Questionnaire design

Collis and Hussey (2003) outline the considerations and guidelines to be followed in the construction of questionnaires. For example, the questions must be asked in very simple and concise language, and the researcher should not place unrealistic demands on respondents’ level of knowledge and education. The researcher should ensure that everybody can take the same meaning from each question, and each question should deal with only one dimension or aspect; that is, the questions should be formulated in such a way that there is no escape route in terms of the answer. Questions should be specific and not too general in nature so that the respondent does not give several answers. They should not be of a suggestive nature, directing the respondent towards a particular answer or opinion, and questions should be formulated in polite and soft language. The words and language used in the questions should be straightforward and free of any hidden meaning. Questions should be placed in the right order, with easy and positive questions asked first. The questionnaire should be formatted and printed in such a way that it does not look off-putting in terms of its length or complexity. It should be pre-tested on three to five respondents in terms of level of difficulty, willingness of the respondents to answer sensitive questions and the time it takes respondents to complete the questionnaire.

Saunders, Thornhill and Lewis (2007) describe conducting a questionnaire as the process of translating a concept into a measurable variable. The researcher in this case designed the questionnaire after reviewing corporate governance literature aimed at improving the quality of corporate governance practice as a means of enhancing firm performance in listed companies in the UAE. The aim of the questionnaire is to collect

data that will be used to assess the implementation of corporate governance on the basis of the OECD Principles and the literature review.

6.6.2.1Form of the questions

There have been numerous discussions regarding open versus closed questions in survey research (Gillham, 2008), and researchers sometimes disagree on how questions should be formed and structured in a questionnaire (Hussey & Hussey, 1997). Therefore, in constructing the questions, one of the most significant considerations for many researchers is whether to ask a question in an open or closed format (Bryman & Bell, 2007). The appropriateness of either open-ended or closed-ended questions is based on the following considerations, among others: the purpose for which a piece of information is to be used; the type of study population from which information is to be obtained; the proposed format for communicating the findings; and the socioeconomic background of the readership (Kumar, 2011). In addition, the advantages and disadvantages of open- or closed-ended questions should be taken into account when questionnaires are devised (Hussey & Hussey, 1997).

Open questions offer the advantages that respondents can give personal responses or opinions in their own words and feel comfortable about providing the information and expressing their opinions (Kumar, 2011). Another advantage of the open question is that respondents’ answers are not influenced unduly by the interviewer or questionnaire, and verbatim replies from respondents can provide a rich source of varied material, which might have remained untapped if categories on a pre-coded list were used. At the same time, response rates for open questions can be very low because people are often too preoccupied or busy to write full-length answers (Veal, 2005). Further, such questions require more effort from respondents, they are costly and time-consuming, and they take time for the researcher to process. The coding and analysis of open questions is also more difficult (Oppenheim, 1992; Veal & Ticehurst, 2000). Another problem in using open questions is that respondents might not be willing to write a long answer; instead, they might decide to leave the question blank (Dawson, 2002).

In closed questions, a range of answers is set out in the questionnaire and respondents are asked to tick the appropriate boxes (Veal, 2005). According to Saunders, Thornhill and Lewis (2007), closed questions are usually quicker and easier to answer because they require minimal writing. This type of question is useful when a questionnaire is

long or requires individual completion. In addition, answers from different respondents to closed questions can be easier to compare, easier to code and are usually easy to analyse because the range of answers is limited (Neuman, 1997). Conversely, one of the main disadvantages of closed questions is that the information they provide from participants lacks depth and variety (Kumar, 2011). Further, respondents whose desired answer is not among the answer choices may end up frustrated, while respondents with no opinion or insufficient knowledge may not answer the questions (Neuman, 1997). There is also a strong possibility of researcher bias in answer categories because the investigator may list only the response patterns that he or she is interested in (Oppenheim, 1992; Kumar, 2011).

