AFBE 2012 CONFERENCE PAPERS (UNITEN)

ISSN 1905-8055

I

TABLE OF CONTENTS

Marziana Mohamad, Abdul Hadi Abdul Aziz, Muhammad Amir

Zainuddin, Sheikh Mohd Iszuan Sheikh Mohd Zurid, Small Business

Taxpayers Behaviour, Belief and Perception of Fairness: Evidence

From Tax Practitioners in Kuantan, Pahang

3

Azrinawati Mohd Remali, Zuraini Abdullah Zawawi, Adnan Abdul

Hamid, Khairul Nizam Surbaini, A Study of The Approaches of

Learning Among Accounting and Business Students in Higher

Education Instituion.

14

Azleen Ilias, Mohd Zulkeflee Abd Razak, Do Final Year Accounting

Students Experience Communication Apprehension (Ca)?

25

Azrinawati Mohd Remali, Zuraini Abdullah Zawawi, Adnan Abdul

Hamid, Khairul Nizam Surbaini, A Study of The Approaches of

Learning Among Accounting and Business Students in Higher

Education Instituion

42

Eid M. Al_Mohammed, Basheer Abbas Al-alak, The Role of Digital

Marketing in Higher Education Institutions (Heis): The Case of Saudi

Arabia Students University Selection in Malaysia

53

Fahmi Zaidi Bin Abdul Razak, Noor Azizah Binti Noorashid, Hussin

Bin Salleh, Fairus Bin Ahmad, Examining Ucsa Student Portal Success

from The Perspective of Modified De Lean Success Model

61

Fatimah Hanim Abdul Rauf, Che Wan Noraisyah Che Wan Mohamad

Yusop, Lisa Fatin Mohd Izhar and Noor Farziani Mahamad Fazil,

Corporate Governance and Timeliness oOf Corporate Internet

Reporting by Malaysian Listed Companies

80

Hamidah Ramlan, Rositah Bakar, Ahmad Fairuz Bin Long, Impact of

Exchange Rate Movement on Foreign Direct Investment Flows in

Malaysia

92

Juliana Anis Ramli, Mohd Rizuan Abdul Kadir, Khairul Nizam

Surbaini, Zulkifli Zainal Abidin, Perceptions Towards an Internship

Program: An Empirical Study of Accounting Undergraduate Studentsi

Malaysian Higher Education Institutions.

107

Khairul Nizam Surbaini, Abdul Rahman Zahari, Elinda bt Esa,

Shopping Behavior And Determinant Factors Of Mall Patronage

Among Gen Y.

121

Shahrul Nizam Salahudin, Suhaimi Sudin, Christine Cheah, Zuliawati

Mohamed Saad, Nazia Newaz, Carbon Footprint Calculator: Exploring

Carbon Emission Measurement Tool of Malaysion Telecommunications

Industry

136

II

Mohd Rizuan Abdul Kadir, Norlaila Mazura Hj. Mohaiyadin, Mohamed

Ariff Jamean, Muzrifah Mohamed, Norsheilla Maulad Jamaluddin,

Relationship of Fraud Triangle Model and Academic Dishonesty: Some

Malaysian Evidence

150

Nor Edi Azhar Binti Mohamad, Thilagavathi A/P Veloo, Firm

Characteristics And Its Effect on Stock Return

161

Nor Razuana Binti Amram, Prof. Madya Dr. Angappan, Impact of

Blockholder Ownership and Dividend Payout on Government-Linked

Companies (Glcs) Value in Malaysia

170

Noraina Mazuin Sapuan, Mohammad Rahmdzey Roly, Shuratic

Process and Optimal Mudarabah Investment

184

Nurul Nadiah Ahmad, Nor Azam Mastuki, Industry Analysis of

Accrual Management by Government Linked Companies (GLCs)

194

Siti Fara Binti Abd Razak, Mohd Zulkeflee Bin Abd Razak, Azleen

Binti Ilias, Matching Male and Female Fund Managers with Different

Types of Unit Trust Funds: A Malaysian Perspective

208

Irene Wei Kiong Ting, Hooi Hooi Lean, Testing Trade off Against

Pecking Order Theory of Capital Structure In Malaysia

225

Hamidah Ramlan, Norfhadzilahwati Rahim, Azrol Syazuan bin Aziz,

Capital Structure: Asset Tangibility, Profitability, Growth

Opportunities and Firm Size Relation with Firm Debt (Properties

Sector)

237

Masdiah Abdul Hamid, Norlaila Mazura Haji Mohaiyadin,

Effectiveness of Audit Committee, Management Ownership and

Malaysian Auditor Independence

251

Norfaizah Mat Nor, Maimun Abdullah, Noraina Ismail, Rositah Bakar,

Siti Sarah Mohd Yusni, A Study on The Customer Awareness Toward

Ar Rahnu Scheme at Sungai Buloh, Selangor.

268

Norfhadzilahwati Rahim, Hamidah Ramlan, The Relationship Between

Exchange Rate and Economic Growth in Malaysia: Identifying Major

Contributing Factors

280

Marziana Mohamad, Wan Mohammad Taufik Wan Abdullah and

Mohmad Sakarnor Deris, Audit Delay and Accountability Index in

Local Authorities: Cases from Kedah, Perak and Kelantan

293

Marziana Mohamad, Abdul Hadi Abdul Aziz, Muhammad Amir

Zainuddin, Sheikh Mohd Iszuan Sheikh Mohd Zurid, Small Business

Taxpayers Behaviour, Belief and Perception of Fairness: Evidence from

Tax Practitioners in Kuantan, Pahang

303

III

Nurul Nadiah Ahmad, Suraya Ahmad, Students Judgment On The

Ethicality In Earnings Management

314

Elinda Esa, Abdul Rahman Zahari, Inaliah Mohd Ali, Corporate Social

Responsibility Disclosure in Malaysia: A Study of The Financial Sector

322

Norkhazimah Ahmad, Lee Kaye Vern, Muhammad Sufiyan Mohd

Salleh, Toh Chin Zang, The Compliance of Governance and

Transparency Index (Gti) in Malaysia : Evidence of The Plantation

Sector

332

Inaliah Mohd. Ali, Elinda Esa, Abdul Rahman Zahari, Sustainable

Development - Corporate Social Responsibility (Csr) and Shareholder

Value: A Study of Government Linked Companies

343

Mohammed S. Al-Abed, Mohammed A. Adnan, Technology Transfer Performance in Yemeni Oil Nd Gas Companies: A Conceptual Framework

353

Hussain Ali Bekhet, Tahira Yasmin, Economic Growth and Pollutant

Emission In Malaysia: An Empirical Analysis of Environmental Kuznets

Curve

369

Nor Salwati binti Othman, Nik Fanidautty Binti Nik Abdul Majid, Nor

Hamisham Binti Harun, Muhammad Anuar bin Adnan, Mohmad

Sakarnor bin Deris, Investigating The Prospect of Offering Master of

Science in Sustainable Energy Management Programme at Universiti

Tenaga Nasional (UNITEN), Malaysia.

387

Hussain Ali Bekhet, Ali Matar, Causality of Macroeconomic Variables

Impacting The Stock Market Index: Time Series Approach in Amman

Stock Exchange

397

Hussain Ali Bekhet, Nor Hamisham Binti Harun, Analyzing Elasticities

and The Relationship Among Construction Production Determinants in

Malaysia

418

Khairul Nizam Surbaini, Abdul Rahman Zahari, Elinda bt Esa,

Shopping Behavior and Determinant Factors of Mall Patronage Among

Gen Y.

430

Norlaila Mazura Hj. Mohaiyadin, Masdiah Abdul Hamid, Alhana

Othman, Association of English Communication, Assessment Methods

and Prerequisite Knowledge of Students Towards Accounting Students

Performance at Universiti Tenaga Nasional (UNITEN)

445

Norlaila Mazura Hj. Mohaiyadin, Relationship of Effective Teaching

Methods and Instructor Characteristics Towards Accounting Students

Performance at Universiti Tenaga Nasional (UNITEN)

455

Abdul Rahman bin Zahari, Hamiza Bte Jamaludin, Adnan Bin Abd.

