Factors that Influence Corporate Governance Failures in Malaysia

• Main Authors: Tengku Intan Nabilah, Tenku Sulaiman, Nur Syazwani, Ahmad
• Format: Conference or Workshop Item
• Language: English
• Published: Universiti Malaysia Pahang 2017
• Subjects: HD28 Management. Industrial Management
• Online Access: http://umpir.ump.edu.my/id/eprint/17607/1/5.%20Factors%20that%20influence%20corporate%20governance%20failures%20in%20malaysia.pdf; http://umpir.ump.edu.my/id/eprint/17607/; http://fgic.ump.edu.my/images/docman/1st-FGIC-Proceedings.pdf

In this modern competitive world, corporate failure has been debated as it had an adverse effect on many people such as shareholders, employees, suppliers, and also gives a diverse impact on the local as well as international communities. This paper explores the impact and how to overcome corporate failure in Malaysia. The first part of the paper describes all the relevant facts about the company selected. In this section, will review the corporate scandal happen and factors that leads to corporate failure by using theory of fraud diamond. The second part of the paper explores the recommendation and challenges that are needed to address corporate failure. The recommendations include having the basic fundamentals of a good company culture such as integrity, transparency, accountability which starts from the tone at the top. Organizations need to also review their internal control systems such as strengthening their standard operating procedure and controls to ensure all weaknesses in controls are addressed. Organizations also need to strictly enforce the laws and regulations as well as implement on-going monitoring to ensure that all parties, internal and external comply with the laws and regulations set. Lastly, the paper will share the lessons learned from the two cases examined.