ISSN: 2222-6990
Open access
The occurrence of high-profile firm collapses and corporate scandals serves as evidence of deficient corporate governance, which renders institutions brittle and susceptible to long-term negative impacts on firm performance. Therefore, the introduction of the Malaysian Code on Corporate Governance (MCCG) aimed to enhance the corporate governance practises of listed companies and therefore enhance their overall performance. Given the uncertainty on the causal relationship, it remains relevant to undertake further research on the potential impact of good corporate governance on firm performance. The objective of the study is to examine the effect of internal corporate governance namely: (i)gender diversity and (ii)board independence on Malaysian firm’s performance, relying on both agency theory and resource dependency theory. For the purpose of to examine the relationship between gender diversity and board independence while controlling for firm size, leverage, and market capitalization, a panel data approach will be used with the top 100 companies listed on Bursa Malaysia. This approach will use various performance measures (Return on Asset, Return on Equity, and Tobin's Q). Our research will contribute to additional literature and insights to policymakers on the sufficiency of existing regulations relating to internal mechanisms of corporate governance specifically on the restriction to number of board members as well as empowering women on board, and consequently contribute to the benefit of stakeholders at large.
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(Adanan et al., 2023)
Adanan, S. A., Saidin, A., Bustamam, K. S., Sani, A. A., Samad, K. A., Siti, & Mamat, N. (2023). The Effect of Gender Diversity and Board Independence on Firms Performance. International Journal of Academic Research in Business and Social Sciences, 13(10), 1317–1325.
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