THE INFLUENCE OF CORPORATE GOVERNANCE ON RELATIONAL CAPITAL DISCLOSURE AMONG HIGH GROWTH TECHNOLOGY COMPANIES

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Norman Mohd Saleh Saiful Bakhtiar Masduki

Abstract

This study examines the relationship between corporate governance elements and relational capital disclosure. This study analyses 229 annualreports of companies in the technology industry that are listed on the Main and ACE Market of Bursa Malaysia. The results indicate that multipledirectorships, institutional and government ownerships positively affect relational capital disclosure. Managerial ownership, on the other hand,reduces the incentives of the management to signal such information. In addition, we also find younger companies to have more incentives todisclose relational capital information compared to more established companies. Contrary from past research, this study used a conceptualmodel developed based on network theory that suggests companies have an incentive to increase their competitive advantage by increasing networkbetween organizations. This study is the first of its kind that specifically investigates the association between relational capital disclosures withthe corporate governance practices. The results highlight that important corporate governance determinants of relational capital disclosure can bepredicted when signaling intention of the board and network arguments are considered. The findings are useful for regulators in emerging countriescharacterized by highly networked economy, whereby, business and personal networks are important for company sustainability.
Keywords: Corporate governance, capital growth, high growth companies

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How to Cite
MOHD SALEH, Norman; BAKHTIAR MASDUKI, Saiful. THE INFLUENCE OF CORPORATE GOVERNANCE ON RELATIONAL CAPITAL DISCLOSURE AMONG HIGH GROWTH TECHNOLOGY COMPANIES. Management & Accounting Review (MAR), [S.l.], v. 15, n. 1, p. 29-61, june 2016. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/560>. Date accessed: 20 may 2018.
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