The Effect of Board Attributes on Firm Performance: Evidence from Post MCCG 2007 and Post-MCCG 2012 in Malaysia

Abstract

This study aims to examine the effect of board attributes on the firm performance of public listed companies in Malaysia during the periods of post-Malaysian Code on Corporate Governance (2007) and post-Malaysian Code on Corporate Governance (2012). Based on the Agency and Stewardship theories, the relationships between CEO duality, board composition, board size, gender diversity, and firm performance on PLCs in the main board of Bursa Malaysia were examined. A sample of 688 companies from 2011, 2012, 2016, and 2017 was observed. Findings indicate that the CEO duality, board size, and gender diversity significantly influence the firm performance in the study periods. Such findings offer interesting insights to the relevant authorities towards designing the bestsuited governance measures that may lead to a successful implementation of corporate governance practice. This study also signals the need for an enhanced role of relevant institutional agencies in strategising and strengthening the corporate governance framework in an emerging country such as Malaysia.