Corporate Governance: Board Structure, Information Technology and CSR Reporting

Authors

  • Yew Choong Wong Faculty of Management, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia
  • Norkhairul Hafiz Bajuri Faculty of Management, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Johor, Malaysia

DOI:

https://doi.org/10.11113/jt.v64.2246

Keywords:

Corporate governance, board structure, IT, technology, CSR reporting

Abstract

Good corporate governance practices are considered vital for attracting investment capital, improving the performance of companies and reducing risk for investors. This paper provides some general overviews on board structure, information technology (IT) and corporate social responsibility (CSR) reporting. This paper also discusses the various theories related to corporate governance in order to understand the corporate phenomena. This is important to understand each of the theory concept and its implications. These theories include agency theory, stewardship theory, stakeholder theory, resource dependency theory and legitimacy theory. Certainly, board structure, IT and CSR have significant bearing on a firm’s state of corporate governance and performance.

References

Rezaee, Z. 2009. Corporate Governance and Ethics. John Wiley & Sons, Inc, USA.

Sami, H., Wang, J. and Zhou, H. 2011. Corporate Governance and Operating Performance of Chinese Listed Firms. Journal of International Accounting, Auditing and Taxation. 152: 9–17.

Chan, K. C., and J. Li. 2008. Audit Committee and Firm Value: Evidence on Outside Top Executive as Expert Independent Directors. Corporate Governance: An International Review. 16: 16–31.

Desai, M., and D. Dharmapala. 2008. Corporate Tax Avoidance and Firm Value. Review of Economics and Statistics. Forthcoming.

Roche, J. 2005. Corporate Governance in Asia. Routledge, Oxon.

Cadbury, A. 1992. Report on the Committee on the Financial Aspects of Corporate Governance. Gee, London.

Clarke, T. 2007. International Corporate Governance: A Comparative Approach. Routledge, London.

Shleifer, A. and Vishny, R. W. 1997. A Survey of Corporate Governance. The Journal of Finance. 50(2):737–83.

Oman, C., Fries, S. and Buiter, W. 2003. Corporate Governance in Developing, Transition and Emerging Market Economies. OECD. 45.

Dedman, E. 2004. Discussion of Reactions of the London Stock Exchange to Company Trading Statement Announcements. Journal of Business Finance and Accounting. 31(1-2): 37–47.

Berle, A. and Means, G. 1932. The Modern Corporation and Private Property. New York: Macmillan.

Shankman, N. A. 1999. Reframing the Debate Between Agency and Stakeholders Theories of the Firm. Journal of Business Ethics: Part 1. 19(4): 319–334.

Mizruchi, M. S. 1983. Who Controls Whom? An Examination of the Relation Between Management and Boards of Directors in Large American Corporations. Academy of Management Review. 8(3): 426–435.

Scott, W. R. 1998. Creating Organisations, Organisations: Rational, Natural and Open Systems. 4th ed. Upper Saddle River, NJ: Prentice Hall.

Deegan, C. 2004. Financial Accounting Theory. McGraw-Hill Australia Pty Ltd, NSW.

Fama, E. and Jensen, M. 1983. Separation of Ownership and Control. Journal of Law and Economics. 301–25.

Donaldson, L. 1990. The Ethereal Hand: Organizational Economics and Management Theory. Academy of Management Review. 15: 369–381.

Donaldson, L. and J. H. Davis. 1991. Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management. 16(1).

Davis, J. H., Schoorman, F. D. and Donaldson, L. 1997. Towards a Stewardship Theory of Management. Academy of Management Review. 22: 20–47.

Smallman, C. 2004. Exploring Theoretical Paradigm in Corporate Governance. International Journal of Business Governance and Ethics. 1(1): 78–94.

Tian, J. J. and Lau, C. M. 2001. Board Composition, Leadership Structure and Performance in Chinese Shareholding Companies. Asia Pacific Journal of Management. 18(2): 245–63.

