An analysis of high-performing board criteria on Malaysian government-linked companies performance

Wan Izyani Adilah, Wan Mohamad and Mohd Hafiz, Harun and Noryati, Yaakub and Wan Amalina, Wan Abdullah@Wan Abdullah (2017) An analysis of high-performing board criteria on Malaysian government-linked companies performance. International Journal of Innovation and Business Strategy, 8 (2). pp. 47-62. ISSN 2232-044X

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This paper attempts to examine the relationship between board structure and the financial performance of state-owned GLCs. Five corporate governance variables were examined, namely the board size, the proportion of independent directors, the financial literacy of directors, multiple directorships and the frequency of meetings. A sample of 90 state-owned GLCs in Malaysia was studied using their published annual reports from the financial years of 2008 until 2012. The findings show that all the state-owned GLCs match the criterion of high-performing board. Only board size is significant in determining the financial performance of the state-owned GLCs, and this is probably due to the fact that they are all owned by the state government and are more or less under a similar budget from the federal government. The insignificance of results on the remaining corporate governance variables might be due to the fact that MCCG has been implemented comprehensively in all of the companies.

Item Type: Article
Uncontrolled Keywords: Board performance, corporate governance, GLC, state-owned, Malaysia
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Business and Management
Depositing User: Fatin Safura
Date Deposited: 22 Feb 2022 02:22
Last Modified: 22 Feb 2022 02:22

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