Soon-Yau Foong

Putra University, Malaysia, Putrajaya, Putrajaya, Malaysia

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Publications (7)0 Total impact

  • Soon-Yau Foong, Razak Idris
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    ABSTRACT: Purpose – The purpose of this paper is to examine the effect of leverage on the financial performance of general insurance companies in Malaysia, and investigate whether the leverage-performance relationship is a function of or contingent on the extent of product diversification. Design/methodology/approach – The sample consisted of the entire population of authorized general insurance companies operating during the period from 2006 to 2009 in Malaysia. A total of 94 observations were analysed. All the data used were sourced from the Malaysian Central Bank's (BNM) database. Findings – It is found that leverage is negatively associated with firm performance. However, there is a significant interaction effect between leverage and product diversity on firm performance. The finding indicates that leverage could be beneficial or detrimental to the financial performance of general insurance firms, contingent on the extent of product diversity of the firm. Research limitations/implications – As the scope of study is limited to the general insurance industry and the sample size is small, the findings of the study must be interpreted with caution and the results may not be generalizable to the life insurance sector or other industry. Originality/value – Findings of prior empirical studies on leverage-performance relationship and effect of insurance product diversification are rather mixed and inconclusive. Based on analysis of a single insurance (general) sector that is highly regulated, the paper provides empirical evidence that the benefits of product diversification strategy are contingent on level of the firm's leverage. The paper hence, enhances understanding and contributes to the existing literature on impact of leverage, product diversification on performance of the highly regulated general insurance firms in a developing country.
    The Journal of Risk Finance 08/2012; 13(4):347-361.
  • Soon-Yau Foong, Beng-Seng Ho
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    ABSTRACT: Title – D crop protection Malaysia: competition from generic herbicides. Subject area – Strategic management (competitive strategy and supply chain management) and management accounting (product pricing and costing techniques). Study level/applicability – Final year of business undergraduate programme and MBA programme. Case overview – This case illustrates how emergence of generic products had threatened the survival of DCPM and forced its management to urgently review the company's existing approach to pricing of its main herbicide product. The case presents opportunities for readers to discuss the deficiencies of DCPM's existing product costing approach and recommend modifications to meet the price and gross profit margin targets specified. It also highlights issues relating to supply chain management and human resource practices that might have to be improved to enhance DCPM's long-term competitiveness. Expected learning outcomes – To understand the effects of globalisation and emergence of generic products on intensity of market competition for branded products. To identify deficiencies of the current product costing system of DCPM for pricing decision. To apply alternative contemporary approach to product costing and pricing of Metrix and the other value-added services. To identify measures to enhance supply chain management and inventory management in DCPM. To assess DCPM's human resources practices. To evaluate the effectiveness of DCPM's existing competitive strategy and formulate new competitive strategy to sustain DCPM's long-term competitiveness. Supplementary materials – Teaching notes.
    12/2010; Emerging Markets Case Studies Collection(Strategy):1-7.
  • Michelle M.S. Phang, Soon-Yau Foong
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    ABSTRACT: Based on the knowledge sharing model by Nonaka (1994), this study examines the relative efficacy of various Information Communication Technologies (ICTs) applications in facilitating sharing of explicit and tacit knowledge among professional accountants in Malaysia. The results of this study indicate that ICTs, generally, facilitate all modes of knowledge sharing. Best-Practice Repositories are effective for sharing of both explicit and tacit knowledge, while internet/e-mail facilities are effective for tacit knowledge sharing. Data warehousing/mining, on the other hand, is effective in facilitating self learning through tacit-to-tacit mode and explicit-to-explicit mode. ICT facilities used mainly for office administration are ineffective for knowledge sharing purpose. The implications of the findings are discussed.
    World Journal of Science, Technology and Sustainable Development. 01/2010; 7(1):21-35.
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    Soon-Yau Foong, Neilson Anak Teruki
