The contribution of the cooperative sector in Malaysia to the country's Gross Domestic Product (GDP) is still at an unsatisfactory level. Some reports state that the country's GDP was only achieved between 3% to 4% until 31 December 2019 compared to the target of 10% as set in the National Cooperative Policy (NCP) 2011-2020. Based on NCP 2011-2020, one of the achievements that contribute to the increase in GDP is good regulation and governance. The same achievement strategy is continued in the fourth strategic thrust proposal of NCP 2021-2030, which is to create effective regulation. Therefore, to solve the problems of the study, the objectives of the study is to identify the elements of cooperative governance model based on cooperative governance guidelines in Malaysia and investigate the effect of cooperative governance model based on cooperative governance guidelines on cooperative performance in Malaysia. This study will use quantitative research method to achieve the objectives that have been set, namely questionnaire techniques and content analysis. Validation of the study framework model will be conducted using quantitative analysis techniques using Statistical Package for the Social Sciences (SPSS) software. The expected output of the study is the Cooperative Governance Model that can be referred to by the Ministry of Entrepreneur and Cooperative Development (MEDAC) and government agencies such as the Malaysian Cooperative Commission (MCC), Malaysian Cooperative Institute and other cooperatives. The significant results of this study are expected to provide input to the MCC related to the elements of good cooperative governance and can be used as additional information to be disseminated to cooperatives in Malaysia. The improvement in the achievement of cooperative governance is expected to contribute to the increase in cooperative revenue which in turn achieves the target contribution to the national GDP.
The disclosure index has been used for several decades to measure the quality of financial reporting. The disclosure index is divided into mandatory and voluntary disclosure indexes. The information disclosed can be financial or non-financial items. The disclosure index can also be weighted or unweighted. The main objective of this article is to serve as a guide for the development of a disclosure index to measure a level of disclosure that can also measure the quality of financial reporting in the cooperative sector.
The main focus of the National Cooperative Policy 2011-2020 is to ensure that cooperatives in Malaysia comply with cooperative legislation. This study aimed to test the relationship between the characteristics of the cooperative with the quality of the cooperative’s annual financial reporting. The independent variables of the cooperative characteristics tested were the size and type of business. The selected study data is the annual report of the cooperative and a total of one hundred and twenty annual reports for 2010 and 2014 were used. Data were analysed using multivariate regression analysis and hierarchical multivariate regression. The results showed that the size and type of business had a significant relationship with the quality of the cooperative’s annual financial reporting at the ninety five percent and ninety nine percent confidence levels, respectively. The results of the moderating factor analysis of industry experts showed the effect of the relationship between business type and the quality of cooperative’s annual financial reporting at a confidence level of ninety five percent. While the moderating factor of industry experts did not show an effect on the relationship between the size of the cooperative and the quality of the cooperative's annual financial reporting. Thus, it can be concluded that the characteristics of cooperatives and industry experts are important elements that influence the quality of annual financial reporting of cooperatives in Malaysia.
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