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BOARD COMPOSITION, MIMETIC BEHAVIOUR AND CORPORATE VOLUNTARY DISCLOSURES

Roshayani Arshad, Faizah Darus, Dennis Taylor

DOI: 10.22495/cbv4i3art2

Abstract

This study examines the effects of board composition and mimetic behaviour on the extent and credibility of corporate voluntary disclosure. The investigation is based on the annual reports of 155 Malaysian listed companies during the period when these companies faced new corporate governance regulation. This study provides evidence that under the influence of dominant owners on board, management voluntary disclosure decisions are driven by incentives to conform when their company is structured to meet expectations of good corporate governance. Such incentive seems to override incentives to disclose credible information to outside investors.

Keywords: Voluntary disclosure, board composition, mimetic behaviour, legitimacy

How to cite this paper: Arshad, R., Darus, F., & Taylor, D. (2008). Board composition, mimetic behaviour and corporate voluntary disclosures. Corporate Board: role, duties and composition, 4(3), 16-22. http://doi.org/10.22495/cbv4i3art2

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