Abstract

The current study examines the relationship between chief executive officer (CEO) tenure, firm performance and corporate governance reporting (CGR) for the period 2002–2005. The sample comprises 76 large public firms listed in Bursa Malaysia (304 firm–year observations). Results demonstrate that performance is negatively related to CGR. Subsequent analysis suggests that firms with shorter–tenured CEOs disclose more information about corporate governance practices than those with longer–tenured CEOs. Evidence suggests that new managers disclose more information to convince shareholders monitoring through corporate governance mechanisms are in place to justify their positions in the firms when firm performance is weak.

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