Audit Committee Practices in Malaysian Large Firms
33 Pages Posted: 19 Nov 2007
Date Written: November 1, 2007
This study examines the disclosures contained in Audit Committee Reports (ACRs) and the level of compliance of the current practices to the amended Kuala Lumpur Stock Exchange listing requirements after the adoption of various recommendations made by the High-Level of Finance Committee on Corporate Governance and Malaysian Code on Corporate Governance (MCCG) in 1999 and 2000 respectively. All firms that listed on the KLSE's main and second board, and MESDAQ counters were sampled. Consistent with the literature in developed markets, the findings reveal that very few companies provide more than what is expected in the ACRs by the listing requirements. Also companies in finance, technology and IPC counter, and companies in the main board counter have greater initiatives to provide value added (or termed as "non-boiler plate") statement to the information users.
Keywords: Audit Committee, Report, Disclosure, KLSE, Practices
JEL Classification: M40
Suggested Citation: Suggested Citation