Antecedents And Outcome Of Compliance With Competition Act 2010 Of Public Listed Companies In Malaysia
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Date
2021-05
Authors
Sankaran, Sasikala
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The Competition Act 2010 (CA 2010) was gazetted in June 2010 and enforced in January 2012. The Malaysian Competition Commission (MyCC) was given the mandate to enforce the provisions of CA 2010 among the industry players at the market place. Although MyCC continuously conducts advocacy programmes to educate the public on CA 2010, and the level of promotion of competition in the marketplace increases, the number of complaints of anti-competitive conducts also increases over the years. Therefore, the purpose of this study is to ascertain the level of compliance with CA 2010 among the public listed companies (PLCs) of the Main Board of Bursa Malaysia and to examine the relationship between antecedents (1) the Board of Directors (BOD) Awareness and Knowledge, (2) Perception of Sanctions (Perceived Cost of Sanctions, Perceived Likelihood of Being Caught, Perceived Severity of MyCC’s enforcement, Perceived Risk), (3) Presence of Ethical Culture, and (4) the BOD Quality (Training) with Compliance to CA 2010 and the outcome on the Financial Performance of PLCs. This study also intends to examine the moderator interaction, Industry Type between the antecedents and dependent variable. The response rate of this study is 13% of which a total of 103 from the population of 780 completed and usable mailed survey questionnaires were returned by BODs or representatives of PLCs. The data were processed using SPSS for descriptive analysis and WarpPLS for measurement and structural models analysis.The overall level of compliance with CA 2010 among PLCs is medium. The result showed the BOD Awareness and Knowledge about CA 2010, having a significant relationship with Compliance with CA 2010. The results also showed that Industry type significantly moderates the relationship between the BOD Awareness and Knowledge about CA 2010 and Compliance with CA 2010. Furthermore, the result revealed that the Perception of Likelihood of being caught having a significant relationship with Compliance with CA 2010 among PLCs. This study also found a significant relationship between Compliance with CA 2010 and the outcome; Financial Performance. This study encourages MyCC to conduct focused advocacy program to increase the BOD Awareness and Knowledge of CA 2010 and increase its monitoring activities of anti-competitive conducts. This study revealed better Financial Performance when in compliance with CA 2010, thus BODs need to drive the compliance agenda as part of their corporate governance. This study propagates both BODs of Malaysian PLCs and MyCC forging ahead in one togetherness in ensuring a higher level of compliance with CA 2010, thus protecting the process of competition.
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Keywords
Management