Impact of corporate governance mechanism on financial performance of Malaysia listed firms
Purpose- To investigate the elements of effective corporate governance mechanism that includes board attributes and disclosure of key audit matter impact on financial performance of companies listed in Bursa Malaysia (Malaysia Stock Exchange) during the year 2016 to 2019 Design/Methodology-This stu...
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| Format: | Thesis |
| Language: | eng eng |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/10772/1/s827375_01.pdf https://etd.uum.edu.my/10772/2/s827375_02.pdf |
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| Summary: | Purpose- To investigate the elements of effective corporate governance mechanism that includes board attributes and disclosure of key audit matter impact on financial performance of companies listed in Bursa Malaysia (Malaysia Stock Exchange) during the year 2016 to 2019
Design/Methodology-This study uses descriptive statistics, inferential statistics which includes of Pearson Correlation and Multiple Regression analysis to examine the influence of board attributes (board size, board independence, board gender diversity) and key audit matter disclosure on the dependent variable (return on asset and return on equity).
Findings- The findings indicate post controlling the board attributes and key audit matter, there is insignificant association with the board size, board independence and board gender diversity on the firm’s performance. However, the findings indicate there is relationship between key audit matter disclosure and the firm’s performance.
Research limitations- Limited to investigation of the relationship between board attributes and key audit matters on firm’s performance. It excludes the other governance attributes. Studies also limited as period of studies is from 2016 to 2019. There is need for prolonged studies and increased observation sample.
Practical implications-The findings of this paper are able to describe the impact of board attributes and key audit matter disclosure on financial performance of Malaysia listed firms which would provide useful insights to many of the actors in the markets such as issuers, investors and policymakers which can be relied upon in making strategic decisions to issue and invest in Malaysian market. Furthermore, this research could prove to be useful for regulators as they are responsible for the acceptable level of corporate governance standards.
Originality/Value-This study contributes to the body of knowledge by focusing heavily on enhancing firm’s performance by reducing conflict of interest between board of directors, auditors, and shareholders in Malaysia. Additionally, this study benefits from the agency theory and resource dependency theory to provide evidence on the effect of board attributes and key audit matter disclosure on Malaysia listed firms. |
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