THE EFFECT OF ROLE DUALITY ON CORPORATE PERFORMANCE IN MALAYSIA

By Rahayu Abdul Rahman, R. Haniffa. 2005

133 citations recorded by the source corpus.

The Malaysian Code on Corporate Governance (MCCG) recommends a separation between the position of CEO and Chairman to ensure a balance of power and authority, such that no individual has unfettered powers of making decision. It was hoped that the code would lead to more independent boards so as to provide the essential checks and balances over man-agement’s performance. Thus, the current study seeks to explore the extent CEO duality influence corporate performance in Malaysia. The findings indicate that companies with CEOs role duality seemed not to perform as well as their counterparts with separate board leadership based on accounting performance measurements, ROE and ROA. This implies that the recommendation by the MCCG to have the two roles separated is deemed very important and must be implemented fully.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/64bf00763bb9688d7c574a58e954780bfa7fcc8d

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Citations in the corpus

Corporate Governance Characteristics and Earnings Management: Empirical Evidence from Chinese Listed Firms (2011, methodology): “1 Measurement We use absolute value of discretionary current accruals DAC as the dependent variable as consistent with Klein (2002) and Xie et al (2003). Table 1 provides the variables and their specific definition in the study. The descriptive statistics of the DAC and the continuous independent va”
Corporate governance and firm performance and value in Saudi Arabia (2012, background): “Examining data of firms in developing markets, Rahman and Haniffa (2005) report that Malaysian companies with CEO duality do not perform as well as firms without duality.”
Ownership structure, corporate governance and corporate performance in Malaysia (2010, background): “While Chang Aik Leng and Abu Mansor (2005) found role duality to be signiﬁcant and positively associated with corporate performance, Rahman and Haniffa (2005) reported the opposite.”
Board Independence, CEO Duality and Accrual Management: Malaysian Evidence (2008, methodology): “The economic recession in 1997 resulted in a massive loss of confidence by foreign investors’ in the Malaysian capital market (Abdul Rahman and Haniffa, 2005). The government established a high level Finance Committee on Corporate Governance that included government and industry representatives to e”
The influence of board independence, competency and ownership on earnings management in Malaysia (2009, background): “In addition, the role of audit committee attributes in relation to earnings management has been investigated in other studies such as Abdul Rahman and Mohamed Ali (2006) and Mohd Saleh et al. (2007).”