Citation

Thangaveloo, Arasu M. (2021) Corporate governance and shareholders' confidence in cooperative corporation: A case study. Other thesis, Multimedia University.

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Abstract

The study aims to analyse the impact of corporate governance (CG) on shareholder confidence in the Malaysian cooperative corporate sector. Two other aims are to understand the relationship between CG and shareholder confidence in the said corporate sector and to recommend a self-enforcement cooperative model, which can contribute to the agency theory model and solve CG issues surrounding the Indian Below 40 Group (IB40) shareholders in the future. This case study relates to CG and shareholder confidence in cooperative corporations and its major impact on the Malaysian–Indian community. It employs qualitative methodology and therefore involves an interpretative research paradigm. Confidence factors, such as transparency, trustworthiness, integrity and good governance, are key in cooperative shareholder confidence to ensure that organisations remain competitive. The primary data collection method used in this research is face-to-face interview with semi-structured questions. It is complemented by documentary data analysis as a secondary method. There are 7 key findings of this research; first, the majority of the IB40 respondents of this CC are illiterate and had no knowledge of CG and investment; secondly, high degree of political interference and therefore the investment failed to make a target ROI to the shareholders; third, the management are not transparent subsequently minority shareholders have lost confidence in CC; fourth, absence of interest/confidence of shareholders which ignoring them to attend AGM; fifth, executives employed have a shady expertise and fundamentally illiterate financial decision making; sixth, lack of confidence for future investment and seventh, too many transaction involving conflict of interest. The findings contribute to agency theory in the context of shareholder confidence within CG. This study is also significant to the Malaysian cooperative corporation sector, especially as shareholders utilise for knowledge improvement on governance in investment portfolios and practical solutions to shareholders, particularly to the IB40. The self-enforcing cooperative model is the best solution to represent corporate decision-making procedures in such a way that shareholders may defend themselves against insider opportunism with little recourse to legal authorities, including the courts. The inclusion of a required cumulative voting rule for director elections and a regulation requiring shareholder board-level approval for self-interested transactions comprise a major part of the model’s requirements. The Malaysian cooperatives should enhance the CG practices to keep the current shareholder confidence. Agency theory seems to be the dominant theory influencing the CG structures of firms in Malaysia.

Item Type:	Thesis (Other)
Additional Information:	Call No.: HD2741 .T43 2021
Uncontrolled Keywords:	Corporate governance—Malaysia
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business > HD2709-2930.7 Corporations. Including international business enterprises, diversification, industrial concentration, public utilities > HD2741 Holding companies. Corporate governance
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	30 Sep 2025 09:44
Last Modified:	30 Sep 2025 09:44
URII:	http://shdl.mmu.edu.my/id/eprint/14633

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