As the concluding chapter of the survey, this subdivision provides sum-ups of the findings from old chapters. The decision is discussed, restrictions of the survey are explained, and future potency researchable countries are suggested. This chapter besides provides some recommendations, for the benefit of future research in this country of the survey.
5.2 Summary and Conclusions
Now yearss, there is an increasing consciousness of the corporate administration construction in Malaysian ‘s company. It is due to the corporate administration construction that could act upon the organisational internal activities of a company and could indirectly better the public presentation of the company. Corporate administration construction besides can convey the new mentality and heighten the effectivity of company direction. Comprehensive guidelines for corporate administration based on current corporate administration reforms have a mostly redefined and reemphasized the functions and duties of all the individuals who take portion in a public company ‘s fiscal coverage procedure. Most particularly, these betterments have intensified analysis of corporate audit commissions ; conveying the function as defenders of investors ‘ involvements now attract well privileged visibleness and outlooks from the populace. The audit commission is being as a medium between the house ‘s directors and the external hearer when there is any statement over accounting affairs and there besides being the construction that monitors the house ‘s fiscal coverage system and internal controls. The audit commission usually viewed as a monitoring instrument that can do a important part within a good corporate administration model.
This survey examined the effects the of the corporate administration construction refer to the audit commission with the company public presentation placeholders by the return on assets. Consequence shows that activity and fiscal literate of audit commission has positive important relationship with the return on assets. It was supported by the descriptive analysis ; demoing that the maximal figure of meeting for audit commission is 9 times per twelvemonth. Furthermore, harmonizing to Corporate Governance Guideline in Malaysia revised 2007, the audit commission should run into at least three times a twelvemonth. As referred to that consequence, it can be concluded that audit commission meeting can assist the company to better the public presentation of a company. It is in line with the old literature done by the Bryan et Al. ( 2004 ) , stated that audit commissions that meet on a regular basis to better the transparence of reported net incomes to better the quality of the net income for the company, while fiscal literate as good found important and positive relationship with the return on assets. The descriptive analysis shows that bulk of the company in this sample are holding fiscal certification from the profesional accounting organic structures such as MICPA, ACCA, CIMA or CPA. From the consequence, cognition in accounting bends out to be an of import portion for the audit commission. Changes made this are an attempt to work out the bureau job between stockholders and directors. Directors sometimes do non move in the best involvement of stockholders, for illustration, directors can pull strings the addition or even fiscal fraud on the stockholders. Therefore, stockholders need an effectual audit commission to guarantee the quality of fiscal coverage. The new ordinances are enacted in trying to convert the audit commission fiscal expertness, enabling members to supervise the fiscal coverage procedure more efficaciously, therefore cut downing bureau jobs between directors and stockholders.
Subsequently, analysis on the correlativity matrix shows several correlativities exist among the variables in the survey. However, in general, the correlativity is between around 0.01 until 0.2, which can be perceived as low ; therefore there is no terrible multicollinearity job among the regressors.
5.3 Restrictions of the survey
In malice of the findings, the current survey suffers the undermentioned restriction. First, the restriction is on the dependant variable used. This survey is simply able to analyse merely one company public presentation which is accounting step return on assets. Other than that, another restriction is on the steps to stand for dependent variables. For illustration, in this survey merely employed the accounting is measured, another measuring can be used perchance utilizing the market based which is stock return. In add-on, the independent variables used in this work is merely the four audit commission features, it does non take into history any external factors such as types and size of the external hearers of the company.
Next, the sample size used in this survey is limited merely on 169 companies in Bursa Malaysia, which represents from the four major industries in Malaysia. Hence, the consequence of this research is merely focussed to depict the overall characteristics of the audit commission and find the relationship between the company performances. In add-on, this research uses merely on one twelvemonth informations. Therefore, this research can non supply comparings between old ages on any alterations to company public presentation and characteristics of the audit commission.
5.4 Recommendations for future research
In short, this survey is still far from being able to explicate whether the audit commission features affect the company public presentation among Malayan companies listed in Bursa Malaysia. However, this survey provides some penetrations associating to the audit commission features of 169 companies in relation to the company public presentation. With weak support on the overall proposition and restrictions of this survey, the chances for future research are still extended.
To avoid meeting such restrictions as mentioned above, several recommendations are put forwards for future research. First, future research may besides integrate other corporate features or other extra audit commission features such as the dichotomy function of audit commission and the term of office of audit commission in the company. Other than that, for the company public presentation measuring can be considered for the market based public presentation such as stock return and dividen payout.
Following recommendation to put forward for future research is to widen the sample this survey to cover the full company in Bursa Malaysia, every bit good as taking into history all sectors within the Bursa Malaysia.
Finally, it is recommended that more old ages are taken into this research with a position to doing comparings between old ages and if there is any alterations that involve variables-variables that are used.