Hamid, Othman Bin Chin, Inclination Factors of Entrepreneurship

464

IV

Education Program: An Experience of Higher Learning Institution

Basheer Abass Al-Allak, Mohammed Abdulellah Yousuf Saeed, SMS-

Based Mobile Marketing in Malaysia Youth Market a Conceptual

Approach

475

Nor Hamisham Binti Harun, Nor Salwati binti Othman, Nik Fanidautty

Binti Nik Abdul Majid, Mohamad Sukiman bin Ishak, Muhammad

Anuar bin Adnan, Exploring Awareness of Energy Usage Amongst

Consumers in Klang Valley, Malaysia

486

Noor Raida Abd Rahman, Izyan Zahirah Bt Ishak, Nur-fadzrini Binti

Ramali, Capital Structure and Environmental Reporting Practices of

Malaysian Companies

494

Saeed (M.Z) A. Tarabieh, Basheer Abbas Al-alak, Customer

Orientation, Supplementary Services, Differentiation Advantage, and

Organizational Perforamce in The Banking Industry

509

5

SMALL BUSINESS TAXPAYERS BEHAVIOUR, BELIEF AND PERCEPTION OF

FAIRNESS: EVIDENCE FROM TAX PRACTITIONERS IN KUANTAN, PAHANG

Marziana Mohamad, Abdul Hadi Abdul Aziz, Muhammad Amir Zainuddin, Sheikh Mohd

Iszuan Sheikh Mohd Zurid

College of Business Management and Accounting,

Universiti Tenaga Nasional (UNITEN), Malaysia

09 - 455 2020

marziana@uniten.edu.my

College of Business Management Accounting,

Universiti Tenaga Nasioanl (UNITEN), Malaysia

hadi.aziz@hotmail.com

College of Business Management and Accounting, Universiti Tenaga Nasional (UNITEN), Malaysia

m_amirzainuddin@yahoo.com

College of Business Management and Accounting,

Universiti Tenaga Nasional (UNITEN), Malaysia

sheikh.mohd.iszuan@hotmail.com

ABSTRACT

This paper investigates using a survey among tax practitioners, perspective of small business taxpayers

behavior, beliefs and perceptions of fairness towards tax compliance. First, it analyses the level of behavior,

beliefs and perceptions of fairness among small business taxpayers. Second, it investigates the relationship

between behavior, beliefs and fairness on its tax compliance. 200 questionnaires were distributed to tax

practitioners in Kuantan, Pahang, only 113 agreed to participate (56.5 percent response rate). Descriptive

statistics indicated that the level of taxpayers behavior, beliefs and perceptions of fairness was at an average

level of their tax compliance. Furthermore, correlation analysis also indicated that there are relationships

between taxpayers behavior, beliefs and fairness among small business taxpayers with tax compliance.

Keywords: Behavior, Belief, Perception of Fairness, Tax Practitioners.

INTRODUCTION

Small and Medium Enterprises(SME) are subjected to income tax payable either as

individuals or as corporate taxpayers depending on the business establishment. The taxation

of both individuals and corporate businesses is governed by the Income Tax Act (ITA)

(Malaysia) 1967. Business taxpayers are required by law to file an annual tax return correctly

mailto:marziana@uniten.edu.mymailto:hadi.aziz@hotmail.commailto:m_amirzainuddin@yahoo.commailto:sheikh.mohd.iszuan@hotmail.com

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(Section 77 and 77A; ITA 1967), to keep sufficient records and documentations (Section 82

and 82A; ITA 1967) and to observe other tax related requirements (Section 107, 107B, 107C

and 108; ITA 1967). Compliance to the regulatory requirements is mandatory in nature,

placing an enormous burden and cost upon the business sectors. Largely, international

experiences often indicate the difficulties faced by the SMEs in managing government laws

and regulations (Fernandez & Lynne (1998).

The issues faced by SME business in relation to regulatory costs are worldwide phenomena

almost identical in the US, UK, Australia and New Zealand. These include a lack of

understanding of the regulatory requirement, frequent changes in regulations and high fixed

costs (Francis et al. (2003). The previous study done by Hanefah et al. (2001) indicated that

the Malaysian business tax system appears to be becoming increasingly more complex, either

due to major amendments being made to existing laws or a new assessment system.

Therefore, tax complexity could be measured via tax compliance costs (Simon et al. (1998);

Pope, (1992).

For the majority of taxpayers, tax practitioners were their sole source of support. The tax

practitioners are people that taxpayers can trust to keep them on the right side of the law.

Having the honest tax practitioners or adviser was the highest priority. Tan (1999) was

reported that New Zealand suggesting the core important contribution is the tax practitioners

make to taxpayers as a whole to given them confidence that their tax matters are under

control and their tax paying behavior is lawful. Collins et al., (1990) and Hite and McGill

(1992) indicated similar conclusions in their work in United States.

SME businesses interested in tax minimization were open to have tax practitioners who

understand both low and high risk strategies. In addition, the emergency of two distinct

factors represents tax minimization with conflict avoidance on one hand and tax minimizing

with high risk on the other (Yuka and Valeria (2003). Marshall et al., (1998) conclude that

diversity occurs among Australian tax practitioners in the ethical stances that they take. Tax

practitioners appear to be successful in marketing their skills in a way that is suitable to the

clients needs or the other hand.

This study analyses the level of behavior, beliefs and perceptions of fairness among SME

business taxpayers. Besides that, this study also investigates the relationship between

behavior, beliefs and fairness on its tax compliance from the perspective of tax practitioners.

LITERATURE REVIEW

Tax Behavior, Belief and Perception of Fairness

Behavior is related with the observable human behavior. The Organization for Economic Co-

Operation and Development (OECD) (2010) organized a forum on tax administration for

SMEs in understanding and influencing taxpayers compliance. The behavior of the taxpayers

is as a result of his or her personal norms and experiences related to a specific context which

are social, economic, and environmental and society. Allingham and Sandmo (1972)

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indicated that people are behaving in an economically rational way. The compliant and non

compliant behavior is the results of a cost benefit calculation. People comply when the costs

of evasion outweigh the benefits of evasion and do not comply when the balance tips with the

other side.

The opportunity for tax evasion or compliance has also a great impact on taxpayers

behavior. In terms of keeping evasion in check, strong empirical support can be found for

limiting the opportunity that potential tax evaders have for avoiding paying tax. Braithwaite

(2008) reported that a third party has also been shown to improve compliance, lending

credibility to enforcement capacity in the process. Previous researchers found that a broader

behavioral perspective has identified a large number of factors and drives that are associated

with tax compliance. According to Umashanker Trivedi et al., (2005), attitudes relate to ones

own personal views about the behavior. Based on the previous literatures, the present study is

trying to test the following hypotheses:

H1: There is a significant relationship between behaviors of SME business and tax

compliance

Belief is referred to the personal statement based on assumed personal knowledge or facts

such as tax rates are high or tax agents are essential to ensure correct lodgment. Based on the

theory of reasoned action (TRA), attitudes are believed to have a direct effect on behavioral

intention. Ajzen and Fishbein (1980) defined attitude as the degree to which an individual has

a good or poor evaluation of a particular behavior. Attitudes are influenced by a belief on an

outcome in which it uses degrees to measure the outcomes evaluation. Belief is underlined by

subjective norms which refer to a normative belief. A normative belief is influenced by ones

belief toward a referent or a referent group. In a study by Erten (2002), the behavior of the

individual within the society is under the influence of defined factors, originating from

certain reasons and emerging in a planned way.

The higher rates of tax compliance were found to be associated with the higher ethical

attitudes (Chan et al.., 2000; Kasipillai et al. 2003). Henderson and Kaplan (2005) reported

that the relationship between taxpayers ethical beliefs and their tax compliance decisions is

not simply direct and one dimensional. Besides that, having to pay high taxes and the belief

that others are also not complying with tax obligations are also being perceived as reasons

why taxpayers would not be likely to exercise tax compliance. The taxpayers who believe

that most referents with whom he or she is associated are motivated to comply if they think

they should not perform the behavior that will be perceived as social pressure to avoid

performing that behavior. Halizah et al., (2011) reported that the general subjective norm is

determined by the perceived expectation of specific referent individuals or groups to comply

with all expectations. Therefore, the second hypotheses as follows:

H2: There is a significant relationship between beliefs of SME business and tax

compliance

Blissenden (2002) said that procedural fairness entails that administrations follow particular

processes in ensuring that their decision making process is fair. Importantly, authorities

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should treat SME taxpayers in a fair and respectful manner when undertaking such

procedures, particularly when the taxpayers are committed to pay their tax.. Murphy (2004)

reported that the reasons for taxpayers to abide by or disobey institutional decisions have

been prominent in psychological research. The taxpayers are willing to comply if they are

treated in a respectful and fair manner by the authorities. Wenzel (2003) identified three

different areas of fairness in relation to tax compliance. They are distributive justice,

procedural justice and retributive justice.

