/jurnalpengurusan Tue, 11 Oct 2022 04:34:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/the-influence-of-ethnicity-on-the-reporting-of-intellectual-capital/?utm_source=rss&utm_medium=rss&utm_campaign=the-influence-of-ethnicity-on-the-reporting-of-intellectual-capital Tue, 11 Oct 2022 04:34:59 +0000 /jurnalpengurusan/?post_type=article&p=5311 In the 21st century, Intellectual Capital (IC), which comprised of human, structural and relational capitals, has become a source of predictors for future performance. The role of IC for future performance prediction surpasses traditional measures, such as physical and financial capital. This study investigates whether the ethnicity of directors, which include chief financial officers, chairman and audit committees, influences the amount of IC disclosure at the firm level. This study adopts a quantitative research approach, whereby level of IC disclosure is measured based upon the content analysis of corporate annual reports from 77 technology based companies in Malaysia. Malaysia is used as the setting for this study due to its ethnic diversity and the fact that the ethnic groups, to some extent, maintain their original cultural values. A ranked regression of normal scores is utilized to examine the relationship between the levels of IC disclosure and ethnicity. The study finds that a significant relationship exists between ethnicity of some directors and levels of IC disclosure.

]]> /jurnalpengurusan/article/gender-ethnic-and-age-diversity-of-the-boards-of-large-malaysian-firms-and-performance/?utm_source=rss&utm_medium=rss&utm_campaign=gender-ethnic-and-age-diversity-of-the-boards-of-large-malaysian-firms-and-performance Tue, 11 Oct 2022 02:02:43 +0000 /jurnalpengurusan/?post_type=article&p=5238 Board diversity is important especially in countries which practice a one-tier board system, such as Malaysia. Under the system, board appointments are usually controlled by the firm’s substantial shareholders, and as a result, directors are chosen based on “the old-boy” network or “people like us”, who are typically middle-aged males and from similar ethnicity which could lead to “group think”. Board diversity ensures breadth and depth of the board’s judgments. To this end, this study examines board diversity of the top 100 non-financial Malaysian firms, specifically directors’ gender, ethnicity and age and their effects on firm performance. Data are collected from the 2007 annual reports of the sample firms. The evidence indicates the lack of diversity of the Malaysian boards of directors. Results from the multivariate analyses reveal that gender diversity is negatively associated with Tobin’s q and ROA. Age diversity is found to be negatively related to ROA. Ethnic diversity, on the other hand, is found to be positively associated with ROA. Hence, findings on the effect of board diversity and firm performance are mixed. Nevertheless, this study offers insights to policy makers in enhancing corporate governance in Malaysia where diversity is one of the areas that could strengthen the effectiveness of the board.

]]> /jurnalpengurusan/article/board-of-directors-and-ownership-structure-a-study-on-small-and-medium-enterprises-smes-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=board-of-directors-and-ownership-structure-a-study-on-small-and-medium-enterprises-smes-in-malaysia Sat, 08 Oct 2022 17:21:39 +0000 /jurnalpengurusan/?post_type=article&p=3247 Small- and medium-sized enterprises (SMEs) do not gain sufficient economic returns despite their significant economic contributions. A possible cause of poor SME performance is weak corporate governance. However, the corporate governance of SMEs is rarely investigated. Ownership structure provides SMEs with a monitoring mechanism that enhances performance. This study examines the relationships between board characteristics (including size, composition boards, CEO duality, expertise, and ethnicity) and SME performance in Malaysia. This study also explores how such relationships can be moderated by monitoring ownership structure. Survey results on SMEs in Klang Valley and Selangor areas show that non-executive boards and CEO duality are significantly and positively related to firm performance. In comparison, management ownership is significantly and negatively related to performance. Board size, expertise, ethnicity, and family ownership are not significantly related to SME performance. Findings indicate that good corporate governance improves decision making and firm performance. Furthermore, agency theory can explain conflict of interest in SMEs and the importance of corporate governance in enhancing their performance.

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