Impacts of accountability, integrity, and internal control on organisational value creation: evidence from Malaysian government linked companies

Abstract

Credible and well-functioning governance is crucial for the value creation of firms. Recently, private sectors have undergone substantial changes by focusing on good governance as a tool to enhance value, reputation, and image. The primary features of firms with good governance include greater emphasis on accountability practices, proper implementation of a corporate integrity system, and sound internal controls in place to avoid risk and to ensure policy and procedures that are complied. Government Linked Companies (GLCs) as the backbone of the Malaysian government have been harshly criticised for not being able to create value(s) despite receiving high priority in the process of getting government projects. Therefore, this study aims to examine the role of good governance systems, which are reflected through accountability systems, corporate integrity systems, and internal control systems towards value creation of Malaysian GLCs. This study collected primary data based on a set of questionnaire survey among 100 GLCs in Malaysia. Based on the regression analysis, this study found that corporate integrity systems and internal control systems were vital elements in ensuring value creation in GLCs.

Organizational learning, innovativeness and performance of financial service firms in an emerging market: examining the mediation effects of customer-focused strategy

“…Therefore, to develop further theoretical understanding, mixed methods could be applied to understand the reasons for the strategic choices of the firms. Future research can be undertaken to include other organizational factors such as internal control, accountability and structure through which innovation and organizational learning promote business performance (Anita et al , 2020; Said et al , 2020; Shafie et al , 2019). Although we find that both can enhance performance, they may promote higher though different mediating effects.…”

Bibliometric Analysis on Internal Corporate Governance: What Is the Next Research?

“…In cluster 1 (red), the central theme that emerged was the impact of ICG "ownership," "board," and "CEO" on "firm performance" and "firm value." In addition, words such as "ownership" are also connected with other words in cluster 1, such as "earnings management" (e.g., Alzoubi, 2016), "CSR" (e.g., Hossain et al, 2016), "stakeholders" (e.g., Gnan et al, 2013), "internal control" (e.g., Mitra et al, 2012), "audit committee" (e.g., Mitra et al, 2012), "quality audits" (e.g., AlQadasi & Abidin, 2018), and "government" (e.g., Said et al, 2020). This connection indicates that previous research on ownership concepts does not only focus on developing firm performance and value, which are the same cluster.…”

Understanding State Government-Linked Companies’ Service Delivery System Successful Performance from Employees’ Insights

“…As a consequence, GLCs, SGLCs or SOEs were created owing to these gaps in the market. There is no doubt that these government-link companies are the backbone of the Malaysian economy, but their inability to create values vary widely according to industry, activity type and performance, different governance and accountability mechanisms (Said et al, 2020). Many elements also influence the overall performance of the service delivery system to meet the advance expectations of various stakeholders (Chang, 2014).…”