Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia

This research study aims to identify the difference in the proportion of woman directors on board between Shariah compliant firms and conventional firms and to examine the association between corporate governance mechanisms and firm performance in Shariah compliant versus conventional public listed...

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Main Author:	Nur Amalina Izzati, Saidin
Format:	Thesis
Language:	eng eng eng
Published:	2020
Subjects:	HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/9894/1/s825913_01.pdf https://etd.uum.edu.my/9894/2/s825913_02.pdf https://etd.uum.edu.my/9894/3/s825913_references.docx
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id	my-uum-etd.9894
record_format	uketd_dc
spelling	my-uum-etd.98942024-07-22T07:45:57Z Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia 2020 Nur Amalina Izzati, Saidin Sofi, Mohd Fikri Islamic Business School Islamic Business School HD2709-2930.7 Corporations This research study aims to identify the difference in the proportion of woman directors on board between Shariah compliant firms and conventional firms and to examine the association between corporate governance mechanisms and firm performance in Shariah compliant versus conventional public listed firms in Malaysia from the year ended 2015 to 2019. Corporate governance mechanisms chosen in this research are the board size, board independence, women on board, Chief Executive Officer (CEO) duality, audit size and frequency of audit meeting while the firm performance is measured by return on asset (ROA) and return on equity (ROE). This research used panel data retrieved from the annual report of the selected firms and from the data stream access provided at Sultanah Bahiyah Library, Universiti Utara Malaysia. The data were analyzed using descriptive statistic, Pearson correlation and multiple linear regression. Descriptive statistics shows the difference in proportion of woman directors on board between Shariah compliant and conventional firms while multiple linear regression describes the association between corporate governance mechanisms and firm performance. Shariah compliant firms in this study appears to have higher proportion of woman directors on board compared to the conventional firms. Board size and frequency of audit meeting has a significant and negative association with ROA and ROE, significant and positive association between the mechanisms of women on board and CEO duality with ROE and insignificant between board independence and audit committee size with ROA and ROE, women on board and CEO duality measured by ROA in the Shariah compliant firms. On the other hand, board size and audit committee size in the conventional firms have a significant and positive association with ROA and ROE and also between women on board and ROE, significant and negative association between board independence with ROA and ROE as well as between frequency of audit meeting and ROA for the firms. Insignificant association also is found between women on board and ROA, frequency of audit meeting with ROE and between CEO duality with ROA and ROE. This implies that a mechanism of corporate governance can affect the performance of a firm where it is important to have a good corporate governance to increase firm’s performance. 2020 Thesis https://etd.uum.edu.my/9894/ https://etd.uum.edu.my/9894/1/s825913_01.pdf text eng public https://etd.uum.edu.my/9894/2/s825913_02.pdf text eng public https://etd.uum.edu.my/9894/3/s825913_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Sofi, Mohd Fikri
topic	HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations Nur Amalina Izzati, Saidin Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
description	This research study aims to identify the difference in the proportion of woman directors on board between Shariah compliant firms and conventional firms and to examine the association between corporate governance mechanisms and firm performance in Shariah compliant versus conventional public listed firms in Malaysia from the year ended 2015 to 2019. Corporate governance mechanisms chosen in this research are the board size, board independence, women on board, Chief Executive Officer (CEO) duality, audit size and frequency of audit meeting while the firm performance is measured by return on asset (ROA) and return on equity (ROE). This research used panel data retrieved from the annual report of the selected firms and from the data stream access provided at Sultanah Bahiyah Library, Universiti Utara Malaysia. The data were analyzed using descriptive statistic, Pearson correlation and multiple linear regression. Descriptive statistics shows the difference in proportion of woman directors on board between Shariah compliant and conventional firms while multiple linear regression describes the association between corporate governance mechanisms and firm performance. Shariah compliant firms in this study appears to have higher proportion of woman directors on board compared to the conventional firms. Board size and frequency of audit meeting has a significant and negative association with ROA and ROE, significant and positive association between the mechanisms of women on board and CEO duality with ROE and insignificant between board independence and audit committee size with ROA and ROE, women on board and CEO duality measured by ROA in the Shariah compliant firms. On the other hand, board size and audit committee size in the conventional firms have a significant and positive association with ROA and ROE and also between women on board and ROE, significant and negative association between board independence with ROA and ROE as well as between frequency of audit meeting and ROA for the firms. Insignificant association also is found between women on board and ROA, frequency of audit meeting with ROE and between CEO duality with ROA and ROE. This implies that a mechanism of corporate governance can affect the performance of a firm where it is important to have a good corporate governance to increase firm’s performance.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Nur Amalina Izzati, Saidin
author_facet	Nur Amalina Izzati, Saidin
author_sort	Nur Amalina Izzati, Saidin
title	Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
title_short	Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
title_full	Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
title_fullStr	Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
title_full_unstemmed	Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia
title_sort	corporate governance and firm performance of shariah versus conventional public listed firms in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Islamic Business School
publishDate	2020
url	https://etd.uum.edu.my/9894/1/s825913_01.pdf https://etd.uum.edu.my/9894/2/s825913_02.pdf https://etd.uum.edu.my/9894/3/s825913_references.docx
_version_	1811772592644685824

Corporate governance and firm performance of shariah versus conventional public listed firms in Malaysia

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