Directors’ Remuneration Disclosure and Firm Characteristics – Malaysian Evidence

This study is intended to gauge levels of directors’ remuneration disclosure among public listed companies in Malaysia. It aims to examine the relationship between companies’ specific characteristics (age, size, growth, return on equity (ROA), return on asset (ROA), liquidity, and leverage) and directors’ remuneration disclosure based on three models constructed from Malaysian Code on Corporate Governance (Model 1), Global Practices (Model 2) and combination of both Malaysian Code on Corporate Governance and Global Practices (Model 3). Based on model 1, it has been found that only company’s size has a significant negative relationship with the directors’ remuneration disclosure, while based on model 2, only company’s ROA is significant. Finally, based on model 3, the results reveal that company’s size and company’s ROA are significant to explain the variation changes on director’s remuneration disclosure. This study contributes to policy-making and body of knowledge by highlighting the relationship between companies’ specific characteristics and their directors’ remuneration disclosure in the Malaysian context of Malaysia.