The Impact of Major Shareholders of Listed Companies in the Financial Business Industry Group on the Relationship between Independent Directors’ Meeting Attendance and the Level of Disclosure of Sustainability Indicators

Article Sidebar

PDF
Published: Aug 26, 2023
Keywords:
major shareholders listed companies financial business industry group independent directors’ meeting attendance level of disclosure

Main Article Content

Jakkravudhi Chobpichien
Independent Scholar

Abstract

The purpose of this research was to study the ownership characteristics of major shareholders that affect the relationship between corporate governance characteristics, independent directors' attendance at board meetings, and voluntary disclosure levels disclosure of sustainability indicators of listed companies in Thailand. Analysis of information from the annual report (Form 56-1 One Report) and BE 2564 sustainability reporting of companies listed in the financial industry group. Statistics used in data analysis were mean, standard deviation, and hierarchical regression analysis.


The results of this research indicated higher levels of disclosure of sustainability indicators when the first major shareholder had no ownership control and was not the Chairman of the Board of Directors. On the other hand, it weakened the level of disclosure of sustainability indicators when the first major shareholder had ownership control. In addition, the research found that an increase in total asset size as a control variable increased the level of disclosure of sustainability indicators.

Article Details

How to Cite
Chobpichien, . J. (2023). The Impact of Major Shareholders of Listed Companies in the Financial Business Industry Group on the Relationship between Independent Directors’ Meeting Attendance and the Level of Disclosure of Sustainability Indicators. Journal of Humanities and Social Sciences, Rajapruk University, 9(2), 462–481. Retrieved from https://so03.tci-thaijo.org/index.php/rpu/article/view/271219
Issue
Vol. 9 No. 2 (2023): May - August 2023
Section
Articles

References

เอกสารอ้างอิง

ก.ล.ต. (สำนักงานคณะกรรมการกำกับหลักทรัพย์และตลาดหลักทรัพย์). (2563). คู่มือจัดทำแบบแสดงรายการข้อมูลประจำปี/รายงานประจำปี แบบ 56-1 One Report. ค้นเมื่อวันที่ 6 มิถุนายน 2565, จาก https://publish.sec.or.th/nrs/8619s.pdf

ตลาดหลักทรัพย์แห่งประเทศไทย. (2565). คู่มือการรายงานความยั่งยืนสำหรับบริษัทจดทะเบียนกลุ่มอุตสาหกรรมธุรกิจการเงินและเอกสารแนะนำตัวชี้วัดด้านความยั่งยืน (ESG metrics). ค้นเมื่อวันที่ 6 มิถุนายน 2565, จาก https://www.setsustainability.com/download/zxvt2pkafreiq75

Aryani, Y.A., Setiawan, D., & Rahmawati, I.P. (2017). Board meeting and firm performance. Proceedings of International Conference on Economics 2017 (ICE 2017): 438-444.

Balachandran, J., & Bliss, M. (2004). Board independence and voluntary disclosure: Evidence from Malaysia. Working Paper, Department of Accountancy City University of Hong Kong.

Barry, C.B., & Brown, S.J. (1986). Limited information as a source of risk. Journal of Portfolio Management, Winter: 66-72.

Berle, A.A., & Means, G.C., Jr. (1932). The modern corporation and private property. New York: Macmillan.

Botosan, C.A. (1997). Disclosure level and the cost of equity capital. The Accounting Review, 72(3): 323-349.

Cahan, S.F. (1992). The Effect of antitrust investigations on discretionary accruals: A refined test of the political-cost hypothesis. Accounting Review, 67(1): 77-95.

Chau, G.K., & Gray, S.J. (2002). Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. The International Journal of Accounting, 37: 247-265.

Chen, C.J.P., & Jaggi, B. (2000). The association between independent non-executive directors, family control and financial disclosures. Journal of Accounting and Public Policy, 19(4-5): 285-310.

Choi, F.D.S. (1973). Financial disclosure and entry to the European capital market. Journal of Accounting Research, 11(Autumn): 159-175.

CIFAR (Center for International Financial Analysis & Research). (1995). International accounting and auditing trends. 4th ed. Edited by V.B. Bavishi. Princeton, NJ: CIFAR.

Conger, J.A., Finegold, D., & Lawler III, E. (1998). Appraising boardroom performance. Harvard Business Review, 76(1): 136–148.

Cooke, T.E. (1989). Voluntary corporate disclosure by Swedish companies. Journal of International Financial Management and Accounting, 1(2): 171-195.

Depoers, F. (2000). A cost-benefit analysis of voluntary disclosure: Some empirical evidence from French listed companies. The European Accounting Review, 9(2): 245-263.

Dhnadirek, R., & Tang, J. (2003). Corporate governance problems in Thailand: Is ownership concentration the cause? Asia Pacific Business Review, 10(2): 121-138.

Diamond, D.W., & Verrecchia, R.E. (1991). Disclosure, liquidity, and the cost of capital. The Journal of Finance, 46(4): 1325–1355.

