scholarly journals The Effect of Performance and Corporate Governance to Risk Disclosure among Listed Companies in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 119-161
Author(s):  
Ag Kaifah Riyard Kiflee ◽  
◽  
Mohd Noor Azli Ali Khan ◽  
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Annual Report ◽  
Listed Companies ◽  
Board Independence ◽  
Risk Disclosure ◽  
Interaction Variable ◽  
Variable Content ◽  
The Relationship ◽  
Disclosure Practice

The objective of this study was to determine the presence of risk information within the annual report of Malaysian non-financial listed companies and empirically extend the current literature of corporate governance and risk disclosure by incorporating an interaction effect in the model. The study found that listed companies in Malaysia experienced a positive upward trend in terms of risk disclosure practice for 10 years (2008-2017). A total of 166 companies were randomly extracted from Main Board of Bursa Malaysia from 2008 to 2017. This study used content analysis, descriptive statistics and multiple regression to explain the relationship between corporate governance and risk disclosure with the effect of the interaction variable. The study also found positive and significant relationship between board independence, board size and board gender with risk disclosure practice. It is also revealed that attainment discrepancies positively influence the relationship between corporate governance and risk disclosure practices among listed companies in Malaysia. Keywords: risk disclosure, annual report, corporate governance, interaction variable, content analysis

Corporate governance and risk reporting: Indian evidence

2017 ◽  
Vol 32 (4/5) ◽  
pp. 378-405 ◽  
Author(s):  
Ridhima Saggar ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Risk Information ◽  
Ownership Concentration ◽  
Regulatory Regime ◽  
Risk Disclosure ◽  
Firm Level ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose This study aims to measure the extent of voluntary risk disclosure and examine the relationship between corporate governance firm level quality in the form of board characteristics and ownership concentration’s impact on risk disclosure in the annual reports of Indian listed companies. Design/methodology/approach The method adopted in this study is automated content analysis, which is applied to a sample of 100 listed Indian non-financial companies to find out the extent of risk disclosure. Further, multiple linear regressions have been applied to find out the relationship between corporate governance firm level quality in the form of board characteristics, ownership concentration and risk disclosure. Findings The findings reveal that the total number of positive risk keywords surpasses negative risk keywords disclosure. The corporate governance mainsprings, namely, board size and gender diversity have a positively significant effect on risk disclosure, whereas ownership concentration in the hands of the largest shareholder insignificantly affects risk disclosure, but identity of the largest shareholder having ownership concentration negatively affects disclosure of risk information in the case of Indian promoter body corporate, foreign promoter body corporate and non-institutions in comparison to family ownership. Research limitations/implications This study relied on a set of 39 risk keywords for measuring the extent of risk disclosure. Further, it uses a sample of 100 companies to examine the effect of corporate governance on risk disclosure at one point of time. However, a longitudinal study can help in understanding risk disclosure adopted by Indian listed companies in a better manner. Practical implications The findings have implications for regulatory bodies such as the Securities and Exchange Board of India, which needs to strengthen corporate governance norms with respect to board characteristics and keep a check on ownership concentration for improving risk disclosure by companies. Originality/value To best of the authors’ knowledge, this study is a preliminary attempt linking two research lines in India, that is, corporate risk disclosure and corporate governance quality in the form of board characteristics and ownership concentration. The study identifies corporate governance firm level qualities which lead to divulgation of risk information by the companies pointing towards strengthening of regulatory regime in the country for improved corporate governance regulations adopted by listed companies.

scholarly journals Corporate Governance and Compliance of Integrated Reporting: Evidence from Malaysian Listed Companies

2019 ◽  
Vol 14 (2) ◽  
pp. 161-173
Author(s):  
Saiful Bakhtiar Masduki ◽  
Mohamad Hafizul Mohd Zaid
Keyword(s):  
Corporate Governance ◽  
Annual Report ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Governance Structure ◽  
Managerial Ownership ◽  
Main Role ◽  
Government Ownership ◽  
Integrated Reporting ◽  
The Relationship

