Title: Corporate governance, disclosure and firm performance: empirical findings from Malaysia

Authors: Nik Mohamad Zaki Nik Salleh; Chong Lee-Lee; Prem Lal Joshi; Shaista Wasiuzamman

Addresses: Multimedia University, Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia ' Multimedia University, Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia ' Multimedia University, Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia ' Multimedia University, Persiaran Multimedia, 63100 Cyberjaya, Selangor, Malaysia

Abstract: This study examines the effect of corporate governance, disclosure and firm characteristics on firm performance by taking data from the 2013 financial year annual reports of large public listed companies (based on market capitalisation) in Malaysia. Using multiple regression analysis, this study finds that the effect on firm performance, namely ROA, ROE and Tobin's Q, is different. Board size, the percentage of independent directors on the board and percentage of ownership concentration in firms have a significant negative relationship with ROA. ROE shows a significant negative association with board size, AC independence and ownership concentration. Tobin's Q only shows a significant negative relationship with board size. The findings in this study contribute to literature that good corporate governance characteristics, appropriate disclosure of corporate governance information and firm characteristics have improved the performance of listed companies in Malaysia. The study also suggests limitations and directions for future research.

Keywords: performance; ROI; return on equity; ROE; Tobin Q; board size; ownership concentration; corporate governance; disclosure.

DOI: 10.1504/AAJFA.2019.100977

Afro-Asian Journal of Finance and Accounting, 2019 Vol.9 No.3, pp.269 - 290

Received: 28 Sep 2017
Accepted: 01 Jan 2018
Published online: 22 Jul 2019 *

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