Influence of CEO Managerial Ability on Corporate Turnaround and the Moderating Role of Voluntary Disclosure in Malaysia

Chong, Xue Ting (2025) Influence of CEO Managerial Ability on Corporate Turnaround and the Moderating Role of Voluntary Disclosure in Malaysia. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Top managers, especially Chief Executive Officers (CEOs), are regarded as a vital source of human capital that help to enhance firm value and transform countries into high-income economies. CEOs with strong managerial ability can make creative use of the firms’ resources, leading to long-term financial sustainability. Besides, CEOs with strong managerial ability can better handle funding requirements and assist in investment decisions, thus reducing firms’ vulnerability to financial difficulties, particularly during times of crisis. Corporate disclosure is becoming increasingly important in the current capital markets and corporate environment due to the on-going requirements imposed on firms to demonstrate better accountability and transparency. In corporate reporting, the extent and credibility of voluntary disclosure are becoming increasingly important, where voluntary disclosure serves as a vital communication tool between firms and their stakeholders. For example, voluntary disclosure helps financially distressed firms to update stakeholders on their turnaround plans and progress. Therefore, this study aims to analyse the relationship between CEO managerial ability and corporate turnaround as well as to examine the moderating role of voluntary disclosure on this relationship. This study is conducted based on 27 firms newly classified under the Practice Note 17 by Bursa Malaysia for the period 2010 to 2023.