Integrated reporting is an emerging practice progressively catching the consideration of organizations.The idea of sustainability reporting increased more significance in the companies’ annual report, a patternthat is implanted likewise in integrated reporting. The governance structure all the more precisely the boardof director is the main role to decide whether the company will issue an integrated report. Hence, thepurpose of this paper is to examine the relationship between corporate governance (managerial ownership,family ownership, institutional ownership and government ownership) and consistence of coordinatedintegrated reporting elements disclosure. To achieve this objective, we analysed the way in whichintegrated reports of 30 companies are following the guidance provided by the International IntegratedReporting Framework (IIRF). As a result, we noticed that most annual report scored the highest compliancelevel and consistence with the guidance of the IIRF. In addition, the result also demonstrated institutionalownership and government ownership positively affect and significance integrated reporting elementsdisclosure. Our findings contribute to comprehend the practice of integrated reporting and may havesuggestions for regulators in emerging countries for company sustainability reporting. Keywords: Integrated reporting; Sustainability reporting; Listed companies, Corporate governance

scholarly journals Case of public reprimands

2008 ◽  
Vol 5 (2) ◽  
pp. 188-191
Author(s):  
Hashanah Ismail
Keyword(s):  
Corporate Governance ◽  
Best Practice ◽  
Annual Report ◽  
Listed Companies ◽  
Matched Pair ◽  
Good Corporate Governance ◽  
The Relationship

This paper examines the relationship between the contents of a report, the Statement of Corporate Governance, required to be included in the Annual Report of listed corporations, and the receipt of public reprimands. Since the formalization of good corporate governance in the Code, all listed companies are required by rule PN9 to include how they have applied the principles and the extent of compliance with best practice found in the Code. The paper is based on companies that received public reprimands in the first three quarters of 2005 and we compared the contents of the statement of corporate governance of a matched pair of companies which did not receive public reprimands to see if such statements differ between the two groups. We do not see any difference between the two groups.

scholarly journals Relationship between Corporate Governance and Risk Disclosure Practice from Malaysia Perspective

2019 ◽  
Author(s):  
Ag Kaifah Riyard Bin Kiflee ◽  
Mohd Noor Azli Bin Ali Khan
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Accounting Scandals ◽  
The Relationship ◽  
Disclosure Practice

Past accounting scandals (Transmile and Megan Media) and recent 2007/2008 global financial crisis have triggered the need for vibrant risk management and high quality of risk reporting through sound corporate governance. This study will measure risk management through the disclosure in the annual reports. It wishes to determine the presence of risk information within the annual report of non-financial companies in Malaysia. The objective of the study is to examine the relationship between corporate governance characteristics and risk disclosure practice. The corporate governance characteristics examined include board independence, the board size, board gender, auditor independence and auditor tenure. A total of 721 companies are expected to be analyzed based on the Bursa Malaysia list from 2008 to 2017. To determine the level of risk disclosure, this study will employ content analysis. Descriptive statistics and multiple regression will be used in this study to examine this relationship.

scholarly journals Relationship between board independence and firm performance post Sarbanes Oxley

2013 ◽  
Vol 11 (1) ◽  
pp. 65-80
Author(s):  
Kiridaran Kanagaretnam ◽  
Gerald J. Lobo ◽  
Dennis J. Whalen
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Markets ◽  
Listed Companies ◽  
Independent Directors ◽  
Board Independence ◽  
Investor Confidence ◽  
Sarbanes Oxley ◽  
The Relationship

We examine the relationship between board independence and firm performance over multiple years, post-Sarbanes Oxley. The enactment of the Sarbanes-Oxley Act (SOX) in July, 2002 coincided with the NYSE/NASDAQ proposals to alter their standards for listed companies. These changes included a requirement that boards be comprised of a majority of independent directors and tightened the criteria for a director to be considered “independent”. We hypothesize and find that the passage of SOX, together with the new NYSE/NASDAQ regulations, result in independent directors who are more effective monitors of management, leading to stronger firm performance. Our results should bolster investor confidence in the financial markets at a time when the NYSE/NASDAQ has strengthened the corporate governance standards for listed companies.

scholarly journals Firm determinants of risk disclosure: Evidence from Italian listed companies

2019 ◽  
Vol 16 (1-1) ◽  
pp. 168-177 ◽  
Author(s):  
Antonio Netti
Keyword(s):  
Regression Model ◽  
Annual Report ◽  
Risk Index ◽  
Listed Companies ◽  
Firm Characteristics ◽  
Risk Disclosure ◽  
Policy Makers ◽  
Corporate Reporting ◽  
Italian Context ◽  
The Relationship

The purpose of the paper is to investigate the relationship between firm characteristics and risk disclosure in the Italian context. Analysing a sample of 183 non-financial Italian listed companies, a regression model was run to examine the influence of some firm determinants, such as size, industry, board of directors independence, ownership structure and leverage (independent variables), on the extent of risk disclosure measured through an index based on the information disclosed in annual report (dependent variable). In particular, from the methodology standpoint, both the bivariate (Pearson correlations) and the multivariate (OLS regression model) statistics have been used, while content analysis was carried out to find the useful information to build the risk index. Findings show a positive relationship between firm size and the extent of risk disclosure. Contrarily, there is no statistically significant evidence between information provided by Italian companies regarding their risks and the other firm determinants. The results suggest that, in the Italian context, despite the recent interventions from the legislator to improve risk disclosure in corporate reporting, there is a remarkable difference between the disclosure provided by large and small sized companies. The findings could be conducive for regulators and policy-makers, in order to enhance risk disclosure practices and to enhance transparency in the annual report.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN

