Factors influence employee level of integrity in automotive company / Norziana Lokman and Nur Maisarah Mahadzir

This study investigated the factors that influence employee level of integrity at UMW Toyota Motor. There are three factors identified as the predictor in the study, namely, individual, organizational, and situational factors, which are expected to affect employee level of integrity. Data were collected through questionnaires distributed between October 2018 and March 2019 to all employees of UMW Toyota Motor. A total of 300 respondents were approached, and 137 (46%) questionnaires were returned for analysis. The data collected were analyzed using descriptive, correlation, and regression analysis. The finding concluded that the level of integrity among employees of UMW Toyota Motor is high. The regression analysis result showed that situational factors have significant and positively associated with the employee level of integrity. The result indicated that situational factors such as peer pressure, financial distress, leadership influence, and ethical norms at the workplace affected the integrity level of employees

CORPORATE GOVERNANCE AND BOARD EFFECTIVENESS: A SYSTEMATIC REVIEW OF THE COMPANY SECRETARY ROLE

Background and Purpose: Company secretary roles are increasingly gaining attention and recognition globally. However, research on corporate governance and board effectiveness lacks a comprehensive and systematic review from the company secretary role. Most research to date has been focused on the role of other corporate governance actors, namely, CEOs, directors, and auditors. In this present systematic literature review, we address this deficiency.   Methodology: This paper adopted a systematic literature review approach. We used two indexed databases, Scopus and Web of Science, to analyse the articles written on corporate governance, company secretary and board effectiveness. A total of 121 articles published in these fields were examined, and after rigorous analysis, only 18 articles from which met the inclusion criteria were included.   Findings: Our findings reveal that only a few corporate governance research has investigated the role of company secretary in enhancing board effectiveness (board structure, board process and board practices). The thematic analysis conducted identified seven key roles of the company secretary. The roles are to: (1) support the chairman of the board; (2) provide advice and act as a confidant to the board of directors; (3) facilitate and manage the board of directors and board committee process; (4) liaise between the board and management; (5) manage information asymmetry and enhance transparency; (6) ensure compliance with laws, regulations, corporate governance code and best practices, and (7) manage company relations.   Contributions: The analysis in this paper presents four key findings - types of articles, geographical location, theory, and company secretary roles that reflect the research gaps present in the corporate governance literature, thus highlighting significant future research avenues.   Keywords: Board effectiveness, company secretary, corporate governance, roles, systematic literature review.   Cite as: Halim, S. A. A, Lokman, N., & Othman, S. (2023). Corporate governance and board effectiveness: A systematic literature review of the company secretary role. Journal of Nusantara Studies, 8(TI), 209-234. http://dx.doi.org/10.24200/jonus.vol8issTIpp209-23

Impact of incentives to voluntarily disclose corporate governance information in annual reports: an empirical study of Malaysian publicly listed companies

This study investigates the extent to which a company‟s corporate governance quality is related to (a) its voluntary disclosure of corporate governance information, (b) the incentives factors that affect the relationship and (c) whether this relationship is stronger in the presence of an in-house qualified company secretary. The hypotheses development of this research study is based on Dye‟s voluntary disclosure theory and agency theory. A broad corporate governance quality index that captures the four main factors of effective corporate governance is adopted from the Minority Shareholder Watchdog Group (MSWG) in Malaysia. It consists of two main components: basic compliance score (BCS) and international best practices score (IBP). In this research, the BCS component is used to measure the level of a company corporate governance quality and the IBP component is a proxy for voluntary disclosure of corporate governance information. Using a sample of 275 publicly listed companies in Malaysia, the empirical results indicate that companies with high corporate governance quality are more likely to voluntarily disclose corporate governance information in annual reports. This result suggests that Dye‟s voluntary disclosure theory holds in Malaysia, a country that is characterised by weak legal protection, highly concentrated ownership and strong cultural factors. Capital market transactions (issuance of new share and debt capital) and stock-based incentives (stock-based compensation and CEO shareholdings) are the two incentive factors that are examined in this research. The findings suggest that stock-based compensation statistically and positively affects the relationship between corporate governance quality and voluntary disclosures. However the other incentive factors do not affect the relationship. This study also examines the relationship between in-house qualified company secretaries and voluntary disclosures. It does this by distinguishing between two types of company secretaries, namely professional qualified versus license holders and in-house versus external. However, no evidence is found to support the hypothesis that in-house qualified company secretaries promote voluntary disclosures

Corporate governance quality and voluntary disclosures of corporate governance information: practices of listed Malaysian family controlled businesses

This paper investigates the impact of family control on the association between corporate governance quality and voluntary disclosure of corporate governance information of publicly listed Malaysian companies. In addition the impact of incentive factors are also examined for both family and non-family controlled businesses in relation to voluntary disclosures. The findings suggest that the positive association between corporate governance quality and voluntary disclosure is weaker in family controlled businesses. Stock-based compensation significantly impacts the association

Voluntary disclosure research: which theory is relevant?

The purpose of this paper is to overview the most popular theories that have been used in prior research to explain voluntary corporate disclosures and to provide guidance about the choice of a suitable theory or theories for different types of voluntary disclosure research. It presents a comprehensive comparison of voluntary disclosure theories and relates each of the theories to the type of information disclosure being examined. Following prior research, we classify disclosures into strategic and forward looking, financial, and non-financial information. We show that similarities and differences between theories stem from underlying paradigm differences which are related to incentives to disclose and the costs and benefits considered by each theory. The choice of a suitable theory to underpin the research depends on the type of information disclosure being examined and the external parties considered

Corporate governance quality, incentive factors and voluntary corporate governance disclosures in annual reports of Malaysian publicly listed companies

This paper investigates the relationship between corporate governance quality and voluntary disclosure of corporate governance information for listed companies in Malaysia. The moderating impacts of incentive factors (capital market transactions and stock-based incentives) on this relationship are also examined. Corporate governance quality is measured using a comprehensive index. The empirical evidence of this study is broadly consistent with the notion that high corporate governance quality is positively related to a greater extent of voluntary disclosure. Stock-based compensation significantly influences the relationship between corporate governance quality and voluntary disclosures; however the other incentive factors examined do not appear to influence the relationship