The Impact of Corporate Governance on Frim Performance: Evidence From Malaysia

Oleh :
Rahmah Fitriani - F0308007 - Fak. Ekonomi dan Bisnis

The objective in this research is to investigate the impact of corporate governance mechanisms on firm performance in Malaysia. Specifically, this research examines the effect of chairman characteristics, board structure, independent committees, and family control on return on assets. This research focuses on manufacture companies that listed in Bursa Malaysia Berhad for period 2010. The research data were collected from financial statements and annual reports which published by companies. Purposive sampling method was used to determine research sample and 200 samples were collected. Hypothesis was tested by Ordinary Least Square (OLS) regression model using SPSS 17.00 software The results of this research show that corporate governance mechanism simultaneously impact on return on assets. Only board meetings that partially and significantly had effect on return on assets. Additionally, the interaction between chairman tenure and chairman executive partially and significantly had effect on return on assets. Keywords: CORPORATE GOVERNANCE, Chairman Characteristics, Board Structure, Independent Committees, Family Control, Firm Performance.