Corporate governance transparency in small listed entities : the case of Malta

Abstract

Purpose: The objectives of this study are to examine whether a lack of transparency is a common corporate governance feature of listed entities (“MLEs”) in the small European state of Malta and, if so, to assess the possible implications of such a stance. Design/Approach/Methodology: In order to achieve such research objectives, a predominantly qualitative mixed methodology was adopted. This involved carrying out thirteen semi-structured interviews with MLE and audit firm representatives, these being supported by an examination of the corporate governance statements of MLEs for the 2015-2017 periods. Findings: Results show a general lack of transparency in corporate governance reporting, with a common MLE tendency to comply only at a superficial level with the principles of good corporate governance and thus to often fail to sustain an appropriate level of transparency and governance structures. Practical Implications: It is recomended to increase company and shareholder awareness so as to help towards further improving current attitudes. Originality/Value: The study is particularly envisaged to contribute towards encouraging stakeholders in small-state contexts to reassess their current perspectives towards corporate transparency.