Corporate Governance in Malaysia: A Glass Half Full?

Sin Huei Ng and Ken Kyid Yeoh

Indian Journal of Corporate Governance, 2012, vol. 5, issue 2, 120-132

Abstract: It is believed that extensive political involvement in business fundamentally impacts the overall quality of both firm- and country-level corporate governance in a particular country. Using the corporate and institutional environment in Malaysia as our chosen example, we aim to show the profound influence that national government policies and approaches to the running of their respective capital markets has on the corporate governance practices and norms in a particular country . Specifically, we show that political conflicts of interest can and have caused controlling shareholders of publicly-listed corporations to have greater inclination to engage in the expropriation of their minority shareholders. This tendency is particularly prevalent amongst large business groups where the link between politics and the business groups is most clearly displayed. We conclude that a culture of good corporate governance is extremely difficult to cultivate without good public / political governance .

Keywords: Principal-Principal Problems; Expropriation of Minority Shareholders; Rent-Seeking; Corporate Governance Reform (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ijcgvn:v:5:y:2012:i:2:p:120-132

DOI: 10.1177/0974686220120203

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