Corporate governance and firm performance in an emerging market: the case of Malaysian firms

This study examines the corporate governance mechanisms and how they affect firm performance in Malaysia. After the financial crisis in 1997/98, the CG issues have been the most debated, discussed, and researched in the attempt to improve the CG structure accommodating every economy regardless of th...

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Main Authors: Haron, Razali, Abdullah Othman, Anwar Hasan, Nomran, Naji, Md Husin, Maizaitulaidawati
Format: Book Chapter
Language:English
Published: IGI Global 2020
Subjects:
Online Access:http://irep.iium.edu.my/80086/
http://irep.iium.edu.my/80086/1/80086_Corporate%20governance%20and%20firm%20performance.pdf
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author Haron, Razali
Abdullah Othman, Anwar Hasan
Nomran, Naji
Md Husin, Maizaitulaidawati
author_facet Haron, Razali
Abdullah Othman, Anwar Hasan
Nomran, Naji
Md Husin, Maizaitulaidawati
author_sort Haron, Razali
building IIUM Repository
collection Online Access
description This study examines the corporate governance mechanisms and how they affect firm performance in Malaysia. After the financial crisis in 1997/98, the CG issues have been the most debated, discussed, and researched in the attempt to improve the CG structure accommodating every economy regardless of the economic landscapes. Using a rich and huge data on Malaysian firms for 16 observation years, this study found that the MCCG has been of a closely referred blueprint by firms in Malaysia to improve firms’ performance. Certain CG mechanisms do have significant impact on firm performance. Firms seem to operate in a large board size indicating a positive relationship with performance and board independence. CEO duality is negatively related, in support of separation of roles, complementing the result of board independence and ownership structure as positively related to performance. Agency theory seems to be the dominant theory influencing the CG structure of firms in Malaysia.
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institution International Islamic University Malaysia
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language English
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publishDate 2020
publisher IGI Global
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spelling iium-800862020-10-13T04:16:27Z http://irep.iium.edu.my/80086/ Corporate governance and firm performance in an emerging market: the case of Malaysian firms Haron, Razali Abdullah Othman, Anwar Hasan Nomran, Naji Md Husin, Maizaitulaidawati HG4001 Financial management. Business finance. Corporation finance. This study examines the corporate governance mechanisms and how they affect firm performance in Malaysia. After the financial crisis in 1997/98, the CG issues have been the most debated, discussed, and researched in the attempt to improve the CG structure accommodating every economy regardless of the economic landscapes. Using a rich and huge data on Malaysian firms for 16 observation years, this study found that the MCCG has been of a closely referred blueprint by firms in Malaysia to improve firms’ performance. Certain CG mechanisms do have significant impact on firm performance. Firms seem to operate in a large board size indicating a positive relationship with performance and board independence. CEO duality is negatively related, in support of separation of roles, complementing the result of board independence and ownership structure as positively related to performance. Agency theory seems to be the dominant theory influencing the CG structure of firms in Malaysia. IGI Global 2020 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/80086/1/80086_Corporate%20governance%20and%20firm%20performance.pdf Haron, Razali and Abdullah Othman, Anwar Hasan and Nomran, Naji and Md Husin, Maizaitulaidawati (2020) Corporate governance and firm performance in an emerging market: the case of Malaysian firms. In: Handbook of research on accounting and financial studies. IGI Global, Hershey PA, USA, pp. 208-226. ISBN 9781799821366 https://www.igi-global.com/book/handbook-research-accounting-financial-studies/235697 10.4018/978-1-7998-2136-6
spellingShingle HG4001 Financial management. Business finance. Corporation finance.
Haron, Razali
Abdullah Othman, Anwar Hasan
Nomran, Naji
Md Husin, Maizaitulaidawati
Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title_full Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title_fullStr Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title_full_unstemmed Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title_short Corporate governance and firm performance in an emerging market: the case of Malaysian firms
title_sort corporate governance and firm performance in an emerging market: the case of malaysian firms
topic HG4001 Financial management. Business finance. Corporation finance.
url http://irep.iium.edu.my/80086/
http://irep.iium.edu.my/80086/
http://irep.iium.edu.my/80086/
http://irep.iium.edu.my/80086/1/80086_Corporate%20governance%20and%20firm%20performance.pdf