ISSN: 2222-6990
Open access
This study investigates the implementation level of the corporate governance framework, especially Principle A of the MCCG 2021, among small and medium-sized enterprises (SMEs) listed on the LEAP Market of Bursa Malaysia. Principle A places significant emphasis on board leadership and effectiveness, encompassing the board of directors' composition, operations, and accountabilities. A sample of 43 SMEs listed on the LEAP Market was chosen for the study. Data were collected from Bursa Malaysia and the companies' official websites, primarily focusing on key aspects of board composition, as recommended under Principle A, such as board size, the presence of external and independent directors, female board members, and CEO duality. Descriptive analysis was used to interpret the data. The results indicate that SMEs on the LEAP Market give prominence to a smaller board size and the appointment of independent directors as pivotal governance practices to fortify their governance structure. Nevertheless, the findings also point to inadequate adherence to corporate governance guidelines, particularly in terms of board composition. Despite the study's descriptive nature, it provides valuable insights into the realm of corporate governance, specifically concerning SMEs in Malaysia. Notably, even though there are less rigorous regulatory standards for SMEs on the LEAP Market, establishing an appropriate board composition aligned with Principle A has emerged as a principal focus to enhance corporate governance practices.
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