Purpose The purpose of this study is to investigate simultaneous relations between corporate governance (CG) practice and cash flow right, cash flow leverage (the divergence between control right and cash flow right of controlling shareholders). The two ownership measures reflect alignment and expropriation incentives of controlling shareholders. This study also examines the effect of multiple large shareholders (MLSs) on CG practice. Design/methodology/approach The study uses publicly listed companies (PLCs) excluding those from the Indonesian finance sector during 2011-2013 as the samples of the study. Two-stages least squares regression models were used to test the simultaneous relations between CG practice and ownership structure variables. The study develops a CG instrument to measure CG practice based on ASEAN CG Scorecard, that comprehensively covers OECD CG principles and that can be used for panel data. Findings CG practice has a positive influence on cash flow right and has a marginally negative impact on cash flow leverage, while cash flow right and cash flow leverage have a marginally negative impact on CG practice. Further, the existence of large MLS complements CG practice, but as the control right of the second largest shareholders becomes closer to the largest shareholder, the complement relation becomes less important. State- or foreign-controlled PLCs practice better CG than other PLCs. Research limitations/implications Studies on CG/ownership structure need to treat CG and ownership structure as endogenous variables in their research design. In addition, the level of rule of law in a country should be taken into account when examining the relation between CG and ownership structure. The interrelation among CG, ownership structure, capital structure and firm performance has been studied in the context of dispersed ownership structure and strong rule of law. Thus, future study needs to examine the interrelation among these four concepts in countries with high concentrated ownership and weak rule of law. Practical implications To minimize the risk of expropriation, investors in the capital market need to select shares of PLCs that practice CG suitable for the ownership structure of PLCs, have high ownership by the largest shareholder and have no divergence between control and ownership right, and or have MLSs. PLCs may need to choose the level of CG mechanism in the context of their ownership structure and consider the benefits and costs implementing them. Social implications The study supports the “one size does not fit all” perspective on CG and, thus, it supports the recently enacted financial service authority (FSA) rule requiring PLCs to follow the “comply or explain” rule on the CG code for PLCs. The FSA needs to enforce the compliance of PLCs with CG rules and encourage PLCs to implement CG in substance, not just in form. To strengthen the positive impact of good CG practice in attracting investments in capital market, the regulator needs to improve investor protection rules and ensure strong rule of law. Originality/value The study is the first to examine the simultaneous relation between CG practice and both cash flow right and cash flow leverage of the largest shareholder. It is also the first that investigates the impact of MLS on CG practice. It explores the complement and substitution relation between the two concepts in reducing agency costs. In term of research design, the study develops a CG instrument that is based on OECD CG principles, that can be used for panel data and that uses public information.

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Research aims: This study discusses a recent development in adopting the International Financial Reporting Standard (IFRS) in ASEAN. The objective of this study is to examine the value relevance of the Other Comprehensive Income (OCI) after the International Accounting Standard (IAS 1) revision about the financial statements' presentation. This study primarily examines whether the relocation of the OCI from the Statement of Changes in Owners' Equity to the Statement of Comprehensive Income increases the value relevance. Design/Methodology/Approach: This study compared the value relevance of other comprehensive income (OCI) one year before and after the adoption of IAS 1 in each country. The study focused on ASEAN 5 countries: Indonesia, Malaysia, Philippine, Singapore, and Thailand. Research findings: The study's result found that OCI had higher value relevance after the adoption of IAS 1. Theoretical contribution/Originality: This study extends previous studies around IFRS adoption, mostly focused on European countries. The study of IFRS adoption in ASEAN countries is limited. This study presents a unique setting since most of the Countries in ASEAN adopted IAS 1 not in the same year as the year enacted by the IASB. This study contributes to the recent development in accounting standards, showing that IAS No. 1 adoption as part of the IFRS adoption in ASEAN will increase the financial statement's value relevance. Practitioner/Policy implication: This study implies for the Practitioner and Policymakers that the IFRS adoption's benefits aimed to improve the financial reports' quality, so users can more easily and readily process information about company performance. Research limitation/Implication: This study only focused on total OCI. This study did not analyze the impact of revised IAS 1 adoption for each item of OCI, such as available for sale component, revaluation surplus, or translation component. The result is consistent with the IFRS adoption's proponent that the IAS 1 revision will increase the financial statement's usefulness.