Impact of the Revised Malaysian Code on Corporate Governance on Audit…

Impact of the Revised Malaysian Code on Corporate Governance on Audit…

Basiru Salisu Kallamu

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α Universiti Putra Malaysia

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Abstract

Using a sample of 37 finance companies listed under the finance segment of Bursa Malaysia, we examined the impact of the revision to Malaysian code on corporate governance on audit committee attributes and firm performance. Our result suggests that audit committee attributes significantly improved after the Code was revised. In addition, the coefficient for audit committee and risk committee interlock has a significant negative relationship with Tobin’s Q in the period before the revision to the Code and before the global financial crisis. The negative direction of the result is contrary to agency theory which suggests that separating directors on subcommittees will create information asymmetry between the directors and lead to poor coordination in the decisions of the committees thereby negatively affecting firm performance.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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How to Cite This Article

Basiru Salisu Kallamu. 2016. \u201cImpact of the Revised Malaysian Code on Corporate Governance on Audit…\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 16 (GJMBR Volume 16 Issue D1): .

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GJMBR Volume 16 Issue D1
Pg. 33- 42

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-D Classification: JEL Code: M42

Submission ReceivedDecember 16, 2015
Peer Review Double Blind
Handling Editor
Accepted January 4, 2016
Published January 15, 2016

Version of record

v1.2

Issue date

April 8, 2016

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Article Matrices

Total Score: 101

Country: Malaysia

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Basiru Salisu Kallamu (PhD/Dr. count: 0)

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Total Downloads (simulated): 1943

Publish Date: 2016 04, Fri

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Total Views: 3814

Total Downloads: 1943

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