Corporate Governance and Firm Performance in Malaysia

What is it about?

The objective 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. Agency theory and resource dependency theories indicate that the firms with strong corporate governance outperform firms with weaker governance. This article explores this relationship in a developing country like Malaysia having different institutional environment compared to western countries.

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Why is it important?

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