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Vol. 15, Number 2, 2020

Disclosure of AGM Minutes on Corporate Website: An Assessment of Malaysian Listed Companies
1Mohd Shazwan Mohd Ariffin
2Wan Nordin Wan-Hussin
Othman Yeop Abdullah Graduate School of Business,
Universiti Utara Malaysia, Malaysia
3Siti Seri Delima Abdul Malak
Tunku Intan Safinaz School of Accountancy,
Universiti Utara Malaysia, Malaysia
1Corresponding author:;;
Abstract | Text
Disclosure of annual general meeting (AGM) minutes on the corporate website is considered as additional disclosure. Consequently, Listing Requirements states compulsory disclosure of corporate information. In this regard, the awareness of compulsory disclosure of information among all Malaysian listed companies in 2017 was below expectations. Despite the role of AGM minutes as documented proof of meeting, the management had been reluctant to disclose AGM minutes on the corporate website unless demanded by the shareholders. This paper focuses on previous mandatory disclosure of discussions on key matters after AGM minutes among 261 listed companies based on the financial year ended December 31, 2016. The findings indicated that shareholder activism and the role of grey directors exerted influence on the disclosure of AGM minutes on the corporate website. Undoubtedly, management and investors have contributed toward voluntary disclosure in line with the government’s role to enhance shareholder rights. Besides, grey directors’ contribution towards information disclosure has remained relatively unexplored.
Keywords: AGM minutes, shareholder activism, grey directors, Malaysian, corporate website.
JEL Code: G30

Board Education, Growth and Performance of Family CEO Listed Firms in Malaysia

1Haslindar Ibrahim
2Abdul Hadi Zulkafli
3Gul Jabeen
School of Management
3Universiti Sains Malaysia, Malaysia
1Corresponding author:;;


Abstract | Text

This paper examines the relationship between board education, board size, growth, ownership and firm performance of family CEO and nonfamily CEO listed firms in Malaysia. A sample of 37 firms and data were collected over a period of five years from 2012 to 2016. The 37 samples of family firms were subdivided into family CEO (21), and non-family CEO (16) firms. The independent variables were board education as measured by the proportion of board degrees (BDEG) and the proportion of board professional qualifications (BPRO), board size (BSIZE), growth, and ownership. Meanwhile, firm performance was measured by using return on equity (ROE) and return on assets (ROA). The findings showed that there was a significant difference between family CEO and non-family CEO firms at a five percent level for board professional qualifications confirming that altruism and nepotism were observed among family members which supported the argument of characteristics of nepotism such as granting jobs to family members regardless of merit. In addition, this study also found board professional qualifications as significant but negatively related to external firm performance in family CEO firms. This showed that board education has not really been emphasized among board members. Besides, growth has significant influence on family firm performance which is evidently reflected in their contribution to the country’s GDP.
Keywords: Board professional qualification, board degree, growth, family CEO firms.
JEL Code: G32, G34

Accountability in Malaysian Islamic Social Enterprises (ISEs): Stakeholder Versus Management Perspectives
1Muhammad Iqmal Hisham Kamaruddin
  Faculty of Economics and Muamalat,
 Universiti Sains Islam Malaysia, Malaysia
2Sofiah Md Auzair
  Faculty of Economics and Management,
 Universiti Kebangsaan Malaysia, Malaysia
1Corresponding author:;
Abstract | Text
This study compares stakeholder and management perspectives on accountability practices in Malaysian Islamic Social Enterprises (ISEs). Two sets of questionnaires were used in the survey for this study. The first set was answered randomly by 100 ISE stakeholders, and the second set was answered by the management from 102 Malaysian ISEs. The findings showed that both ISE stakeholders and ISE management have mixed agreement for all six proposed accountability dimensions. Based on this result, Malaysian ISEs need to improve their accountability practices, particularly with regard to input, output and procedures. The accountability measurement proposed in this study could also be used by other ISEs as indicators to evaluate their accountability practices.
Keywords: Accountability, Islamic accountability, Islamic social enterprise (ISE), stakeholder perspective, management perspective.
JEL Code: E 16, L 14, M 41, O 53, P 31, Z 12

State Ownership and Risk-Taking Behaviour: Evidence from Malaysia’s Banking Industry
1Ai-Xin Lee
2Chee-Wooi Hooy
School of Management,
Universiti Sains Malaysia, Malaysia;
2Corresponding author:
Abstract | Text
This study investigates state ownership on risk-taking behaviour in Malaysia’s banking industry. Using the panel of Malaysian commercial banks, this paper examines whether banks’ risk-taking is affected by Malaysian government ownership through the five largest investment arms of Malaysia (GLICs). The findings show that state-owned banks exhibit higher risk-taking behaviour compared to the private-owned banks in terms of loans. There is evidence that a higher degree of state ownership has a more significant impact on banks’ risk-taking behaviour. We also investigate the relationship with corporate governance mechanisms. The findings suggest that the composition of board of directors somehow plays a significant role in the governance of banks.
Keywords: State ownership, GLICs, risk-taking, corporate governance, board of directors, Malaysia.
JEL Code: G21, G28, G32, G34

The Stock Market’s Reaction to Strict Environmental Inspection: Evidence from Heavily Polluting Listed Companies in China 
1Xie Tingting
Peking University School of Economics, Beijing, China
Wang Yong
Policy Research Center for Environment and Economy,
Ministry of Ecology and Environment, Beijing China
1Corresponding author:;
Abstract | Text
As an important part of the new environmental governance system in China, the policy effect of Central Environmental Inspection has gained more attention. Based on the data from heavily polluting listed companies in China, this paper examines the impact of Central Environmental Inspection on corporate value by using an event study approach. The result of the study demonstrates that the Central Environmental Inspection causes a general and significant negative impact on the corporate value of heavily polluting listed companies. More specifically, the market value of private firms and small-scale firms declined more than that of state-owned firms and big-scale firms. In addition, under the deterrent of the Central Environmental Inspection, political connections have no longer become the effective way for polluting firms to evade strict environmental regulation.
Keywords: Central environmental inspection, event study, stock market, China.
JEL Code: G38, Q58

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