Tax procedures are neutral and are consistently applied to all and this will have a favorable

impact on the perceptions of fairness by the taxpayers. Taxpayers who perceive unfair

treatment from the tax authorities will decrease their level of compliance (Tan, (1998);

Sheffrin & Triet, (1992); Spicer & Becker, (1980). Cristensen et al., (1994) indicated that

fairness is difficult to define because of four problems which are that it is multidimensional, it

can be defined at the individual level or for society at large, fairness is intertwined with

complexity and lack of fairness may be perceived as justification for or a cause of

noncompliance. Therefore, the third hypotheses as follows:

H3: There is a significant relationship between perception of fairness of SME business and

tax compliance

Tax Compliance and Tax Knowledge

Previous researches indicate that tax knowledge is essential in order to increase the level of

tax compliance (Richardson, (2006); Kirchler et al., (2008). Hence, it is very important to

have knowledgeable and competent taxpayers. Park & Hyun (2003), suggest that tax

education is one of the effective tools to induce taxpayers to comply more. In other words,

taxpayers are more willing to comply if they understand the basic concept of taxation. For

example, the level of tax compliance in Japan is high. The main reason for the high tax

compliance in Japan is because of the efforts made by the Japanese National Tax

Administration (NTA). The Self Assessment System was introduced in 1947 and plays an

important role in the taxation learning process to taxpayers. To promote the principles of

voluntary compliance, the Japanese tax authorities performed activities such as public

relations, tax education, tax consultation, guidance and examination (Rani, (2005).In

addition, tax knowledge will also reduce the potential for evasion. In a cross country study by

Richardson (2006) towards 45 countries in the world, he found that education in general has a

negative relationship with tax evasion, where the tendency to evade tax reduces with the level

of education.

However, it is still questionable whether this general level of education will increase tax

compliance. This is because in a study by Loo and Ho (2005) toward a group of salaried

individuals in Melaka, Malaysia, they found that the taxpayers competency level is quite low

even though most of them have tertiary education. This is an alarming situation because it

might impact on their readiness to exercise appropriate compliance under the new self

assessment system (SAS). In a study by Junainah (2002) towards the implementation of SAS

among individual taxpayers in Kota Kinabalu, Malaysia, she also finds that most of the

taxpayers were unwilling to participate in SAS because of the burden that they have to face,

especially in terms of completing atax return and calculating income tax payable. They were

comfortable with the simplification of the formal system. In his book entitled Malaysian

9

Taxation under Self Assessment Kasipillai (2007) emphasizes that knowledge about tax law

is assumed to be of importance for preference and to determine the acceptance of the Self

Assessment System (SAS).

RESEARCH METHODOLOGY

Data were collected from respondents consisting of tax practitioners in Kuantan, Pahang who

are doing the tax audit and tax compliance for SME business. The list of tax practitioners

officers was provided by the Inland Revenue Board (IRB) in Kuantan, Pahang. This research

has been carried out through questionnaires. According to Sekaran (2003), a questionnaires

survey is a formulated written set of questions to which respondents records their answers,

usually from clearly defined alternatives. 200 questionnaires were distributed to tax

practitioners, but only 113 agreed to participate (56.6 percent respond rate).

There are four operational variables which comprise one dependent variable and three

independent variables as shown in Table 1:

TABLE 1: VARIABLES MEASUREMENTS

Variables Measurement

Dependent Variable

Tax Compliance

Evidence from Tax Practitioners

The level of tax compliance

Independent Variable

Behavior

Belief

Tax Fairness

The level of tax related of behavior

The level of tax related of belief

The level of tax related of fairness

RESULTS AND DISCUSSION

Frequency Analysis

Table 2 presents the total numbers of respondents of tax practitioners in Kuantan, Pahang. In

terms of gender, most of the respondents were female which was 79 percent (n=89) followed

by male which were 21 percent (n=24). Then, in terms of ethnicity Malays were 84 percent

(n=95), followed by Chinese 14 percent (n=16) and Indian 2 percent (n=2).

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TABLE 2: RESPONDENT PROFILES

2.1: Gender Frequency Percent

Male 24 21

Female 89 79

2.2 Races

Malay 95 84

Chinese 16 14

Indian 2 2

Total 113 100

Descriptive Analysis

Table 3 presents the level of behavior, beliefs and tax fairness among the SME taxpayers. Out

of 29 questions we found that 7 questions have the highest level of behavior, beliefs and tax

fairness among the SME businesses who answered agree. In term of the level of behavior,

the highest mean was 3.42 which was My client should inform and declare their actual

income received from all sources to the IRB or tax practitioners, followed by My client are

afraid of tax audits and prosecution which was 3.13. The third highest mean was To

enable a decrease in tax liability, my client required my firm to share knowledge with them

which was 3.07.

In terms of level of beliefs, the first question shows the highest mean in answering agree

which was My client believes that by joining training courses offered by professional bodies

is a good idea(3.13). Then the second answer was My client believes that my firm is helpful

in assessing their organizations tax risk (3.09) followed by My client believes that specific

advice offered by any organization external auditor is important (3.07). In terms of the level

of tax fairness, only one question showed the highest mean of agreement which was For the

SME business, I think that the income tax system is fair and reasonable (3.05).

TABLE 3: SUMMARIES THE LEVEL OF BEHAVIOR, BELIEF AND TAX

FAIRNESS

Factors Mean

Std.

Deviation

Behavior

1 My client should inform and declare their actual income

recieved from all sources to the IRB or tax practionners. 3.42 0.637

2 My clients are afraid of tax audits and prosecution. 3.13 0.657

3 To enables a decrease in tax liability, my client required my

firm to share knowledge with them. 3.07 0.437

4 My client would not feel guilty if they excluded some of

their income when completing the tax return. 2.35 0.766

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5

Since the suporting documents do not need to be sent to the

IRB, my client has opportunity to manipulate the figure in

the tax return.

2.32 0.749

6 It is ethically wrong if my client excludes small amount of

income when completing the tax return. 2.95 0.843

7 Tax returns take too much effort, so my client put it off

unless there is an incentive. 2.51 0.695

8 My client operational decision makers are required to

consider the tax effects of their decisions 2.94 0.419

9 My client organization possesses sufficient expertise to

share knowledge with my firm 2.86 0.526

10 Overall my client organizations gives an appropriate level

of attention to taxation matters 2.97 0.542

Belief

1 My client believes that by joining training courses offered

by professional bodies is a good course 3.13 0.590

2 My client believes that my firm is helpful in assessing their

organizations tax risk 3.09 0.400

3 My client believes that a specific advice offered by any

organization external auditor is important 3.07 0.437

4 My client believe the tax authority has limited capability to

investigate all income reported to them. 2.42 0.638

5

My client believes that the probabilities of being detected

by the tax authority for not declaring the exact income that

they receive are low.

2.26 0.654

6 By paying right amount of income tax, my clients believe

that other people especially the poor will get the benefit. 2.97 0.558

7 My clients believe that the penalty is lower than their tax

saving due to not comply with tax laws. 2.46 0.668

8 My clients believe preparing an income tax return is a low

priority in their business nature. 2.44 0.801

9 My client feel that tax is an obligation and believing in no

corruption. 2.88 0.578

10 My client believe that it is important for my firm to

participate in their business meetings, forums and boards. 2.97 0.525

Fairness

1 For the SME business, I think that the income tax system is

fair and reasonable 3.05 0.497

2 The benefits my clients receive from the government in

exchange for their income-tax payments are reasonable. 2.96 0.516

3 Current tax laws require my client to pay more than their

fair share of income taxes. 2.66 0.591

4 Compared to the amount paid by bigger firm or company

my client pay more than their fair share of income taxes. 2.51 0.568

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Correlation Analysis

Table 4 depicts the correlation between the level of behavior, beliefs and tax fairness with tax

compliance. Based on the results from the respondents all independent variables have a

significant relationship with tax compliance. First, in terms of the level of behavior, it has a

significant relationship with tax compliance which had a p value less than 0.01 (correlation

value -0.428). It shows that the evidence from the tax practitioners regarding the behavior of

SME business is valuable. This is consistent with previous studies, for example Braithwaite

(2008). Therefore, the alternate hypothesis (H1) is accepted.

Second, in terms of the level of beliefs also showed a significant relationship with tax

compliance which had a p value less than 0.01 (correlation value -0.393). Third, in terms of

the level of tax fairness also reported that it had a significant relationship with tax compliance

which was a p value less than 0.001 (correlation value -0.424). The result showed that the

higher rates of tax compliance were found to be associated with higher ethical attitudes (Chan

et al., (2000); Kasipillai et al. (2003). Therefore, taxpayers perception of the tax system was

important because fairness and belief of the tax system would instill compliant behavior

among SME taxpayers. Therefore, the alternate hypothesis (H2) and (H3) is accepted.

5 A fair tax rate means it should be the same for everyone. 2.56 0.777

6

High-income company or firm has a greater ability to pay

income taxes, so it is fair that they should pay higher rate of

tax than low-income tax earners.

