Accountability and transparency within the corporate governance of Maltese gaming companies

Abstract

PURPOSE: This study aims to: (i) assess whether accountability and transparency are prevalent within the corporate governance of Maltese gaming companies, (ii) identify the primary challenges faced in sustaining these principles, and (iii) examine how these principles impact the financial performance of gaming companies. DESIGN: A predominantly qualitative approach was employed, supported by quantitative elements. Eighteen semi-structured interviews were conducted with stakeholders, including gaming company representatives, audit professionals, and the authority. A corporate governance index was developed from interview data, and financial statements from 2020 to 2023 were analysed to obtain revenue figures. FINDINGS: The findings indicate that accountability and transparency are generally prioritised; however, governance standards vary, with publicly-listed firms adopting more robust frameworks. Additionally, a positive and statistically significant relationship between governance and financial performance was observed in Business-to-Consumer companies. In Business-to-Business firms, the relationship remained positive but was not statistically significant. Finally, the findings indicate that the main challenges relate to regulatory compliance, the difficulty of safeguarding sensitive information while maintaining transparency, and people-related issues. CONCLUSIONS: The study concludes that while accountability and transparency are embedded within governance frameworks, their sophistication largely depends on the entity’s ownership structure. The study further concludes that strong governance is associated with improved financial performance; however, this relationship depends on firm-specific factors. It also concludes that regulatory compliance remains a key challenge, alongside the need to balance disclosure with confidentiality. Meanwhile, people-related challenges appear less significant. IMPLICATIONS: This study aims to raise awareness on the importance of embedding accountability and transparency within governance frameworks. The proposed recommendations may assist companies in strengthening their governance practices to support good governance, and enable authorities to provide more guidance in addressing sector-specific challenges.