Exploring Organizational Structure, Transparency, Ethics, and Their Impact on Perceived Corporate Governance Effectiveness

Yee, Wei Xiang (2026) Exploring Organizational Structure, Transparency, Ethics, and Their Impact on Perceived Corporate Governance Effectiveness. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Corporate governance effectiveness has increasingly been recognised as being shaped not only by formal regulatory mechanisms but also by internal organisational practices and ethical environments. This study examines the influence of perceived organisational structure and perceived transparency and disclosure practices on perceived corporate governance effectiveness, with perceived organisational ethics acting as a mediating variable. Grounded in Stakeholder Theory, Ethical Climate Theory, and Agency Theory, the study adopts an integrated internal governance perspective to enhance understanding of how internal mechanisms contribute to effective corporate governance. A quantitative research approach was employed using a structured questionnaire to collect data from respondents working in Malaysian organisations. The data were analysed using statistical techniques to assess direct and mediating relationships among the study variables. The findings reveal that perceived organisational structure and perceived transparency and disclosure practices have significant positive relationships with perceived corporate governance effectiveness. In addition, perceived organisational ethics is found to be positively associated with corporate governance effectiveness and to mediate the relationships between organisational structure and governance effectiveness, as well as between transparency and disclosure practices and governance effectiveness. The results highlight the central role of organisational ethics in translating structural clarity and transparent communication into credible and effective governance outcomes. The study contributes to corporate governance literature by empirically validating an integrated internal governance framework that incorporates structural, transparency, and ethical dimensions. Practically, the findings suggest that organisations should adopt a holistic approach to governance by strengthening organisational structures, enhancing transparency and disclosure practices, and fostering strong ethical cultures to achieve sustainable governance effectiveness. Despite its contributions, the study is subject to limitations related to its cross-sectional design, reliance on self-reported data, and contextual focus on Malaysia. Future research is encouraged to adopt longitudinal and mixed-method approaches, incorporate objective governance indicators, and extend the analysis to different institutional contexts. Overall, this study provides valuable insights into the importance of ethics-driven internal governance mechanisms in enhancing corporate governance effectiveness