Impact of incentives to voluntarily disclose corporate governance information in annual reports: an empirical study of Malaysian publicly listed companies

PhD Thesis


Lokman, Norziana. 2011. Impact of incentives to voluntarily disclose corporate governance information in annual reports: an empirical study of Malaysian publicly listed companies. PhD Thesis Doctor of Philosophy. University of Southern Queensland.
Title

Impact of incentives to voluntarily disclose corporate governance information in annual reports: an empirical study of Malaysian publicly listed companies

TypePhD Thesis
Authors
AuthorLokman, Norziana
SupervisorCotter, Julie
Mula, Joseph M.
Institution of OriginUniversity of Southern Queensland
Qualification NameDoctor of Philosophy
Number of Pages192
Year2011
Abstract

This study investigates the extent to which a company‟s corporate governance quality is related to (a) its voluntary disclosure of corporate governance information, (b) the incentives factors that affect the relationship and (c) whether this relationship is stronger in the presence of an in-house qualified company secretary. The hypotheses development of this research study is based on Dye‟s voluntary disclosure theory and agency theory.
A broad corporate governance quality index that captures the four main factors of effective corporate governance is adopted from the Minority Shareholder Watchdog Group (MSWG) in Malaysia. It consists of two main components: basic compliance score (BCS) and international best practices score (IBP). In this research, the BCS component is used to measure the level of a company corporate governance quality and the IBP component is a proxy for voluntary disclosure of corporate governance information.
Using a sample of 275 publicly listed companies in Malaysia, the empirical results indicate that companies with high corporate governance quality are more likely to voluntarily disclose corporate governance information in annual reports. This result suggests that Dye‟s voluntary disclosure theory holds in Malaysia, a country that is characterised by weak legal protection, highly concentrated ownership and strong cultural factors.
Capital market transactions (issuance of new share and debt capital) and stock-based incentives (stock-based compensation and CEO shareholdings) are the two incentive factors that are examined in this research. The findings suggest that stock-based
compensation statistically and positively affects the relationship between corporate governance quality and voluntary disclosures. However the other incentive factors do not affect the relationship.
This study also examines the relationship between in-house qualified company secretaries and voluntary disclosures. It does this by distinguishing between two types of company secretaries, namely professional qualified versus license holders and in-house versus external. However, no evidence is found to support the hypothesis that in-house qualified company secretaries promote voluntary disclosures.

Keywordsdisclosure; theory; socio-political; signalling; agency; voluntary disclosure
ANZSRC Field of Research 2020350199. Accounting, auditing and accountability not elsewhere classified
Byline AffiliationsAustralian Centre for Sustainable Business and Development
Permalink -

https://research.usq.edu.au/item/q0x21/impact-of-incentives-to-voluntarily-disclose-corporate-governance-information-in-annual-reports-an-empirical-study-of-malaysian-publicly-listed-companies

Download files


Published Version
Lokman_2011_whole.pdf
File access level: Anyone

  • 2447
    total views
  • 1157
    total downloads
  • 2
    views this month
  • 2
    downloads this month

Export as

Related outputs

Corporate governance quality, incentive factors and voluntary corporate governance disclosures in annual reports of Malaysian publicly listed companies
Lokman, Norziana, Cotter, Julie and Mula, Joseph. 2012. "Corporate governance quality, incentive factors and voluntary corporate governance disclosures in annual reports of Malaysian publicly listed companies." Corporate Ownership and Control. 10 (1), pp. 329-352.
Corporate governance quality and voluntary disclosures of corporate governance information: practices of listed Malaysian family controlled businesses
Lokman, Norziana, Mula, Joseph M. and Cotter, Julie. 2011. "Corporate governance quality and voluntary disclosures of corporate governance information: practices of listed Malaysian family controlled businesses." Doyle, Karen (ed.) FBA 2011: Family Business Research, Practice and Policy: Interpretation and Integration . Perth, Australia 31 Aug 2011 Sydney, Australia.
Voluntary disclosure research: which theory is relevant?
Cotter, Julie, Lokman, Norziana and Najah, Muftah M.. 2011. "Voluntary disclosure research: which theory is relevant?" The Journal of Theoretical Accounting Research. 6 (2), pp. 77-95.