Eng, L.L., & Mak, Y.T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22: 325-345.

Evans, M. (2004). Board characteristics, firm ownership and voluntary disclosure. Working Paper, Fuqua School of Business, Duke University, Durham, NC. 27708, October.

Fama, E.F., & Jensen, M.C. (1983). Agency problems and residual claims. The Journal of Law and Economics, 26(2): 327-349.

Fan, J.P.H., & Wong, T.J. (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Economics, 33(3): 401-425.

Firth, M. (1979). The impact of size, stock market listing, and auditors on voluntary disclosure in corporate annual reports. Accounting and Business Research, 9(33): 273-280.

Forker, J.J. (1992). Corporate governance and disclosure quality. Accounting and Business Research, 22(86): 111-124.

Foster, G. (1986). Financial statement analysis. 2nd ed. Englewood Cliffs, New Jersey: Prentice-Hall.

Gul, F.A., & Leung, S. (2004). Board leadership, outside directors’ expertise and Voluntary corporate disclosures. Journal of Accounting and Public Policy, 23: 351-379.

Han, S. (2005). Ownership structure and quality of financial reporting. Working paper, Department of Accountancy, University of Illinois at Urbana-Champaign, February.

Haniffa, R.M., & Cooke, T.E. (2002). Culture, corporate governance and disclosure in Malaysian corporations. ABACUS, 38(3): 317-349.

Ho, S.S.M., & Wong, K.S. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting Auditing & Taxation, 10: 139-156.

Hope, O.K. (2003). Analyst following and influence of disclosure components, IPOs and ownership concentration. Asia-Pacific Journal of Accounting and Economics, 10(2): 117-141.

Hossain, M.A., Tan, L.M., & Adams, M. (1994). Voluntary disclosure in an emerging capital market: Some empirical evidence from companies listed on the Kuala Lumpur Stock Exchange. The International Journal of Accounting, 29(4): 334-351.

Jelatianranat, K. (2000). Thailand’s corporate governance issues and development. Country Paper of Thailand for the OECD/World Bank/ADB. 2nd Asian Corporate Governance Roundtable in Hong Kong, May 31–June 2.

Jensen, M.C. (1986). Agency costs of free cashflow, corporate finance, and takeovers. American Economic Review, 76: 323-329.

Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, October, 305-360.

Karamanou, I., & Vafeas, N. (2005). The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis. Journal of Accounting Research, 43(3): 453-486.

Lev, B. (1992). Information disclosure strategy. California Management Review, 34, Summer: 9-32.

Limpaphayom: (2000). Corporate governance in Thailand before the crisis: Issues and implications. Accountants’ Journal, 47(1): 10-20.

Meek, G.K., Roberts, C.B., & Gray, S. (1995). Factors influencing voluntary annual report disclosures by US, UK and continental European multinational corporations. Journal of International Business Studies, 26(3): 555-572.

Muller, D., Judd, C.M., & Yzerbyt, V.Y. (2005). When moderation is mediated and mediation is moderated. Journal of Personality and Social Psychology, 89(6): 852–863.

Qadorah, A.A.M., & Fadzil, F.H.B. (2018). The effect of board independence and board meeting on firm performance: Evidence from Jordan. Journal of Finance and Accounting, 6(5): 105-109.

Saudagaran, S.M., & Diga, J.G. (1997). Financial reporting in emerging capital Markets: Characteristics and policy issues. Accounting Horizons, 11(2): 41-64.

Sengupta: (1998). Corporate disclosure and the cost of debt. The Accounting Review, 73(4): 459-474.

Sharma, S., Durand, R.M., & Gur-Arie, O. (1981). Identification and analysis of moderator variables. Journal of Marketing Research, XVIII, August: 291-300.

Shleifer, A., & Vishny, R.W. (1986). Large shareholders and corporate control. Journal of Political Economy, 94: 461-488.

Standard & Poor’s and the National University of Singapore (S&P and CGFRC). (2004). Corporate governance in Thailand: A study of SET 50 companies. Bangkok Post, Business, Wednesday, April 21, 1.

Vafeas, N. (1999). Board meeting frequency and firm performance. Journal of Financial Economics, 53(1): 113-142.

Wallace, R.S.O. (1988). Corporate financial reporting in Nigeria. Accounting and Business Research, 18(72), Autumn: 352-362.

Willekens, M., Vander Bauwhede, H., Gaeremynck, A., & Van de Gucht, L. (2004). The impact of internal and external governance mechanisms on the voluntary disclosure of financial and non-financial performance. Working Paper, KULeuven. Retrieved on August, 5th, 2022, from http://www.business.uiuc.edu//accountancy/research/…/willekens.pdf

Wiwattanakantang, Y. (2000). The equity ownership structure of Thai firms. Unpublished Working Paper, Institute of Economic Research, Hitotsubashi University, Japan.

Yu, T., & Jingliang, C. (2009). Concept of voluntary information disclosure and a review of relevant studies. International Journal of Economics and Finance, 1(2): 55-59.