Clarke, T. 2004. Theories of Corporate Governance, The Philosophical Foundations of Corporate Governance. Routledge, Taylor and Francis Group, London, New York.

Freeman, R. E. 1984. Strategic Management: A Stakeholder Approach. Pitman Publishing, Boston, MA.

Donaldson, T. and Preston, L. E. 1995. The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications. Academy of Management Review. 20(1): 65–91.

Jensen, M. C. and Meckling, W. H. 1976. Theory of The Firm: Managerial Behaviour, Agency Costs and Ownership Structure. Journal of Financial Economics. 3: 305–360.

Tirole, J. 2001. Corporate Governance. Econometrica. 69(1): 1–35.

Freeman, R. E., Wicks, A. C. and Parmar, B. 2004. Stakeholder Theory and Corporate Objective Revisited. Organization Science. 15(3): 364–9.

Watts, R. and Zimmerman, J. 1983. Agency Problems, Auditing and the Theory of the Firm: Some Evidence. Journal of Law and Economics. 613–633.

Lawrence, P. R. and Lorsch, J. W. 1967. Organisation and Environment: Managing Differentiation and Integration. Division of Research, Harvard University School of Business Administration, Harvard University, Boston.

Pfeffer, J. and Selanchik, G. 1978. The External Control of Organization: A Resource Dependence Perspective. New York: Harper and Row.

Hillman, A. J., Cannella Jr, A. A. and Paetzols, R. L. 2000. The Resource Dependency Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change. Journal of Management Studies. 37(2): 235.

Pfeffer, J. 1972. Size and Composition of Corporate Board of Directors: The Organization and its Environment. Administrative Science Quarterly. 17: 218–29.

Williamson, O. 1984. Corporate Governance. Yale Law Journal. 93: 1197–1230.

Scott, R. 1992. Organizations: Rational, Natural, and Open Systems. Prentice Hall, Englewood Cliffs, NJ.

Gales, L. and Kesner, I. 1994. An Analysis of Board of Director Size and Composition in Bankrupt Organizations. Journal of Business Research. 30: 271–82.

Wernerfelt, B. 1984. A Resource-based View of the Firm. Strategic Management Journal. 5: 171–180.

Barney, J., Wright, M. and Ketchen, D. J. 2001. The Resource Based View of the Firm: Ten years after 1991. Journal of Management. Nov-Dec.

Hillman, Amy, J. 2003. Determinants of Political Strategies in U.S Multinationals. Business and Society. 42(4): 455–484.

Suchman, M. C. 1995. Managing Legitimact: Strategic and Institutional Approaches. Academy of Management Review. 20: 571–610.

Donaldson, T. 1983. Constructing a Social Contract for Business, in Donaldson, T and Werhane, P. (Eds). Ethical Issues in Business. Prentice-Hall, Englewood Cliffs, NJ.

Abdullah, S. N. 2004. Board Composition, CEO Duality and Performance among Malaysian Listed Companies. Corporate Governance. 4(4): 47–61.

Laing, D. and Weir, C. M. 1999. Governance Structures, Size and Corporate Performance in UK Firms. Management Decision. 37(5): 457–64.

Cotter, J. F., Shivdasani A. and Zenner, M. 1997. Do independent directors enhance target shareholder wealth during tender offer? Journal of Financial Economics. 43: 195–218.

Deli, D. N. and Gillan, S. L. 2000. On the Demand for Independent And Active Audit Committees. Journal of Corporate Finance. 6(2): 427–445.

Neilsen, A. E. and Thomsen, C. 2007. Reprting CSR - What and How to Say It?' Corporate Communications. An International Journal. 12(1): 25–40.

Day, R. and Woodward, T. 2009. CSR Reporting and the UK Financial Services Sector. Journal of Applied Accounting Research. 10(3): 159–75.

