Our study empirically investigates the relationship between managerial ownership and company performance of public listed companies in Malaysia. Three years panel data of 730 Malaysian public listed companies were examined. Our findings demonstrated that managerial ownership had negative and significant relationship with Tobin’s Q and share price. Therefore, the involvement of management in monitoring and controlling activities fail to reduce agency conflict in the emerging economy. This study is perhaps the first that explain the extended agency theory in developing country..

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This study investigates the impact of internal corporate governance on the relation between disclosure quality and earnings management in the UK listed companies, in particular whether governance mechanisms have deterrent effect on earnings management similar to firms’ disclosure quality. Unlike prior literature, we measure a number of board and audit committee-related governance instruments, three disclosure quality proxies (i.e. Investor Relation Magazine Award, Forward-Looking Disclosure and Analyst Forecast Accuracy) and the Modified Jones Model to test the hypotheses of the study on a matched-pair sample data of Investor Relation Magazine Award winning and non-winning firms. Our findings in the OLS and sensitivity analyses using Heckman Procedure and 2SLS regressions consistently report a significant negative association between earnings management and disclosure quality for all proxies in restraining earnings management. In contrast, corporate governance variables are mostly in.....

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This study empirically examines the relationship  between wide-ranging board diversity and the quality  of corporate social responsibility (CSR) disclosure  variables in Malaysia. We extend prior literature  covering broader dimensions of board diversity  (e.g., gender, education level, education background,  age, tenure, nationality and ethnicity) and their  impact on CSR after controlling for board and audit  committee characteristics. Using 200 listed firms in  Bursa Malaysia during 2009–2013 and applying both OLS  and 2SLS instrumental variables (IV) approaches, we  document significant positive effect of board education level and board tenure diversity on the quality of CSR disclosure. Further analysis using robust regression  also shows positive association between gender  diversity and CSR disclosure. Our findings also  demonstrate that the quality of CSR disclosure is  significantly negatively associated with board age  and nationality diversity. These results.....

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We empirically examine the reciprocal relationships between disclosure quality, board independence and earnings management. Disclosure quality is measured using the IR Magazine Award, the number of forward looking information in the annual report as well as the analyst forecast accuracy. We estimate earnings management using modified Jones Model, while board independence is measured using the percentage of independent directors in the board. We remedied the simultaneity bias in our study using a simultaneous system of equation, which was estimated using two-stage least square regression (2SLS). Match-paired samples comprised of the winners and non-winners of the IR Magazine Award during the years from 2005-2008 were employed in our study. Our finding reported that there is a negative reciprocal relationship between disclosure quality and earnings management. We notice that these findings are robust across all disclosure quality measurement that we utilised in our 2 Stage Least Square (.....

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This study empirically examined the relationship between firm-specific characteristics and the quality of disclosure of company annual reports in Malaysia. Due to the increasing need of users towards accounting information, a full, quality and transparent disclosure must to be provided by companies. As a measurement of quality, the present study used the NACRA as a benchmark of sound quality of reporting. Firms that won NACRA were considered as firms that provided quality of disclosure in their annual reports. The independent variables tested in this study were firm size, ownership structure, leverage and profitability. The match-paired sample comprises 52, 56 and 66 firms that won and lost NACRA during the years 1999,2000 and 2001. This study used descriptive statistics, Mann-Whitney U test, Logistic regression and Linear regression (as the test of robustness) to test the hypotheses. Results show that ownership structure is the only variable found to be significant in influencing the .....

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