Abstract
The Malaysian government has encouraged the corporate sector to be seriously committed in supporting sustainable development. One of the elements in sustainable development is the inclusiveness of foreign direct investment (FDI) in the corporate sector. FDI plays an important role in the economy as it generates an economic growth by increasing the domestic capital formation and hence, promoting sustainability. This study examines the relationship of corporate governance characteristics on foreign direct investment among property public listed companies in Malaysia. Specifically, this study examines the effect of board of directors’ characteristic namely board size, board meeting, board independence and CEO-Chairman duality role on foreign direct investment of the property public listed companies. This study relies on content analysis on the annual reports of 50 public listed property companies in in Malaysia for year 2007-2016. The results show that board meetings and board independency have a significant positive relationship on foreign direct investment of the public listed property companies. However, the results show that board size and CEO-Chairman duality do not have a significant relationship on foreign direct investment of the public listed property companies. The findings in this study implicate the importance of the board of directors’ involvement in ensuring effective and efficient decisions related to foreign direct investment.
Highlights
Foreign Direct Investment (FDI) plays an important role in the economy of a country as it generates an economic growth by increasing the domestic capital formation, ensuring the sustainability of the country
This study examines the relationship of corporate governance on foreign direct investment (FDI) among property public listed firms in which are registered on the main board of Malaysia stock exchange, known as Bursa Malaysia
The idea of choosing property industry was due to minimal number of studies that have been performed on this industry, property industry has played its important roles in nation economy
Summary
Foreign Direct Investment (FDI) plays an important role in the economy of a country as it generates an economic growth by increasing the domestic capital formation, ensuring the sustainability of the country. According to the National Statistic Department, in 2017 (Quarter-2), the Malaysian‟s economy has rose to about 5.8 percent as compared to 4.0 percent recorded in 2016 due to FDI. Such figures have been highlighted by the Bank Negara whereby the Malaysian‟s economy has expanded between 4.3 percent and 4.8 percent in 2017. Harvey and Lumsdaine (2002) proposed that corporate governance may play an important role in determining the FDI of a company What influence the companies to be involved in FDI? Bekaert, Harvey and Lumsdaine (2002) proposed that corporate governance may play an important role in determining the FDI of a company
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
