Public Listed Companies Research Articles

An Exploratory Study on E-Waste Reporting: A Review of Annual Reports from Malaysian Public Listed Companies

Electronic waste (e-waste) has emerged as a critical global issue due to the environmental and health impacts. Moreover, a significant portion remains unrecorded and improperly managed. Hence, effective e-waste management is crucial to mitigating associated risks and ensuring environmental sustainability. The current study examined e-waste reporting practices among Malaysian Public Listed Companies (PLCs), assessed PLC commitments to environmental sustainability, and explored the legitimacy theory in understanding e-waste reporting. This study focused on Malaysian PLCs. The sample comprises 114 PLCs distributed across various sectors, such as construction, consumer products and services, energy, financial services, healthcare, and technology, which represented 15% of the total population. A content analysis approach was employed to identify relevant information in annual reports. Subsequently, a categorisation scheme with eight content categories across four dimensions was adapted from previous research to analyse e-waste reporting practices. The findings revealed that the e-waste reporting among PLCs was low as the information was primarily declarative and neutral. Varying commitment levels were also observed across different sectors, which highlighted the communication methods of PLCs on e-waste management practices. The legitimacy theory was applied to appraise the factors contributing to e-waste reporting behaviours. The findings contributed to a deeper understanding of how different industries managed e-waste and valuable insights into the most optimal practices to be adopted across sectors. The study results also underscored the need for standardised reporting frameworks to enhance transparency and corporate responsibility towards environmental sustainability. Keywords: E-waste Reporting, Malaysian Public Listed Companies, Legitimacy Theory, Environmental Sustainability, Content Analysis

The Impact of Intellectual Property Litigation on the Stock Price of Indian Public-Listed Companies

The Impact of Intellectual Property Litigation on the Stock Price of Indian Public-Listed Companies

Internal Auditors’ Characteristics, Internal Audit Effectiveness, and Enterprise Risk Management in Jordan: A Resource-Based View

Jordanian public-listed companies (PLCs) face significant internal, external pressures and risks that hinder their performance and survival in today’s high-risk business environment. The relatively recent implementation of Enterprise Risk Management (ERM) adds to its ineffectiveness, further complicating the situation. This study aims to examine the impact of internal auditors' characteristics on ERM effectiveness and internal audit effectiveness (IAE) from the Resource-Based View (RBV) perspective. Additionally, it explores the relationship between IAE and ERM effectiveness, as well as the mediating role of IAE. A quantitative cross-sectional research design was utilised, collecting data from Jordanian PLCs via questionnaires, with 119 final responses analysed using SPSS and SmartPLS softwares. The findings indicate that internal auditors' characteristics positively impact both ERM effectiveness and IAE. Furthermore, IAE positively impacts ERM effectiveness and serves as a partial mediator in this relationship. These results align with the RBV, highlighting that internal auditors' characteristics and IAE as valuable internal resources that foster sustainable competitive advantage. Practical implications include raising companies' awareness of the critical importance of internal auditors' characteristics and IAE, thereby offering a cost-effective solution to enhance ERM effectiveness.

Fuzzy–Rough Analysis of ESG Ratings and Financial and Growth Ratios on the Stock Returns of Blue-Chip Stocks in Taiwan

This study uses fuzzy–rough analysis to investigate the influence of Environmental, Social, and Governance (ESG) ratings, along with critical financial and growth ratios, on the stock returns of blue-chip companies in Taiwan. The growing importance of ESG factors in investment decisions underscores the need to understand their impact on stock performance. By integrating the fuzzy–rough set theory, which accommodates uncertainty and imprecision in data, we analyze the complex relationships between ESG ratings, traditional financial metrics (such as ROE, return on equity), and stock returns. Our findings provide insights into how ESG considerations, alongside financial indicators, drive the returns of Taiwan’s blue-chip stocks. Three public-listed companies were evaluated using this approach, and the results are consistent with the actual stock performance. This research contributes to the field by offering a robust methodological approach to assess the nuanced effects of ESG factors on financial performance, thus aiding investors and management teams in making informed decisions.

