Network governance in government‐linked companies (GLCs) and non‐government‐linked companies (NGLCs) in Malaysia

Hamid, Azmi Abd.

doi:10.1108/19852511111139804

Cited by 13 publications

(7 citation statements)

References 38 publications

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“…award contracts, strategy, restructuring and financing, acquisitions and divestments etc.) for GLCs either directly or through Government Link Investment Companies (Hamid 2011). …”

Section: Literature Reviewmentioning

confidence: 99%

“…To complement the MCCG 2000, the Putrajaya Committee on Government Link Companies (GLC) High Performance (PCG) introduced a framework to guide GLC transformation and upgrade the effectiveness of GLC Boards with the introduction of the 'Green Book'. The study is motivated from the empirical result by Hamid (2011) who concluded that GLCs are relatively more transparent in corporate governance practices and this adds to their higher valuations. Thus, the effectiveness of the audit committee is the main subject in the current study to examine whether the best practice adopted will bring in value to GLCs through its financial reporting quality.…”

Section: Literature Reviewmentioning

confidence: 99%

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An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Jamil

Nelson

2011

GADJAH MADA INT. J. BUS.

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Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee's effectiveness on the financial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency of meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003)(2004)(2005)(2006)(2007)(2008)(2009). As of 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data that resulted in the total number of firm-year observations to 120 for six years (years 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. Agency theory was applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. The study is important as it provides additional knowledge about the impact of audit committees effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committees effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.Abstrak: Kualitas pelaporan keuangan telah di bawah pengawasan, terutama setelah runtuhnya perusahaanperusahaan besar. Tujuan utama dari penelitian ini adalah untuk mengetahui efektivitas komite audit pada kualitas pelaporan keuangan antara GLCs Malaysia yang mengikuti program transformasi. Secara khusus, studi ini meneliti dampak dari karakteristik komite audit (kebebasan, ukuran, frekuensi pertemuan dan keahlian keuangan) pada manajemen laba pada periode sebelum dan setelah program transformasi (2003)(2004)(2005)(2006)(2007)(2008)(2009) 288Keywords: audit committees; earnings management; GLCs transformation program; Malaysia pelaporan keuangan dipengaruhi oleh independensi komite audit. Teori keagenan diaplikasikan untuk menjelaskan komite audit, sebagai mekanisme pemantauan serta mengurangi biaya agensi melalui keunggulan kompetitif dalam pengetahuan, keterampilan, dan keahlian terhadap kualitas pelaporan keuangan yang diperolehnya. Penelitian ini penting karena memberikan pengetahuan tambahan tentang dampak efektivitas komite audit dalam mengurangi manajemen laba, dan membantu praktisi, pembuat kebijakan dan regulator seperti Institut Akuntan Malaysia, Komisi Efek dan pemerintah untuk menentukan cara untuk meningkatkan efektivitas komite audit dan meningkatkan pelaporan keuangan GLCs, serta meningkatkan kualitas profesi akuntansi.

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“…award contracts, strategy, restructuring and financing, acquisitions and divestments etc.) for GLCs either directly or through Government Link Investment Companies (Hamid 2011). …”

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Jamil

Nelson

2011

GADJAH MADA INT. J. BUS.

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“…However, Jamaludin and Hashim (2017) contended that the company still neglects the significant role of the director's network in the firm. A similar idea was proposed by Hamid (2011) which stated that the need to nominate and retain a member of the board was less concerned with the influence of the networks of the director. Therefore, if the issue remains and no corrective measures have been taken by the firm, it means that this valuable resource was left unused.…”

Section: Directors Network In Technological Innovationmentioning

confidence: 90%

The Moderating Effect of Directors’ Network Towards Technological Innovation and Firms’ Performance: A Conceptual Paper

Hussain

Hashim

Jamaludin

2020

IJIM

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Scholars have given increased attention to seek for a solution to improve firms’ performance. The literature demonstrated that technology innovation is considered the most powerful means of firms’ performance for modern companies. Empirical findings showed, however, that the relationship between technological innovation and firms’ performance continues to be inconclusive as it has a negative, positive or no impact on firms’ performance. In order to address such gap, this paper proposes a theoretical framework to describe the moderating effect of directors’ network on technological innovation and firms’ performance. It shows that the effectiveness of business innovation can be enhanced through direct or indirect use of each network of directors. The firm still neglects the significant capacity of the board of directors' network in a firm. In short, the crucial discussion found in this paper will lead to improving the information on innovation, networking and organizational studies as well as act as a reference to study in other countries. This study is a promising field. The business will benefit from a large social network of directors. Thus, the company is proposing to fully utilize the function of directors’ network to leverage the innovation activities and firm’s performance.

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“…Prior research in the field of business and management has extensively applied this theory as a framework for hypothesis testing. Notable examples include studies conducted by Hamid (2011), Stolze et al (2021) and Wadood et al (2022).…”

Section: Theories Literature Review and Hypotheses Development 21 The...mentioning

confidence: 99%

Reinventing the wheel? Factors influencing relationship: links between sustainability and financial performance. European evidence

Rahi,

Johansson,

Lions

2023

IJAIM

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Purpose This study aims to examine the factors that influence the relationship between sustainability and financial performance (FP) of the European listed companies. Design/methodology/approach This study analyzed data from 795 companies in 21 European countries by applying linear mixed-effects multilevel regressions, a two steps system generalized method of moments and quantile regression models to uncover the links between sustainability and FP. Findings The past four decades have witnessed abundant research to determine the relationship between corporate sustainability and FP. Thus, conducting further research in 2023 could be seen as “reinventing the wheel.” Yet, earlier research considered firms as isolated entities with sustainability and FP being dependent only on that firm’s actions. By contrast, with the help of network governance theory, this study shows that a firm’s sustainability and FP depend on an interplay among interorganizational actors, such as institutional qualities, macroeconomic factors and an embrace of sustainability. Here, large firms play an essential role. Three significant findings are drawn. First, sustainability performance has a significant impact on FP in the European context. Second, the institutional quality (IQ) of the rule of law and control of corruption plays a crucial role in enhancing sustainability and FP, and finally the interaction of IQ and economic growth helps to increase companies’ market value (Tobin’s Q). The consistent and empirically robust findings offer key lessons to policymakers and practitioners on the interplay among multiple actors in corporate sustainability and FP. Practical implications A synergetic multifaced relationship between governmental institutions and corporations is inevitable for ensuring sustainable development. The degree of intimacy in the relationship, of course, will be determined by the macroeconomic environment. Originality/value In this research, this study theoretically and empirically identified that corporate sustainability and FP are not solely dependent on corporate operation. Rather, it is transformed, modified and shaped through an interaction of multiple actors’ trajectories in the macro business environment.

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Network governance in government‐linked companies (GLCs) and non‐government‐linked companies (NGLCs) in Malaysia

Cited by 13 publications

References 38 publications

An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

The Moderating Effect of Directors’ Network Towards Technological Innovation and Firms’ Performance: A Conceptual Paper

Reinventing the wheel? Factors influencing relationship: links between sustainability and financial performance. European evidence

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