Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia

Bursa Malaysia is the forefront regulator in maintaining a fair and orderly Malaysian capital market. Enforcement actions against companies for violating its listing requirements is crucial in deterring future breach and nurturing the good practice of corporate governance and business conduct. High...

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Main Author:	Dzarfan, Abdul Kadir
Format:	Thesis
Language:	eng eng eng eng
Published:	2021
Subjects:	HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/9338/1/Depositpermission_s92935.pdf https://etd.uum.edu.my/9338/2/s92935_01.pdf https://etd.uum.edu.my/9338/3/s92935_02.pdf https://etd.uum.edu.my/9338/4/s92935_references.docx
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id	my-uum-etd.9338
record_format	uketd_dc
spelling	my-uum-etd.93382022-05-09T01:22:56Z Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia 2021 Dzarfan, Abdul Kadir Md Yusof, Mohd ‘Atef Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD2709-2930.7 Corporations Bursa Malaysia is the forefront regulator in maintaining a fair and orderly Malaysian capital market. Enforcement actions against companies for violating its listing requirements is crucial in deterring future breach and nurturing the good practice of corporate governance and business conduct. High compliance and good governance practice ensure the companies are managed to the best interest of the shareholders. Empirical studies prove that enforcement actions and corporate governance are significantly related. However, few studies have been conducted in Malaysia. This study investigated the relationship between the Bursa enforcement actions against public listed companies for related financial reporting breaches and key person attributes, audit committee, and directors’ training. Data was collected from the annual reports of 262 companies from 2007 until 2016. Both descriptive and logistic analyses were applied to address the research objectives. This study applied a cross-section, and a match-pair design with a sample of 131 reprimand companies were matched with 131 non-reprimand companies. Results of the logistic regression showed that there were a few significant differences in board characteristics between these two groups of companies. The significant variables discovered in this study were CEO age, audit committee chairman directorship, audit committee financial literacy and diligence, and directors’ financial training. The small sample size was among the limitations of this study. The findings demonstrate the relevance of company key persons attributes and audit committee attributes in ensuring better compliance with Bursa Malaysia rules and regulations. The findings also provide empirical evidence on the important number of directorships, directors’ financial literacy and directors’ financial training for the quality of companies’ financial reporting. Thus, regulators and policy-makers need to note the importance of financial literacy among audit committees and financial training among directors as well as some characteristics of the CEO and audit committee chairman that contribute to higher compliance. 2021 Thesis https://etd.uum.edu.my/9338/ https://etd.uum.edu.my/9338/1/Depositpermission_s92935.pdf text eng 2025-10-17 staffonly https://etd.uum.edu.my/9338/2/s92935_01.pdf text eng 2025-10-17 staffonly https://etd.uum.edu.my/9338/3/s92935_02.pdf text eng 2025-10-17 staffonly https://etd.uum.edu.my/9338/4/s92935_references.docx text eng 2025-10-17 staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Md Yusof, Mohd ‘Atef
topic	HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations Dzarfan, Abdul Kadir Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
description	Bursa Malaysia is the forefront regulator in maintaining a fair and orderly Malaysian capital market. Enforcement actions against companies for violating its listing requirements is crucial in deterring future breach and nurturing the good practice of corporate governance and business conduct. High compliance and good governance practice ensure the companies are managed to the best interest of the shareholders. Empirical studies prove that enforcement actions and corporate governance are significantly related. However, few studies have been conducted in Malaysia. This study investigated the relationship between the Bursa enforcement actions against public listed companies for related financial reporting breaches and key person attributes, audit committee, and directors’ training. Data was collected from the annual reports of 262 companies from 2007 until 2016. Both descriptive and logistic analyses were applied to address the research objectives. This study applied a cross-section, and a match-pair design with a sample of 131 reprimand companies were matched with 131 non-reprimand companies. Results of the logistic regression showed that there were a few significant differences in board characteristics between these two groups of companies. The significant variables discovered in this study were CEO age, audit committee chairman directorship, audit committee financial literacy and diligence, and directors’ financial training. The small sample size was among the limitations of this study. The findings demonstrate the relevance of company key persons attributes and audit committee attributes in ensuring better compliance with Bursa Malaysia rules and regulations. The findings also provide empirical evidence on the important number of directorships, directors’ financial literacy and directors’ financial training for the quality of companies’ financial reporting. Thus, regulators and policy-makers need to note the importance of financial literacy among audit committees and financial training among directors as well as some characteristics of the CEO and audit committee chairman that contribute to higher compliance.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Dzarfan, Abdul Kadir
author_facet	Dzarfan, Abdul Kadir
author_sort	Dzarfan, Abdul Kadir
title	Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
title_short	Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
title_full	Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
title_fullStr	Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
title_full_unstemmed	Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia
title_sort	characteristics of board of directors and companies subject to regulatory enforcement action by bursa malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2021
url	https://etd.uum.edu.my/9338/1/Depositpermission_s92935.pdf https://etd.uum.edu.my/9338/2/s92935_01.pdf https://etd.uum.edu.my/9338/3/s92935_02.pdf https://etd.uum.edu.my/9338/4/s92935_references.docx
_version_	1747828576531513344

Characteristics of board of directors and companies subject to regulatory enforcement action by bursa Malaysia

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