The impact of family-firm structure and board composition on corporate transparency: Evidence based on segment disclosures in Malaysia

Abstract

The aim of this study is to contribute to the growing literature on the quality of accounting disclosures by family firms by investigating whether the alignment (entrenchment) effect leads to high (low) corporate transparency. Unlike previous studies, this study also examines the relationship between board composition and corporate transparency by distinguishing between the two types of nonexecutive directors, namely independent and affiliated directors. Using the enhanced segment disclosures by Malaysian firms in 2001/2002 as a proxy of corporate transparency, the results indicate that family firms are more inclined to disclose all the required items for the primary basis of segment reporting, consistent with Ali, Chen, and Radhakrishnan (2007) and Wang (2006). The result also indicates that firms with higher proportion of affiliated directors are more likely to make greater segment disclosures. However, no evidence is found to support the contention that independent directors and institutional investors promote corporate transparency, consistent with previous Malaysian studies.

Corporate Cash Holdings and Adjustment Behaviour in Chinese Firms: An empirical Analysis Using Generalized Method of Moments

“…Studies conducted in emerging markets like Malaysia have reported the ineffectiveness of board characteristics such as board independence in overall improvement on corporate governance to ensure that minority shareholders' rights are protected. Important studies conducted in this regard include Wan-Hussin (2009).Because of the reasons discussed this study has included board size and board independence to study in what manner board is effective with regard to corporate decision making of corporate cash holdings.…”

Faaliyet Bölümleri Standardı Kapsamında Bölümsel Bilgi Raporlaması: Borsa İstanbul Şirketleri Üzerine Bir Araştırma

“…Bununla birlikte, büyük işletmeler bölümsel raporlamayı gerçekleştirebilecek sayıda deneyimli personele ve maliyetleri kaldırabilecek düzeyde kaynağa sahiptirler (Mardini vd., 2013: 258). Bu doğrultuda, literatürde yer alan birçok çalışma işletme hacmi ile UFRS 8 uygulamaları arasında pozitif bir ilişki tespit etmiştir (Bradbury, 1992;Herrmann ve Thomas, 1996;Nichols and Street, 2007;Wan-Hussin, 2009;Sucuahi, 2013;Gisbert vd., 2014;Zeytinoğlu 2015;Alanezi vd., 2016). Önceki çalışmalar göz önünde bulundurularak aşağıdaki hipotez geliştirilmiştir.…”

“…Bu sonuçlara göre büyük ölçekli işletmeler hem ürün ve hizmetleri ile ilgili hem de coğrafi bölümleri ile ilgili küçük işletmelere göre daha fazla bilgi paylaşımında bulunmaktadırlar. Elde edilen bulgular literatürde yer alan birçok çalışma ile uyumludur (Bradbury, 1992;Herrmann ve Thomas, 1996;Nichols and Street, 2007;Wan-Hussin, 2009;Sucuahi, 2013;Gisbert vd., 2014;Zeytinoğlu 2015). Bölümsel bilgi düzeyi ile işletme büyüklüğü arasındaki pozitif ilişki birçok sebep ile açıklanabilir.…”

Audit committee structure and earnings management in Asia Pacific

“…However, the evidence from Malaysia indicates thatthe independence of the board does not enhance reporting lucidity [Haniffa and Cooke 2002;Wan-Hussin 2009] and restrain corporate restatements [Abdullah, Siddique, and Rahaman 2010], which lends credibility to the view that the presence of independent non-executive directors are merely a box-ticking exercise, is ceremonial and is a form of window dressing.…”