Invisible hands behind the corporate governance practices in Malaysia
The issues of corporate governance became very popular in the corporate world in UK, USA and Europe during the last two decades. With the opening up of economies and liberalization, the concern for corporate governance also spread to the developing world. Therefore, most of the developed and dev...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
World Business Institute
2013
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/29613/ http://irep.iium.edu.my/29613/ http://irep.iium.edu.my/29613/1/INVISIBLE__HANDS_BEHIND_CORPORATE_GOVERNANCE_PRACTICES_IN_MALAYSIA.pdf |
| Summary: | The issues of corporate governance became very popular in the corporate
world in UK, USA and Europe during the last two decades. With the opening
up of economies and liberalization, the concern for corporate governance
also spread to the developing world. Therefore, most of the developed and
developing countries, including Malaysia have laid down corporate
governance guidelines to enhance the current governance practices. Based
on the analysis of the contents in the corporate governance codes, most of
the recommendations are founded on the concept of agency theory.
Unfortunately, the majority of the findings of researchers show that the
results are not in line with the theoretical expectations. In Malaysia,
Malaysian Code on Corporate Governance was introduced in 1998 and
eventually; it has been amended in 2000 and 2007. However, some of the
findings on corporate governance in Malaysia are not in line with the
recommendations of the Code. Thus, this study examines the possible
reasons that hinder current corporate governance system less effective in
Malaysia. The main reasons for this problem are due to nature of ownership
structure, political and culture background of Malaysia and the adoption of
unsuitable foreign corporate governance template. The findings of this
research will be useful for the regulators to develop future rules and
regulations and implement them accordingly.
Field of Research: Agency theory, corporate governance, banks
|
|---|