CORPORATE GOVERNANCE AND BOARD EFFECTIVENESS: A SYSTEMATIC REVIEW OF THE COMPANY SECRETARY ROLE
Abstract
Background and Purpose: Company secretary roles are increasingly gaining attention and recognition globally. However, research on corporate governance and board effectiveness lacks a comprehensive and systematic review from the company secretary role. Most research to date has been focused on the role of other corporate governance actors, namely, CEOs, directors, and auditors. In this present systematic literature review, we address this deficiency.
Methodology: This paper adopted a systematic literature review approach. We used two indexed databases, Scopus and Web of Science, to analyse the articles written on corporate governance, company secretary and board effectiveness. A total of 121 articles published in these fields were examined, and after rigorous analysis, only 18 articles from which met the inclusion criteria were included.
Findings: Our findings reveal that only a few corporate governance research has investigated the role of company secretary in enhancing board effectiveness (board structure, board process and board practices). The thematic analysis conducted identified seven key roles of the company secretary. The roles are to: (1) support the chairman of the board; (2) provide advice and act as a confidant to the board of directors; (3) facilitate and manage the board of directors and board committee process; (4) liaise between the board and management; (5) manage information asymmetry and enhance transparency; (6) ensure compliance with laws, regulations, corporate governance code and best practices, and (7) manage company relations.
Contributions: The analysis in this paper presents four key findings - types of articles, geographical location, theory, and company secretary roles that reflect the research gaps present in the corporate governance literature, thus highlighting significant future research avenues.
Keywords: Board effectiveness, company secretary, corporate governance, roles, systematic literature review.
Cite as: Halim, S. A. A, Lokman, N., & Othman, S. (2023). Corporate governance and board effectiveness: A systematic literature review of the company secretary role. Journal of Nusantara Studies, 8(TI), 209-234. http://dx.doi.org/10.24200/jonus.vol8issTIpp209-234
References
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Akram, S., Emerson, G., & Marsh, D. (2015). (Re)Conceptualising the third face of power: Insights from Bourdieu and Foucault. Journal of Political Power, 8(3), 345-362.
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Biddle, B. J. (1986). Recent development in role theory. Annual Review of Sociology, 12(1), 67-92.
Braun, V., & Clarke, V. (2021). Thematic analysis: A practical guide. SAGE Publications.
Browder, W. B. (1979). The corporate law department and the corporate secretary function. The Business Lawyer, 34(1), 875-880.
Chartier, B. J. (2006). Governance in a large organisation [Article]. International Journal of Business Governance and Ethics, 2(1-2), 54-63.
Dahl, R. A. (1961). Who governs? Democracy and power in an American city. New Haven.
Edwards, P. (2006). Power and ideology in the workplace: Going beyond even the second version of the three-dimensional view. Work, Employment and Society, 20(3), 571-581.
Fletcher Joyce, K. (1992). A poststructuralist perspective on the third dimension of power. Journal of Organizational Change Management, 5(1), 31-38.
Fox, D. W. (1981). The evolving status of the company secretary. The Law Teacher, 15(1), 18-26.
Fuzi, S. F. S. M., Halim, S. A. A., Khudzari, J. M., & EzrineYussoff, N. (2019). Comparative analysis on the requirement, qualification and responsibility of company secretaries in United Kingdom, Malaysia and India. Journal of Administrative Science,
16(1), 118-126.
Gillan, S. L. (2006). Recent developments in corporate governance: An overview. Journal of Corporate Finance, 12(3), 381-402.
Guang-you, L., & Xiao-hui, W. (2019). Company secretaries in Chinese board of directors. In Foo, C. T. (Ed.), Finance and strategy inside China. The Chinese management book-of-readings series (pp. 77-89). Springer.
Halford, S. (2004). Towards a sociology of organizational space. Sociological Research Online, 9(1), 13-28.
Herrera-Echeverri, H., Gaitan, S., Antonio Orozco, L., & Soto-Echeverry, N. (2019). Board characteristics, compliance, and firm performance: Empirical findings from Colombia. Latin American Business Review, 19(3-4), 263-295.
Hillier, B. (2008). Space and spatiality: What the built environment needs from social theory. Building Research & Information, 36(3), 216-230.
