Corporate Governance Practice in Malaysian Budget Hotel and Accommodation Cooperatives

Abstract

Corporate governance plays essential roles even in a small organization such as cooperative. However, none has studied in the context of Malaysian budget hotel and accommodation cooperatives. Since tourism and hospitality industry in Malaysia contributes to the country's economy, the government has expanded the roles of budget hotels and accommodation cooperatives within the sectors. The major purpose of this study is to investigate corporate governance practice in the Malaysian budget hotel and accommodation cooperatives based on the existing guidelines of cooperative governance. The findings indicated that corporate governance practice is important in the budget hotel and accommodation cooperatives. Nine domains of corporate governance practice significantly derived in line with the guidelines namely management, appointment, responsibilities and accountability, information, assessment, remuneration, auditing and control, communication and principles and values. The findings eventually contribute to the management of budget hotel and accommodation cooperatives as to sustain the economy and community wealth particularly within the tourism and hospitality industry.