Impact of ownership structure on the level of voluntary disclosure: a study of listed family-controlled companies in Malaysia

Zaini, Syeliya Md; Sharma, Umesh; Samkin, Grant; Davey, Howard

doi:10.1080/01559982.2019.1605874

Cited by 48 publications

(44 citation statements)

References 95 publications

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“…Disclosing information about ethics as a company strategy can create values for shareholders (Ho & Taylor, 2013). Malaysian companies are aware of the importance of disclosures related to corporate strategies (Zaini, Sharma, Samkin & Davey, 2019). Therefore, it is crucial for management to be highly committed and support ethics values as it can form ethical culture within organisations (Driskill, Chatham-Carpenter & Mcintyre, 2019) and create value for companies.…”

Section: Corporate Ethics Valuesmentioning

confidence: 99%

Ethical Practice Disclosure of Malaysian Public Listed Companies

Abidin

Hashim

Salleh

et al. 2019

KSS

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The Malaysian corporate environment has been shocked by corporate scandals and poor performance among government-related companies, such as 1Malaysia Development Berhad (1MDB), Lembaga Tabung Haji (LTH), Felda Global Ventures (FGV) and Khazanah Nasional Berhad (KHAZANAH). Despite having strong corporate governance and being strengthened through Malaysia Code of Corporate Governance (MCCG), unethical practices and a lack of transparency remain a problem among Malaysian companies. The purpose of this paper is to examine the level of disclosure of ethical practices among Malaysian public listed companies. Ethical practice disclosure is measured using the modified Ethical Commitment Index (ECI) with six themes derived from the literature; notably, corporate ethical values, action to promote ethics, whistle-blowing policy, code of ethics, sustainability practices, and ethics committee. Through content analysis of the annual reports of 1,115 companies and five years’ observation (2012-2016), this study found there is a need to improve several aspects of ethical practice disclosure. The findings implied that companies supported the MCCG, with most of the companies complying with the recommendations of MCCG 2012 to uphold a high standard of ethical practice. However, supplementary practices, such as disciplinary action, programmes to support a code of ethics, whistle-blowers’ protection, and establishing an ethics committee, are still weak. The findings indicate that the level of ethical practice disclosure among Malaysian public listed companies remains low and raises concern that requires action by regulators. This paper contributes by providing insights into the disclosure of ethical practice among Malaysian public companies.

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Section: Corporate Ethics Valuesmentioning

confidence: 99%

Ethical Practice Disclosure of Malaysian Public Listed Companies

Abidin

Hashim

Salleh

et al. 2019

KSS

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“…For example, questions such as to what extent stakeholders play a role in corporate reporting decisions and how the stakeholder approach to sustainability reporting is undertaken and manifested within the local institutional context in developing nations are still unexplored. Although there are increasing empirical tests and claims about the relationship between corporate sustainability reporting and financial structure in the developing country contexts (Hang, Geyer-Klingeberg, & Rathgeber, 2019;Zaini, Sharma, Samkin, & Davey, 2020), seemingly leaning towards an instrumental stakeholder approach in this context, the results often replicate what has been established in the Western literature. Research investigating and understanding the real management views about different stakeholder motivations for sustainability reporting and the impact of such reporting in developing countries is patchy.…”

Section: Introductionmentioning

confidence: 73%

Motivations and impacts of sustainability reporting in the Indo‐Pacific region: Normative and instrumental stakeholder approaches

et al. 2020

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Despite the elusive debate on different stakeholder approaches to sustainability reporting in the developed world, few studies have so far explored stakeholder influences on management perceptions of the motivations for and the impact of sustainability reporting in the developing country contexts. Using a survey questionnaire complemented by a series of interviews with business managers in five countries in the Indo-Pacific region, this study investigates the motivations and impacts of the rapidly growing sustainability reporting practice in this emerging area. The study finds that corporate sustainability reporting in the Indo-Pacific region is generally driven more by normative and regulatory stakeholder pressures than by economic considerations, especially for larger companies and companies with more overseas presence. However, in terms of the perceived impacts of sustainability reporting, economic benefits feature more prominently in both survey and interview data. It appears that companies believe they receive a win-win outcome by "doing good," although their "doing good" is more from a normative and regulatory call than from a belief in business cases.

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“…PP conflict is linked with weak governance (Lozano et al, 2016) and poor protection of the minority SH (Dinh & Calabrò, 2019). Many recent researchers (Ducassy & Guyot, 2017;Lozano et al, 2016;Zaini et al, 2017) have realized that PA conflict is Source: Young et al (2008) only helpful in mitigating the conflict between owner and manager in economies with diffused ownership structure and active legal institutions. However, in developing and emerging economies, due to weak legal institutions and poor enforcement of property rights, the major conflict is between the majority shareholder and minority shareholder.…”

Section: Pp Conflictmentioning

confidence: 99%

Revisiting the agency conflicts in family owned pyramidal business structures: A case of an emerging market

Basheer

Gupta

Raoof

et al. 2021

Cogent Economics & Finance

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The agency problem strikes as an ethical, practical, and economic issue in equal measures. The principal objective of the current research is to trace the nature of the agency conflicts in the family-owned pyramidal business groups of corporate Malaysia and how they affect the firm value. It is argued that the principal ͐ -principal (PP) conflict is more severe in family-owned business firms. To achieve the objectives of the current study, the GMM and the fixed effect estimates are used. In addition, to find the difference between family-owned firms and family-owned firms in the pyramidal business, we have employed the Mann-Whitney test. The null hypothesis is accepted which indicates that the impact of the PP conflict among family firms is different from those in pyramidal business groups. The final sample of 420 firms listed on the Bursa Malaysia is chosen for the analysis. The results of the current study provide support to

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Impact of ownership structure on the level of voluntary disclosure: a study of listed family-controlled companies in Malaysia

Cited by 48 publications

References 95 publications

Ethical Practice Disclosure of Malaysian Public Listed Companies

Ethical Practice Disclosure of Malaysian Public Listed Companies

Motivations and impacts of sustainability reporting in the Indo‐Pacific region: Normative and instrumental stakeholder approaches

Revisiting the agency conflicts in family owned pyramidal business structures: A case of an emerging market

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