Board Characteristics and Risk Management and Internal Control Disclosure Level: Evidence from Malaysia.

摘要

The awareness on the risk management and internal control disclosure among the Malaysian public listed firms had increased since the global financial crisis in 2007 to 2009. In Malaysia, public listed firms must ensure accurate and timely disclosure of material information to the investors under the Companies Act 1965 and the guidelines issued by the Securities Commission and Bursa Malaysia. The current change in the public listed firms reporting is the implementation of the revised guidance known as Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers which was released on 31 December 2012. The guidelines are intended to guide directors in making disclosures concerning risk management and internal control in their firm's annual report pursuant to paragraph 15.26(b) of the Bursa Malaysia Listing Requirement. This study attempts a) to develop an index to measure the level of risk management and internal control disclosures for Malaysian listed firms and b) to measure the relationship between the board characteristics and risk management and internal control disclosures level among Malaysian public listed firms. The sample of this study consists of 150 firms listed in the Main Market of Bursa Malaysia for the year 2013. The study reveals that the disclosure level reflects good compliance level among public listed firms and indicates that the board characteristics are effective in monitoring role on risk management and internal control disclosure among Malaysian public listed firms.