Detecting Earning Manipulation Using the Beneish M-Score Model: Evidence from Public Listed Companies in Malaysia

This paper aims to examine the association between earning manipulation using the Beneish M-Score Model and share price with market capitalisation as the control variable among public listed companies (PLCs) in Malaysia. The study was performed over a four-year period from 2017 to 2020 using the financial data of 65 PLCs under the Financial Times Stock Exchange (FTSE) Bursa Malaysia Top 100 Index, including various industries except the financial service industry. The Beneish M-Score Model comprised eight variables or ratios to identify earning manipulations, namely Days Sales in Receivable Index (DSRI), Gross Margin Index (GMI), Asset Quality Index (AQI), Depreciation Index (DEPI), Sales Growth Index (SGI), Sales, General and Administrative Index (SGAI), Total Accruals to Total Assets (TATA), and Leverage Index (LVGI). The market price was measured using the year-end share price. The findings found that there was a weak negative association as well as a statistically insignificant relationship between earning manipulation and share price, which suggests that earning manipulation is influenced by other factors excluding share price. The findings did not support the argument that there was a significant relationship between earning manipulation and share price where companies had been discovered to have engaged in earning manipulation. The study is crucial for the stakeholders that expect companies to achieve the maximum returns and stability in investments and to protect owners’ rights.

The Impact of Corporate Social Responsibility Transparency and Corporate Governance Transparency on the Performance of Public Listed Companies in Malaysia

This study investigates the impact of corporate social responsibility (CSR) transparency and corporate governance transparency on the performance of public listed companies (PLCs) in Malaysia. Through a quantitative research approach involving 243 completed questionnaires from managers in PLCs, the Statistical Package for Social Science (SPSS) was utilized to analyze the data. The findings reveal a significant positive influence of both CSR transparency and corporate governance transparency on the performance of PLCs in Malaysia. The results provide valuable insights for organizations to make informed decisions and implement strategies that enhance transparency, thereby improving their overall performance.

Content Analysis of Integrated Reporting in Malaysia

The aim of integrated reporting is to provide a holistic view of an organization’s performance and value creation. This comprehensive reporting framework contains financial, economic, environmental, social, and governance aspects. In Malaysia, the adoption of integrated reporting shows the organization’s involvement in promoting accountability and transparency in corporate reporting. By using the Malaysian top 100 publicly listed companies (PLCs), this study gauges the practices of integrated reporting disclosure, explicitly investigating the integration of the content elements recommended by the International Integrated Reporting Council (IIRC) Framework. The examination of the integrated reports of the sample of Malaysian PLCs is done via a content analysis approach. Sampling from 2018 – 2020 data, this study is beneficial to contribute to the current body of literature on integrated reporting by shedding light on the ongoing practices of PLCs in Malaysia. This study has implications not only in advancing knowledge but also increases reporting practices within business and economics environments. Additionally, it adds valuable insights to the ongoing discussions surrounding corporate transparency and accountability. Furthermore, the study will present recommendations for enhancing the content of integrated reports, ultimately strengthening the reliability and utility of the disclosed information. These recommendations can be used by regulators, standard-setting bodies, and companies to further develop and refine integrated reporting practices in Malaysia.

Unveiling the link between female directors’ attributes, ownership concentration, and integrated reporting strategy in Malaysia

In response to the reform in the Malaysian market that requires all publicly listed companies (PLCs) to have at least one female director on the board, this study examines how female directors’ attributes (FDAs) shape integrated reporting quality (IRQ) and assesses the potential influence of substantial shareholders on the FDA–IRQ nexus. Using all Malaysian PLCs implementing the integrated reporting from 2017 to 2021, our analysis yields four key findings. First, a positive relationship exists between the presence of a Muslim female director and IRQ. Second, female directors with financial expertise and those with higher education positively impact IRQ. Third, the holding of multiple directorships by female directors is negatively linked to IRQ, and the length of their tenure shows no significant effect. Fourth, the relationship between FDAs and IRQ is more pronounced in contexts with a greater ownership concentration. These results remain robust after rigorous analysis and mitigating for potential biases. Our findings offer valuable insights for policymakers, practitioners, and researchers interested in understanding the implications of gender diversity and IRQ in emerging markets.

Effects of ESG on Firm Performance and Firm Value: A Study of Indonesian and Malaysian Listed Companies

