Corporate Performance and Governance in Malaysia

 
Author/Editor: Khatri, Yougesh ; Leruth, Luc ; Piesse, J.
 
Publication Date: September 01, 2002
 
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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
 
English
Publication Date: September 01, 2002
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1522002 Pages: 24
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