The role of corporate governance on firm performance of public listed companies in Malaysia
List of Authors
  • Shanmuga Sundaram Murugason , Yuvaraj Ganesan

Keyword
  • Audit Committee, Integrity Committee, Corporate Governance, Size, Independent Directors, Accountant.

Abstract
  • There has always been an increasing and renewed interest in the business world for corporate governance (CG) to improve Firm Performance (FP) due to global corporate scandals and the continuous downfall of Public Listed Companies (PLCs). The PLC investors look forward to diversifying their investments and maximising their returns as a result of good FP. One of the major investor concerns is the firm's CG, which acts as a tool to minimize their investment risk by monitoring management's decision-making that affects FP. Therefore, this research paper aims to investigate the role of CG on FP of PLCs in Malaysia, particularly on the Audit Committee (AC) and Integrity Committee (IC), which are established to assist the Board of Directors (BOD) in the monitoring of executive management. This study will use the cross-sectional design and organization level as the unit of analysis. Data will be collected from the annual report of 300 PLCs from June ‘2020 to December 2020. The judgmental sampling technique has been adopted in this study. The data will be analysis using Smart PLS. This study can contribute to the literature by filling up gaps in CG literature, especially on IC, which is less researched. This study can enhance the understanding of scholars on CG practices, particularly on BOD's subcommittee. The findings of this study are useful for PLCs, Bursa Malaysia Securities Berhad (Bursa Malaysia), Securities Commission Malaysia (SC) and Malaysian Anti-Corruption Commission (MACC) to understand further the impact of CG on FP, particularly the BOD's subcommittee to enhance and improve on regulatory and legal requirements.

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