2.92 0.703

7 My client think that special provisions in the income tax

law apply only to a few people are unfair. 2.60 0.750

8 It is fair that high-income firm pay proportionately more

tax than low-income firm. 2.96 0.441

9 Generally my clients feel that the income tax is a fair tax. 2.89 0.469

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TABLE 4: SPEARMANS RHO CORRELATIONS

Mean

Behavior

Mean

Belief

Mean

Fairness

Mean Tax

Compliance

Mean Tax Compliance

Correlation

Coefficient

Sig. (2-tailed)

N

-.428**

0.00

113

-.393**

0.00

113

-.424**

0.00

113

1.000

113

Mean Behavior

Correlation

Coefficient

Sig. (2-tailed)

N

1.000

113

.663**

0.00

113

.627**

0.00

113

-428**

0.00

113

Mean Belief

Correlation

Coefficient

Sig. (2-tailed)

N

.663**

0.00

113

1.000

113

.667**

0.00

113

-.393**

0.00

113

Mean Fairness

Correlation

Coefficient

Sig. (2-tailed)

N

.627**

0.00

113

.667**

0.00

113

1.000

113

-.424**

0.00

113

**Correlation is significant at the 0.01 level (2-tailed)

RECOMMENDATIONS AND CONCLUSION

This study analyzes the level of behavior, beliefs and tax fairness among the SME business

based on the perceptions of the tax practitioners. The perceptions of the tax practitioners is

needed and the results indicate that they play an important role to provide the understanding

of tax related behavior, beliefs and tax fairness among the SME businesses. For the majority

of SME taxpayers were using the tax practitioners in calculating their tax returns and

submitting them to the IRB by the due date.

Based on Section 77 of the ITA 1967, among the responsibilities of the taxpayers are to give

full information of their taxable incomes, to submit their returns on time, to maintain proper

records and to pay the accurate amount of tax. From the analysis conducted, it shows that all

the SME taxpayers agreed that they should inform and declare their actual income received

from all sources to the IRB. The tax practitioners were helpful to them in assessing their

organization tax risk and believed the programs organized by the professional bodies were

good and valuable. Based on the correlation analysis, all of the independent variables which

were behavior, beliefs and tax fairness had a significant relationship with tax compliance.

Therefore, all the hypotheses were accepted.

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This study, however, cannot be generalized to all SME taxpayers, since it was only conducted

to the clients of tax practitioners in Kuantan, Pahang. Besides that, the questions of the level

of behavior, beliefs and tax fairness were also restricted to evidence from tax practitioners

only. In addition, the level of fairness was difficult to define because four problems which

are multidimensional, it can be defined at the individual level or for society at large, fairness

is intertwined with complexity and lack of fairness may be perceived as justification or a

cause of noncompliance (Christensen et al., (1994).

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Christensen, F., Saleem, K., and Panikkos, P. (1994). Tax Regulation and Small Business in

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De Vaus, D. (2002). Analyzing Social Science Data (1st ed). London: Sage Publication Ltd.

Fernandez, P and Lynne Oats (1998). The Small Business under a Goods and Services Tax

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A. Greenbaum, 159-176.NSW: Prospect, 1998.

Furnham, A. and Arfyle, M. (1998). The Psychology of Money, London. Routledge (FA)

Hite, P.A., and McGill, G. (1992). An Exanimation of Taxpayers Preference for Aggressive

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Individu di Kota Kinabalu. Tesis Sarjana, UKM.

Kasipillai, J. (2007). Malaysian Taxation under Self Assessment System. 2nd

Edition. Kuala

Lumpur: McGraw Hill

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Compliance Behaviour? Finding from a Survey, The Charted Secretary Malaysia, June 2003.

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slippery slope framework. Journal of Economic Psychology 29, 210-225

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Practitioners: Western Australian Evidence, Journal of Business Ethics, 17, 1265-1279

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Policy and Administration (CTPA): Understanding and Influencing Taxpayers Compliance.

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corporate tax knowledge for the new hires working in tax. Journal of Accounting Education,

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empirical data: A case of Korea. Journal of Policy Modeling, 25, 673-684

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PricewaterhouseCoopers International Limited. www.pwc.co.za/en/tax/index.jhtml. Retrieved

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John Wiley & Sons

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http://www.pwc.co.za/en/tax/index.jhtml

16

A STUDY OF THE APPROACHES OF LEARNING AMONG ACCOUNTING AND

BUSINESS STUDENTS IN HIGHER EDUCATION INSTITUION.

Azrinawati Mohd Remali (Leader)

College of Business Management & Accounting, Universiti Tenaga Nasional (UNITEN)

Bandar Muadzam Shah, Pahang, Malaysia

Email: Azrinawati@uniten.edu.my

Zuraini Abdullah Zawawi (Member)

College of Business Management & Accounting, Universiti Tenaga Nasional (UNITEN)

Bandar Muadzam Shah, Pahang, Malaysia

Email: Zzuraini@uniten.edu.my

Adnan Abdul Hamid (Member)

College of Business Management & Accounting, Universiti Tenaga Nasional (UNITEN)

Bandar Muadzam Shah, Pahang, Malaysia

Email: Aadnan@uniten.edu.my

Khairul Nizam Surbaini (Member)

College of Business Management & Accounting, Universiti Tenaga Nasional (UNITEN)

Bandar Muadzam Shah, Pahang, Malaysia

Email: NizamK@uniten.edu.my

ABSTRACT

This study aims to investigate the differences in approaches of learning towards the academic

performance between on Accounting and Business students. The Approaches and Study Skills

Inventory for Students (ASSIST) was administered to the students in various universities in

the East Coast Region, Malaysia; Accounting students (N=213) and Business students

(N=178). Approaches to learning refer to; deep approach which is an approach where the

students attempt to make sense of the subject area in a framework of ideas and concepts. A

surface approach is characterized by memorization of information and procedures and

relying on notes, passive memorization and academic anxiety. The result revealed that there

a significant relationship between deep study approaches and academic performance among

accounting students meanwhile there is also significant relationship (negative way) between

surface learning with academic performance among business students.

Keywords: deep learning, surface learning, academic performance, accounting and business

students.

mailto:Azrinawati@uniten.edu.mymailto:Zzuraini@uniten.edu.mymailto:Aadnan@uniten.edu.mymailto:NizamK@uniten.edu.my

17

INTRODUCTION

This study investigates whether the approaches of learning between Accounting and Business

students will affect their academic performance. Approaches to learning have been studied

and describe the main way in which students engage with learning matter and how temporal

matters surrounding the task are organized. The approaches to learning refer to how students

tackle specific learning tasks and deep and surface approaches has been identified as two

different level of processing (Ballantine, Duff and Larres (2008)).

In order to help the students achieve the good performance in their result, this study

researches about the students studying and learning pattern. Davidson (2002) highlighted in

his research the lack of knowledge in the approaches to learning and that this would will be a

bottleneck to good performance in the examinations. Hence, this study investigates

approaches to the learning strategy adopted by accounting and business students in Malaysia

and its effect on academic performance.

The purpose of this study is to provide empirical evidence on the relationship between

approaches of learning and academic performance and try to achieve the following

objectives:

(1) To investigate any relationship between approaches of learning and academic performance among accounting students and business students in the East Coast Region

of Malaysia and

(2) To determine any difference of approaches on learning based on demographic factors

(gender & hometown).

The finding will provides useful information for educators and also for higher learning

institution to promote effective learning strategies to the students in order to produce good

quality of students by designing effective instructional strategies to facilitate learning. Yong

and Lew (2005) stated that the key elements in getting the learners involved in learning lies in

an understanding that leaning approaches can have an impact on their academic performance.

In conclusion, this paper is concerned on how students study (approaches of learning) rather

than what they study which will affect the academic performance (CGPA).

LITERATURE REVIEW

Deep and Surface Approaches to Learning

According to Ballantine et al. (2008), students approaches to learning (SAL) have drawn a

distinction between two defining approaches to learning; namely a deep approach and a

surface approach. Hassal and Joyce (2001) define a deep approach as where the students

attempts to make sense of the subject area in a framework of ideas and concepts. The student

will seek real meaning and be interested in the subject matter for its own sake. The deep

approach student looks for meaning in the matter being studied and critically relates it to

18

other experiences and ideas. Meanwhile, a surface approach is characterized by memorization

of information and procedures (relying on notes, passive memorization and academic

anxiety). The student reduces what is to be learned to a list of facts that exist to be memorized

often failing to perceive the subject relevance and who might be motivated by fear of

failure, for example in an exam (Hassal and Joyce (2001).

