Internal Corporate Governance Mechanism: A Review

Abstract

Corporate governance (CG) is a comprehensive term that incorporates many distinct facets. Because of numerous financial scandals, public knowledge of CG has increased significantly, particularly in emerging countries like Malaysia. The effectiveness of organizations' adherence with CG legislation and standards is still in question, resulting in numerous incidents of accounting fraud. Furthermore, both internally and externally, company performance is contingent on the effectiveness of Corporate Governance procedures. The purpose of this study is to examine the determinants of internal corporate governance mechanisms and the affect towards financial statement fraud. A comprehensive study of the literature on corporate governance mechanism is carried out. Finally, new lines of research are identified for future study.

Board Structure, Directors’ Remuneration Disclosure Level and Firm Value in Malaysia

“…The direct effect occurs without any mediation on remuneration disclosure. In this situation, it is concluded that board structure has a direct effect on firm value which suggest that the board structure itself has the monitoring role as a decision-maker in reducing agency cost thus directly impacting firm value (Wahab, Sapuan, & Abdinazarovich, 2022;Sulong & Nor, 2008). Overall, the mediation analysis reported that the remuneration disclosure does not mediate the relationship between CGM and firm value.…”