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    ABSTRACT: Purpose – The purpose of this paper is to investigate the relationship between cost-system functionality and the performance of oil-palm enterprises in Malaysia, as well as whether manager's perceived usefulness of cost information mediates the cost-system functionality-performance relationship. Design/methodology/approach – A structured questionnaire is used to gather data from oil-palm enterprises located in Sarawak. Findings – The results indicate that the cost relevance/timeliness dimension of cost-system functionality significantly enhances the performance of oil-palm enterprises. However, manager's perceived usefulness of cost information only partially mediates the cost-system functionality-non-financial performance relationship, and this is possibly due to the nature of control over the estate operations by the head office. Research limitations/implications – Owing to the small-sample size and because the oil-palm enterprises are located only in Sarawak, the generalisability of the results may be limited. Besides, the findings are based on the estate setting whereby decisions made are relatively structured and therefore, they may not apply in less-structured decision-making settings. Originality/value – Past findings on the causal link between cost-system functionality and performance are mixed. However, high-functional cost systems are expected to be more cost beneficial when environment is highly uncertain. The palm oil industry operates in a highly turbulent economic environment due to serious external challenges and it is expected to benefit from high-functional cost systems. Unlike previous studies based on firms from diverse industries, the operational homogeneity of the oil-palm enterprises in this paper enables the effects of cost-system functionality on performance to be examined in a more controlled setting. By analyzing the attributes of cost-system functionality into two major dimensions, this paper shows that performance could be enhanced only through provision of relevant and timely cost information.
    Asian Review of Accounting 01/2009; 17(September):212-225.
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    ABSTRACT: Reliable risk assessment is critical for success in decision-making, but our assessment of risk is often hindered by inherent biases and limitations in our information processing capacities. Consequently, many have presumed that the disclosure of probabilistic or confidence interval (CI) information would aid our judgment of the uncertainty of an estimate. Empirical support for CI information disclosure, however, is generally lacking. Since human beings are goal-directed, the effectiveness of CI information disclosure may be contingent upon the motivation of an individual. This study, through a computer-based laboratory experiment, examines whether the effectiveness of CI information disclosure in an investment choice task setting is contingent upon the availability of performance-based monetary incentives. The results indicate that the disclosure of CI information can enhance or harm decision performance contingent upon the incentive condition: incentives are vital for realizing benefits from the disclosure of CI information. The implications of the findings are discussed.
    The British Accounting Review 09/2003;
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    ABSTRACT: This study replicates and extends Libby and Waterhouse's (1996) study on changes of management accounting and control systems (MACS) in business organizations. Using a sample of 110 Malaysian manufacturing firms, this study investigates the roles of perceived market competition, advanced manufacturing technology adoption and employee attitude toward change in predicting MACS change. It is hypothesized that changes in perceived market competition and changes in advanced manufacturing technology adoption directly affect changes in MACS. Since attitude toward change reflects managers' perceptions on change, it is conjectured that attitude toward change also influences MACS change. The results indicate that changes in competition and advanced technology adoption significantly affect MACS change but attitude towards change has no effect on MACS change.
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    Michelle M S Phang, Soon-Yau Foong
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    ABSTRACT: The acceleration of technological change and trade liberalization in the 1990s have significantly intensified market competition and transformed the world economic infrastructure from a resource-and manufacturing-based economy to one in which knowledge and services are the key drivers of economic growth. In order for an organization to capitalize on its knowledge and truly become a learning organization, it must begin to systematically manage and leverage knowledge existing internally and externally to create and sustain its competitive advantage. Numerous empirical studies on knowledge management have examined the relative effectiveness of various enablers, such as organizational structure, technology, culture, managerial system and strategy on knowledge creation and sharing in organizations. The enablers examined earlier are mostly related to organizational infrastructure that promotes knowledge sharing in organizations. This paper examines specifically the critical role of information and communication technology (ICT) in facilitating and enhancing knowledge sharing and organizational performance. This study adopted a process oriented approach by using Nonaka's (1994) knowledge sharing model. The results indicate that significant positive effects of ICT support on knowledge sharing and all dimensions of knowledge sharing are significant predictors of organizational performance.