A study conducted by Davidson (2002) found that there was a significant relationship

between the use of a deep study approach and grades received. They suggested encouraging

the students to develop a deep study approach which may help them to improve their ability

to work with more complex material. This is in line with the study done by Yong and Lew

(2005) that found that the relatively higher scores of deep and achieving approaches to

learning compared to the surface learning approaches for both youth and adult learners

indicated that they used the deep learning approach to obtain the highest grades and to be

model students. Duff et al. (2004) in their study found that the deep approach is positively

associated with academic performance compared to the surface approach.

Warburton (2003) stated that deep learning is a key strategy by which to extract meaning and

understanding from course material and experience. The author also mentioned that the

challenge for educational institutions is not simply to teach the concrete facts about the

environment but to create an active, transformative process of learning that allows values to

be lived out and debated.

A number of studies have been conducted in educations, which demonstrate that deep

learning approach can enhance students academic performance (Ballentine 2008); Spencer

(2003); Hassal & Joyce (2001)). Spencer (2003) concludes in her finding that a surface

approach is associated with a less successful academic performance and a deep approach is

associated with greater examination success and more enthusiasm for the subject. She

suggested that the accounting educators should encourage a deep approach so that the

students may become more proficient with complex material.

Other Factors Influencing Academic Performance

Previous research has related a number of factors to academic performance. Past academic

performance as indicated by grades or CGPA is the factor most closely related to examination

performance. Other factors are gender, motivation, effective learning strategies and others.

Research done by Davidson (2002) found that motivation, past academic performance and

gender although the evidence is mixed also affect the performance. This is in line with the

research done by Hassal & Joyce (2001) who also found that gender; domicile and study

method will affect the students performance. The impact of gender on academic

performance has also been examined in many prior studies, but the results have been

conflicting, perhaps as a result of student-instructor gender.

Ervina and Othman (2005) also found that knowledge prior to entering the university (such as

in economics, mathematics and accounting) is crucial in assisting the students in undertaking

19

the course in both business and accounting programme. They also suggest that the female

students perform better than male students; whilst Chinese students perform better than

Malay and Indian students.

Lau and Chan (2001) found that the lack of effective learning strategies relate directly to poor

performance. Pintrich and Roesser (1994) also found that learning strategy is among the

important factors affecting students academic performance. Duff et al. (2004) in their

research also discuss that the relationship between personality and approaches to learning

reveals significant impact on student performance in their study in university.

FIGURE 1 :METHODOLOGY

Figure 1 summarises the theoretical framework of this study. There are two approaches of

learning selected as independent variables namely, deep approaches and surface approaches.

Meanwhile, the dependent variable is academic performance which is measured by

cumulative grade point average (CGPA).

Dependent Variables

This study uses the latest available students CGPAs as the measure of academic performance

which is widely used to measure this academic performance and as such is considered as

appropriate and reliable to use. A good academic performance implies self-mastery and

demonstration of student ability. It is chosen, for several reasons: grades are clearly the most

common indicator of academic performance, CGPA is instrumental for graduation and can be

considered a meaningful measure of students performance, students are generally aware of

Deep Approach

Academic

performance

CGPA

Dependent Variable

Demographic Factors

(Gender & Hometown)

Surface Approach

H2a, 2b

H1a, 1b

H3

20

their CGPA since they receive regular feedback throughout their academic lives, most of the

literature is based on measurement of CGPA/GPA for studentsacademic performance.

Independent Variable

Deep Learning Approach is an approach where the students attempt to make sense of the

subject area in a framework of ideas and concept and the student will seek real meaning and

be interested in the subject matter for its own sakes (Balletine et al. (2008)). Hence the study

hypothesises that;

H1a There is a significant relationship between a deep study approach and

accounting students academic performance.

H1b - There is a significant relationship between a deep study approach and

business students academic performance.

Meanwhile a surface approach is characterized by memorization of information and

procedures for example relying on notes, passive memorization and academic anxiety. The

students reduces what is to be learned to a list unconnected facts that exist to be memorized

often failing to perceive the subjects relevance and may be motivated by fear of failure, for

example in an exam (Balletine et al. (2008)). Hence the study hypothesises that;

H2a There is a significant relationship between a surface study approach and

accounting students academic performance.

H2b There is a significant relationship between a surface study approach and

business students academic performance.

The study also aims to determine any differences of learning approaches based on

demographic factors (i.e gender, year of study and hometown). There are mixed findings

about differences regarding academic performance based on demographic factors. (Davidson

(2002), Ervina & Othman (2005) & Hassal & Joyce (2001)). Hence, the hypothesis is;

H3 There is a significant relationship between demographic factors and a deep

study approach and a surface study approach affecting academic performance

(gender and hometown).

Data Collection

Students from various Higher Education Institutions from the East Coast Region participated

in the study. Collecting data from two different courses but both from the social sciences in

this study gave the possibility to study the correlation of approaches of learning towards the

academic performance. Among the institutions are UNITEN, UiTM, Politeknik and UMP.

21

There were approximately about 500 of these students in the all targeted higher institutions.

The analysis of data utilised the statistical package of SPSS version 18/19. In order to

achieve the objectives stated earlier, several analyses and techniques were used for data

testing for example the Spearman correlation, the Mann-Whitney test and data testing such as

the reliability test and the normality tests.

Instrument and measures

The questionnaire was adopted and adapted from ASSIST originally developed by Entwistle

et al. (2000) updated by Davidson (2002). The questionnaire was divided into two sections.

The first section (Part A) was the ASSIST questionnaire consisting of 16 questions for the

deep approach and 16 questions for the surface approach. Students were expected to indicate

their agreement on a 5-point Likert scale (1 = agree, 2 = somewhat agree, 3 = neither agree

nor disagree, 4 = somewhat disagree and to 5 = disagree). The second section (Part B)

gathered personal information such as age, gender, place of study, course and etc. Table 1

presents the structure of the questionnaire used.

TABLE 1: STRUCTURE OF THE QUESTIONNAIRE

Section Content Item

Part A Approaches of Learning

- Deep Approaches

- Surface Approaches

16

16

Part B General Question 6

RESULT AND DISCUSSION

Descriptive Results

A total of 213 accounting students and 178 business students took part in this study. Table 2

shows the distribution of collected questionnaires according to institutions studied. The

questionnaire was distributed in class with instructors supervision in order to make sure that

the students answer all the questions.

TABLE 2: DISTRIBUTION OF STUDENTS ACCORDING TO INSTITUTION

Institution Accounting Business

UNITEN 146 129

UiTM 35 0

Politeknik 32 0

UMP 0 49

Total 213 178

22

Table 3 depicts the descriptive findings in terms of gender, Cumulative Grade Point of

Average (CGPA) and hometown in recent semester.

TABLE 3 : DEMOGRAPHIC DATA

Demographic Factors Accounting Business

Gender

Male 61 (26.8%) 66 (37.1%)

Female 152 (71.4%) 112 (62.9%)

CGPA

>3.5 25 (11.7%) 24 (13.5%)

3.00-3.49 90 (42.3%) 62 (34.8%)

2.5-2.99 86 (40.4%) 69 (38.8%)

23

used. Table 4 showed the output for a correlation on the deep approach, the surface approach

and CGPA for accounting and business students.

TABLE 4: CORRELATION BETWEEN A LEARNING APPROACH AND CGPA

CGPA Deep Approach Surface Approach

Accounting Students 1.000 0.121** -0.003

Business Students 1.000 -.088 -0.133**

** Correlation is significant at the 0.01 level (1-tailed).

There was a significant relationship between deep learning and the CGPA approach for

accounting students This result was supported by previous research done by Warbuton (2003)

which found that deep learning and a strong-sense-of community profiles were consistent

with the findings that participants generally reported with the academic performance. The

result also was in line with research done by Hassal and Joyce (2001).

Meanwhile there is a significant relationship between surface learning and CGPA for

business students at the 0.05 level, however, this was an interesting finding whereby the

correlation was negative. This result contradicts with the research done by Zhu et al. (2008)

which stated that there was a positive relationship between surface leaning for Chinese

Education students compared with Flemish Education students. Table 5 shows the summary

of findings with the research hypotheses.

TABLE 5: SUMMARY OF THE FINDINGS WITH THE RESEARCH HYPOTHESIS

Hypothesis Result

H1a There is a significant relationship between deep study approach

and accounting students academic performance.

Accept

H1b - There is a significant relationship between deep study approach

and business students academic performance.

Reject

H2a There is a significant relationship between surface study approach

and accounting students academic performance.

Reject

H2b There is a significant relationship between surface study approach

and business students academic performance.

