The Voluntary Disclosure of Malaysian Executive Directors’ Remuneration under an Evolving Regulatory Framework

This study examined the level of voluntary disclosure of executive directors’ remuneration in Malaysia. The study period covered a period of significant changes in the Malaysian regulatory framework on disclosure over 2000 to 2008. It applied an un-weighted disclosure index to determine a voluntary disclosure score that was determined as score of excess of the mandatory disclosure requirements. The study found a significant improvement in the level of voluntary score after the introduction of the reforms. However, they appeared to be exploitation of the weaknesses in the reforms that limited their effectiveness in improving the disclosure of executive directors’ remuneration.