دانلود رایگان مقاله انگلیسی حاکمیت شرکتی و عملکرد شرکت در مالزی - امرالد 2017

Abstract

Purpose – The purpose of this paper is to study the effect of Malaysian Code on Corporate Governance (MCCG, 2007 and 2012) on the performance of the listed companies in Malaysia. The agency theory and resource dependency theories indicate that the firms with strong corporate governance outperform firms with weaker governance. This paper explores this relationship in a developing country like Malaysia having different institutional environment compared to western countries. Design/methodology/approach – The study used a sample of 113 listed companies in Malaysia. The study incorporates the endogenous relationship between corporate governance, firm performance and leverage. Findings – The study analyzes how the corporate governance framework affected firm performance in Malaysia with the help of self-developed corporate governance index (MCGI). The authors’ findings show that the performance of the firm is positively and significantly related with corporate governance measured by MCGI. Secondly, corporate governance of sample firms shows marked improvements after implementation of MCCG 2012 as compared to MCCG 2007. Originality/value – The findings of this paper support the agency and the resource dependency theories. The study contributes to the understanding of the relationship between the corporate governance and firm performance in emerging economy and builds a case for enforcement of strong corporate governance code by government agencies.

6. Conclusion

There is growing interest in the study of corporate governance and its impact on performance in emerging markets. A corporate governance mechanism varies across countries depending on their institutional development background (North, 1990; Peng and Jiang, 2010; Judge et al., 2008). In this context, our study attempts to shed light on the corporate governance mechanism in a developing country like Malaysia. This paper studies the impact of MCCG on the firm performance of Malaysian firms with the help of self-developed corporate governance index (MCGI). The endogeneity issue is addressed by studying the relationship between corporate governance, firm performance and the capital structure of Malaysian firms using a system of simultaneous equations. In this study, we explore the impact of the changes in MCCG, (MCCG, 2007 and 2012) on firm performance. Using a sample of 113 listed companies in Malaysia for the two subsequent years 2008 and 2013, we found a positive and significant relationship between MCGI and firm performance. Our study has contributed to the body of literature with our results that the implementation of MCCG (2007 and 2012) has improved the performance of listed firms in Malaysia. The result could be attributed to the institutional development background of the emerging economies. Our study confirms the belief that corporate governance practices vary among countries, and hence, comparing governance structures of developed markets with that of developing markets would be misleading. Our findings imply that corporate governance rules and practices, indeed, improve the performance of firms, and thus, MCCG codes do matter for the performance and sustainability of corporate in Malaysia.