Exploring How Corporate Governance Reporting Quality Shapes the Market Valuation of Listed Firms: The Case of Malaysia

Abstract

Accounting literature noted that distinct political and cultural traits influence the management of regulatory risks, the culture of compliance, and the market value of firms in emerging economies like Malaysia; these influences are further compounded by microeconomic and macroeconomic factors. Hence, this paper presents a conceptual framework and model specification to investigate whether governance disclosure quality promotes the market value of publicly listed firms in Malaysian context. This effort is part of a larger initiative to demonstrate the potential economic benefits of enhancing corporate governance disclosure and transparency. In essence, this paper provides an overview of the research context, establishes the problem statement. Then, a review of literature is undertaken to identify areas where further research is needed. Subsequently, this paper presents the theoretical perspectives, which serve as the foundation for the development of hypotheses. The was followed by an explanation on the research methodology, including the conceptual framework and the specification of the model. Lastly, a description of the research data and the analysis techniques are presented. Essentially, the findings from this study are expected to provide publicly listed companies with insights into the possible economic justification for allocating resources and demonstrating commitment towards improving the quality of governance disclosure. The results of this study are also anticipated to enhance the understanding of regulatory bodies in their drive to better facilitate corporate governance reporting endeavours.