The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu

The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu

Board of director becomes issue of concern due to corporate failures that involved small and big firms. It is found the board failed to control the conflict of interest exist among managers. In addition, when CEO also served as chairman of the board, their independence was impaired. Furthermore, whe...

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Main Author: Abu, Nurul Hilmiah
Format: Thesis
Language:English
Published: 2018
Subjects:
Corporate image
Online Access:https://ir.uitm.edu.my/id/eprint/90176/1/90176.pdf
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spelling my-uitm-ir.901762024-02-14T04:44:26Z The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu 2018 Abu, Nurul Hilmiah Corporate image Board of director becomes issue of concern due to corporate failures that involved small and big firms. It is found the board failed to control the conflict of interest exist among managers. In addition, when CEO also served as chairman of the board, their independence was impaired. Furthermore, when the board is too large, free riders exist in the group and increase agency problems. Thus, this study examined the relationship between board structure and firm performance after the amendment of Malaysian Code of Corporate Governance 2012. The data were collected from the annual reports. Descriptive analysis found average number of independent director present on board. The average of CEO duality is low, where most of the CEO holds only one role. While the average size board of director of Malaysian public listed companies in Malaysia was 8. According to the correlation analysis, there was a significant negative relationship between board composition and firm’s performance. CEO duality shows a positive relationship with firm performance while board size shows a negative relationship with firm performance. However, association between board size and CEO duality with firm performance is insignificant. The main contribution of the study is to highlight the outcome of changes in Malaysian Code of Corporate Governance (revised 2012) specifically board structure towards firm performance. The findings provide useful information especially to the Malaysian regulator in developing new policies and improving existing policies. In addition, other stakeholders such as investors, shareholders, managers, researchers and academicians also benefited from this study during their decision making or furthering research gap. 2018 Thesis https://ir.uitm.edu.my/id/eprint/90176/ https://ir.uitm.edu.my/id/eprint/90176/1/90176.pdf text en public masters Universiti Teknologi MARA, Terengganu Faculty of Accountancy Mohamed, Norazamina
institution Universiti Teknologi MARA
collection UiTM Institutional Repository
language English
advisor Mohamed, Norazamina
topic Corporate image
spellingShingle Corporate image
Abu, Nurul Hilmiah
The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
description Board of director becomes issue of concern due to corporate failures that involved small and big firms. It is found the board failed to control the conflict of interest exist among managers. In addition, when CEO also served as chairman of the board, their independence was impaired. Furthermore, when the board is too large, free riders exist in the group and increase agency problems. Thus, this study examined the relationship between board structure and firm performance after the amendment of Malaysian Code of Corporate Governance 2012. The data were collected from the annual reports. Descriptive analysis found average number of independent director present on board. The average of CEO duality is low, where most of the CEO holds only one role. While the average size board of director of Malaysian public listed companies in Malaysia was 8. According to the correlation analysis, there was a significant negative relationship between board composition and firm’s performance. CEO duality shows a positive relationship with firm performance while board size shows a negative relationship with firm performance. However, association between board size and CEO duality with firm performance is insignificant. The main contribution of the study is to highlight the outcome of changes in Malaysian Code of Corporate Governance (revised 2012) specifically board structure towards firm performance. The findings provide useful information especially to the Malaysian regulator in developing new policies and improving existing policies. In addition, other stakeholders such as investors, shareholders, managers, researchers and academicians also benefited from this study during their decision making or furthering research gap.
format Thesis
qualification_level Master's degree
author Abu, Nurul Hilmiah
author_facet Abu, Nurul Hilmiah
author_sort Abu, Nurul Hilmiah
title The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
title_short The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
title_full The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
title_fullStr The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
title_full_unstemmed The relationship between board structure and firm performance: evidence from post amendment Malaysian Code of Corporate Governance 2012 / Nurul Hilmiah Abu
title_sort relationship between board structure and firm performance: evidence from post amendment malaysian code of corporate governance 2012 / nurul hilmiah abu
granting_institution Universiti Teknologi MARA, Terengganu
granting_department Faculty of Accountancy
publishDate 2018
url https://ir.uitm.edu.my/id/eprint/90176/1/90176.pdf
_version_ 1794192234357194752

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