This paper investigates the impact of family control on the association between corporate governance quality and voluntary disclosures of corporate governance information of publicly listed Malaysian family controlled businesses. 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 disclosures is weaker in family controlled businesses. Stock-based compensation significantly impacts the association.
Aboody, D. and R. Kasznik, 2000. CEO stock option awards and the timing of corporate voluntary disclosures. Journal of Accounting Economics, 29(1): 73-100.
Agrawal, A. and C.R. Knoeber, 1996. Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(3): 377-397.
Ajinkya, B., S. Bhojraj and P. Sengupta, 2005. The association between outside directors, institutional investors and the properties of management earnings forecasts. Journal of Accounting Research, 43(3): 343-376.
Anderson, P. and S. Kwon, 2002. Social capital: Prospects for a new concept. Academt of Management Review, 27(1): 17-40.
Barako, D.G., P. Hancock and H.Y. Izan, 2006. Factors influencing voluntary disclosure by Kenyan companies. Corporate governance: An International Review, 14(2): 107-125.
Beekes, W. and P. Brown, 2006. Do better-governed Australian firms make more informative disclosures? Journal of Business Finance & Accounting, 33(3-4): 422-450.
Botosan, C., 1997. Disclosure level and the cost of equity capital. The Accounting Review, 72(3): 323-349.
Botosan, C. and M.A. Plumlee, 2002. A re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research, 40(1): 21-40.
Bowen, R.M., S. Rajgopal and M. Venkatachalam, 2005. Accounting discretion, corporate governance and firm performance. In: SSRN eLibrary, Available from http://ssrn.com/paper=367940 [Accessed 15/1/2010].
Brown, L.D. and M.L. Caylor, 2006. Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25(4): 409-434.
Bujaki, M. and B.J. McConomy, 2002. Corporate governance: Factors influencing voluntary disclosure by publicly traded Canadian firms. Canadian Accounting Perspectives, 1(2): 105-139.
Bursa Malaysia Berhad, 2001b. Annual report checklist. In: Bursa Securities Listing Requirements, No. Chapter 9, Part K, Para 9.25, Appendix 9C. Available from http://www.bursamalaysia.com/website/bm/ [Accessed 21.07.2008].
Bursa Malaysia Berhad, 2001a. Listing requirements of bursa Malaysia securities berhad, No. Chapter 15, Part E, Para 15.26. Available from http://www.bursamalaysia.com/website/bm/ [Accessed 21.07.2008].
Chau, G.K. and S.J. Gray, 2002. Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. The International Journal of Accounting, 37(2): 247-265.
Chen, C.J.P. and B. Jaggi, 2000. Association between independent non-executive directors, family control and financial disclosures in Hong Kong. Journal of Accounting and Public Policy, 19(4-5): 285-310.
Chrisman, J., J. Chua and R. Litz, 2004. Comparing the agenct cost of family and non-family firms Entrepreneurship. Theory and Practice, 29(2): 249-265.
Claessens, S., S. Djankov and L.H.P. Lang, 2000. The separation of ownership and control in East Asian corporations. Journal of Financial Economics, 58(1-2): 81-112.
Claessens, S. and J.P.H. Fan, 2000. Corporate governance in Asia: A survey. International Review of Finance, 2(2): 71-103.
Collett, P. and S. Hrasky, 2005. Voluntary disclosure of corporate governance practices by listed Australian companies. Corporate governance: An International Review, Blackwell Publishing Ltd, 13(2): 188-196.
De Nicolo, G., L. Laeven and K. Ueda, 2008. Corporate governance quality: Trends and real effects. Journal of Financial Intermediation, 17(2): 198-228.
Deumes, R. and W.R. Knechel, 2008. Economic incentives for voluntary reporting on internal risk management and control systems, Auditing, 27: 35-66.
Dey, A., 2008. Corporate governance and agency conflicts. Journal of Accounting Research, 46(5): 1143-1181.
Dye, R.A., 1985. Disclosure of nonproprietary information. Journal of Accounting Research, 23(1): 123-145.
Dyer, W.G.J.R., 2006. Examining the "family effect" on firm performance. Family Business Review, 19(4): 253-273.
Eng, L.L., F.H. Kwok and K.H. Yew, 2001. The relation between financial statement disclosure and the cost of equity capital of Singapore firms. Accounting Research journal, 14(1): 35-48.
Eng, L.L. and Y.T. Mak, 2003. Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4): 325-345.
Fama, E.F. and M.C. Jensen, 1983. Separation of ownership and control. Journal of Law and Economics, 27: 301-325.
Fan, J.P.H. and T.J. Wong, 2002. Corporate ownership structure and the informativeness of accounting earnings in East Asia. In: Journal of Accounting and Economics, 33: 401-425. Available from www.elsevier.com/locate/econbase [Accessed 23/8/2008].
Finance Committee Report on Corporate Governance, 1999. Report on corporate governance. Ministry of Finance, Malaysia.
Ghazali, N.A.M. and P. Weetman, 2006. Perpetuating traditional influences: Voluntary disclosure in Malaysia following the economic crisis. Journal of International Accounting Auditing & Taxation, 15(2): 226-248.
