The impact of the Malaysian code on corporate governance: compliance, institutional investors and stock performance
Data(s) |
2007
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Resumo |
In 2001, the Malaysian Code on Corporate Governance (MCCG) became an integral part of the Bursa Malaysia Listing Rules, which requires all listed firms to disclose the extent of compliance with the MCCG. Our panel analysis of 440 firms from 1999 to 2002 finds that corporate governance reform in Malaysia has been successful, with a significant improvement in governance practices. The relationship between ownership by the Employees Provident Fund (EPF) and corporate governance has strengthened during the period subsequent to the reform, in line with the lead role taken by the EPF in establishing the Minority Shareholders Watchdog Group. The implementation of MCCG has had a substantial effect on shareholders' wealth, increasing stock prices by an average of about 4.8%. Although there is no evidence that politically connected firms perform better, political connections do have a significantly negative effect on corporate governance, which is mitigated by institutional ownership. |
Identificador | |
Publicador |
Hong Kong Polytechnic University |
Relação |
http://www.sciencedirect.com/science/journal/18155669 Wahab, Effiezal, How, Janice, & Verhoeven, Peter (2007) The impact of the Malaysian code on corporate governance: compliance, institutional investors and stock performance. Journal of Contemporary Accounting and Economics, 3(2), pp. 1-36. |
Fonte |
QUT Business School; School of Economics & Finance |
Palavras-Chave | #150100 ACCOUNTING AUDITING AND ACCOUNTABILITY #150200 BANKING FINANCE AND INVESTMENT #Corporate governance, institutional investors, stock performance, political connection |
Tipo |
Journal Article |