Corporate Board: Role, Duties & Composition / Volume 9, Issue 3, 2013
CORPORATE BOARD:
ROLE, DUTIES & COMPOSITION
СОВЕТ ДИРЕКТОРОВ: РОЛЬ,
ОБЯЗАННОСТИ И СОСТАВ
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Corporate Board: Role, Duties & Composition
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Corporate Board: Role, Duties & Composition / Volume 9, Issue 3, 2013
EDITORIAL
Dear readers!
This issue of the journal is devoted to several issues of corporate board and finance practices.
Rashidah Abdul Rahman and Musliha Musman examine the level of intellectual capital
disclosure among the 32 Malaysian GLCs by comparing with the Non-GLCs for the period 20072009. In addition, authors also investigate the impact of board structure on the intellectual
capital disclosure of Malaysian GLCs. The board structure mechanisms comprise; board
composition, role duality, board size and cross directorship. The control variables consist of the
company-specific characteristics –leverage, profitability and age of the company. The content
analysis is used to extract the intellectual capital disclosure items from the annual report.
Erik Meyer and JHvH de Wet focuse on the role of the corporate board of directors and the
relationship between the dynamics of board structure and the financial performance of listed
South African companies. The research results found that the proportion of independent nonexecutive directors had a significant positive effect on firm performance as measured by
earnings per share and enterprise value, but had no significant effect on Tobin’s Q ratio. The
study suggests that greater independent non-executive director representation, lower board
share-ownership and larger board sizes should be encouraged to enhance firm performance.
Bethuel Sibongiseni Ngcamu aims to reveal municipal operational hindrances that prevent
local communities to participate effectively in the eThekwini Municipality governance as
permitted by South African local government legislation. Author contributes to the decisionmakers’ understanding of the implications of using the municipal resources to advance political
activities, consequently disadvantaging the alleged indigent local communities. The clearly
demarcated roles and responsibilities of municipal employees guided by the core business of the
units with clear performance standards and expected output set could eliminate the politicsadministration dichotomy.
Nermeen F. Shehata aims to provide a theoretical analysis on the relationship between
diversity and corporate disclosure. A literature review has been conducted to assess the
aforementioned relationship. Through the literature, agency theory and stakeholder theory
support board diversity. This paper explains how Hofsetde-Gray culture theory could be used to
explain the relationship between nationality as one of the diversity characteristics, and
corporate disclosure. Presence of a diverse board is expected to positively influence corporate
disclosure.
Rouxelle de Villiers and Vida Botes integrate findings from human resource development,
organizational behavior, management and psychology disciplines and posit a framework for
effective triadic coaching relationships. The study concludes with a number of detailed
suggestions for better practice of executive coaching for non-executive directors, practicing
executives and consultants. The cautionary notes regarding limitations and impact of coaching
and incompetency training on strategy and proprietary intelligence make an important
contribution to the body of knowledge regarding executive coaching.
XuanXuan Zhang, Dennis Taylor, Wen Qu and Victoria Wise investigate the
influence of institutional ownership and audit committees corporate risk disclosures. Focusing
on analysing firms’ risk disclosures make in their 2009 annual reports, the sample constitutes a
sample of 66 Australian listed firms. The result is consistent with a principal that wields limited
monitoring resources while achieving high resource dependency over management. The article
outlines a positive relationship between audit committee independence and risk disclosures,
showing the positive role played by audit committee in improving the information transparency
and reducing information asymmetry in capital market.
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Corporate Board: Role, Duties & Composition / Volume 9, Issue 3, 2013
CORPORATE BOARD:
ROLE, DUTIES AND COMPOSITION
Volume 9, Issue 3, 2013
CONTENT
Editorial
4
INTELLECTUAL CAPITAL DISCLOSURE AND CORPORATE GOVERNANCE
STRUCTURE AMONG MALAYSIAN GOVERNMENT-LINKED COMPANIES
6
Rashidah Abdul Rahman, Musliha Musman
THE IMPACT OF BOARD STRUCTURE ON THE FINANCIAL PERFORMANCE
OF LISTED SOUTH AFRICAN COMPANIES
18
Erik Meyer, JHvH de Wet
DISTORTED GOVERNANCE: A CASE OF THE MUNICIPAL UNIT IN SOUTH
AFRICA
32
Bethuel Sibongiseni Ngcamu
HOW COULD BOARD DIVERSITY INFLUENCE CORPORATE DISCLOSURE?
42
Nermeen F. Shehata
THE IMPACT OF SKILLS DEVELOPMENT INTERVENTIONS ON CORPORATE
CONTROL: EXECUTIVES’ & DIRECTORS’ COACHING
50
Rouxelle de Villiers, Vida Botes
INSTITUTIONAL OWNERSHIP, AUDIT COMMITTEE AND RISK DISCLOSURE –
EVIDENCE FROM AUSTRALIAN STOCK MARKET
66
XuanXuan Zhang, Dennis Taylor, Wen Qu, Victoria Wise
SUBSCRIPTION DETAILS
82
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