Humphery-Jenner, M., Islam, E., Rahman, L., & Suchard, J.-A. (2022). Powerful CEOs and corporate governance. Journal of Empirical Legal Studies, 19(1), 135-188.
Husnin, A. I., Nawawi, A., & Puteh Salin, A. S. A. (2016). Corporate governance and auditor quality – Malaysian evidence. Asian Review of Accounting, 24(2), 1-31.
Hwang, S., Sarath, B., & Han, S. Y. (2022). Auditor independence: The effect of auditors’ quality control efforts and corporate governance. Journal of International Accounting, Auditing and Taxation, 47(1), 100470.
Jaafar, S. B., & Rahmat, M. M. (2021). Trends of board diversity: Who sits in a boardroom? Asia-Pacific Management Accounting Journal, 16(2), 129-158.
Jovanovic, D., & Bratina, B. (2016). Outsourcing the corporate governance officer (potential business model). Lex Localis-Journal of Local Self-Government, 14(2), 265-277.
Kakabadse, A., Khan, N., & Kakabadse, N. (2017). Leadership on the board: The role of company secretary. In J. Storey, J. Hartley, J.-L. Denis, P. t. Hart, & D. Ulrich (Eds.), The Routledge companion to leadership (pp. 241-259). Routledge.
Kakabadse, A., Khan, N., & Kakabadse, N. K. (2016). Company secretary: A role of breadth and majesty. Society and Business Review, 11(3), 333-349.
Kaur, K. (2003, May 6). Company secretary role redefined. The Star Online. https://www.thestar.com.my/business/business-news/2003/05/06/company-secretary-role-redefined
Khatib, S. F. A., Abdullah, D. F., Elamer, A. A., & Abueid, R. (2020). Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions. Business Strategy and the Environment, 30(2), 985-1002.
Kiel, G. C., & Nicholson, G. J. (2002). Real world governance: Driving business success through effective corporate governance. Mt Eliza Business Review, 5(1), 17-28.
Krause, R., Semadeni, M., & Cannella, A. A. (2014). CEO duality: A review and research agenda. Journal of Management, 40(1), 256-286.
Krause, R., Semadeni, M., & Cannella, A. A. (2013). External COO/presidents as expert directors: A new look at the service role of boards. Strategic Management Journal, 34(13), 1628-1641.
Lee, J. (2018). The corporate governance officer as a transformed role of the company secretary: An international comparison. South Carolina Journal of International Law and Business, 14(2), 107-142.
Li, H., Terjesen, S., & Umans, T. (2020). Corporate governance in entrepreneurial firms: A systematic review and research agenda. Small Business Economics, 54(1), 43-74.
Lukes, S. (2005). Three-dimensional power. In S. Lukes (Ed.), Power: A radical view (pp. 108--151). Palgrave Macmillan.
May-Amy, Y. C., Han-Rashwin, L. Y., & Carter, S. (2020). Antecedents of company secretaries’ behaviour and their relationship and effect on intended whistleblowing. Corporate Governance, 20(5), 837-861.
McKenzie, R., Law Chapple, L., Sinnewe, E., & Osborne, S. (2019). Responsibilities within the Governance space: A study of the role of the company secretary on contemporary boards. SSRN.
McNulty, T., & Stewart, A. (2015). Developing the governance space: A study of the role and potential of the company secretary in and around the board of directors. Organization Studies, 36(4), 513-535.
Mnif, Y., & Znazen, O. (2020). Corporate governance and compliance with IFRS 7: The case of financial institutions listed in Canada. Managerial Auditing Journal, 35(3), 448-474.
Nordberg, D., & Booth, R. (2019). Evaluating the effectiveness of corporate boards. Corporate Governance, 19(2), 372-387.
Nowland, J., Chapple, L., & Johnston, J. (2021). The role of the company secretary in facilitating board effectiveness: Reporting and compliance. Accounting & Finance, 61(S1), 1425-1456.
Osborne, S. (2014). Rise of the company secretary. Lawgazette. https://www.lawgazette.co.uk/practice-points/rise-of-the-company-secretary-/5042026.article
Peij, S., & Bezemer, P.-J. (2021). Exploring the key challenges facing company secretaries in a two-tier board context. Corporate Governance: The International Journal of Business in Society, 21(5), 815-830.