Gomez-Mejia, L., M. Nunez-Nickel and I. Gutierrez, 2001. The role of family ties in agency contracts. Academy of Management Journal, 44(1): 81-95.
Haniffa, R.M. and T.E. Cooke, 2002. Culture, corporate governance and disclosure in Malaysian corporations. Abacus, 38(3): 317-349.
Healy, P.M. and K.G. Palepu, 2001. Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3): 405-440.
Ho, S.S.M. and K.S. Wong, 2001. A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation, 10(2): 139-156.
Hossain, M., M.H.B. Perera and A. Rahman, 1995. Voluntary disclosure in the annual reports of New Zealand companies. Journal of International Management and Accounting, 6(1): 69-87.
Jensen, M.C. and W.H. Meckling, 1976. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4): 305-360.
Jensen, M.C. and K.J. Murphy, 1990. Performance pay and top-management incentives. Journal of Political Economy, 98(2): 225-264.
Karamanou, I. and N. Vafeas, 2005. The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis. Journal of Accounting Research, 43(3): 453-486.
La Porta, R., F. Lopez-De-Silanes, A. Shleifer and R. Vishny, 2002. Investor protection and corporate valuation. The Journal of Finance, 57(3): 1147-1170.
Labelle, R., 2002. The statement of corporate governance practices (SCGP): A voluntary disclosure and corporate governance perspective. HEC Montreal Working Paper.
Lang, M. and R. Lundholm, 1993. Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research, 31(2): 246-271.
Lang, M. and R. Lundholm, 2000. Voluntary disclosure and equity offerings: Reducing information asymmetry or hyping the stock? Contemporary Accounting Research, 17: 623-662.
Larcker, D.F., S.A. Richardson and A.R. Tuna, 2007. Corporate governance, accounting outcomes, and organizational performance. Accounting Review, 82: 963-1008.
Leuz, C. and P.D. Wysocki, 2008. Economic consequences of financial reporting and disclosure regulation: A review and suggestions for future research. In: SSRN eLibrary.
Lokman, N., J. Cotter and J. Mula, 2011. Corporate governance quality, incentive factors and voluntary corporate governance disclosures in annual reports of Malaysian publicly listed companies. Paper Under Review for Journal of Contemporary Accounting and Economics Thesis.
Mallin, C. and K. Ow-Yong, 2009. Corporate governance in alternative investment market (AIM) companies: Determinants of corporate governance disclosure. In: SSRN eLibrary. Available from http://ssrn.com/paper=1326627 [Accessed 14/08/2009].
McConaughy, D., C. Matthews and A. Fialko, 2001. Founding family controlled firms: Efficency, risk, and value. Journal of Small Business Management, 39(1): 31-50.
McConaughy, D.L., M.C. Walker, G.V. Henderson and C.S. Mishra, 1998. Founding family controlled firms: Efficiency and value. Review of Financial Economics, 7(1): 1-19.
Meek, G.K., C.B. Roberts and S.J. Gray, 1995. Factors influencing voluntary annual report disclosure by U.S., U.K. and continental european multinational corporations. Journal of International Business Studies, 26: 555-572.
Morck, R., A. Shleifer and R.W. Vishny, 1988. Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20: 293-315.
MSWG and UNMC, 2007. Corporate governance survey report 2007 - Main Board PLCs.
Nagar, V., D. Nanda and P. Wysocki, 2003. Discretionary disclosure and stock-based incentives. Journal of Accounting & Economics, 34: 283-309.
Neo, C.F., 1999. Voluntary disclosure and insider transactions. Journal of Accounting & Economics, Elsevier Science, 27: 305-326.
Prencipe, A., G. Markarian and L. Pozza, 2008. Earnings management in family firms: Evidence from R&D cost capitalization in italy. Family Business Review, 21(1).
Sciascia, S. and P. Mazzola, 2008. Family involvement in ownership and management: Exploring nonlinear effects on performance. Family Business Review, 21(4): 331-345.
Sengupta, P., 1998. Corporate disclosure quality and the cost of debt. The Accounting Review, 73(4): 459-474.
Seppanen, H.J., 2000. Discretionary disclosure and external financing in a relationship financing environment. SSRN eLibrary. Available from http://ssrn.com/paper=204668 [Accessed 1/11/2008].
Smith, C.W. and R.L. Watts, 1992. The investment opportunity set and corporate financing, dividend, and compensation policies. Journal of Financial Economics, 32(3): 263-292.
Stephens, N.M., 2009. Corporate governance quality and internal control reporting under SOX section 302. In: SSRN eLibrary.
Verrecchia, R.E., 1983. Discretionary disclosure. Journal of Accounting and Economics, 5: 179-194.
Wan-Hussin, W.N., 2009. The impact of family-firm structure and board composition on corporate transparency: Evidence based on segment disclosures in Malaysia. The International Journal of Accounting, 44(4): 313-333.
Watson, A., P. Shrives and C. Marston, 2002. Voluntary disclosure of accounting ratios in the uk. The British Accounting Review, 34(4): 289-313.
Zhuang, J., D. Edwards, D. Webb and V. Capulong, 2000. Corporate governance and finance in East Asia: A study of Indonesia, Republic of Korea, Malaysia, Phillipines and Thailand, Asia Development Bank, Vol. 1.