Maignan, I. and Ralston, D. 2002. Corporate Social Responsibility in Europe and the US: Insights From Businesses’ Self-Presentations. Journal of International Business Studies. 33(3): 497–514.

Smith, N. C. 2003. Corporate Social Responsibility: Whether or How? California Management Review. 45(4): 52–76.

Cramer, J., Jonker, J. and van der Heijden, A. 2004. Making Sense of Corporate Social Responsibility. Journal of Business Ethics. 55(2): 215–222.

Mobius, J. M. 2002. Issues in Global Corporate Governance, in Lc Keon (ed.). Corporate Governance: An Asia-Pacific Critique. Sweet and Maxwell Asia, Hongkong.

Zairi, M. and Peters, P. 2002. The Impact of Social Responsibilty on Business Performance. Managerial Auditing Journal. 17(4): 174–8.

Hutchinson, M. and Gul, F. A. 2004. Investment Opportunity Set, Corporate Governance Practices And Firm Performance. Journal of Corporate Finance. 10: 595–6 14.

Baker, H. K. and Powell, G. 2009. Management Views on Corporate Governance and Firm Performance. Advances in Financial Economics. 13: 83–118.

Buhr, H., and Grafstrom, M. 2007. The Making of Meaning in Media: the Case of Corporate Social Responsibility in the Financial Times, 1988–2003. In F. den Hond, F. G. A. de Bakker and P. Neergaard (Eds.). Managing Corporate Social Responsibility in Action: Talking, Doing and Measuring. Ashgate.

Yeh, Y. H., Lee, T. S., and Ko, C. E. 2002. Corporate Governance and Rating System. Sunbright Publishing Co.

Valida, A. C., Leng, A. C., Kasiran, M. K., Hashim, S and Suradi, Z. 1994. A Survey of Information Technology Utilization Among Business Organization in Malaysia, Proceedings of International Conference on IT. KL: Malaysia

Sohal, C., Yap, C. S., and Raman, K. S. 1998. Factors Contributing to Successful Computerization in Small and Medium Enterprises in Singapore, In: Proc of the ENDEC International Entrepreneurship Conference on Entrepreneurship; A Spectrum of Possibilities. 74–81.

Woodhead, B. 2004. After the Sky fell in on Atlas. The Australian Financial Review. 36.

Ribbers, P. M. A., Peterson, R. R., and Parker, M. M. 2002. Designing information technology governance processes: Diagnosing contemporary practices and competing theories. Proceedings of the 35th Hawaii International Conference on System Sciences.

Weill, P., and Ross, J. W. 2004. IT Governance – How Top Performers Manage IT Decision Rights for Superior Results. Harvard Business School Press.

Mitchell, G. 1990. Alternative Frameworks for Technology Strategy. European Journal of Operational research. 47(4): 153–161.

Mitchell, R. B. 1998. Sources of Transparency: Information Systems in International Regimes. International Studies Quarterly. 42(1): 109–130.

Andersen, T .J. 2001. Information Technology, Strategic Decision Making Approaches and Organisational Performance in Different Industrial Settings. The Journal of Strategic Information Systems. 10 (2): 101–119.

Bharadwaj, A. 2000. A Resource-based Perspective On Information Technology Capability and Firm Performance: An Empirical Investigation. MIS Quarterly. 24(1): 169–196.

Stratopoulos, T. and Dehning, B. 2000. Does Successful Investment in Information Technology Solve the Productivity Paradox? Information and Management. 38(2): 103–117.

Eisenberg, T., Sundgren, S. and Wells, M .T. 1998. Larger Board Size and Decreasing Firm Value in Small Firms. Journal of Financial Economics. 48: 35–54.

Downloads

Published

2013-10-15

Issue

Section

Social Sciences

How to Cite

Corporate Governance: Board Structure, Information Technology and CSR Reporting. (2013). Jurnal Teknologi, 64(2). https://doi.org/10.11113/jt.v64.2246