The effect of ESG on firm value and financial performance of a company is a well-researched and controversial topic in academic research, as many authors conclude different results in their studies. Previous studies suggest that ESG has a positive effect on firm value or financial performance, while some studies suggest the opposite, while some studies also suggest that only specific factors within ESG such as environmental, social, and governance factors significantly affect firm value and financial performance of a company. To contribute to current literature in the field and to resolve the dispute in controversial results, this study aims to assess the significance of ESG on firm value and financial performance of Indonesian and/or Malaysian public-listed companies, to deduce whether ESG has positive or negative effect of firm value and financial performance, and to determine which individual factors of ESG has the most affect to the overall ESG score of each Indonesian and/or Malaysian public-listed companies. As there has been limited research on the topic in Indonesia and Malaysia, the author uses PLS-SEM to analyze the effects of ESG scores on firm value and financial performance of 10 Indonesian public-listed companies and 15 Malaysian public-listed companies using available financial and ESG scoring data from YahooFinance during the 3rd quarter of the 2022 year. The study done using PLS-SEM suggests that ESG has a significant positive effect on financial performance (proxied using ROA or Return of Assets) while ESG has no significant but positive effect on firm value (proxied using Tobin’s Q value). In addition, factor analysis of the PLS-SEM model shows that from three pillars of ESG, only social and governance scores have a correlation with the overall ESG score.

Effective tax rate, board diversity, and firm performance: Evidence from the electric and electronic industry

This study examines the effect of effective tax rate (ETR) and board diversity on the performance of Malaysian public-listed companies (PLCs) in the electric and electronic (E&E) industry. The sample of this study comprised 51 E&E public companies listed in the Main Market of Bursa Malaysia during the financial periods 2018 and 2022. This study documents a significant positive relationship between firm performance and ETR, consistent with the political cost theory, suggesting that high-performing industries such as E&E are more at risk of political scrutiny and, hence, tend to pay higher amounts of tax despite the tax incentives provided by the government. Interestingly, foreign directors are negatively related to a firm’s performance. The possible explanation for this is that the E&E industry is highly regulated by the Malaysian government; hence, foreign directors’ contribution and authority to make independent strategic changes to drive the firm’s performance are limited. Finally, the effect of female directors on firm performance is found to be insignificant, possibly because, on average, only 10% of women are represented on the board of the E&E PLCs. The study findings are of significant interest and beneficial to policymakers, the government, and tax authorities in trying to understand the implications, assess the effectiveness, and tightly monitor the tax incentives and board diversity policy of the E&E companies.

The Impact of Internal Audit on Enterprise Risk Management Effectiveness in Jordanian Public-listed Companies

The Impact of Internal Audit on Enterprise Risk Management Effectiveness in Jordanian Public-listed Companies

Exploring investor attention in Shariah markets, macroeconomic influences, and corporate performance: Insights from Indonesia

This study examines the influence of Investor Attention, as reflected by Google Search Volume (GSV), on the performance metrics of firms—specifically Return (RET) and Stock Liquidity (LIQ)—within Publicly Listed Companies (PLCs) listed on the Jakarta Islamic Index (JII) of the Indonesia Stock Exchange (IDX). The investigation addresses a significant gap in the existing literature by focusing on Sharia-compliant investments within emerging markets, where the interplay between internet-fuelled investor behaviour and market outcomes remains underexplored. This gap is particularly relevant given Indonesia's rapid internet adoption rates and the burgeoning interest in Sharia-compliant financial products. Incorporating a comprehensive set of macroeconomic variables, this research provides a nuanced analysis of how broader economic conditions interact with firm performance in the context of Islamic finance. The methodological approach utilizes panel regression analysis on a robust dataset comprising 792 firm-month-year observations across 11 PLCs from January 2015 to December 2020. This period was chosen to capture the dynamic shifts in market conditions, offering a timely insight into the responsiveness of Sharia-compliant firms to global economic disruptions. Empirical findings reveal a nuanced landscape of influences: while Investor Attention does not significantly correlate with RET in relation to interest rates, it does exhibit a strong positive association with LIQ. Furthermore, the analysis highlights significant adverse effects of inflation and exchange rates on RET, underscoring the sensitivity of Sharia-compliant investments to specific macroeconomic stresses. These results contribute novel insights into the differential impact of economic factors on the returns and liquidity of firms within the JII, challenging prevailing assumptions in the field of Islamic finance. The study's implications extend beyond academia to practical applications for investors, policymakers, and industry practitioners. It elucidates the importance of leveraging internet-based metrics like GSV to gauge investor sentiment and its subsequent impact on market performance. Additionally, the findings advocate for enhanced monitoring and adaptive strategies in managing Sharia-compliant investments, particularly in volatile economic climates. Ultimately, this research not only fills a critical gap by linking internet-driven investor behaviour with financial performance in Sharia markets but also paves the way for more informed decision-making in the burgeoning sector of Islamic finance.

