Corporate governance and company's performance

Theoretically, the principles of corporate governance are consistent with the concept of wealth maximisation and strategic management. It is to ensure the shareholder goal - wealth maximisation - is implemented. Given this objective, is there truly any correlation between corporate governance and...

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Main Author: Normaliza Kairon,
Format: Thesis
Published: 2006
Subjects:
Online Access:http://library.oum.edu.my/repository/283/1/corporate_governence.pdf
http://library.oum.edu.my/repository/283/
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spelling my.oum.2832013-07-19T08:14:55Z Corporate governance and company's performance Normaliza Kairon, HD28 Management. Industrial Management Theoretically, the principles of corporate governance are consistent with the concept of wealth maximisation and strategic management. It is to ensure the shareholder goal - wealth maximisation - is implemented. Given this objective, is there truly any correlation between corporate governance and company's wealth maximisation, reflected by its performance? In the past, certain studies discovered a strong correlation. Most others found weak results or no link between corporate governance and performance. To contribute further to the earlier findings, this study examined the relationships of board size, director independence, number of board meetings, non-duality role of Chief Executive, role of non-executive Chairman, number of board committees, voluntary training, continuous communication with investors and existence of director to whom concerns can be conveyed; for selected PLCs, against their ROE, ROA, EPS and share price. Results for individual relationships between each proxy of corporate governance and proxy of performance were inconsistent. In general however, the results imply weak relationships exist between corporate governance and' company's performance. The findings from this study will become handy in the wake of shareholders' activism and provide guidance to corporate players in understanding their role; it may also offer relevant authorities or policy setters, ideas to mitigate any loopholes in policing corporate governance. (Author's abstract) 2006 Thesis NonPeerReviewed text http://library.oum.edu.my/repository/283/1/corporate_governence.pdf Normaliza Kairon, (2006) Corporate governance and company's performance. Masters thesis, Open University Malaysia (OUM). http://library.oum.edu.my/repository/283/
institution Open University Malaysia
building OUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Open University Malaysia
content_source OUM Knowledge Repository
url_provider http://library.oum.edu.my/repository/
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Normaliza Kairon,
Corporate governance and company's performance
description Theoretically, the principles of corporate governance are consistent with the concept of wealth maximisation and strategic management. It is to ensure the shareholder goal - wealth maximisation - is implemented. Given this objective, is there truly any correlation between corporate governance and company's wealth maximisation, reflected by its performance? In the past, certain studies discovered a strong correlation. Most others found weak results or no link between corporate governance and performance. To contribute further to the earlier findings, this study examined the relationships of board size, director independence, number of board meetings, non-duality role of Chief Executive, role of non-executive Chairman, number of board committees, voluntary training, continuous communication with investors and existence of director to whom concerns can be conveyed; for selected PLCs, against their ROE, ROA, EPS and share price. Results for individual relationships between each proxy of corporate governance and proxy of performance were inconsistent. In general however, the results imply weak relationships exist between corporate governance and' company's performance. The findings from this study will become handy in the wake of shareholders' activism and provide guidance to corporate players in understanding their role; it may also offer relevant authorities or policy setters, ideas to mitigate any loopholes in policing corporate governance. (Author's abstract)
format Thesis
author Normaliza Kairon,
author_facet Normaliza Kairon,
author_sort Normaliza Kairon,
title Corporate governance and company's performance
title_short Corporate governance and company's performance
title_full Corporate governance and company's performance
title_fullStr Corporate governance and company's performance
title_full_unstemmed Corporate governance and company's performance
title_sort corporate governance and company's performance
publishDate 2006
url http://library.oum.edu.my/repository/283/1/corporate_governence.pdf
http://library.oum.edu.my/repository/283/
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score 12.913726