Corporate Board and the Value of Diversified Public Listed Companies in Malaysia

Abstract

This study examines the relationship between corporate board and firm value of diversified companies listed on Bursa Malaysia. It applies a multiple regression analysis on data collected from annual reports of the companies for the year 2017. The corporate board variables considered are board size, tenure of independence directors and the existence of risk management committee, while the value of firm is measured based on excess value. The results reveal that there is a negative relationship between tenure of independent directors, board size with firm value, while risk management committee maintains significant positive relationship with firm value. The study is supportive of the view that enhanced corporate governance practices contributes towards increasing firm value. Generally, this study provides new/additional insights for policy makers or regulators in improving the corporate governance policies in the future and main help in increasing understanding on the relationship between corporate governance practices and firm’s value. Corresponding author: Umar Salisu Email addresses for the corresponding author: umarsalisu2005@gmail.com First submission received: 14th July 2018 Revised submission received: 19th October 2018 Accepted: 1st November 2018