Corporate governance and strategic information disclosure in Malaysian listed banks : panel data analysis

• Main Authors: Htay, Sheila Nu Nu, Aung, Zaw Min, Ab. Rashid, Hafiz-Majdi, Adnan, Muhammad Akhyar
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2011
• Subjects: HG1501 Banking
• Online Access: http://irep.iium.edu.my/26274/1/10.Corporate_governance_and_strategic_information_disclousre_in_Malaysia.pdf; http://irep.iium.edu.my/26274/2/10.pdf; http://irep.iium.edu.my/26274/
• Institution: Universiti Islam Antarabangsa Malaysia

Corporate governance issue has attracted the researchers, especially the Malaysian researchers due to the 1997-1998 economic crises. Furthermore, it is undeniable that the banking sector is the heart of the economy in any country since it is the main source in mobilizing the monetary system. Thus, this study investigates the impact of corporate governance on strategic information disclosure of Malaysian listed banks by using a panel data analysis. Good corporate governance is proxied by board leadership structure, board composition, board size, director ownership, institutional ownership and block ownership. Strategic information disclosure index is developed and content analysis is conducted by cross checking between the strategic information disclosed in the annual reports and the disclosure index developed by the researcher. The disclosure score used in this study is weighted disclosure score after considering the opinions of accountants and financial analysts who represent preparers and users of the accounting information respectively. INE_BZ (at 1% Sig. level, BOWN (at 5% Sig. level) and BLS and DOWN are in line with hypothesis while BZ (at 1% Sig. level) and IOWN are not. Thus, it can be concluded that separate board leadership structure, higher INE_BZ, higher BZ, lower DOWN, lower BOWN and lower IOWN have more strategic information disclosure. With regard to control variables, only LNTA has a significant impact on disclosure but the finding from leverage, i.e. TD_TE. The current prevailing situations in Malaysia are discussed to highlight the reasons behind these research findings.