The Effect of Corporate Governance Mechanism on the Voluntary Internet Financial Reporting: A Case of Malaysia

摘要

The recent corporate accounting scandals in Malaysia haveled to higher demand for more voluntary accounting information disclosures. This study employed voluntary internet financial reporting (VIFR) as a tool for more corporate transparency disclosures. This study examines the relationship between corporate governance mechanisms namely the characteristics of board of directors (board independence, dominant personality, family members on board, financial experts on board and director ownership) with VIFR. This study used data from 265 companies listed on Bursa Malaysia's Main board for the year 2011. Based on the stewardship theory, the study expects there is a significant association between board independence, dominant personality, family members on board, financial experts on board, and director ownershipwith VIFR. The result of this study shows that board independence, financial experts on board, family members on board and director ownership has a significant influence towards the level of corporate VIFR disclosure. However dominant personality of board members does not have a significant influence towards VIFR. This study contributes in understanding the role of corporate governance on VIFR disclosure. This study would provide input to regulatory bodies to develop a guideline of VIFR to enhance the corporate transparency level among Malaysian public listed companies.