Beyond boardroom diversity and environmental, social, and governance transparency: Evidence of the emerging market firms

Since its inception, the environmental, social, and governance (ESG) framework has increasingly captured the attention of stakeholders across the globe. The Malaysian government, recognizing the critical importance of ESG principles, has actively advocated for enhanced transparency within the private sector by mandating comprehensive ESG disclosure among public-listed companies (PLCs). Responding to Ismail and Latiff’s (2019) call, this study explored the complex interplay between boardroom dynamics and ESG disclosure, integrating stakeholder theory, agency theory, and resource dependency theory to illuminate the multifaceted relationships within this context. Utilizing the weighted least squares (WLS) regression method, this research meticulously analyzed 63 firms’ data from 2018 to 2022, examining how various board characteristics influence ESG disclosure practices. The findings revealed a significant positive correlation between board expertise, foreign board presence, and board interlocking with ESG disclosure, while larger board sizes were found to negatively impact ESG disclosure practices. These insights not only highlight how specific board attributes enhance or hinder effective governance and ESG practices but also pave the way for policymakers and practitioners to develop actionable strategies that further promote ESG principles. Moreover, this study opened new avenues for academic inquiry, providing a robust foundation for future research on corporate governance and ESG.

Cultural Heterogeneity of Top Management Teams, Cross-Border Acquisitions, and Financial Performance of Chinese Publicly Listed Companies

ABSTRACT Using data from Chinese publicly listed companies (PLCs) over the 2010–2017 period, this paper examines the impact of cultural heterogeneity within the top management team (TMT) on the post-acquisition performance of cross-border acquisitions (CBAs). TMT cultural heterogeneity is measured as the cultural distance between the board chairperson and chief executive officer (CEO), based on the south-rice-north-wheat cultural dichotomy in traditional China in 1916. Overall, we find that TMT cultural heterogeneity can increase the likelihood of CBAs. However, it also has a significantly negative impact on both the market performance and profitability of privately-owned Chinese PLCs after the CBAs. To provide a comprehensive analysis, we also explore the moderating effects of state ownership and high-tech industries. The results reveal that TMT cultural heterogeneity can actually improve the market performance of CBAs conducted by state-owned PLCs, and it can enhance the profitability performance of CBAs within the high-tech industry. Our analysis highlights the significance of TMT cultural heterogeneity during the post-acquisition integration process following CBAs.

World-class good governance ethics: a key solution to tackle criminal acts in Malaysian public-listed companies

Purpose The purpose of this study is to propose a world-class good governance ethics framework that leads to better corporate performance. ethics among managers, executives and members of the board of directors working in public-listed companies brings grave concern because of the increasing number of criminal acts reported by the Security Commission of Malaysia. Design/methodology/approach This study introduces a world-class good governance ethics framework for curbing criminal acts in public-listed companies in Malaysia. This study used a mixed method to gather data, and the methods used are appropriate for answering the research questions based on the World-Class Good Governance Ethics framework. Findings The finding of this study reveals high expectations for a corporate organization to improve individual and team performance while undertaking their corporate responsibilities, and a matter of choice, to adopt world-class good governance ethics in their policies and practices. Practical implications This study could be a reference for corporate management to regulate policies monitoring management's and employees' conduct at the workplace. This study's theoretical and practical significance would guide the stakeholders in corporate management to regulate governance policies based on the right ethical values and promote personalities with high integrity in management conduct. Originality/value This study promotes a world-class good governance ethics framework in curbing criminal acts for better corporate performance. This new framework is formulated based on the concept of a caliph and other essential elements envisaged by the Quranic verses.

Family-led learning through parenting in family business

This paper aims to conceptualize a family business parenting approach called family-led learning to break the third-generational curse in family business. This means that family business can hardly surpass the third generation. Family enterprises is expected to represent approximately 40 percent of the world’s largest corporations by 2025, but this will not come to realization if parenting approach is not learned by the leaders of the family and experienced by the next generations. In Indonesia, family business composes around 95 percent of all the businesses and contributes about 80 percent to the country’s economy. Since it is crucial to sustain the family business in Indonesia, theorizing the parenting approach for succession is vital. Applying grounded theory, this inquiry constructed the “Parenting to Equip” category in Parenting–Harmonizing–Collaborating (PHC) theory by interviewing 28 participants from four family conglomerates that are public-listed companies and are planning beyond the third generation. Next, this study integrated the Community of Inquiry (CoI) theory to the “Parenting to Equip” component to create a deep and meaningful learning experience. This results in the Family-Led Learning in Family Business (FLL-FB) concept that enable effective parenting to equip the next generations. This novel insight denotes parents of family businesses must incorporate entrepreneurial training into their parenting practices through nonformal learning experiences in informal learning environments to equip the next generations become potential successors.

