Title: Ownership structure, corporate risk disclosure and firm value: a Malaysian perspective

Authors: Siti Aisyah Kamaruzaman; Mazurina Mohd Ali; Erlane K. Ghani; Ardi Gunardi

Addresses: Faculty of Accountancy, Universiti Teknologi MARA, Malaysia ' Faculty of Accountancy, Universiti Teknologi MARA, Malaysia ' Faculty of Accountancy, Universiti Teknologi MARA, Malaysia ' Faculty of Economics and Business, Universiti Pasundan, Indonesia

Abstract: This study examines the ownership structure, corporate risk disclosure and firm value of public listed companies in Malaysia. Specifically, this study examines the relationship between ownership structure namely, managerial ownership, institutional ownership, family ownership and corporate risk disclosure. This study also examines the relationship between corporate risk disclosure and firm value. Using content analysis on the annual reports of 200 top public listed firms over a two year period, this study shows that institutional ownership influences corporate risk disclosure. This study also shows that corporate risk disclosure influences firm value but in a negative way. One possible reason could be due to reporting cost which outweighs the benefits in preparing the information. The findings in this study provide some understanding for the supervisory bodies in evaluating the level of compliance related to corporate risk reporting practices. In addition, the findings in this study could also assist investors to consider ownership structure of a prospect firm as one of the criteria in making investment decision.

Keywords: corporate risk disclosure; firm value; ownership structure; family ownership; institutional ownership.

DOI: 10.1504/IJMFA.2019.099766

International Journal of Managerial and Financial Accounting, 2019 Vol.11 No.2, pp.113 - 131

Received: 24 Sep 2018
Accepted: 05 Nov 2018
Published online: 21 May 2019 *

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