Code of corporate governance as a catalyst to companies’ performances: A review of Malaysian experience

• Main Authors: Ghazali, Zahiruddin, Abdul Manab, Norlida
• Format: Article
• Language: English
• Published: World Business Institute, Australia 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15398/1/Zah.pdf; http://repo.uum.edu.my/15398/; http://www.wrbrpapers.com/previous_issue/July/2014

This study aims to highlight whether the implementation of Malaysian Code of Corporate Governance in 2000 and the revise version in 2007 triggers a favourable impact to Malaysian Bourse listed companies’ performances.This study sets apart from prior studies by providing evidence on value relevance of ERM and corporate governance compliance using the Malaysian Code of Corporate Governance (MCCG) as a proxy for ERM practices. This study uses a standard and reliable accounting variables with two-tailed Wilcoxon signed rank test methods to provide a justifiable research methodology.It is found that test result to be in tandem with prior studies, nonetheless, is also found that both MCCGs fail to produce a lasting mechanism in enhancing companies’ performances.