Singapore Corporate Governance in Retail: Disclosure and Impact

This dissertation investigates the impact of corporate governance on the retail sector in Singapore, focusing on thirty selected companies. It addresses research questions related to the level of corporate governance disclosure and differences between firms listed on the Main Board versus Catalist. The literature review provides context from previous research and applicable theories, while the research methodology details the data analysis process. The study aims to understand the need for enhanced corporate accountability and the effectiveness of current governance practices, including board structures, transparency, and risk management, ultimately contributing to a better understanding of corporate governance's role in company performance and stakeholder relations within the Singaporean retail industry. Desklib provides access to similar documents for students.

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.

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Chapter 2
Review of Literature
2.1 Introduction
The current section reviews prior academic works undertaken on corporate
governance by scholars and extracts relevant concepts useful concepts for the
current study. This segment gives details about the benefits and advantages of
corporate governance, varied latest codes of uses of corporate governance along
with theoretical reflection. The literature review of the paper would initially look to
discuss the definitions of corporate governance with the help of which an idea can be
attained so that the work can proceed further. The benefits of corporate governance
within a company will even be discussed with the help of which better idea about
corporate governance will be known. The latest code of corporate governance will
even be discussed with the help of which proper idea on the topic can be known with
respect to Singapore. There are various theories that have been explained that are
related to corporate governance.
2.2 Definitions of Corporate Governance
As rightly indicated by Ocak and Arıkboğa (2017), corporate governance
indicates towards the way a specific business corporation is governed. In essence,
this is the manner by which firms are essentially directed and handled and implies
undertaking the business according to the desires of stakeholders. Fundamentally,
this is actually undertaken by Directors and the concerned committees for the firm’s
stakeholder’s advantage. In actual fact, this corporate governance can be said to be
all about balancing individual and at the same time individual objectives, in addition
to socio-economic objectives. Essentially, corporate governance can be said to be

10CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
an interaction between different participants that can help in shaping performance of
associations and the way it is proceeding towards.
2.2.1 Benefits of Corporate Governance
As suggested by Bain and Band (2016), good corporate governance makes
certain success of corporate governance and ensure higher rate of economic growth.
good corporate governance asserts the fact that nature of association between
owners and managers operating in a business concern need to be healthy and there
must not be any kind of disagreement (De Haanand Vlahu2016). Also, the owners
need to see that actual performance of individuals is as per standard performance.
As suggested by Ilievet al.(2015), corporate governance helps in the process of
ascertainment of specific ways to undertake effectual strategic decisions. This
provides authority and at the same time accountability to directors of the board of
firms. Nowadays, in case of market oriented system, requirement for corporate
governance stems. Additionally, level of efficacy of operation and globalization can
be considered to be significant facets that advocate corporate governance. As such,
corporate governance is necessary to build up value to firm’s stakeholders.
Essentially, corporate governance makes certain maintenance of transparency that
ensures strong and balanced economic development (Cuomo et al.2016). This also
makes certain that interests of shareholders are shielded appropriately and helps in
exercising rights and proper recognition of rights of corporation.
2.3 Code of Corporate governance (CG) use for research
The backdrop of corporate governance- CG code goes back long back when
it known as Combined Code, which provided the standards of the effective practices
for the companies that are listed relating to composition of firms’ board and other
factors as well (Tricker and Tricker 2015). The code used to get published by the

11CORPORATE GOVERNANCE IN RETAIL SEGMENT IN SINGAPORE Appendix
Financial Reporting Council. The study on analysis of level and degree of corporate
governance in firms operating in retail segment in Singapore can help in
understanding method of governing firms, instating, laws, and customs along with
strategies. The study at hand aids in understanding the study of corporate
governance in the area of Singapore based on latest code of corporate governance.
This study helps in understanding the practices stipulated under the latest codes
under corporate governance laws. Essentially, this study helps in understanding the
code implementing 15 principles, complemented by guidelines related to board
matters, remuneration matters, accountability and executive remuneration (Tricker
and Tricker 2015). This needs to be facilitated by nomination as well as
remuneration committee for overseeing different matters. Particularly, this study also
explains importance of accountability and audit, and requires institution of audit
committees and internal audit function as a significant aspect of corporate
governance as per latest codes. In addition to this, this study also helps in
understanding significance of strong internal control procedures in place and this
promotes greater disclosure for and communicates with different shareholders
(McCaheryet al. 2016). Therefore, the current research paper discusses current
developments along with future trends in the region of corporate governance-CG in
the region of Singapore.
This account of the Code has at its heart Principles of CG-corporate
governance. Conformity with specific principles can be said to be obligatory. In
essence, these principles established widely accepted features of proper corporate
governance. Firms call for 1 to explain their corporate governance exercises with
orientation to both the Principles as well as Provisions. The principles include
conduct of affairs by the board, composition as well as guidance by the committee,

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clear separation of responsibilities between Board and firm’s, Management,
membership of the firm’s board, performance of the board, matters of remuneration,
level of remuneration, remuneration revelations and many others.
2.4 Prior Studies on corporate governance
There have been numerous studies that have been prepared on the subject
matter of corporate governance. In itself, corporate governance-CG can be
considered to be one of the most important topics taken into consideration by firms.
The companies in Singapore have been taking actions and steps with the help of
which they have been able to manage their companies in an effective manner
(McCahery et al. 2016).
There have been several meta-analyses that have been done on this topic
and in this manner proper and effective governance has been maintained. It is seen
that corporate governance has been very much influential in USA, where all the
companies have their corporate governance plans with the help of which strengths
and weaknesses of the companies are understood. The corporate governance plans
are constructed on an annual basis and accordingly plans and processes are
prepared and are reviewed accordingly (Davies 2016). There are countries like India
and China that have even incorporated this plan with the help of which better
understanding of the operations of the company can be understood. This process is
even helpful in having an understanding of the relationship among the stakeholders
and in this manner enhance functional activities are executed. The developing
countries like India and Korea have been influencing this process and thereby all the
companies have been making use of the same (Azeez 2015). Therefore, it can
hereby be ascertained that corporate governance-CG has an important role in the
process of development of the companies and hence the organizations in Singapore