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Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?

The Securities Commission Malaysia issued the Corporate Governance Blueprint which is later transformed to Malaysian Code on Corporate Governance ‘MCCG’. Minority Shareholders Watchdog Group ‘MSWG’ is participating in the establishment of MCCG components as well as the measurement of best practice o...

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Main Authors: Lode, Nor Asma, Noh, I. M.
Format: Article
Language:English
Published: Akademia Baru 2019
Subjects:
HF5601 Accounting
Online Access:http://repo.uum.edu.my/25743/1/JARBMS%2012%201%202018%2079%2092.pdf
http://repo.uum.edu.my/25743/
http://www.akademiabaru.com/arbms.html
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spelling my.uum.repo.257432019-03-12T07:24:34Z http://repo.uum.edu.my/25743/ Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms? Lode, Nor Asma Noh, I. M. HF5601 Accounting The Securities Commission Malaysia issued the Corporate Governance Blueprint which is later transformed to Malaysian Code on Corporate Governance ‘MCCG’. Minority Shareholders Watchdog Group ‘MSWG’ is participating in the establishment of MCCG components as well as the measurement of best practice of corporate governance by using Corporate Governance’s index in 2009. This index which has two components of internal governance (i.e. disclosures on board of directors’ structure and directors’ remuneration) and external governance (i.e. disclosures on accountability and audit as well as communication with shareholders) could result to an effective monitoring and governance among family-controlled firms. Using MCCG index scores, this study examines the relationship between the components of corporate governance and performance among Malaysian family-controlled firms for the years 2010 and 2011. The regression analysis provide evidence that none of these components are significant except directors’ remuneration disclosures which are negatively related to family-controlled firms’ performance (i.e. ROA, Tobin Q and EVA). These findings indicate that low disclosures of directors’ remuneration are more likely to be related to high performance among family-controlled firms given that more investors may be attracted to invest in the family businesses with low directors’ remuneration than high directors’ remuneration. Hence, the regulators and policy makers may need to consider specific corporate governance code for family-controlled firms in order to lessen the dominance of agency problems. Akademia Baru 2019 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25743/1/JARBMS%2012%201%202018%2079%2092.pdf Lode, Nor Asma and Noh, I. M. (2019) Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms? Journal of Advanced Research in Business and Management Studies, 12 (1). pp. 79-92. ISSN 2462-1935 http://www.akademiabaru.com/arbms.html
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Lode, Nor Asma
Noh, I. M.
Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
description The Securities Commission Malaysia issued the Corporate Governance Blueprint which is later transformed to Malaysian Code on Corporate Governance ‘MCCG’. Minority Shareholders Watchdog Group ‘MSWG’ is participating in the establishment of MCCG components as well as the measurement of best practice of corporate governance by using Corporate Governance’s index in 2009. This index which has two components of internal governance (i.e. disclosures on board of directors’ structure and directors’ remuneration) and external governance (i.e. disclosures on accountability and audit as well as communication with shareholders) could result to an effective monitoring and governance among family-controlled firms. Using MCCG index scores, this study examines the relationship between the components of corporate governance and performance among Malaysian family-controlled firms for the years 2010 and 2011. The regression analysis provide evidence that none of these components are significant except directors’ remuneration disclosures which are negatively related to family-controlled firms’ performance (i.e. ROA, Tobin Q and EVA). These findings indicate that low disclosures of directors’ remuneration are more likely to be related to high performance among family-controlled firms given that more investors may be attracted to invest in the family businesses with low directors’ remuneration than high directors’ remuneration. Hence, the regulators and policy makers may need to consider specific corporate governance code for family-controlled firms in order to lessen the dominance of agency problems.
format Article
author Lode, Nor Asma
Noh, I. M.
author_facet Lode, Nor Asma
Noh, I. M.
author_sort Lode, Nor Asma
title Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
title_short Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
title_full Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
title_fullStr Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
title_full_unstemmed Does Malaysian Code of Corporate Governance ‘MCCG’ matter among family-controlled firms?
title_sort does malaysian code of corporate governance ‘mccg’ matter among family-controlled firms?
publisher Akademia Baru
publishDate 2019
url http://repo.uum.edu.my/25743/1/JARBMS%2012%201%202018%2079%2092.pdf
http://repo.uum.edu.my/25743/
http://www.akademiabaru.com/arbms.html
_version_ 1644284413550264320
score 13.211869

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