Abstract
This research seeks to investigate whether corporate governance contributes to the Government-link public listed companies’ performance in Malaysia and Singapore. A sample consisting of 20 Malaysian Government-linked public listed companies and 20 Singaporean Government-linked public listed companies were selected. The research timeframe covers from 2012 to 2017. Findings revealed that except for board meetings and independent directors, 4 other independent variables were statistically significant in affecting the Malaysian and Singaporean government-link public listed companies’ performance. Directors’ ownership had a significant negative impact on ROA and ROE in Malaysia but had no impact in Singapore. Board meetings and independent directors had no impact towards firm performance in both countries. Board size had positive and significant impact on ROE in Singapore. Number of women directors was significantly negatively related to Tobin’s Q, ROA and ROE. Leverage level was significantly negatively related to all firm performance’s measures in Malaysia, while only significantly related to Tobin’s Q in Singapore.
Highlights
The Malaysian Code on Corporate Governance (MCCG) was introduced in 2000
Findings determined that CG characteristics were not statistically significant in affecting Malaysia and Singapore government-link public listed companies’ performance
The number of board meetings has no impact for both Malaysia and Singapore
Summary
The Malaysian Code on Corporate Governance (MCCG) was introduced in 2000. In another revision, MCCG 2012 provides 8 principles that achieved enhancement of board such as development of high sensitivity of responsible and effectiveness to increase composition, independence of directors, commitment, integrity in financial reporting, risk management, timely and high-quality disclosure and relationship between company and the interest of investors. The newly revised Code of MCCG 2017 detailed the importance of risk management. The Corporate Governance Council was introduced on 28 February 2017 to revise the Code, known as The Code 2018 with inserted Practice Guidance. Various studies were conducted investigating the performance of Malaysianand Singaporean Government-link public listed companies with corporate governance characteristics and their influence their performance, the revelation of a series of high-profile corporate governance scandals involving 1MDB, SRC International and FELDA by local and international media worldwide since year 2015 has stirred this area of research worth revisiting in order to narrow the knowledge gap. There were few evidence on research conducted among government-link public listed companies
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