Accept

(Negative Way)

Comparison between the approaches of learning variables and demographic factors

The second objective of the study was to determine if there were any difference between

approaches of learning variables (deep study and surface study) with demographic factors;

gender and hometown. Table 6 presents the results based on the Mann-Whitney test which

showed that, there was no significant difference between approaches of the learning variables

and all demographic factors (p >0.5). This finding supported the research by Tho (1999), who

found that there was no influence on subsequent accounting performance between urban and

rural students on academic performance. In addition, there was no significant difference

24

between males and females. This was supported by Carpenter et al. (1993) and Bartlett

(1993) in their accounting studies who found that there was no significant difference in

gender performance.

TABLE 6: COMPARISON BETWEEN APPROACHES OF LEARNING AND

DEMOGRAPHIC FACTORS

Deep Learning Surface Learning

Gender 0.425 0.759

Hometown 0.374 0.536

*Significant at 0.05 level

CONCLUSION

The main objective of this study was to investigate the relationship between approaches of

learning practiced by accounting and business students and to examine any influences of

these approaches on the academic performance. The test used a sample of 391 students in

various institutions in the East Coast Region. The results revealed that there were significant

relationships between deep study approaches with academic performance among accounting

students meanwhile there was a negative significance between surface learning with

academic performance among business students. Meanwhile, there is no significant

difference between the approaches of learning variables and all demographic factors tested

(gender and hometown).

There were several limitation that should be highlighted here. First, there were various factor

affecting academic performance. However, this study only considered approaches to learning.

Future study should explore some other factors such as motivation, student behaviour, study

environment and class activity. Second, it is also important to note that the generalisability of

the results may be limited by the student population. This study merely considered the

accounting students in learning institution in the East Coast Region. Future research should

consider a wider group of students in order to have a reliable generalisation of the learning

approaches of accounting students and business students.

This study will provides very information for educators and also higher learning institution to

make changes in teaching strategies that can influence the learning approaches adopted by the

students towards the desired approaches. Accounting instructors can encorage the students to

develop a deep study approach as it appears to help them to become better at solving complex

problems (Davidson (2002)). In addition to that, the implication for teaching is that educators

should engage in a supportive roles in order to enhances student learning approaches and

maintain students good academic performance. Finally, this finding is helpful to support

instructional design of learning environments in order to cater to the students characterics in

learning approaches.

25

REFERENCES

Ballantine, J. A., Duff A. and Larres P. M. (2008). Accounting and Business Students

Approaches to Learning: A Longitudinal Study. Journal of Accounting Education. Vol. 26 pp

188-201.

Bartlett, S. M., Peel, J. and Pendlebury, M. (1993). From Fresher to Finalist: A Three-year

Study of Student Performance on an Accounting Degree Program. Accounting Education :

An International Journal. Vol. 2 pp 111-122

Carpenter, V.L., Friar, S. and Lipe, M.G. (1993). Evidence on the performance of accounting

college-level financial accounting course, The Accounting Review. Vol. 63(1) pp 137-47.

Davidson, RA. (2002). Relationship of study approach and exam performance. Journal of

Accounting Education. Vol. 20 pp 29-44.

Duff, A. (2004). The role of Cognitive Learning Styles in Accounting Education:

Developing Learning Competencies. Journal of Accounting Education. Vol. 22 pp 29-52.

Ervina, A & Othman, MN (2005). Undergraduate students performance: the case of

University of Malaya. Quality Assurance in Education. Vol. 13 pp 329-343.

Field, A. (2007). Discovering Statistics using SPSS for Windows, Great Britain: SAGE

Publications Ltd.

Hassal, T & Joyce. J (2001). Approaches to Learning of management accounting students.

Education +Training. Vol. 43 pp 145-152.

Lau, K. L. and Chan, D. W. (2001). Motivational StyleCharacteristics of Under-Achievers in

Hong Kong. Educational Psychology. Vol. 21(4) pp 417-430.

Pintrich, P. R. and Roeser, R.W. (1994). Classroom and individual differences in early

adolescents motivation and self-regulated learning. Journal of Early Adolescence. Vol. 14(2)

pp 139-162.

Spencer, K. (2003), Education in a Changing Environment 17th

18th

September 2003,

University of Salford.

Tho, L M. (1999). Predicting Success In University Accounting Examination Performance.

Jurnal Pendidikan, Vol. 20 pp 95-104. ISSN 0126-5261

Yong, ST & Lew, TY (2005). Deep learning approach among marketing students: Adult

versus youth learner. Retrieved from www.herdsa.com.

Warburton. K, (2003), Deep learning and education for sustainability. International Journal

of Sustainability in Higher Education. Vol. 4 pp 44-56.

26

Zhu, C., Valcke, M. & Schellens, T. (2008), A cross-cultural study of Chinese and Flemish

university students: Do they differ in learning conceptions and approaches to learning?

Learning and Individual Differences. Vol. 18 pp 120-127.

27

DO FINAL YEAR ACCOUNTING STUDENTS EXPERIENCE COMMUNICATION

APPREHENSION (CA)?

Azleen Ilias

Department of Accounting-College of Business and Administration

UNITEN-Campus Sultan Haji Ahmad Shah, 26700, Muadzam Shah, Pahang Malaysia

azleens@uniten.edu.my / azleenilias@yahoo.com

Mohd Zulkeflee Abd Razak

Department of Marketing & Entrepreneur Development-College of Business and

Administration

UNITEN-Campus Sultan Haji Ahmad Shah, 26700, Muadzam Shah, Pahang Malaysia

zulkeflee@uniten.edu.my / zulkeflee_razak@yahoo.com

ABSTRACT

The objective of this study is to identify the level of Communication Apprehension (CA)

among final year accounting students particularly in Universiti Tenaga Nasional and to test

the Personal Report Communication Apprehension (PRCA). The PRCA items are considered

reliable to be adopted in the Malaysia scenario since the reliability analysis is aligned with

McCroskey (1977). This study indicates more than 50% of the highest level of CA for the

Generalized Context pertaining to four contexts in group discussions, meetings,

interpersonal and public speaking. The main implication for educators is to develop and

implement several strategies in teaching styles in reducing fear and anxiety among students.

INTRODUCTION

Background of the study

Nowadays, communication skill is considered to be one of the important skills needed to be

developed by undergraduate students especially to find an opportunity in government and

commercial industry. Most of employers are very concerned about the ability of

communication skill in group discussions, conducting meetings, and interpersonal and public

speaking. Lack of communication skill is one of reasons why employers are reluctant to hire

job applicants. It can be supported by on a report in Malaysia Today Malaysia Has 60 000

Graduates Unemployed (2005), due to lack of certain skills such as communication skill,

poor command of English and lack of work experience. Lack of communication skill is due

to fear, anxiety feelings and having less confidence that exists in some situation s when

communicate with other people.. Based on McCroskey (1985), this feeling is called

communication apprehension. He developed this concept of communication apprehension.

The experience of fear and anxiety is considered a normal experience to everyone but in

some circumstances it can be a major problem in order to communicate with other people..

mailto:zulkeflee@uniten.edu.mymailto:zulkeflee_razak@yahoo.com

28

According to McCroskey, (1977, pp.78), communication apprehension is one of primary

elements associated with poor communication skills development. Communication

apprehension (CA) is an "individual level of fear or anxiety associated with either real or

anticipated communication with another person or persons" (McCroskey, 1977,pp.78).

Problem statement

This study is looking into communication apprehension for students that can affect

communication skills needed for employability in the future. Communication apprehension

can be a problem for several conditions whenever anxiety and fear will affect a persons

ability to communicate well such as in meetings, public speaking, and interpersonal and

group discussions. These feelings will engage their intention and attitude to get into some

communication situations whether encouraging or discouraging them to communicate.

A previous study by Albrecht & Sack (2000) indicated that accounting practitioners have

stated that the accounting educational model is obsolete because this model is more about

content knowledge and is less focused into skill development needed in order to be a more

successful professional. Accounting practitioners and educators believe that the top five

important skills are analytical/critical thinking, written communication, oral communication,

computing technology and decision making.

According to previous evidence in newspaper online (Kang Soon Chen, April 15, 2012) that

the Deputy Higher Education Minister Datuk Saifuddin Abdullah stated most students meet

the criteria and qualification needed by employers but they are still lacking in communication

skills. The Malaysian Employers Federation Executive Director Shamsuddin Bardan also

mentioned that even in a good economic time there have been many unemployed graduates

due to reluctance to interact and engage well in communication (Hariati Azizan, Sunday July

5, 2009). In addition, according to Kelly Services as a recruitment company explained that

communication skills, problem solving, ability to participate in decision making, people

management and strategic thinking are the top five skills in employability demand (Jagdev

Singh Sidhu, February 12, 2001). Even though graduates have fulfilled their qualifications

and are equipped with theoretical knowledge they also need to overcome their lack of soft

skills. In a report from the United Nations Educational, Scientific and Cultural Organization

(UNESCO (2012), the employers have voiced out to the Ministry of Higher Learning

Education (Malaysia) that universities have produced a bunch of graduates with less of good

quality supply to the market. According to Graduate Employability in Asia (2012), the good

quality criteria refers to the adequacy of self-confidence and soft-skills particularly

competence in communicating in the English language, focus and commitment.

