• Culture, corporate governance and disclosure in Malaysian corporations

      Haniffa, Roszaini M.; Cooke, T.E. (2002)
      Evidence from research conducted on corporate accounting indicates that the interaction of environmental factors influences disclosure practices. The purpose of this study is to examine the importance of various corporate governance and cultural (race and education) characteristics, in addition to firm-specific factors, as possible determinants of voluntary (non-mandatory accounting and non-accounting information) disclosures in the annual reports of Malaysian listed corporations. The results of the regression analysis indicate significant associations (at the 5 percent level) between two corporate governance variables (viz. chair who is a non-executive director and domination of family members on boards) and the extent of voluntary disclosure. This finding has implications for corporate governance policy formulation by the Malaysian Institute of Corporate Governance (MISG). One cultural factor (proportion of Malay directors on the board) is significantly associated (at the 5 percent level) with the extent of voluntary disclosure suggesting that governmental focus on culture may solicit a response to secrecy from those who feel threatened.
    • The impact of culture and governance on corporate social reporting

      Haniffa, Roszaini M.; Cooke, T.E. (2005)
      Our aim is to increase understanding of the potential effects of culture and corporate governance on social disclosures. The ethnic background of directors and shareholders is used as a proxy for culture. Corporate governance characteristics include board composition, multiple directorships and type of shareholders. The dependent variable, disclosure in annual reports of Malaysian corporations, is measured by an index score as well as in terms of number of words. Our results indicate a significant relationship between corporate social disclosure and boards dominated by Malay directors, boards dominated by executive directors, chair with multiple directorships and foreign share ownership. Four of the control variables (size, profitability, multiple listing and type of industry) were significantly related to corporate social disclosure with the exception of gearing. This study has public policy implications for Malaysia as well as a number of other countries in the Asia¿Pacific region.