The disclosure of corporate governance compliance and its effects to the firm's performance: Evidence from public listed companies in Malaysia

• Main Author: Mohd Saad, Noriza
• Format: Conference or Workshop Item
• Language: English
• Published: 2007
• Subjects: HF Commerce
• Online Access: http://repo.uum.edu.my/2471/1/Noriza_Mohd_Saad_.pdf; http://repo.uum.edu.my/2471/

This study investigates the level of corporate governance compliance among the board of directors (BOD) of public-listed companies in Malaysia and the effects to firm’s performance. To analyze the level of corporate governance compliance among companies, secondary data is used, which are gathered from the analysis of companies’ annual report taken from a sample of 131 companies represent four industries: (i) consumer products (ii) Industrial products (iii) trading and services and (iv) plantation in the Main Board of Bursa Malaysia Security Berhad over the period between 2001 and 2005 were randomly selected. Throughout, this study uses Regression Analysis to run the entire dependent (DV): Return on Assets (ROA), Return on Equity (ROE) and Net Profit Margin (NPM) and independent variables (IV): Board Meeting (BM), Board Composition (BC), Board Training (BT) and Board Remuneration (BR). The result found that most of the company has complied well with the code of corporate governance in Malaysia. This study also had found the evidence that there is a relationship between corporate governance practices with the firm’s performance. Overall, the company with good corporate governance compliance can maximize the shareholders wealth by maximizing their profitability performance.