CORPORATE GOVERNANCE AND ITS EFFECT ON THE EFFICIENCY OF GENERATING FINANCIAL PERFORMANCE: EVIDENCE FROM THE OIL AND GAS INDUSTRY OF MALAYSIA

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Ong Tze San Soh Wei Ni Teh Boon Heng Ng Sin Huei

Abstract

Capital inflow and joint ventures by investors are very significant in rapidlydeveloping countries, particularly in sectors that require a large capitalcommitment and high technology support. Therefore, companies will formthe most strategic decision to remain competitive in the market to attractand retain investors. Corporate governance and financial performance areimportant elements considered by investors before they decide on where toplace their investment funds. Thus, the study of corporate governance andits effect on the efficiency of financial performance becomes an interestingdecision-making tool and is a reference point that assists investors to predictthe influence of the corporate governance on the capital they invest. Resultsof this study show that firm size and CEO/chairman duality significantlyinfluence the efficiency of corporate governance in generating financialperformance. Surprisingly, setting risk management committee made nodifference in financial performance.

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How to Cite
SAN, Ong Tze et al. CORPORATE GOVERNANCE AND ITS EFFECT ON THE EFFICIENCY OF GENERATING FINANCIAL PERFORMANCE: EVIDENCE FROM THE OIL AND GAS INDUSTRY OF MALAYSIA. Asia-Pacific Management Accounting Journal, [S.l.], v. 9, n. 2, p. 19-36, dec. 2014. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/5>. Date accessed: 17 jan. 2018.
Section
Management Accounting