Corporate governance in Malaysia: A glass half full?

It is believed that extensive political involvement in business fundamentally impacts the overall quality of both firm- and country-level corporate governance in a particular country. Using the corporate and institutional environment in Malaysia as our chosen example, we aim to show the profound inf...

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Main Authors: Ng, Sin Huei, Yeoh, Ken Kyid
Format: Article
Published: Institute of Public Enterprise 2012
Subjects:
Online Access:http://eprints.intimal.edu.my/1211/
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author Ng, Sin Huei
Yeoh, Ken Kyid
author_facet Ng, Sin Huei
Yeoh, Ken Kyid
author_sort Ng, Sin Huei
building INTI Institutional Repository
collection Online Access
description It is believed that extensive political involvement in business fundamentally impacts the overall quality of both firm- and country-level corporate governance in a particular country. Using the corporate and institutional environment in Malaysia as our chosen example, we aim to show the profound influence that national government policies and approaches to the running of their respective capital markets has on the corporate governance practices and norms in a particular country. Specifically, we show that political conflicts of interest can and have caused controlling shareholders of publicly-listed corporations to have greater inclination to engage in the expropriation of their minority shareholders. This tendency is particularly prevalent amongst large business groups where the link between politics and the business groups is most clearly displayed. We conclude that a culture of good corporate governance is extremely difficult to cultivate without good public / political governance.
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spelling intimal-12112018-10-23T03:47:25Z http://eprints.intimal.edu.my/1211/ Corporate governance in Malaysia: A glass half full? Ng, Sin Huei Yeoh, Ken Kyid HD Industries. Land use. Labor It is believed that extensive political involvement in business fundamentally impacts the overall quality of both firm- and country-level corporate governance in a particular country. Using the corporate and institutional environment in Malaysia as our chosen example, we aim to show the profound influence that national government policies and approaches to the running of their respective capital markets has on the corporate governance practices and norms in a particular country. Specifically, we show that political conflicts of interest can and have caused controlling shareholders of publicly-listed corporations to have greater inclination to engage in the expropriation of their minority shareholders. This tendency is particularly prevalent amongst large business groups where the link between politics and the business groups is most clearly displayed. We conclude that a culture of good corporate governance is extremely difficult to cultivate without good public / political governance. Institute of Public Enterprise 2012 Article PeerReviewed Ng, Sin Huei and Yeoh, Ken Kyid (2012) Corporate governance in Malaysia: A glass half full? Indian Journal of Corporate Governance, 5 (2). pp. 120-132. ISSN 9746862 https://doi.org/10.1177/0974686220120203 https://doi.org/10.1177/0974686220120203
spellingShingle HD Industries. Land use. Labor
Ng, Sin Huei
Yeoh, Ken Kyid
Corporate governance in Malaysia: A glass half full?
title Corporate governance in Malaysia: A glass half full?
title_full Corporate governance in Malaysia: A glass half full?
title_fullStr Corporate governance in Malaysia: A glass half full?
title_full_unstemmed Corporate governance in Malaysia: A glass half full?
title_short Corporate governance in Malaysia: A glass half full?
title_sort corporate governance in malaysia: a glass half full?
topic HD Industries. Land use. Labor
url http://eprints.intimal.edu.my/1211/
http://eprints.intimal.edu.my/1211/
http://eprints.intimal.edu.my/1211/