Transformational Leadership, Perceived Corporate Accountability, and Perceived Stakeholder Engagement: Evidence from Malaysian Companies’ Employees with Communication Effectiveness as a Mediator

Wong, Kazumi Chao Ling (2026) Transformational Leadership, Perceived Corporate Accountability, and Perceived Stakeholder Engagement: Evidence from Malaysian Companies’ Employees with Communication Effectiveness as a Mediator. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

In the aftermath of corporate scandals, effective stakeholder engagement is essential for promoting transformational leadership, strengthening corporate accountability, and enhancing communication effectiveness within organisations. This research study investigates the mediating role of communication effectiveness in the relationships among transformational leadership, perceived corporate accountability, and employees’ perceived stakeholder engagement within Malaysian companies. Drawing on the context of post-1MDB corporate governance reforms, the research addresses the persistent gaps in stakeholder trust and engagement despite advances in leadership and accountability frameworks. Using a quantitative, cross-sectional design, data were collected from 318 employees across Malaysian companies and analysed with Statistical Package for Social Sciences (SPSS) and Partial Least Squares – Structural Equation Modelling (PLS-SEM), specifically SmartPLS 4.0. Results reveal that communication effectiveness partially mediates the impact of both transformational leadership and perceived corporate accountability on employees’ perceived stakeholder engagement. Direct effects remain significant, highlighting their foundational role. The findings underscore that effective, transparent, and responsive communication channels are vital in translating transformational leadership and accountability efforts into robust stakeholder engagement. Practical implications urge organisational leaders to prioritise communication quality alongside transformational leadership and corporate accountability, while the study’s integrative model provides a valuable reference for strengthening corporate governance and rebuilding stakeholder trust in Malaysia’s evolving business landscape