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The Influence of Corporate Governance Structure on Directors’ Remuneration Disclosure in Malaysia: An Analysis of the FTSE30 Companies

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Technology-Driven Business Innovation

Part of the book series: Studies in Systems, Decision and Control ((SSDC,volume 223))

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Abstract

This research explores whether the disclosure of directors’ compensation in FTSE30 companies in Malaysia between 2007 and 2014 can be explained by the corporate governance mechanisms, particularly ownership and governance structures. The findings demonstrate that ownership structure significantly influences remuneration disclosure, both in government and foreign-owned companies. However, the governance structure shows a relatively weaker impact on disclosure. Only board independence and board size have a significant impact on the extent of remuneration disclosure. Interestingly, the separation of CEO and Chairman roles does not affect remuneration disclosure, while the presence of big-4 auditors has a negative impact on disclosure. These findings respond to the need for more research on directors’ compensation disclosure, given its distinctive sensitivity and strategic nature. Furthermore, the results hold significant implications for Malaysian regulators involved in shaping the next Malaysian Code of Corporate Governance, particularly in the context of directors’ compensation disclosure.

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Authors and Affiliations

  1. Faculty of Business, Multimedia University, 75450, Melaka, Malaysia

    Akhma Adlin Khalid & Saleha Abdullah

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  1. Akhma Adlin Khalid
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  2. Saleha Abdullah
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Correspondence to Akhma Adlin Khalid .

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Editors and Affiliations

  1. Adnan Kassar School of Business, Lebanese American University, Byblos, Lebanon

    Rim El Khoury

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Khalid, A.A., Abdullah, S. (2024). The Influence of Corporate Governance Structure on Directors’ Remuneration Disclosure in Malaysia: An Analysis of the FTSE30 Companies. In: El Khoury, R. (eds) Technology-Driven Business Innovation. Studies in Systems, Decision and Control, vol 223. Springer, Cham. https://doi.org/10.1007/978-3-031-51997-0_18

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