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Impact of the Amendments of Malaysian Code of Corporate Governance (2007) on Governance of GLCs and Performance
Authors: Azmi Hamid, Rozainun Aziz
Abstract:The study aims to investigate the impact on board and audit committee characteristics and firm performance before and after the revision of MCCG (2007) on GLCs over the period 2005-2010. We used Return on Assets (ROA) as a proxy for firm performance. The data consists of two groups; data collected before and after the amendments of MCCG (2007). Findings show that boards of directors with accounting / finance qualifications (BEXP) are statistically significant with performance for period before the amendments. As for audit committee members with accounting or finance qualifications (ACEXP), correlation results indicate a negative association and non-significant results for the years before amendments. However, the years after the amendments show positive relationship with highly significant correlations (1%) to ROA. This indicates that the amendments of MCCG 2007 on the audit committee members- literacy in accounting have impacted the governance structures and performance of GLCs.
Keywords: BOD and Audit Committees, firm performance, GLCs.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1079918Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2429
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