/jurnalpengurusan Sun, 09 Oct 2022 15:38:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/board-of-directors-information-asymmetry-and-intellectual-capital-disclosure-among-banks-in-gulf-co-operation-council/?utm_source=rss&utm_medium=rss&utm_campaign=board-of-directors-information-asymmetry-and-intellectual-capital-disclosure-among-banks-in-gulf-co-operation-council Sun, 09 Oct 2022 15:38:13 +0000 /jurnalpengurusan/?post_type=article&p=4603 The main thrust of this paper is to examine the intellectual capital (IC) disclosure of 137 listed banks in Gulf Co-operation Council (GCC) nations using a content analysis approach. Instead of examining the effect of board characteristics in isolation from each other, this study extends previous research on the determinants of IC disclosure by considering board effectiveness score in relation to IC disclosure. Moreover, this study extends previous studies in board-IC disclosure relationship by investigating the hypothesized impact of information asymmetry in moderating this relationship. Our findings show that IC disclosure is positively associated with the effectiveness of board of directors. In addition, our study provides evidence that the level of information asymmetry in GCC bank moderates the relationship between board effectiveness and IC disclosure. The finding is important for policymakers as it confirms that the effectiveness of board of directors in protecting the investors depends on the level of information asymmetry.

]]> /jurnalpengurusan/article/characteristics-of-board-of-directors-and-financial-distress-a-malaysian-case/?utm_source=rss&utm_medium=rss&utm_campaign=characteristics-of-board-of-directors-and-financial-distress-a-malaysian-case Sat, 08 Oct 2022 18:07:51 +0000 /jurnalpengurusan/?post_type=article&p=3383 This paper examines the relationship between the characteristics of boards of directors and the financial distress of companies listed on Bursa Malaysia. The sample consists of 68 companies whose listing status on Bursa Malaysia was being suspended between 2005 and 2009, under the provision of Practice Note 17 (PN17) of the Bursa Malaysia Listing Requirements. The study develops a multinomial logit regression model to test three categories of PN17 listing statuses: re-listed on Bursa Malaysia, remain as PN17, and de-listed from Bursa Malaysia. The model relates the listing status to five characteristics of the boards of directors as independent variables, specifically leadership structure, equity ownership, board involvement, financial literacy and multiple directorships of board members; and four control variables, namely firm size, leverage, return on assets and audit quality. The study expects that the success of PN17 listing outcomes depends on the ability of the board of directors to establish and implement the restructuring plan. The results show that the relisting of PN17companies is negatively related to financial literacy and equity ownership of the board of directors and positively related to the involvement of the board. The results imply that boards of directors with a lower ownership and financial literacy, but more actively involved, are more capable of overcoming financial difficulties.

]]> /jurnalpengurusan/article/the-encumbrance-of-institutional-investor-and-board-of-directors-in-reducing-risk-of-default-for-conventional-bonds-and-sukuk-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=the-encumbrance-of-institutional-investor-and-board-of-directors-in-reducing-risk-of-default-for-conventional-bonds-and-sukuk-in-malaysia Sat, 08 Oct 2022 15:41:39 +0000 /jurnalpengurusan/?post_type=article&p=3032 Sukuk yields mimic those of conventional bonds due to having similar features. Sukuk are shariah-compliant securities that offer different structures to those of conventional bonds. Therefore, it is believed that the spreading of yields should also be different. The presence of key institutional investors/owners and certain Board of Directors (BOD) characteristics as highlighted by the Malaysian Code on Corporate Governance (MCCG) may influence the yield to maturity (YTM) of conventional bonds and sukuk. Thus, the main objective of this study is to investigate the relationship between these two yield spreads instruments with corporate governance mechanisms. The data is obtained from firm issuers’ annual reports, the Bondinfo Hub of the Malaysian Central Bank, the Rating Agency Malaysia (RAM), the Malaysian Department of Statistics and Bloomberg databases for the period beginning 2000 to 2014 for 256 and 405 tranches of long-term and medium-term issuances of conventional bonds and sukuk respectively. The most significant findings show that the presence of top-six and other institutional ownerships as corporate governance mechanism proxy insignificantly and significantly reduce yield spreads within the firm revealed by Ordinary Least Square (OLS) and random effects models in long-term and medium-term issuances.

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