Corporate Governance Mechanisms and Company Performance: Evidence from Malaysian Companies

Abstract

The aim of the paper is to examine the effect of corporate governance mechanisms on Malaysian firms ’ performance. The sample size is 424 companies on Bursa Malaysia. The findings reveal that in terms of board governance mechanisms, family-controlled companies are shown to have smaller board size and practise duality leadership in running their businesses. In contrast, for non-family controlled companies, director’s qualification helps to enhance firm performance. Based on the findings, regulators and investors need to be aware that the corporate governance practised by family-controlled companies differs to that of non-family controlled companies.