Determinants of Corporate Governance and Corporate Performance among Consumer Product Industry in Malaysia: A Theoretical Model

Abstract

Abstract This study discusses on the relationship between corporate governance mechanisms and corporate performance of public listed companies in Bursa Malaysia among the consumer product industry. It investigates the corporate governance mechanisms such as ownership concentration, audit quality, board independence and CEO duality, are used to test on the relationship between both corporate governance and corporate performance. The proposed model indicates that the proportion of independent non-executive director might result in different decisions and the appropriate decisions made will improve the corporate performance. However, board size, firm size and leverage act as control variables on relationship between corporate governance and corporate performance. This study contributes to the literature by demonstrating the significant factors that determine the relationship between corporate governance and corporate governance. The findings are also relevant to the listed companies in understand the importance of corporate governance applied. Key words Corporate performance, chief executive officer duality, board independence, ownership