Peij, S., Bezemer, P.-J., & Maassen, G. (2015). Role ambiguity and conflicts: A study of company secretaries and two-tier boards in the Netherlands. Corporate Ownership and Control, 12(3), 114-123.
Peng, Q., Tang, X., & Zheng, Y. (2019). The impact of board secretaries’ excess compensation on corporate disclosure quality. Nankai Business Review International, 10(2), 306-340.
Petticrew, M., & Roberts, H. (2008). Systematic reviews in the social sciences: A practical guide. Wiley.
Piew, T. H. (2019). Enhanced role of the company secretary in corporate governance. The Malaysian Corporate Secretary Journal, 82(1), 13-15.
Plotnikov, A. V., Zagorujko, I. J., & Cherdancev, V. P. (2013). The structure of board of directors of Russian companies in the context of corporate governance [Article]. World Applied Sciences Journal, 23(4), 473-479.
Sharma, J. P., Kanojia, S., & Gupta, S. (2018). An empirical evaluation of legislative reforms for e-corporate governance in Indian companies [Article]. Australasian Accounting Business and Finance Journal, 12(2), 29-45.
Sigauke, J., Collins, P., Mutambara, E., & Sibanda, R. (2015). The company secretary’s role in cg: Private and public owned South African companies. Corporate Ownership & Control, 13(1), 401-413.
Steger, T. (2014). What have we not researched? And why not? Some reflections on the ‘blind spots’ of corporate governance and board research. International Journal of Business Governance and Ethics, 9(2), 121-135.
Steger, U., & Erismann-Peyer, G. (2009). Oiling board processes: The dynamic evolution from "company secretary" to "corporate governance officer". Perspectives for Managers, 169(1), 1-4.
Sun, L., Johnson, G., & Rahman, F. (2015). CFO financial expertise and corporate governance concerns. International Journal of Law and Management, 57(6), 573-581.
Swartz, D. L. (2007). Recasting power in its third dimension. Theory and Society, 36(1), 103-109.
Taylor, S., & Spicer, A. (2007). Time for space: A narrative review of research on organizational spaces. International Journal of Management Reviews, 9(4), 325-346.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222.
Wang, C., Ye, Q., & Goyal, A. (2019). Does tenure matter: Role of the corporate secretary in Chinese-listed firms. Accounting Horizons, 33(1), 181-205.
Wijethilake, C., & Ekanayake, A. (2019). CEO duality and firm performance: The moderating roles of CEO informal power and board involvements. Social Responsibility Journal, 16(8), 1453-1474.
Xing, L., Duan, T., & Hou, W. (2019). Do board secretaries influence management earnings forecasts? Journal of Business Ethics, 154(2), 537-574.
Ahmad, S., & Omar, R. (2016). Basic corporate governance models: A systematic review. International Journal of Law and Management, 58(1), 73-107.
Akram, S., Emerson, G., & Marsh, D. (2015). (Re)Conceptualising the third face of power: Insights from Bourdieu and Foucault. Journal of Political Power, 8(3), 345-362.
Bachrach, P., & Baratz, M. S. (1962). Two faces of power. The American Political Science Review, 56(4), 947-952.
Bastin, N. A. (1971). The ostensible authority of the company secretary. The Law Teacher, 5(3), 173-175.
Biddle, B. J. (1986). Recent development in role theory. Annual Review of Sociology, 12(1), 67-92.
Braun, V., & Clarke, V. (2021). Thematic analysis: A practical guide. SAGE Publications.
Browder, W. B. (1979). The corporate law department and the corporate secretary function. The Business Lawyer, 34(1), 875-880.
Chartier, B. J. (2006). Governance in a large organisation [Article]. International Journal of Business Governance and Ethics, 2(1-2), 54-63.
Dahl, R. A. (1961). Who governs? Democracy and power in an American city. New Haven.
Edwards, P. (2006). Power and ideology in the workplace: Going beyond even the second version of the three-dimensional view. Work, Employment and Society, 20(3), 571-581.
Fletcher Joyce, K. (1992). A poststructuralist perspective on the third dimension of power. Journal of Organizational Change Management, 5(1), 31-38.
Fox, D. W. (1981). The evolving status of the company secretary. The Law Teacher, 15(1), 18-26.
