Does Board of Director’s Characteristics Affect Firm Performance? Evidence from Malaysian Public Listed Companies

Shukeri, Siti Norwahida; Shin, Ong Wei; Shaari, Mohd Shahidan

doi:10.5539/ibr.v5n9p120

Cited by 166 publications

(162 citation statements)

References 13 publications

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“…[20] found insignificant association between a CEO holding dual roles as chairman and income-increasing and income-decreasing earnings management among Malaysian firms, supporting the findings of [21]. [22] too yielded insignificant correlation between the CEO-duality role and return on equity. In an earlier study, [23] revealed significant evidence of the relationship between role duality and performance measure in return on assets and return on equity.…”

Section: And) ) and ' "- "(") )! #And( +"#*( ) " And) !/ ' *(+ )And"-supporting

confidence: 71%

Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

2017

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Section: And) ) and ' "- "(") )! #And( +"#*( ) " And) !/ ' *(+ )And"-supporting

confidence: 71%

Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

2017

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“…The impact of corporate governance on firm performance has gained a considerable attention by researchers in recent years (Shukeri et al, 2012). The financial scandals in the US economy such as the collapse of Worldcom and Enron have increased the attention of a lot parties in Malaysia.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Enterprise Risk Management on Firm Performance: Evidence from Malaysia

Ping¹,

Muthuveloo²

2015

ASS

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This study examined the implementation of Enterprise Risk Management (ERM) on firm performance of Public Listed Companies (PLCs) on main market in Bursa Malaysia based on COSO (2004) ERM Integrated Framework. In addition, this study also investigated the moderating role of Board of Directors' (BODs) monitoring, firm complexity and firm size of the implementation of ERM on firm performance. Questionnaire survey was adopted as the research methodology for this study. Total of 103 questionnaires were successfully collected through mail questionnaire from PLCs. The data was analyzed by using Partial Least Squares and Structural Equation Modeling Tool (Smart-PLS 2.0 M3). Based on the analysis, implementation of ERM was found to have significant influence on firm performance. In addition, monitoring by BODs, firm size and firm complexity were found to significantly influence the relationship between ERM implementation to firm performance. The findings from this study enable organizations to better understand the status of their ERM implementation and assist them in identifying areas of improvement with regards to the processes within each ERM elements. It also contributes to the literature on the importance of good governance within ERM framework in organizations.

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“…However, mixed results exist in how board size affects firm profitability. Some studies showed a positive relationship between these two across a wide array of sample countries (Mak & Kusnadi, 2005;Shukeri, Shin, & Shaari, 2012;Zabri et al, 2016). However, contrasting findings were also found in some studies, as they demonstrated a negative association between firm size and profitability in both developed and emerging markets (Aldehayyat, Alsoboa, & Al-Kilani, 2016;Morekwa Nyamongo & Temesgen, 2013;Obradovich & Gill, 2012.…”

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confidence: 94%

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

Ullah

Ahmed

Jamshed

2017

ijafr

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Corporate Governance refers to the way an organization is directed, administrated or controlled. It includes the set of rules and regulations that affect the manager's decision and contribute to the way company is perceived by the current and potential stakeholders. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as; boards, managers, shareholders and other stakeholders and spells out the rules and procedures and also decision-making assistance on corporate affairs. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations (Du, 2006). However, Bangladesh has fallen behind its neighboring countries and global economy in corporate governance (Gillibrand, 2004). Corporate governance structure is mainly considered ambiguous. Specific governance structures or practices will not necessarily fit all companies at all times. Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns. Unfortunately, investors in Bangladesh have a little information about how these corporate values affect the performance of the Multinational Companies (MNCs). This study aims to provide a quantitative contribution to the literature by examining the impact of corporate governance mechanisms on financial performance from the perspective of MNCs. A panel data based Ordinary Least Squared (OLS) regression model was used to measure the quantitative significance of various corporate governance related variables on MNC performance, as identified through a detailed literature review.Keywords: corporate governance, multinational company (MNC), financial performance, Bangladesh Background of the StudyCorporate governance describes the structure of rights and responsibilities among the parties that have a stake in a firm (Aguilera & Jackson, 2003). A corporate governance system can be a set of processes and structures used to direct a corporation's business. A key objective of a corporate governance system should be the enhancement of shareholder wealth. Once implemented, an effective corporate governance system can help to ensure an appropriate division of power among shareholders, the board of directors, and management (Mcconomy & Bujaki, 2000). Firms with strong corporate governance mechanisms are generally associated with better financial performance, higher firm valuation and higher stock returns (Ammann, Oesch, & Schmid, 2011;Bebchuk, Cohen, & Ferrell, 2009;Brown & Caylor, 2006;Cremers & Ferrell, 2009;Gompers, Ishii, & Metrick, 2001;Johnson, Moorman, & Sorescu, 2009;Renders, Gaeremynck, & Sercu, 2010).Bangladesh is one of the emerging markets and most of the top companies are either family owned or controlled by corporate group or government. Corporate governance practices in Bangladesh are gradually being introduced in most companies and organizations. 66.7 percent of the companies have adop...

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Does Board of Director’s Characteristics Affect Firm Performance? Evidence from Malaysian Public Listed Companies

Cited by 166 publications

References 13 publications

Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

Financial restatement and firm performance in family controlled and CEO duality companies: evidence from post 2007 Malaysian Code of Corporate Governance

The Impact of Enterprise Risk Management on Firm Performance: Evidence from Malaysia

Do Multinational Companies Practice Good Corporate Governance? Empirical Evidence from Bangladesh

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