The Influence of Insider Ownership and Board Independence on the Narrative Risk Reporting

  •  Rina Fadhilah Ismail    
  •  Roshayani Arshad    
  •  Suaini Othman    


Prior studies have examined the regulators’ aim for corporate transparency improvement has less being supported by the insider ownership. Further, by addressing the issue of risk and uncertainty, the presence of insider ownership in the company has been observed to influence corporate decisions that eventually drive to lowering corporate transparency. The main objective of this study is to analyse the impact of insider ownership on the narrative risk reporting of Malaysian corporations. Using the data set of 328 companies for 2008 and 2009, the empirical findings indicate a negative effect between narrative risk reporting and the insider ownership that implies Malaysian corporations are continuously resisting to accept recurring changes for the betterment of the companies.

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