Impact of Corporate Governance in Retail Segment in Singapore

Running head: CORPORATE GOVERNANCE IN RETAIL SEGMENT IN
SINGAPORE
Analysis of the effect of corporate governance in particularly retail segment in
Singapore
University Name
Student Name
Authors’ Note

2CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
Abstract
The dissertation constitutes of having an understanding of the impact of corporate
governance on the retail sector companies. In order to have proper understanding
thirty companies have been selected and thereafter analysis has been done. The
research questions that have been constructed addresses these areas and
accordingly an idea can be attained with the help of which completion of the paper
has been done. The literature review has provided extensive idea about the previous
researches and what theories have been applicable for corporate governance index.
The research methodology highlights the methods and the processes that have been
used with the help of which data analysis has been possible. In this manner the
analysis has been complete and the results have been able to address the objective
of the dissertation.

3CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
Table of Contents
Chapter 1: Introduction................................................................................................4
1.1 Background of the research study.....................................................................4
1.2 Objectives of the research.................................................................................6
1.3 Research Questions..........................................................................................6
1.4Research Contributions......................................................................................6
1.5 Organization of the Dissertation........................................................................7
Chapter 2.................................................................................................................... 9
2.1 Introduction........................................................................................................9
2.2 Definitions of Corporate Governance................................................................9
2.2.1 Benefits of Corporate Governance...............................................................10
2.3 Code of Corporate governance use for the research......................................10
2.4 Prior Studies on corporate governance...........................................................12
2.4.1 Agency Theory............................................................................................. 16
2.4.2 Stewardship Theory......................................................................................17
2.5 Summary of the Literature...............................................................................18
Chapter 3.................................................................................................................. 19
3.1 Introduction......................................................................................................19
3.2 Research Context............................................................................................19
3.3 Research Method............................................................................................20
3.4 Data Analysis...................................................................................................21

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3.5 Summary......................................................................................................... 22
Chapter 4.................................................................................................................. 24
4.1 Descriptive Statistics....................................................................................... 24
Chapter 5:................................................................................................................. 30
5.1 Conclusion and Recommendation...................................................................30
References................................................................................................................34
Appendix................................................................................................................... 42

5CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
Chapter 1: Introduction
1.1 Background/Context of the research study
Corporate governance (CG) can be illustrated as the specific system by which
business concerns can be directed and at the same time controlled. The primary
objective is often mentioned as being the augmentation of corporate profit and gains
from shareholders whilst having regard to the influence that this might have on other
stakeholders of the firm. Sir Adrian Cadbury affirmed that corporate governance
(CG) is apprehensive about presenting a sense of balance between different
financial as well as social purposes as well as between individuals with communal
intentions (Trickerand Tricker2015). In essence, the framework for corporate
governance (CG) is expected to inspire effective employment of resources and to
call for liability for principally stewardship of firms’ resources. In particular, the
primary intention is to bring into line specific interests of different individuals,
businesses and society as per reports of “Global Corporate Governance Forum,
World Bank of the year 2000 (Du Plessiset al. 2018). Thus, in line with the above
mentioned discussions mentioned above, framework and structure of corporate
governance along with mechanisms are commonly targeted at enhancing overall
efficacy of the company otherwise performance and delivering higher transparency
along with accountability to firm’s shareholders along with other stakeholders.
Retail firms in Singapore
Retail as well as consumer product firms encounter different challenges in
competitive climate. Particularly, in different mature markets, companies operating in
R&C industry in Singapore are constrained in their capability to develop and maintain

6CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
specific profit margins as an outcome of a deflationary operating environment,
saturation in the market, declining growth of population, and more discriminating but
less trustworthy customers. In addition to this, pressure is the emergence of
alternative channels of sales, a blurring of roles between suppliers as well as
retailers and a transformation in the balance of power to different retailers. As
suggested by Larcker and Tayan(2015), this has shifted the strategic concentration
of the segment towards the expanding consumer market of both India as well as
China that presents novel opportunities for growth by means of global sourcing, off-
sourcing along with development of current retailers. Furthermore, owing to
stakeholder demands and ensuing Sarbanes-Oxley Legislation, the retail as well as
consumer product segment is also experiencing heightened pressure and stress of
regulation (Cuomo et al. 2016). In essence, these involve greater liability and
accuracy in the process of reporting of financial outcomes under the standards of
IFRS together with US GAAP, enhanced level of corporate governance and
engagement of the Board, stronger internal control documentation and a greater
need for stringer risk management exercises across the business enterprises (Ilievet
al.2015). One of the major challenges encountered by the retail and consumer
product firms in Singapore is that of corporate governance.
1.2 Research Objectives
The primary objective of the research study at hand is
- To comprehend and analyse overall level of corporate governance in particularly
retail segment in Singapore
- To analytically assess difference between overall corporate governance between
firms that is listed in mainly the Main Board and Catalyst

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1.3 Questions of the research study
Q1: What is the degree and level of corporate governance disclosure in retail
industry in Singapore?
Q2: What is the difference in degree and level of corporate governance (CG)
between xx firm listed in the Main Board vs Catalist?
1.4 Research Contributions
The study of the level of corporate governance in firms can aid in
understanding the requirement for enhancement of accountability of the firm for
averting massive disaster before they take place (Iliev et al.2015). Based on the
findings of the study, it will be possible to understand necessity of corporate
governance associated disclosures, laws and exercises regarding corporate social
accountability. It helps in understanding the practices that mainly take account of
having an effectual board that is aware of roles as well as accountabilities and that is
delivered with access to requisite information to perform these accountabilities. This
study helps in gaining insight regarding the governance exercises that include strong
self-governing component on the specific board with no power concentration in any
specific individual. They also have formal as well as transparent procedures for
appointment of boards, performance of boards and executive remuneration (Cuomo
et al.2016).
Also, this study can help in identifying persons accountable for both disclosure
as well as transparency, corporate governance associated disclosures and role of
auditors in such kind of auditors (Armstrong et al.2015). Also, the study on corporate
governance of firms operating in the retail sector can aid in understanding
performance of companies as well as boards, association between both board and

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management of executive. Furthermore, this study also helps in understanding
membership of boards and accountabilities, management of risk, compliance and
internal controls. Moreover, this study helps in understanding communication
between the board, with the shareholders and financial reporting.
1.5 Dissertation Organization
The dissertation will be completed in a structured manner. The initial chapter
of the dissertation constitutes of the introduction where a background has been
provided and thereafter research question for this paper is constructed. In this
manner, the next section of the dissertation is prepared which is known as the
literature review. This section provides an idea about the topic and accordingly
points out the previous studies that have been undertaken. This assists in
understanding the process that will be undertaken with the help of which proper
analysis of the paper can be constructed. The third section of the paper is the
methodology where the process of collecting data and what kind of data will be
considered so as to complete the entire paper. Investigation section will provide
extensive answer as to how the research was done and the last section of the paper
will provide an idea about the final result that has been attained and any kind of
recommendation that can b given with the help of which the completion of the
dissertation will be possible.