-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
CORPORATE STRATEGY, CORPORATE GOVERNANCE AND PERFORMANCE OF FINANCIAL INSTITUTIONS IN MALAYSIA
Download This Article
Basiru Salisu Kallamu 
, Nur Ashikin Mohd Saat
Abstract
We examine the impact of corporate strategy and corporate governance on the performance of finance companies in Malaysia using data from 406 firm-year observations. The results indicate that diversification influence accounting returns negatively while separate risk management committee (RMC) influence market valuation of finance companies positively both in the period after the Asian financial crisis which also is the period after the Malaysian Code on Corporate Governance (MCCG) was issued. Finally, the results indicate significant difference between the period before and after the Asian financial crisis and MCCG in terms of diversification and corporate governance in the finance companies. The results support agency theory which suggests that diversification may create further agency problem between the management and the shareholders.
Keywords: Corporate Governance, Diversification Firm Performance, Risk Management Committee, Strategy
How to cite this paper: Kallamu, B. S., & Mohd Saat, N. A. (2014). Corporate strategy, corporate governance and performance of financial institutions in Malaysia. Corporate Ownership & Control, 12(1-4), 386-398. https://doi.org/10.22495/cocv12i1c4p1