2021 ◽  
Vol 02 (01) ◽  
pp. 16-28
Author(s):  
Feryal Zafar ◽  
Shaheera Munir ◽  
Muhammad Saqib Khan
Keyword(s):  
Corporate Governance ◽  
Decision Makers ◽  
Annual Reports ◽  
Board Independence ◽  
Negative Effects ◽  
Research Issues ◽  
Listed Firms ◽  
Analysis Technique ◽  
Dependent Variables ◽  
The Relationship

The study attempts to figure out the relationship between the performance of the firms and corporate governance in Pakistan. Governance mechanisms used in this study are CEO duality, Independence of Board, Size of Board, and Ownership Concentration. While, the ROA and ROE have been used as dependent variables to measure the performance of firms. Using regression analysis technique on 10 listed firms trading over four years from 2014-2017, the results have been derived. The data regarding all the variables have been collected from all the companies’ annual reports. The discoveries of the study direct that fundamentals of corporate governance such as the Size of the Board, Ownership, and Duality Concentration of CEO have negative effects on performance of organization, as measured by ROA and ROE. While Board independence positively affects the performance of firms. The results are thus significant and provide valuable information for the decision makers about the research issues under consideration.

scholarly journals Sustainability Reporting Practices: Evidence from Bangladesh

2017 ◽  
Vol 7 (2) ◽  
pp. 61
Author(s):  
Sumaiya Akhter ◽  
Pappu Kumar Dey
Keyword(s):  
Human Rights ◽  
Content Analysis ◽  
Community Development ◽  
Annual Report ◽  
Sustainability Reporting ◽  
Listed Companies ◽  
Employee Benefits ◽  
Global Reporting Initiative ◽  
Reporting Practices ◽  
Product Responsibility

The objective of this paper is to examine the nature and extent of sustainability reporting practices by the listed companies in Bangladesh. In order to fulfill this objective, the research has examined the content analysis of annual report (2015-2016) and website of the top 50 listed companies (according to market capitalization). Based on Global Reporting Initiative (GRI) G4 guidelines, the study investigates three broad areas i.e. economic, environmental and social with 40 indicators. The findings of the study demonstrate that organizations in Bangladesh address few sustainability issues. Companies focus more on community development which is 90%, followed by employment and employee benefits (67%). The level of disclosures in website is meagre where only 26% of the sample companies disclose at least one indicator. Organizations’ attention on issues like environment, human rights and product responsibility is limited in relation to other issues. The extent of disclosure is also poor that is 66% of the companies use less than 25 sentences in sustainability reporting. Moreover, only 16% of the sample companies use separate sustainability reporting section. The limited disclosures on sustainability issues may be because of voluntary sustainability reporting in Bangladesh.

Accounting conservatism, corporate governance and political connections

2017 ◽  
Vol 25 (2) ◽  
pp. 288-318 ◽  
Author(s):  
Nor Farizal Mohammed ◽  
Kamran Ahmed ◽  
Xu-Dong Ji
Keyword(s):  
Corporate Governance ◽  
Emerging Market ◽  
Political Influence ◽  
Ordinary Least Squares ◽  
Accounting Conservatism ◽  
Political Connections ◽  
Board Independence ◽  
Political Connection ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between accounting conservatism, corporate governance and political connection in listed firms in Malaysia where political influence plays a significant role in the capital market and in many business dealings. Design/methodology/approach By utilizing 824 firm-year observations comprising large listed companies over a period of four years from 2004, this study uses ordinary least squares regression models to investigate the relationship between accounting conservatism, corporate governance and political connections in Malaysia. Multiple measures of conservatism developed by Basu (1997) and Khan and Watts (2009) are employed. Findings The results show evidence of accounting conservatism (bad news being recognized earlier than good news) in Malaysia. Further, the results reveal that better corporate governance structure in terms of board independence is positively associated with accounting conservatism while management ownership is negatively associated with it. However, political connection has a negative moderating effect on the positive relationship between accounting conservatism and board independence. The results also suggest political connections have a positive association with firm’s future performance. Originality/value This study is the first in investigating the effect of political connections on accounting conservatism in Malaysian context and how political connections negatively affect the monitoring role of the corporate boards. By directly measuring political connection and controlling for various corporate governance mechanisms and firm-specific attributes, this study contributes to enhance the authors’ understanding of the political influence in financial reporting quality and firm performance in an emerging market setting.

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