Effect of Corporate Governance and Capital Structure on Corporate Performance in Malaysian Listed Companies: A Conceptual Approach

Abstract

Purpose: Corporate governance and capital structure are seen as significant factors in improving corporate performance. Although many studies have examined the association among corporate governance and capital structure through company performance, this type of research remains still scarce in the Malaysian context. The purpose of this research is to advance a conceptual framework that observes the effect of corporate governance and capital structure on the performance of public firms in Malaysia.
 Design/Methodology/Approach: The research used secondary data using annual reports of companies registered on Bursa Malaysia from the period 2013 to 2016. The data was captured from Thomson Reuters Data Stream Version 5.1 available at the Sultanah Bahiyah Library of Universiti Utara Malaysia.
 Implications/Originality/Value: This research proposes to enhance the role of corporate governance and capital structure, and to redefine corporate governance policy and capital structure to enhance corporate performance. Finally, it is hoped that this research will increase the performance of the company, and benefit the financial report users, investors, creditors, shareholders, and other stakeholders in public companies in Malaysia.