The scantness of the effect of corporate governance mechanisms on executive directors’ remuneration in small listed companies: evidence from Malaysia

Nyambia, Husna Siraji; Hamdan, Hamdino

doi:10.1108/srj-01-2017-0014

Cited by 6 publications

(13 citation statements)

References 60 publications

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“…The use of primary data (questionnaires and interviews) may provide richer data on CG research as it enables researchers to collect more observations, which are unavailable in the annual reports. The present investigation, however, showed that there is a lack of survey research on Malaysian CG (Esa and Ghazali, 2012; Nyambia and Hamdan, 2018; Yusof and Ismail, 2016).…”

Section: Resultscontrasting

confidence: 60%

“…The only study to use time series data was conducted by Lee and Isa (2015), who concentrated on the financial industry and found that directors’ remuneration is positively associated with board independence and negatively with board size, while CEO duality is not significant. Nyambia and Hamdan (2018) studied the executive remuneration of small firms and found that there is a significant positive relationship between executive ownership, board size and executive remuneration. However, the findings of the existing studies are inconclusive and vary across industries.…”

Section: Resultsmentioning

confidence: 99%

“…However, the literature regarding CG and remunerations is still unclear and is thus full of opportunities. Future studies could consider remuneration related to stock options, which is a factor that is overlooked by prior studies (Ahmad et al, 2016;Jaafar et al, 2014;Nyambia and Hamdan, 2018). Future research is encouraged to focus on a comparative study using cross country data (Jaafar et al, 2014), using more than one-year data set (Jaafar et al, 2014;Ahmad et al, 2016), and encourages to deal with governance and ownership mechanisms that have received less attention.…”

Section: Earnings Managementmentioning

confidence: 99%

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The development of corporate governance literature in Malaysia: a systematic literature review and research agenda

Khatib

Elamer

Abdullah

et al. 2022

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Purpose This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the phases of Malaysian CG, identifies crucial gaps in the literature and outlines an agenda for impending research. Design/methodology/approach Following a systematic literature review approach, a final sample of 125 studies from Scopus and Web of Science databases was used in this study. These studies were selected based on quality assessment criteria. Then, the sample literature was evaluated in terms of journals, methodology, theories, modelling, research outcomes and CG characteristics. Findings The results show that there is a growing interest among researchers to further explore CG aspects in Malaysia due to the continuous development of the Malaysian CG codes. Likewise, the review reveals that the majority of prior studies are quantitative and were carried out using archived data from non-financial firms. Also, the existing literature has primarily focused on the outcomes of CG, especially firm performance. Research limitations/implications Overall, the results show that there is ample room for future research. The present paper identifies a number of methodological problems and concerns, and discusses the implications of these problems, while also providing recommendations for future research. The main caveat is that the authors use scholarly papers published in academic journals only, but this approach offers them with opportunities for considerable further developments. Originality/value To the best of the authors’ knowledge, this study contributes to the literature by being the first of its kind to concentrate on the Malaysian context. It provides a comprehensive knowledge assessment of the Malaysian CG research and offers advice regarding improvements in research, policy and practice by identifying possible knowledge gaps. Consequently, this study provides a cohesive story of the past and a road map for future research on Malaysian CG.

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Section: Resultscontrasting

confidence: 60%

Section: Resultsmentioning

confidence: 99%

Section: Earnings Managementmentioning

confidence: 99%

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The development of corporate governance literature in Malaysia: a systematic literature review and research agenda

Khatib

Elamer

Abdullah

et al. 2022

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“…In addition, the coefficient of CEO duality (CEOD) is positive and insignificant. This finding is consistent with the studies by Nyambia and Hamdan (2018) and Haron and Akhtaruddin (2013), which revealed that CEO duality does not influence directors" remuneration. The result for remuneration committee independence (RCIN) shows that the coefficient is negative and not significant, which means that the involvement of independent directors in the remuneration committee does not effects directors" remuneration.…”

Section: Model Specification and Multiple Regression Resultssupporting

confidence: 92%

How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

Lokman

Tareh

2020

RWE

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This study examined the relationship between the company-specific characteristics, namely, company size, company performance, and company leverage and the corporate governance attributes of a company which includes CEO duality and remuneration committee independence as the predictor factors that determine directors’ remuneration. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting of 2018. All data concerning the company characteristics and corporate governance attributes were obtained from the annual reports of the companies, which can be accessed from the Bursa Malaysia website. Pearson correlation and multi-regression analysis were used to analyse the data to determine the relationship of the predictor variables with director remuneration. On the one hand, the results of the study showed that directors’ remuneration is positively and significantly related to the size of the company. On the other hand, the financial performance of a company is positively but weakly related to directors remuneration. The remaining predictors have no relationship with directors’ remuneration. The finding suggested that the key determinant factor of directors’ remuneration is company size whereas company performance may have a small impact. Lastly, company compliance with the recommendation of the Malaysian Code on Corporate Governance did not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that directors’ remuneration is commensurate with company performance. The result of the study provides additional evidence and support that company size and financial performance are linked to director remuneration. Also the finding of the study reconfirmed prior study that board leadership structure (CEO duality) and remuneration committee independent have no impact on directors’ remuneration.

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“…He et al (2018) found that the independence of the nomination committee significantly reduced restatements. The independence of the remuneration committee significantly increases the remuneration of executive directors (Ntim et al, 2019;Nyambia andHamdan, 2018), andNtim et al (2019) also mention that the independence of the nomination and remuneration committee increases payments to the CEO, significantly increasing voluntary executive narrative remuneration action disclosure (Kanapathippillai et al, 2016).…”

Section: 2mentioning

confidence: 99%

Nomination and remuneration committee: a review of literature

Putra,

Setiawan

2024

JCMS

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PurposeThis paper aims to synthesize the diverse literature on nomination and remuneration committees and provide avenues for future research.Design/methodology/approachThis study provides a comprehensive literature review of theoretical and empirical studies published in reputable international journals indexed by Scopus.FindingsThe literature review reveals several aspects of the nomination and remuneration committee. These aspects have been classified into the definition of the nomination and remuneration committee, dimensions of the nomination and remuneration committee, measurement and research review results, reasons for conflict empirical findings, company dynamics and research on moderators, as well as recommending future research.Research limitations/implicationsOur literature review shows that nomination and remuneration committees play a role in improving board performance and company performance, reducing agency conflicts and improving corporate governance to provide implications for companies, regulators and investors and pave the way for future research.Originality/valueThis paper identifies issues related to nomination and remuneration committees, their theoretical and practical implications and avenues for future research.

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The scantness of the effect of corporate governance mechanisms on executive directors’ remuneration in small listed companies: evidence from Malaysia

Cited by 6 publications

References 60 publications

The development of corporate governance literature in Malaysia: a systematic literature review and research agenda

The development of corporate governance literature in Malaysia: a systematic literature review and research agenda

How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

Nomination and remuneration committee: a review of literature

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