Corporate Governance and Performance: Evidence from Industrial Product and Service Sector in Bursa Malaysia Mohd Rashdan Sallehuddin & Nor Azrin Mohamad Rosli

Corporate Governance and Performance: Evidence from Industrial Product and Service Sector in Bursa Malaysia

Author (s)

Mohd Rashdan Sallehuddin & Nor Azrin Mohamad Rosli

Abstract

An empirical study was conducted to investigate the corporate governance variables (board size, board independence, board meeting and duality) that are related to the firm performance (ROA) in industrial product and service sector companies in Bursa Malaysia, with a particular focus on the Main Market. This paper will examined on firm performance  based on return on assets (ROA) public-listed firms’ industrial product and service sector. The study adopts by examines the annual reports from the year 2014 to 2018. A multiple regression analysis was conducted on the whole population of listed companies in this sector. The empirical results suggest firm performance had significant relationship with board size, board independence and duality. In contrast, the firm performance is insignificant with board meeting. The outcome of this study could provide insight for the evidence to relevant regulatory bodies in Malaysia to look further on the effectiveness on the code of corporate governance particularly public-listed firms’ from industrial product and service sector in Bursa Malaysia. Furthermore, the research performed for this study specifically focused on identifying governance mechanisms that have a proven impact on enhanced firms’ performance, regardless of whether they are marked as a good practice in regulation or codes. The results provide practical guidance for company directors, as well as a useful guidance for the people empowered with formulating governance regulation and codes.

Key words: Corporate governance, firms’ performance, industrial sector, Main Market, ROA, Bursa Malaysia.

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Title: Corporate Governance and Performance: Evidence from Industrial Product and Service Sector in Bursa Malaysia
Author: Mohd Rashdan Sallehuddin & Nor Azrin Mohamad Rosli
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3515013
Media: Online
Volume: 3
Issue: 6
Acceptance Date: 20/10/2019
Date of Publication: 21/10/2019
PDF URL: http://ijsab.com/wp-content/uploads/408.pdf
Free download: Available
Page: 87-98
First Page: 87
Last Page: 98
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Mohd Rashdan Sallehuddin & Nor Azrin Mohamad Rosli (2019). Corporate Governance and Performance: Evidence from Industrial Product and Service Sector in Bursa Malaysia, International Journal of Science and Business, 3(6), 87-98. doi: https://doi.org/10.5281/zenodo.3515013

Retrieved from http://ijsab.com/wp-content/uploads/408.pdf

 

About Author (s)

Mohd Rashdan Sallehuddin (Corresponding Author), Senior Lecturer, Universiti Utara Malaysia, Kedah, Malaysia

Nor Azrin Mohamad Rosli, Executive, Agrobank Bhd., Penang, Malaysia.

 

 

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DOI: https://doi.org/10.5281/zenodo.3515013

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