Fuzi, S. F. S. M., Halim, S. A. A., Khudzari, J. M., & EzrineYussoff, N. (2019). Comparative analysis on the requirement, qualification and responsibility of company secretaries in United Kingdom, Malaysia and India. Journal of Administrative Science,
16(1), 118-126.
Gillan, S. L. (2006). Recent developments in corporate governance: An overview. Journal of Corporate Finance, 12(3), 381-402.
Guang-you, L., & Xiao-hui, W. (2019). Company secretaries in Chinese board of directors. In Foo, C. T. (Ed.), Finance and strategy inside China. The Chinese management book-of-readings series (pp. 77-89). Springer.
Halford, S. (2004). Towards a sociology of organizational space. Sociological Research Online, 9(1), 13-28.
Herrera-Echeverri, H., Gaitan, S., Antonio Orozco, L., & Soto-Echeverry, N. (2019). Board characteristics, compliance, and firm performance: Empirical findings from Colombia. Latin American Business Review, 19(3-4), 263-295.
Hillier, B. (2008). Space and spatiality: What the built environment needs from social theory. Building Research & Information, 36(3), 216-230.
Humphery-Jenner, M., Islam, E., Rahman, L., & Suchard, J.-A. (2022). Powerful CEOs and corporate governance. Journal of Empirical Legal Studies, 19(1), 135-188.
Husnin, A. I., Nawawi, A., & Puteh Salin, A. S. A. (2016). Corporate governance and auditor quality – Malaysian evidence. Asian Review of Accounting, 24(2), 1-31.
Hwang, S., Sarath, B., & Han, S. Y. (2022). Auditor independence: The effect of auditors’ quality control efforts and corporate governance. Journal of International Accounting, Auditing and Taxation, 47(1), 100470.
Jaafar, S. B., & Rahmat, M. M. (2021). Trends of board diversity: Who sits in a boardroom? Asia-Pacific Management Accounting Journal, 16(2), 129-158.
Jovanovic, D., & Bratina, B. (2016). Outsourcing the corporate governance officer (potential business model). Lex Localis-Journal of Local Self-Government, 14(2), 265-277.
Kakabadse, A., Khan, N., & Kakabadse, N. (2017). Leadership on the board: The role of company secretary. In J. Storey, J. Hartley, J.-L. Denis, P. t. Hart, & D. Ulrich (Eds.), The Routledge companion to leadership (pp. 241-259). Routledge.
Kakabadse, A., Khan, N., & Kakabadse, N. K. (2016). Company secretary: A role of breadth and majesty. Society and Business Review, 11(3), 333-349.
Kaur, K. (2003, May 6). Company secretary role redefined. The Star Online. https://www.thestar.com.my/business/business-news/2003/05/06/company-secretary-role-redefined
Khatib, S. F. A., Abdullah, D. F., Elamer, A. A., & Abueid, R. (2020). Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions. Business Strategy and the Environment, 30(2), 985-1002.
Kiel, G. C., & Nicholson, G. J. (2002). Real world governance: Driving business success through effective corporate governance. Mt Eliza Business Review, 5(1), 17-28.
Krause, R., Semadeni, M., & Cannella, A. A. (2014). CEO duality: A review and research agenda. Journal of Management, 40(1), 256-286.
Krause, R., Semadeni, M., & Cannella, A. A. (2013). External COO/presidents as expert directors: A new look at the service role of boards. Strategic Management Journal, 34(13), 1628-1641.
Lee, J. (2018). The corporate governance officer as a transformed role of the company secretary: An international comparison. South Carolina Journal of International Law and Business, 14(2), 107-142.
Li, H., Terjesen, S., & Umans, T. (2020). Corporate governance in entrepreneurial firms: A systematic review and research agenda. Small Business Economics, 54(1), 43-74.
Lukes, S. (2005). Three-dimensional power. In S. Lukes (Ed.), Power: A radical view (pp. 108--151). Palgrave Macmillan.
May-Amy, Y. C., Han-Rashwin, L. Y., & Carter, S. (2020). Antecedents of company secretaries’ behaviour and their relationship and effect on intended whistleblowing. Corporate Governance, 20(5), 837-861.
McKenzie, R., Law Chapple, L., Sinnewe, E., & Osborne, S. (2019). Responsibilities within the Governance space: A study of the role of the company secretary on contemporary boards. SSRN.