The aim of the questionnaire survey in this research is to obtain perceptions on the current state of corporate governance in the UAE. Hence, to achieve the purpose of the research, the study generally uses closed questions for the questionnaire. Most of the questions for the study use a five-point Likert scale, which is used extensively in social science research (Saunders, Thornhill & Lewis, 2007), with the following values: 5 = strongly agree or strongly significant, 4 = agree or significant, 3 = neutral, 2 = disagree or insignificant and 1 = strongly disagree or strongly insignificant. However, it is important to note that this was the case with regards to all positive statements. The negative statements were scaled in reverse order (5 = strongly disagree, 4 = disagree, 3 = neutral, 2 = agree and 1 = strongly agree) (Robson, 2002). The Likert scale measures opinions, beliefs and attitudes by showing varying degrees of agreement with, or endorsement of, a statement (DeVellis, 2003). To overcome the disadvantages of this type of questionnaire, a comprehensive range of answers is listed to minimise the risk of biased responses. In addition, space for more information and comments is provided at the end of the questionnaire.

6.6.2.2Words used in questions

Marked attention must be paid to developing clear, unambiguous and useful questions, and the wording of the questions is fundamental in developing the questionnaire. An essential element for researchers when designing questionnaires is to pay close attention to the words used and avoid questions that may cause annoyance, frustration, offence, embarrassment or sadness (Dawson, 2002). Likewise, the researcher should observe a number of principles, such as avoiding jargon, simplifying whenever possible, avoiding ambiguity, avoiding leading questions and asking only one question at a time (i.e., avoiding multi-purpose questions) (Veal, 2005).

Sekaran (2003) states that a range of factors relate to the words in questions, including the level of language sophistication, the type and form of questions asked, and the sequencing of the questions. Thus, in constructing the questionnaire for this survey, a checklist of factors is used for personal data sought, emphasising the provision of simple structures and words. On this basis, questions should be kept short and simple, should not contain any type of prestige bias, and should be indirect rather than direct in the case of very sensitive issues. For personal data, closed questions should be used and leading questions should be avoided.

6.6.2.3Sequencing of the questions

The order of the questions is an essential component in constructing a questionnaire because it affects the interest and willingness of participants to respond, and it affects the quality of the information they provide (Kumar, 2011). For this reason, a questionnaire should flow in a logical and comfortable manner and adhere to a number of principles, such as starting with easy questions and leading in with relevant questions, but leaving sensitive questions until later (Veal, 2005). The questions may follow a logical sequence based on the aim of the research, or they may be asked in random order. In a questionnaire in which random questions are not used, the order of the questions should go from general questions to more particular questions, and from questions that are relatively easy to answer to more complex ones (Sekaran, 2003). In constructing this research questionnaire, the following guidelines regarding the question sequence were considered:

• start with concrete questions and move on to abstract questions

• start with questions that the study participants will enjoy answering

• keep open-ended questions to a minimum and, wherever possible, place them towards the end of the questionnaire

• classify questions into sections or parts in order to facilitate the process of structuring the questionnaire and create a smooth flow

• make use of filter questions to ensure that questions are relevant to the study participants and, where possible, try to introduce a variety of question formats so the questionnaire remains interesting.

6.6.2.4Content of the questionnaire

Many different types of questions can be used in research, including personal factual questions, factual questions on other topics, informant factual questions, questions about attitudes and beliefs, questions about normative standards and values, and questions about knowledge (Bryman & Bell, 2011). A copy of the questionnaire used in this study is provided in Appendix 5. The final questionnaire in this study is divided into the following parts.

1. Concept of corporate governance

This part of the questionnaire was designed to obtain respondents’ perceptions of the concept of corporate governance in the UAE context. The first question elicited respondents’ opinions regarding the definition of corporate governance by providing three definitions of the term. The second question focused on views from various study groups regarding the significance of corporate governance in the UAE.

2. Principles of corporate governance practice

This part of the questionnaire was designed to elicit respondents’ opinions regarding the current corporate governance practice in the UAE. It is divided into five elements: rights of shareholders and key ownership functions, equitable treatment of shareholders, role of stakeholders in corporate governance, disclosure and transparency, and responsibilities of the board.

2.1 Rights of shareholders and key ownership functions

Respondents were asked to elicit their opinions regarding shareholders’ rights and ownership functions: ownership transfer among shareholders is facilitated; shareholders have the right to participate in company profits; shareholders have the right to regularly obtain information related to the company; shareholders have the right to vote in general meetings; shareholders are able to vote in elections and remove members of the board of directors; shareholders are provided with adequate and timely information about company meetings; shareholders have the right to discuss the external auditor’s report at the Annual General Meeting; details about the capital structure of the company are disclosed to shareholders; and shareholders have the right to be informed on decisions concerning fundamental corporate changes.

