Board of directors and performance of Malaysian companies

The objective of this paper is to examine the influence of board of directors on market performance of large Malaysian listed companies. Using data from corporate annual reports for the financial year 2010, the regression results show that the proportion of independent directors on the board and the...

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Main Author:	Mohd Ghazali, Nazli Anum
Format:	Article
Language:	English
Published:	Inderscience Enterprises Ltd 2014
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/44750/ http://irep.iium.edu.my/44750/1/IJMFA60202_Ghazali_%28published%29.pdf

id	iium-44750
recordtype	eprints
spelling	iium-447502015-10-27T07:38:41Z http://irep.iium.edu.my/44750/ Board of directors and performance of Malaysian companies Mohd Ghazali, Nazli Anum HF5601 Accounting. Bookkeeping The objective of this paper is to examine the influence of board of directors on market performance of large Malaysian listed companies. Using data from corporate annual reports for the financial year 2010, the regression results show that the proportion of independent directors on the board and the proportion of government ownership have a positive and significant impact, while role duality has a marginally significant impact on market capitalisation. These findings suggest that the market values companies which have a higher proportion of independent directors and government ownership. In contrast, the marginally significant finding on role duality implies that in Malaysia where businesses are predominantly built from family businesses, separating the chairman and CEO roles may not enhance market performance. The findings of this study show that there is no one-size-fits-all approach to corporate governance instead it should be applied taking into consideration a company's nuances and needs. Inderscience Enterprises Ltd 2014 Article PeerReviewed application/pdf en http://irep.iium.edu.my/44750/1/IJMFA60202_Ghazali_%28published%29.pdf Mohd Ghazali, Nazli Anum (2014) Board of directors and performance of Malaysian companies. International Journal of Managerial and Financial Accounting , 6 (2). pp. 117-132. ISSN 1753-6715
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Mohd Ghazali, Nazli Anum Board of directors and performance of Malaysian companies
description	The objective of this paper is to examine the influence of board of directors on market performance of large Malaysian listed companies. Using data from corporate annual reports for the financial year 2010, the regression results show that the proportion of independent directors on the board and the proportion of government ownership have a positive and significant impact, while role duality has a marginally significant impact on market capitalisation. These findings suggest that the market values companies which have a higher proportion of independent directors and government ownership. In contrast, the marginally significant finding on role duality implies that in Malaysia where businesses are predominantly built from family businesses, separating the chairman and CEO roles may not enhance market performance. The findings of this study show that there is no one-size-fits-all approach to corporate governance instead it should be applied taking into consideration a company's nuances and needs.
format	Article
author	Mohd Ghazali, Nazli Anum
author_facet	Mohd Ghazali, Nazli Anum
author_sort	Mohd Ghazali, Nazli Anum
title	Board of directors and performance of Malaysian companies
title_short	Board of directors and performance of Malaysian companies
title_full	Board of directors and performance of Malaysian companies
title_fullStr	Board of directors and performance of Malaysian companies
title_full_unstemmed	Board of directors and performance of Malaysian companies
title_sort	board of directors and performance of malaysian companies
publisher	Inderscience Enterprises Ltd
publishDate	2014
url	http://irep.iium.edu.my/44750/ http://irep.iium.edu.my/44750/1/IJMFA60202_Ghazali_%28published%29.pdf
first_indexed	2023-09-18T21:03:36Z
last_indexed	2023-09-18T21:03:36Z
_version_	1777410786719694848

Board of directors and performance of Malaysian companies

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