FINANCIAL PERFORMANCE: SUSTAINABILITY, SIZE, SHARIAH, AND SECTOR EFFECTS IN MUSLIM-MINORITY STOCK EXCHANGES

Sustainability and halal stocks have become increasingly popular in the digital and globalized world after the COVID-19 pandemic, even in Muslim-minority developed countries. This study examines whether there exist sustainability, size, Shariah compliance, sector, and stock exchange effects in financial performance. We collect the cross-section data for 2022–2023 covering 270 public-listed companies. These include earning-per-share (EPS) representing performance, market capitalization representing firm size, and business sectors from Compustat, halal status and level from Musaffa, and Environmental, Social, and Governance (ESG) rating and risk representing sustainability from Sustainalytics. Using the partial least square structural equation model (PLS-SEM), we discover the significance of sustainability and size but the debatably significant moderating effect of Shariah, sector, and stock exchange on performance. We explain these findings by the Stakeholder Theory and Resource-Based View. These results should prove beneficial to managers in backing their green and Shariah compliance strategies for financial performance.

The Effect of Internal Audit Function Characteristics on Market Value Among Indonesian Public-Listed Companies

It is widely acknowledged that internal audits should have a value-adding component for all types of companies. This study systematically investigated the effect of internal audit function on the market value of public listed companies in Indonesia. The panel data technique used was based on the data extracted from 44 listed companies over five years (2015 -2021), with 308 observations. The empirical results revealed the Percent Audit Committee (PAC) has a significant and positive impact on market value. The Number of Certified Members (NCM) has no significant effect on market value, while the Percentage of Implemented Findings (PIF) has a significant and positive impact on the market value of companies. Size, leverage, and return on investment (ROI) have a significant impact on the market value of companies. The study offers extended implications in the empirical literature using a different measure of internal audit function characteristics from an emerging market perspective for different organisations. This study provides important implications for investors, managers, researchers, and auditors. Finally, the results of this research may be used by analysts, investors, and other strategic decision-makers in Indonesia to enhance the competitiveness and viability of the country's financial market. The findings will encourage policymakers to enact effective regulations, which could boost Indonesia's financial markets' efficiency and performance.

Empowering Whistleblowing Policy within Public Listed Companies: Current Practice in Malaysia

Whistleblowing is an act of disclosing any unethical or questionable act within an organization by disclosing them to individuals, the public or authorities that could influence the wrongdoing. It became an important part of the corporate governance process as such action would benefit society and the organization. With the increase in whistleblowing cases involving publicly listed companies (PLCs) by the mass media in Malaysia, there is a dearth of information on to what extent these PLCs manage whistleblowing matters. As a general practice, albeit not compulsory, many publicly listed companies disclose whistleblowing statements in their annual report. As this aspect of corporate governance for the employees is still unexplored, this study purports to explore the form of disclosure on whistleblowing policy by publicly listed companies in Malaysia for the financial year ending 2021. This study is a content analysis of 918 annual reports of companies listed in Malaysia. The findings reveal that most of the companies disclosed matters relating to whistleblowing policies in their Statement of Corporate Governance section, established whistleblowing policies, and mentioned the importance of whistleblowing activities within sections in their annual reports. This study focuses on companies’ annual reports. Future studies could be conducted to assess whistleblowing disclosure in other mediums such as the official websites of the companies. The study explored the aspect of corporate governance for the employee as practiced within publicly listed companies in Malaysia. The findings revealed the companies’ best practices for promoting transparency and accountability within organizations.

Factors Affecting Corporate Environmental, Social and Governance (ESG) Reporting: A Literature Review

This study aims to further explore the factors that influence corporate environmental, social, and governance (ESG) reporting in public listed companies (PLCs) around the world. The information was gathered from prior studies, which were conducted globally. The results are in line with the legitimacy theory, which holds that companies should disclose more ESG information in order to justify their continued existence. Discussion and findings in this study are significant to businesses and stakeholders, as well as policymakers. While businesses may think of ways to improve ESG reporting in order to compete on the global stage, stakeholders may put pressure on businesses to reveal more information about ESG, and also on policymakers to create an egalitarian framework on ESG that is suitable for businesses in their respective regions. The findings suggest that several factors have played a crucial role in influencing PLCs to disclose ESG reporting in their annual reports. The factors include company size, profitability, board of directors’ attributes, economic sustainability performance (ESP), financial leverage, audit committee external members, and the existence of a female director (or directors) on the corporate board. Most prior studies have found that these determinants have positive relationships with the tendency of PLCs to include ESG aspects in their annual report.