses the impact of corporate governance mechanisms and firm characteristics on financial ratio disclosure over the turbulent 2001 and 2006 periods in Malaysia. It was found that the highest categories of ratio disclosures are profitability, cash flow and share market measures whereas there is far less information reported for capital structure and liquidity ratios. Importantly, none of the corporate governance mechanisms investigated influenced the level of financial ratio communication.

The findings in this study have important implications for Malaysian policy-makers and regulators that concerted efforts in strengthening overall corporate governance system and firms' disclosure policy are encouraged if the listed firms are to better communicate to their stakeholders. The results also provide useful insights about corporate transparency.

Poh-Ling Ho
Norhani Aripin
Greg Tower



Fair Value Accounting and the Global Financial Crisis: The Malaysian Experience

While so much attention has been given in the western world to the issues surrounding Fair Value Accounting (FVA), especially in light of the recent Global Financial Crisis (GFC), little is known about its implications in the developing world. This study investigates the application of Fair Value Accounting by Real Estate Investment Trusts (REITS) in Malaysia during the recent GFC of 2007/2008. The REITs sector is chosen because the application of FVA for their investment property represents the biggest and most material item in their statements of financial position.

This study is based on the FV reporting of 11 out of the 13 REITs firms listed in the Bursa Malaysia during the years of 2008 and 2009. In contrast to the impact of FVA in US, Europe and even neighbouring Singapore that reported asset impairments during the recent GFC, this study revealed that a high majority Malaysian REITs firms reported fair value gains or mark-ups of their investment property during the period. A good number of possible reasons for this anomaly are argued and discussed. Findings from this study are expected to provide useful insights into the FVA controversies and enlighten regulators on some of the prominent application issues of FVA in the developing world.

Samuel Jebaraj Benjamin
Athi Niskkalan
M.Srikamaladevi Marathamuthu



The Research Design Maze: Understanding Paradigms, Cases, Methods and Methodologies

The present paper introduces the logical choices available in research methodologies; which enable the drawing of correct inferences to answer the various research questions that are asked by accounting researchers.

It starts with an overview of research paradigms as fundamental beliefs that affect the ways to conduct social research, including the choice of a particular research methodology. The paper then details the elements of case study design, including the justification to choose case organisations. The sections that follow present an overview of the required data and collection methods and discuss the methods used to analyse the collected data. Considerations regarding research quality are also presented.

This paper is a useful reference or a starting point for researchers considering qualitative multi-method case study research designs.


Dina Wahyuni