Author(s) : Wan Fauziah Wan Yusoff and Idris Adamu AlhajiPages : [43] - [65]
Received : September 11, 2012; Revised October 27, 2012
Communicated by : Professor Mahdi Salehi
This study examines the relationship between corporate governance and firm performance for a sample of 813 listed companies representing nine sectors of the main board of Bursa Malaysia from 2009 to 2011. Three corporate governance components used in this study are proportion of non-executive directors (NED), board leadership structure, and board size. Firm performance is measured in terms of firm earnings per share (EPS) and return on equity (ROE). The study discovered the influence of the three corporate governance measurements on both dimensions of firm performance from years 2009 to 2011 are mixed. The influence of corporate governance on the financial performance of Malaysian listed companies similar to previous studies in Malaysia or in other countries. It can be concluded that although various corporate governance reform has been undertaking in Malaysia since year 2000, the reform has not much effect on financial performance.
corporate governance, board of directors and firm performance.
