Corporate Performance and Governance in Malaysia

Author/Editor: Khatri, Yougesh ; Leruth, Luc ; Piesse, J.
Publication Date: September 01, 2002
Electronic Access: Free Full text (PDF file size is 808KB).
Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper measures corporate sector performance (efficiency) and empirically examines the role of corporate governance. A stochastic frontier with inefficiency effects is fitted to a panel dataset of 31 of the largest nonfinancial companies listed on the Kuala Lumpur Stock Exchange for the period 1995 to 1999. Focusing specifically on the impact of the system of corporate governance and the level of control on firm-level performance, results show an underlying vulnerability in these firms, exacerbated by their reliance on bank-based borrowing and a highly concentrated shareholding structure with complex cross holdings. Furthermore, debt does not appear to have the control features present in outsider systems of corporate governance.
Series: Working Paper No. 02/152
Subject(s): Corporate governance | Malaysia | Economic models | Financial crisis

Author's Keyword(s): corporate governance | stochastic frontier | southeast Asian crisis
Publication Date: September 01, 2002
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1522002 Pages: 24
US$15.00 (Academic Rate:
US$15.00 )
Price Delivery Note: Prepayment required for individual copies. An annual subscription is $375.00 a year. It includes 12 monthly shipments and priority mail delivery. The Stock No. for the subscription is WPEA.
Please address any questions about this title to