2.2 Equitable treatment of shareholders

This section investigates the equitable treatment of shareholders in the context of the UAE: all shareholders who are from the same class are treated equally; shareholders have the right to obtain information about voting rights before they purchase shares; processes and procedures for general shareholder meetings allow for the equitable treatment of all shareholders; minority shareholders are protected from insider trading; there are means to remove the obstacles of cross-border voting; and board members and key executives disclose material interests in any transaction or matter that directly affects the company.

2.3 Role of stakeholders in corporate governance

This section contains information about the role of stakeholders, including: stakeholders’ rights that are established by law are respected by the company; performance-enhancing mechanisms for employee participation are permitted to develop; stakeholders have the opportunity to obtain effective redress for the violation of their rights; stakeholders have the right to obtain sufficient and reliable information on a timely basis; stakeholders have the right to freely communicate their concerns about illegal or unethical practices to the board; and an effective corporate governance framework enforces creditor rights.

2.4 Disclosure and transparency

This section consists of information about disclosure and transparency: the financial and operating results of the company are disclosed; the objectives of the company are disclosed; major share ownership is disclosed; foreseeable risk factors are disclosed, remuneration of board members and key executives is disclosed; issues regarding employees and other stakeholders, such as programs for human resource development and training, are disclosed; an annual audit of the company is conducted by an independent auditor; information is prepared and disclosed in accordance with the International Accounting Standards; and channels are provided for the dissemination of information on a timely basis to relevant users.

2.5 Responsibilities of the board

This section deals with the responsibilities of the board: board members are expected to act in the best interests of the company and the shareholders; the board takes stakeholders’ interests into account; the board monitors the effectiveness of the company’s governance practices; the board of directors elects, monitors and replaces executives when necessary; the board monitors and manages potential conflicts of interest of management, board members and shareholders; the board supervises the process of disclosure and communication; board members are provided with accurate and relevant information about the company; the board has approved a strategic plan for the company; and board members are able to devote sufficient time to their responsibilities.

3. Obstacles to corporate governance

This section aims to elicit more details on possible obstacles that might affect corporate governance practice in the UAE, including: weak legal controls and law enforcement; culture of the UAE community; weak accounting and auditing profession; poor-quality accounting and finance education; weak infrastructures of financial institutions; lack of legal and regulatory systems that govern companies’ activities; government interference in business activities; the state of the UAE economy; the costs of practicing good corporate governance outweigh the benefits; poor financial and non-financial disclosure; and a good relationship between the company and the external auditors.

4. Enablers that improve corporate governance

This part of the questionnaire endeavours to obtain respondents’ opinions regarding the enabling factors that could improve corporate governance practice in companies. Enabling factors include: ensuring wide adoption of international accounting and auditing standards; using training and other means of support; developing incentive programs for compliance with the principles of corporate governance; establishing corporate governance education programs at universities; establishing an institute of directors for training, raising awareness and education for CEOs, directors and board members; enhancing professional accounting and auditing bodies; participating in international events, conferences, meetings and committees dealing with corporate governance; encouraging research into corporate governance in the UAE; learning from the experiences of other countries concerning corporate governance practice; and initiating regional corporate governance partnership programs with international organisations such as the OECD.

5. Demography information

This part of the questionnaire attempts to obtain demographic information from respondents (age, position, working experience, educational level and academic major). Demographic information helps to describe participants’ (manager/CEO, board of directors, audit committee members, internal auditors and accountants) characteristics when the researcher is analysing the results of the research. Further, personal information and demographics are useful for the researcher to justify various perceptions among groups.

In general, the aim of the questionnaire survey in this study is to obtain perceptions on current corporate governance practices in the UAE. Hence, the questionnaire needs to be devised in such a way that it is specific enough to elicit answers to the questions, but general enough to ensure that respondents do not reveal any sensitive information. As mentioned earlier, closed-ended questions offer a selection of answers from which the respondent is asked to select one. For this reason, questions in this instrument are closed-ended and have been constructed according to the five-point Likert scale, as advocated by Bryman and Bell (2007), Hussey and Hussey (1997) and Zikmund (2000) for cases similar to the current study.