The coronavirus (COVID-19) related information on firm performance disclosure: The moderating effect of corporate governance mechanisms / Vivian Khor

Vivian , Khor (2024) The coronavirus (COVID-19) related information on firm performance disclosure: The moderating effect of corporate governance mechanisms / Vivian Khor. Masters thesis, Universiti Malaya.

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Abstract

The world is heavily affected by the impact of coronavirus (COVID-19) ever since the first reported in Wuhan City, China at the year-end of 2019. As the first case of coronavirus (COVID-19) was detected in Malaysia, the government of Malaysia has no alternative but to promulgate and extend the Movement Control Order (MCO) until the number of coronavirus (COVID-19) decreased in Malaysia. This first research objective is to examine the association between coronavirus (COVID- 19) related information and firm performance disclosure among Malaysian public listed companies. The moderating effects of corporate governance mechanisms: board size, board independence, board gender diversity and audit committees, in enhancing the relationship between (COVID- 19) related information and firm performance disclosure are also examined as second research objective in the study. Prior literatures found that a better corporate governance will result in a higher level of firm performance disclosure, which the moderating effects of corporate governance mechanism are investigated on the Malaysian public listed companies. This study makes several significant contributions as it theoretically extends the application of Agency theory by examining its relevance in the context of the coronavirus (COVID-19) pandemic, providing new insights into how corporate governance mechanisms influence firm performance disclosure during crises. Practically, the study offers valuable implications for corporate policymakers, regulators, and practitioners in enhancing firm transparency and communication strategies, particularly in turbulent times. Methodologically, the use of computerized textual analysis offers a robust and replicable approach to content analysis, enriching the process of evaluating corporate disclosures. Additionally, this research aims to fill a gap in the literature by being one of the early studies to analyze coronavirus (COVID-19) related information and firm performance disclosure in Malaysia, contributing to a better understanding of disclosure practices in emerging markets during unprecedented times. From here, this study finds the number of total 137 public listed companies from five (5) selected sectors to represent Malaysian public listed companies as a whole. Also, this study conducted quantitative research which focuses on content analysis that related to computerized textual analysis to score the coronavirus (COVID-19) related information and firm performance disclosure in the annual reports. SPSS Statistic version 26 was used in this study to conduct descriptive statistic, correlation analysis, multicollinearity test, regression analysis, and moderating analysis on the variables. Finally, the findings found significantly positive relationship between coronavirus (COVID-19) related information and performance disclosure, which indicates that coronavirus (COVID-19) related information is associated with the level of firm performance disclosure. However, other than board gender diversity, the other corporate governance mechanisms: board size, board independence and audit committee showed insignificant negative relationship in moderating the association of coronavirus (COVID-19) related information and performance disclosure. The inclusion of women on boards brings diverse perspectives, leading to more comprehensive discussions and decision-making. That is, the female board members must have influential roles while translating gender diversity into better governance and disclosure practices.

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