RESEARCH OBJECTIVES

Studies done on communication apprehension particularly for final year accounting students

is rarely found. Researchers need to find out the level of communication apprehension among

final year accounting students in order to improve the style of teaching and learning in class

29

for communication skills development. Thus, the educators can provide better teaching,

learning and facilitating students and enhance soft skills in course syllabi and programmes in

order to reduce fear and anxiety in developing communication skills such as in meetings,

group discussions, and interpersonal and public speaking.

Therefore, this study is done in order:

To describe the level of overall and subscore communication apprehension among final year

accounting students particularly in Universiti Tenaga Nasional.

To test the Personal Report Communication Apprehension (PRCA) theory by McCroskey

(1977) by relating overall communication apprehension to subscore communication

apprehension (group discussions, meetings, interpersonal and public speaking) among final

year accounting students particularly in Univesiti Tenaga Nasional.

RESEARCH QUESTIONS

Descriptive Questions:

RQ1: What is the level of overall communication apprehension among accounting students?

RQ2: What is the level of communication apprehension in group discussions, meetings,

interpersonal and public speaking among accounting students?

Relationship Questions:

RQ3: How strong the level of communication apprehension in group discussions, meetings,

interpersonal and public speaking related to overall communication apprehension among

accounting students?

SIGNIFICANT CONTRIBUTION

The study aims to contribute to the existing body of knowledge in the area of communication

skills, communication apprehension and soft skills in education. Further, the study provides

the constructs to measure and evaluate the Personal Report Communication Apprehension

(PRCA) test. Theoretically, this study measures and validates the instrument of McCroskey

(1977). In addition, research evidences from the current study will be able to suggests and

recommend to the educators, lecturers, and everyone that is involved in education sectors to

implement several actions and teaching styles in reducing fear and anxiety among students

since their early stages in the university. Thus, the graduates will be well equipped and

competent with knowledge, generic skills and soft-skills particularly needed by the Malaysian

Institute of Accountant (MIA) in implementing MIA Chartered Accountants Relevant

Experience (CARE). Overall, the good quality graduates will contribute to the Ministry of

Higher Education (MOHE).

This paper continues with a literature review in discussing and elaborating of communication

apprehension. Next, the research design includes a research framework, sample,

30

instrumentation and data collection are presented. This is followed by quantitative analysis

and the findings are discussed using descriptive analysis, reliability analysis, and correlation.

The final part concludes the study and provides suggestions for further research.

LITERATURE REVIEW

Communication Apprehension (CA)

CA is an individuals level of fear or anxiety associated with either real or imagined

communication with another person or persons (McCroskey,(1977,pp.78). Within this

context, it is important to distinguish CA from other constructs similar in definition identified

in the literature that include reticence, shyness, unwillingness to communicate, introversion,

and social anxiety. (Berger et al..(1983); Henjum (1982); Leonard and Johnson (1998).

Communication Apprehension Contexts

McCroskey (1970) advanced the construct of CA, he made no explicit mention of whether it

is a trait of an individual or a response to the situational elements of a specific

communication transaction (a state). The distinction is important because of its implications

for possible intervention strategies to modify levels of CA. McCroskey (1984a) believes the

trait/state distinction is a false dichotomy. To view all human behaviour as emanating from

either a trait-like, personality orientation of the individual or from the state-like constraints of

a situation ignores the interaction of these two sources.

Trait-like CA

A true trait is an invariant characteristic of an individual, such as eye colour and height.

Traits-like personality variables, although highly resistant to change, can be and often are

changed during adulthood. There is substantial research on treatment of people identified as

having high CA that suggests CA can be changed (Condit, (2000), Beatty et al., (1998); and

Opt and Loffredo,(2000)for recent views that CA may be a fairly stable personality trait that

is not easily subject to change). Trait-like CA is viewed as a relatively enduring, personality-

type orientation toward a given mode of communication across a wide variety of contexts

(McCroskey, 1984,pp.18).

Generalised-Context CA

Generalised-Context CA viewed from this perspective represents orientations toward

communication within generalisable contexts. Fear of public speaking (stage fright), the

oldest of the CA conceptualisations, is an example. This view recognises that people can be

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highly apprehensive about communication in one type of context while having less or no

apprehension in another context. CA is viewed as a relatively enduring, personality-type

orientation in a given type of context. McCroskey (1984a) identifies four classic types of CA

context: public speaking, speaking in formal meetings, speaking in small group discussions,

and speaking in dyadic interactions (i.e. conversations).

Causes of Generalised-Context CA

The causes of situational CA appear much clearer than those offered for trait-like CA.Buss

(1980) suggests that the major elements in the situation that can result in increased CA are

novelty (increased uncertainly about behaviour); formality (narrower confines for acceptable

behaviour); subordinate status (appropriate behaviour is in the hands of the superior);

conspicuousness (new social settings or standing up to speak in a class or meetings);

unfamiliarity (more comfortable when communicating with whom they are familiar);

dissimilarity (with audience); and degree of attention from others (moderate attention is the

most comfortable, but being stared at intently or ignored is uncomfortable).

Two other elements are suggested by work from Daly and Hailey (1983). These are the

degree of evaluation (more anxious if evaluation is occurring) and prior history (success

breeds success but, conversely, prior failure will result in fear of failure and increased

apprehension).

Communication Apprehension in Accounting

There have been a small number of studies investigating CA in accounting students ( Stanga

and Ladd, (1990); Ruchala and Hill, (1994); Simons et al., (1995); Fordham and Gabbin,

(1996); Warnock and Curtis, (1997); Hassall et al .(2000). Findings from several of these

studies support Daly and Staffords (1984) observation that highly anxious individuals select

majors having significantly fewer perceived communication demands than those selected by

people with low levels of anxiety. Occupations perceived as low in communication demands

included accountant (among others), and several studies have sought to investigate levels of

CA in accounting majors relative to their peers in other (business) majors, and in relation to

McCroskeys (1984a) national norms. Typically the results indicate that accounting students

have higher average levels of CA than do other business majors and, for entry-level students,

above national norms (Stanga and Ladd, (1990); Simons et al., (1995); Hassall et al., (2000).

Hassall et als (2000) study also indicates that prior educational background (science-based,

arts-based, or a mix) is significantly associated with average levels of written CA for

accounting and business majors, with those from a science background being highest and

those from an arts background being lowest. Students self-ratings of their own academic

ability are also found to be significantly associated with average levels of CA for both writing

and oral communicating, with those students reporting higher than average ability having

lower than average levels of CA.

Gardner et al.(2005) stated that curriculum changes have been aimed at motivating increased

learning outcomes and communication skills development. In the light of the previous

discussion about the kinds of interventions required to treat and reduce levels of CA, she

32

would not expect the changes made as educators to necessarily have reduced the levels of CA

in our students. On the contrary, the concern is whether the changes made to improve

communication skills development are actually increasing the levels of CA among our

students, or among a subset of our students and, as a result, this is harming such

developments and overall academic performance.

Based on Warnock and Curtis (1997), using a small sample of Irish accounting students, they

found that the overall average levels of oral CA was 72.6 much higher than found in other

studies, but there was no association between overall academic performance and levels of

CA. However, they did find significant association between levels of CA and participation in

tutorials and, importantly, they found that levels of CA were associated with the apparent

success of students to get job offer from the (then) Big Six accounting firms.

RESEARCH METHODOLOGY

Respondents

Based on the focus of the current study, only final year accounting students from Universiti

Tenaga Nasional were included in the final respondent sample (N= 179). The method of

sampling was purposive sampling due to specific type of people and conforms to some

criteria set by the researcher. The selection is due to the objective of the study which is

looking into the final year students that have been well prepared with knowledge and skills in

accounting for internship final year programme. The sample of respondents is as much as

necessary based on Roscoe (1975) in Sekaran (2010), who stated that sample sizes larger than

30 and less than 500 are appropriate for most research.

Instrumentation

All respondents received a set of questionnaire consisting of a demographic questionnaire and

Personal Report Communication Apprehension (PRCA). The questionnaires were completed

and returned at the end of a lecture class.

Demographics- Participants completed a short demographic questionnaire assessing their

gender, ethnicity, age, current CGPA result, languages used other than Malay, expected

salary for a full time accounting position and expected accounting position after graduating.

