Corporate Governance Mechanisms with Firm Performance: A Study on Malaysia's and Hong Kong's Real Estate Investment Trust (REITs) Public Listed Companies

David, Ching Yat Ng; Chang, Yen Wen; Low, Suet Cheng

doi:10.31098/jgrcs.v1i1.511

Cited by 5 publications

(3 citation statements)

References 52 publications

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“…According to Fariha et al (2022), conflict of interest and the agency cost can be effectively diminished by the decisions made during BM; hence, the BM effectively maximized the shareholders' wealth. The BODs were able to appraise and enhance executive management's current strategies and performance during BM (Ng et al, 2021). BM can measure by the total number of board meetings (Aljaaidi et al, 2021).…”

Section: Relationship Between Number Of Board Meetings (Bm) and Firm ...mentioning

confidence: 99%

A Pre- and Post- MCCG 2012 Evaluation on the Impacts of Corporate Governance and Intellectual Capital with Firm Performance

Chang

2022

E-BPJ

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This paper aims to examine and compare the impact of corporate governance (CG) and intellectual capital (IC) on firm performance (FP) between pre- Malaysia Code of Corporate Governance (MCCG) 2012 and post- MCCG 2012 of GLCs. Panel data analysis was used. The data were collected from the annual report of the 32 GLCs from 2005 to 2012 (pre- MCCG 2012) and from 2013 to 2020 (post- MCCG 2012). There was a total of 512 firm-year observations. The CG of post- MCCG 2012 has a greater impact on earnings per share (EPS) compared to pre- MCCG 2012. The IC of pre- MCCG 2012 has a greater impact on return on equity (ROE), Tobin’s Q and EPS. Keywords: Corporate Governance; Intellectual Capital; MCCG 2012; Government-Linked Companies eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v7iSI8.3909

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Section: Relationship Between Number Of Board Meetings (Bm) and Firm ...mentioning

confidence: 99%

A Pre- and Post- MCCG 2012 Evaluation on the Impacts of Corporate Governance and Intellectual Capital with Firm Performance

Chang

2022

E-BPJ

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“…Even more recently, Soewignyo et al (2021) studied Indonesian RE companies for the period 2015-2019 and reported a statistically insignificant effect of CG factors on firm performance. Concurrently, David et al (2021) assessed the impact of CG mechanisms on Hong Kong and Malaysian REITs and concluded that board size and independent directors on audit committees had a significant effect on Malaysian REIT performance while CEO duality and the number of independent directors had no significant impact on Hong Kong REITs. A critical appraisal of the studies signals a common pathway towards CG-FP research with little emphasis given to the CG adherence levels.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing Institutional Dynamics of Governance Compliance in Emerging Markets: The GCC Real Estate Sector

Pillai

Al‐Malkawi

Bhatti

2021

JRFM

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The real estate sector has emerged as the bedrock of the Gulf Cooperation Council (GCC) economies, and it has remained resilient despite the various unprecedented micro- and macro-economic shocks devouring the world’s economies. However, wavering investor attitudes and minimal exposure to real estate investment vehicles, coupled with weak regulatory frameworks, have led to dramatic downturns in the sector. Transparency about what is happening in real estate is imperative if the success of high-profile initiatives is to continue and much depends on good corporate governance (CG) in the sector. Using the most recent data from 2019, the current study applies the CG Index (CGI) and CG Deviation Index (CGDI) constructs to the real estate (RE) sector in the GCC in an effort to develop vital indicators for future RE investment decisions in the GCC region. The results indicate that the highest CG adherence levels are being achieved in Dubai, followed by Abu Dhabi and Saudi Arabia. The authors attribute these countries’ success in CG adherence to the entrepreneurial identity of them RE firms as well as to their governance capacity, their socio-cognitive capability, and the level of regulatory enforcement within the context of their dominant governance logic. It should be noted that there are variations in adherence levels throughout each region. The results also agree with prior literature that a higher CGS leads to a lower CGD score, and vice versa. At this point, encouraging more real estate investment trust (REIT) formations in the GCC could ensure value propositions, such as liquidity, to both investors and RE companies as well as solid governance fundamentals. This is strongly recommended for increasing the RE presence and its contribution to the GDP of each country.

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“…Even though compliance with the MCCG 2021 is voluntary, all publicly listed companies are compulsory under the Listing Requirements of Bursa Malaysia Securities Berhad to report in the annual reports as recommended by MCCG 2021. Studies by Ng et al (2021) state that more board diversity will result in better depth and breadth that the board can give compared to non-diverse boards with reference to previous MCCG 2017. Distressed firms' governance characteristics significantly affect the bankruptcy probability (Fich & Slezak, 2008).…”

Section: Introduction 11 Backgroundmentioning

confidence: 99%

Board Diversity in Financial Distress Companies in Malaysia

Johan,

Muhamad,

Yusoff

2022

AJPBS

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The declining financial performance is often associated with the weak function of the board’s role in the companies. The number of publicly listed companies categorised as Practice Note (PN17) by Bursa Malaysia shows an increase due to financial distress. This study examines the effectiveness of board diversity in financially distressed companies categorised as PN17 by Bursa Malaysia using content analysis of annual reports for five years as secondary data. The characteristics of board diversity include board professionalism and a politically connected board. In contrast, the proxy of financial distress will be measured using Altman Z Score for multiple regressions in evaluating financial performance ratios. Implementing the Malaysian Code of Corporate Governance (MCCG) in 2021 also assessed the effectiveness of board diversity and its interaction with financial distress. The findings from this study are expected to provide evidence that board diversity may have a significant relationship with financially distressed companies. Overall, this study may assist investors, practitioners, and external regulators in monitoring the company by assessing the effectiveness of board diversity from being classified as a financially distressed company.

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Corporate Governance Mechanisms with Firm Performance: A Study on Malaysia's and Hong Kong's Real Estate Investment Trust (REITs) Public Listed Companies

Cited by 5 publications

References 52 publications

A Pre- and Post- MCCG 2012 Evaluation on the Impacts of Corporate Governance and Intellectual Capital with Firm Performance

A Pre- and Post- MCCG 2012 Evaluation on the Impacts of Corporate Governance and Intellectual Capital with Firm Performance

Assessing Institutional Dynamics of Governance Compliance in Emerging Markets: The GCC Real Estate Sector

Board Diversity in Financial Distress Companies in Malaysia

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