Disclosure Quality on Governance Issues in Annual Reports of Malaysian PLCs

Abstract

This paper investigates the disclosure quality of governance issues in annual reports of Malaysian PLCs. In recent years, the issue of corporate governance (CG) has received more attention than it would ordinarily have as a result of a series of corporate failures. Corporate collapses like Enron Corporation (US), Barings Empire (UK) and in Malaysia cases such as Perwaja and Pan Electric Inc. are all rooted in the lack of a proper governance system. As a result, the Finance Committee on Corporate Governance was established in 1998 to undertake a review of the legal and regulatory infrastructure, specifically to evaluate its effectiveness in promoting sound CG standards in Malaysia. Following this development, a few guidelines on CG have been released, particularly addressing the principles and best practices such as the Malaysian Code of Corporate Governance (the Code), the Capital Market Master Plan, and the Financial Sector Master Plan. The main purpose of these guidelines is to strengthen CG standards and practices in Malaysia by focusing on the role and responsibilities of various CG participants, mainly the management, board of directors, audit committee (AC), external and internal auditors. Secondary data is used in this study. A disclosure index is established following the Bursa Malaysia Governance Model, the Code's guidelines and Committee of Sponsoring Organizations of the Treadway Commission (COSO) guidelines. This study also aims to examine factors that possibly affect both the quality and quantity of disclosure. In general, it may be concluded that Malaysian companies have complied with the standards requirements. Only three factors under observation namely leverage, size and type of industry were found to have relationship with the quality of disclosure relates to governance issues.

Impact of board leadership and audit quality on disclosure quality: Evidence from Pakistan

“…Corporate profi tability, size of audit fi rm with aggregate disclosure levels did not show any signifi cant association. In addition, Muhamad et al (2009) offer a conclusion that companies that are big in size and highly leveraged, as well as companies in the infrastructure industry, tend to have high level of corporate governance disclosure. The literature also implies that board independence and board size are related to effi cient monitoring ( Forker, 1992 ;Chen and Jaggi, 2000 ;Ho and Wong, 2001 ).…”

Faktor-Faktor Yang Berpengaruh Terhadap Luas Pengungkapan Sukarela Dalam Laporan Tahunan

“…Perusahaan yang memiliki proporsi utang lebih tinggi dalam struktur permodalan akan mempunyai biaya keagenan yang lebih tinggi. Semakin tinggi leverage perusahaan, semakin tinggi kemungkinan transfer kemakmuran dari kreditor kepada pemegang saham dan manajer (Muhamad, et al 2009). Oleh karena itu, perusahaan yang mempunyai leverage tinggi mempunyai kewajiban lebih untuk memenuhi kebutuhan informasi kreditor jangka panjang (Uyar, 2011).…”

“…Muhamad , et al (2009),Suripto (1999), Gunawan (2000, dan Marwata (2001) memberikan bukti bahwa variabel ukuran perusahaan paling konsisten berpengaruh signifikan terhadap luas pengungkapan sukarela. Hal ini disebabkan bahwa pada umumnya perusahaan kecil mempunyai keterbatasan dalam melakukan penyampaian pengungkapan sukarela secara luas sebagai cermin keterbatasan sumberdaya yang dimiliki.…”

“…Hasil ini tidak mendukung pernyataan Uyar (2011), Muhamad, et al (2009 Hasil pengujian menunjukkan penolakan terhadap hipotesis ketiga. Hasil ini mendukung penelitian Uyar (2011) yang memberikan bukti bahwa perusahaan yang kesulitan likuiditas perlu memberikan informasi yang lebih rinci dibandingkan dengan perusahaan yang lebih likuid.…”

Studi Empiris Terkait Dengan Pengungkapan Sukarela, Kualitas Audit Dan Asimetri Informasi Terhadap Stock Return Pada Perusahaan Manufaktur Yang Terdaftar Pada Bursa Efek Indonesia

“…Hal tersebut terjadi karena pengungkapan yang lebih baik terjadi di dalamnya. Tingkat kualitas audit yang baik seperti ini juga akan memberikan dampak peningkatan pelaksanaan corporate governance yang lebih baik (Griffin, et al, 2008;Muhamad et al, 2009).…”