McNulty, T., & Stewart, A. (2015). Developing the governance space: A study of the role and potential of the company secretary in and around the board of directors. Organization Studies, 36(4), 513-535.
Mnif, Y., & Znazen, O. (2020). Corporate governance and compliance with IFRS 7: The case of financial institutions listed in Canada. Managerial Auditing Journal, 35(3), 448-474.
Nordberg, D., & Booth, R. (2019). Evaluating the effectiveness of corporate boards. Corporate Governance, 19(2), 372-387.
Nowland, J., Chapple, L., & Johnston, J. (2021). The role of the company secretary in facilitating board effectiveness: Reporting and compliance. Accounting & Finance, 61(S1), 1425-1456.
Osborne, S. (2014). Rise of the company secretary. Lawgazette. https://www.lawgazette.co.uk/practice-points/rise-of-the-company-secretary-/5042026.article
Peij, S., & Bezemer, P.-J. (2021). Exploring the key challenges facing company secretaries in a two-tier board context. Corporate Governance: The International Journal of Business in Society, 21(5), 815-830.
Peij, S., Bezemer, P.-J., & Maassen, G. (2015). Role ambiguity and conflicts: A study of company secretaries and two-tier boards in the Netherlands. Corporate Ownership and Control, 12(3), 114-123.
Peng, Q., Tang, X., & Zheng, Y. (2019). The impact of board secretaries’ excess compensation on corporate disclosure quality. Nankai Business Review International, 10(2), 306-340.
Petticrew, M., & Roberts, H. (2008). Systematic reviews in the social sciences: A practical guide. Wiley.
Piew, T. H. (2019). Enhanced role of the company secretary in corporate governance. The Malaysian Corporate Secretary Journal, 82(1), 13-15.
Plotnikov, A. V., Zagorujko, I. J., & Cherdancev, V. P. (2013). The structure of board of directors of Russian companies in the context of corporate governance [Article]. World Applied Sciences Journal, 23(4), 473-479.
Sharma, J. P., Kanojia, S., & Gupta, S. (2018). An empirical evaluation of legislative reforms for e-corporate governance in Indian companies [Article]. Australasian Accounting Business and Finance Journal, 12(2), 29-45.
Sigauke, J., Collins, P., Mutambara, E., & Sibanda, R. (2015). The company secretary’s role in cg: Private and public owned South African companies. Corporate Ownership & Control, 13(1), 401-413.
Steger, T. (2014). What have we not researched? And why not? Some reflections on the ‘blind spots’ of corporate governance and board research. International Journal of Business Governance and Ethics, 9(2), 121-135.
Steger, U., & Erismann-Peyer, G. (2009). Oiling board processes: The dynamic evolution from "company secretary" to "corporate governance officer". Perspectives for Managers, 169(1), 1-4.
Sun, L., Johnson, G., & Rahman, F. (2015). CFO financial expertise and corporate governance concerns. International Journal of Law and Management, 57(6), 573-581.
Swartz, D. L. (2007). Recasting power in its third dimension. Theory and Society, 36(1), 103-109.
Taylor, S., & Spicer, A. (2007). Time for space: A narrative review of research on organizational spaces. International Journal of Management Reviews, 9(4), 325-346.
Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222.
Wang, C., Ye, Q., & Goyal, A. (2019). Does tenure matter: Role of the corporate secretary in Chinese-listed firms. Accounting Horizons, 33(1), 181-205.
Wijethilake, C., & Ekanayake, A. (2019). CEO duality and firm performance: The moderating roles of CEO informal power and board involvements. Social Responsibility Journal, 16(8), 1453-1474.
Xing, L., Duan, T., & Hou, W. (2019). Do board secretaries influence management earnings forecasts? Journal of Business Ethics, 154(2), 537-574.
Published
2023-09-30
How to Cite
Abdul Halim, S. ‘Adliana, Lokman, N., & Othman, S. (2023). CORPORATE GOVERNANCE AND BOARD EFFECTIVENESS: A SYSTEMATIC REVIEW OF THE COMPANY SECRETARY ROLE. Journal of Nusantara Studies (JONUS), 8(3), 209-234. https://doi.org/10.24200/jonus.vol8iss3pp209-234
Section
Articles