The Personal Report Communication Apprehension (PRCA) - This questionnaire has been

adopted from McCroskeys PRCA-24 that is widely used to measure communication

apprehension. According to McCroskey (1984), the 20-item, 10-item, 25-item, and 24-item

versions of this instrument all use five-step Likert type response formats and the reliability is

very high at above alpha= 0.90 in most cases. The most recently developed 24-item version

of the instrument includes six items for each of four contexts: public speaking, speaking in

formal meetings, speaking in small group discussions, and interpersonal interaction. This

version also permits the generation of four sub-scores as well as an overall score. The

independent variables are the four sub-scores and the dependent variable is overall score.

33

Respondents respond to the 24 items by choosing the number on a 5-point Likert-type scale

from 1(strongly agree), 2 (agree), 3 (neither agree nor disagree), 4 (disagree) and 5 (strongly

disagree). The type of scale measurement also has been adopted from McCroskey (1984).

Statistical analysis

In analyzing the data, this study employs SPSS (Statistical Package for Social Science)

software for windows namely Descriptive Statistics, Reliability Statistics and Pearson

correlation. The study ignores the normality assumption due to De Vaus (2002), it does not

seem to have a severe effect on results since the size of a sample (N=179) is more than 100.

In fact, the central limit theorem states the important principle that as a size increases and is

large, it is reasonable to use statistics that assume a normal distribution.

FINDINGS AND DISCUSSION

Reliability Analysis for Overall Communication Apprehension

TABLE 1 : CRONBACHS ALPHA COEFFICIENTS FOR RHE PRCA-24 ITEMS

QUESTIONNAIRE FOR PREVIOUS STUDIES AND CURRENT STUDY

Study Cronbach's

Alpha

N of

Items

Area of study

McCroskey (1985) .97 24 CA in undergraduates enrolled in

Introductory Communication courses

Current study .948 24 CA in Accounting Final Year Students

McCroskey (1977)

.90

24

Investigated over 50

studies that consistently reported reliabilities

over .90.

K. Simons et al..

(1995)

.94 24 CA in Accounting Majors Students / Upper

Level

Ibrahim M. Aly,

Majidul Islam, (2003)

.94 24 CA between two groups of accountancy

students: those entering the program and

those exiting the program after completion.

Azmi Sarriff and

Wasif S Gillani (2011)

.76 24 CA in first year of undergraduate pharmacy

students

Mark G. Borzi &

Timothy H. Mills

(2001)

.88 24 289 students at two

AACSB-accredited midwestern universities

which were well advanced in their major

Dan Shanahan (2011) .95 24 CA among business and accounting students

Clare T. Gardner et

al.(2005)

.90 24 CA of students studying all levels of

undergraduate accounting at a New Zealand

University in 2002

The reliability of the PRCA-24 items Questionnaire for the current study was determined and

it was finally found that Cronbachs alpha measure of internal consistency reliability is .948.

Table 1 shows a comparison of the Cronbach alpha coefficients for each of the varied

populations. Most of the Cronbach alpha shows more that .70 which indicates that this

instrument items and scales produce reliable and robust results due to the rule of thumb

developed by Hair e al.(2010) and Sekaran (2000). They stated if Cronbach alpha of more

than .07 can be considered acceptable. The closer the Cronbach Alpha coefficient gets to 1.0,

34

the better the results of reliability will be. Reliabilities that are less than 0.6 are considered to

be poor, those in the 0.7 ranges, acceptable, and those 0.8 are good (Sekaran, 2000). In the

analysis from previous study, the internal consistency reliability of the measures used can be

considered to be good for the PRCA-24 items except Azmi Sarriff and Wasif Gillani (2011)

can be considered to be acceptable.

Reliability Statistics for Sub-score Communication Apprehension

TABLE 2 : CRONBACHS ALPHA COEFFICIENTS FOR THE SUB-SCORE FOR

PREVIOUS STUDIES AND CURRENT STUDY

Levine &

McCroskey

(1990)

Current study Dan Shanahan

(2011)

Clare T.

Gardner et al.l

(2011)

Group Discussion .86 .736 .87 .883

Meeting .88 .851 .87 .88

Interpersonal .83 .837 .90 .837

Public Speaking .85 .82 .88 .86

Mostly, previous results produced only reliability analysis based on overall score of

communication apprehension. Table 2 shows a comparison of the Cronbach alpha

coefficients for each of the sub-score from the PRCA-24 items. The results show that every

item from four contexts is considered to be good except .736 from the current study which

can be considered acceptable. In order to understand further, refer to Table 3.

TABLE 3: PERSONAL REPORT OF COMMUNICATION APPREHEMNSION

(PRCA-24)

Personal Report of Communication Apprehension (PRCA-24)

1. I dislike participating in group discussions.

2. Generally, I am comfortable while participating in group discussions.

3. I am tense and nervous while participating in group discussions.

4. I like to get involved in group discussions.

5. Engaging in a group discussion with new people makes me tense and nervous.

6. I am calm and relaxed while participating in group discussions.

7. Generally, I am nervous when I have to participate in a meeting.

8. Usually, I am comfortable when I have to participate in a meeting.

9. I am very calm and relaxed when I am called upon to express an opinion at a meeting.

10. I am afraid to express myself at meetings.

11. Communicating at meetings usually makes me uncomfortable.

12. I am very relaxed when answering questions at a meeting.

13. While participating in a conversation with a new acquaintance, I feel very nervous.

14. I have no fear of speaking up in conversations.

15. Ordinarily I am very tense and nervous in conversations.

16. Ordinarily I am very calm and relaxed in conversations.

17. While conversing with a new acquaintance, I feel very relaxed.

18. I'm afraid to speak up in conversations.

19. I have no fear of giving a speech.

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20. Certain parts of my body feel very tense and rigid while giving a speech.

21. I feel relaxed while giving a speech.

22. My thoughts become confused and jumbled when I am giving a speech.

23. I face the prospect of giving a speech with confidence.

24. While giving a speech, I get so nervous I forget facts I really know.

Scoring Formula:

Group discussion: 18 - (scores for items 2, 4, & 6) + (scores for items 1,3, & 5)

Meetings: 18 - (scores for items 8, 9, & 12) + (scores for items 7, 10, & 11)

Interpersonal: 18 - (scores for items 14, 16, & 17) + (scores for items 13, 15, & 18)

Public Speaking: 18 - (scores for items 19, 21, & 23) + (scores for items 20, 22, &24)

PRCA, simply add your sub-scores together

Adopted from McCroskey et al., (1985).

Respondents Profile

TABLE 4: RESPONDENTS PROFILES

Gender Frequency Percent

Male 55 30.7

Female 124 69.3

Race Frequency Percent

Malay 138 77.1

Chinese 17 9.5

Indian 23 12.8

Others 1 .6

Age Frequency Percent

18-21 years old 44 24.6

22-26 years old 133 74.3

More than 26 years old 2 1.1

Current CGPA result Frequency Percent

Below 2.00 7 3.9

2.00-2.49 23 12.8

2.50-2.99 65 36.3

3.00-3.49 68 38.0

Above 3.50 16 8.9

Languages use other than Malay Frequency Percent

English 154 86.0

Mandarin 16 8.9

Others 9 5.0

Expected salary for fulltime accounting

position Frequency Percent

RM800-RM1000 15 8.4

RM1000-RM2000 32 17.9

RM2000-RM3000 81 45.3

More than RM3000 51 28.5

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Expected accounting position Frequency Percent

Public Accounting 83 46.4

Corporate/Industry Position 62 34.6

Non-profit Organization 34 19.0

A total of one hundred and seventy nine (179) questionnaires were distributed among the

respondents. Out of this figure, 124 (69.3%) were female and 55 (30.7%) were male. The

study respondents constituted Chinese (9.5%), Malay (77.1%), Indian (12.8%), and other

races (0.6%), respectively. The average age range was 18 to 22 years. In term of academic

results, the current CGPA performance showed that 47% (about 84 students) achieved not

less than 3.00. In using language, most of them only knew English as their second language.

In future, about 132 of the students expert to earn a salary more than RM2000-RM3000 and

less than 50% expect to pursue their career in public accounting (46.4%).

Descriptive Statistics

TABLE 5: DESCRIPTIVE STATISTICS

N Minimum Maximum Mean Std. Deviation

Group Discussion 179 14.00 38.00 18.3520 2.22451

Meeting 179 15.00 24.00 18.7318 1.64748

Interpersonal 179 14.00 22.00 18.2011 1.47404

Public Speaking 179 14.00 24.00 18.6480 1.71383

PRCA 179 66.00 90.00 73.9330 3.76948

Table 5 represents the descriptive presentation of the study. The m