Article: Impacts of accountability, integrity, and internal control on organisational value creation: evidence from Malaysian government linked companies Journal: International Journal of Business Governance and Ethics (IJBGE) 2020 Vol.14 No.2 pp.206 - 223 Abstract: Credible and well-functioning governance is crucial for the value creation of firms. Recently, private sectors have undergone substantial changes by focusing on good governance as a tool to enhance value, reputation, and image. The primary features of firms with good governance include greater emphasis on accountability practices, proper implementation of a corporate integrity system, and sound internal controls in place to avoid risk and to ensure policy and procedures that are complied. Government linked companies (GLCs) as the backbone of the Malaysian Government have been harshly criticised for not being able to create value(s) despite receiving high priority in the process of getting government projects. Therefore, this study aims to examine the role of good governance systems, which are reflected through accountability systems, corporate integrity systems, and internal control systems towards value creation of Malaysian GLCs. This study collected primary data based on a set of questionnaire survey among 100 GLCs in Malaysia. Based on the regression analysis, this study found that corporate integrity systems and internal control systems were vital elements in ensuring value creation in GLCs. Inderscience Publishers - linking academia, business and industry through research

Title: Impacts of accountability, integrity, and internal control on organisational value creation: evidence from Malaysian government linked companies

Authors: Jamaliah Said; Md. Mahmudul Alam; Nurazwani Binti Mat Radzi; Mohamad Hafiz Rosli

Addresses: Accounting Research Institute and Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia ' School of Economics, Finance & Banking (SEFB), College of Business (COB), Universiti Utara Malaysia (UUM), Sintok, Malaysia ' Accounting Research Institute and Faculty of Accountancy, Universiti Teknologi MARA, Shah Alam, Malaysia ' Faculty of Business, Universiti Selangor (UNISEL), Shah Alam, Selangor, Malaysia

Abstract: Credible and well-functioning governance is crucial for the value creation of firms. Recently, private sectors have undergone substantial changes by focusing on good governance as a tool to enhance value, reputation, and image. The primary features of firms with good governance include greater emphasis on accountability practices, proper implementation of a corporate integrity system, and sound internal controls in place to avoid risk and to ensure policy and procedures that are complied. Government linked companies (GLCs) as the backbone of the Malaysian Government have been harshly criticised for not being able to create value(s) despite receiving high priority in the process of getting government projects. Therefore, this study aims to examine the role of good governance systems, which are reflected through accountability systems, corporate integrity systems, and internal control systems towards value creation of Malaysian GLCs. This study collected primary data based on a set of questionnaire survey among 100 GLCs in Malaysia. Based on the regression analysis, this study found that corporate integrity systems and internal control systems were vital elements in ensuring value creation in GLCs.

Keywords: value creation; accountability; integrity systems; internal control; government linked companies; GLCs; Malaysia.

DOI: 10.1504/IJBGE.2020.106350

International Journal of Business Governance and Ethics, 2020 Vol.14 No.2, pp.206 - 223

Accepted: 18 Jun 2019
Published online: 02 Apr 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article

Title: Impacts of accountability, integrity, and internal control on organisational value creation: evidence from Malaysian government linked companies

Keep up-to-date