Universitas Indonesia Conferences, International Accounting Conference - 2017

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The Determinants of Corporate Governance Attributes on Islamic Social Reporting of Shariah Compliant ACE Market Companies In Malaysia
Mazri Khairi Faiz, Ismail Rina Fadhilah, Arshad Roshayani, Kamaruzaman Siti Aisyah

Last modified: 2017-07-06

Abstract


The growth of Shariah compliant companies in Malaysia has played great contribution towards the stabilisation of Islamic Capital Market (ICM). Thus, this study intends to examine the nature and extent of Islamic social reporting practices among ACE Market’s Shariah compliant companies in Malaysia. Besides, this study also examines whether there is a relationship exists between corporate governance attributes and Islamic social reporting. This study focuses on four components of corporate governance attributes: Shariah supervisory board, Audit quality, Audit committee and Muslim Ownership. Samples of 78 Shariah compliant companies listed under ACE Market of Bursa Malaysia are selected. A content analysis is used and Islamic social reporting is coded according to a modified Islamic Social Disclosure Index. The results indicate significant relationships between two corporate governance attributes of board size and audit committee; and Islamic social reporting. This might be due to the benefits of having more board members with various expertise and experience in making better reporting decisions. The role of audit committee acts as watchdog to the management may encourage better reporting transparent in the annual reports. Thus, the findings would help to strengthen the relevant parties such as regulators, practitioners and potential investors understanding of effective governance attributes among growing companies in Malaysia.


Keywords


Islamic; Social Reporting; Shariah-compliant; Annual report

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