Investigating The Effectiveness Of Corporate Governance Code Revisions On The Perspective Of The Revision Interval

Authors

  • Abdul Hadi Zulkafli Universiti Sains Malaysia
  • Chee-Wooi Hooy Universiti Sains Malaysia
  • Chai-Aun Ooi Universiti Sains Malaysia

DOI:

https://doi.org/10.33736/ijbs.3142.2017

Abstract

Thisstudy investigatesthe effectiveness of corporate governancecode revisionsonfirm value using 35 countries’ public listed firms over 2007-2014.First, this study finds that progressive code revisions have significant positive relationship with firm value. Second, this study finds that theinterval ofcorporate governancecode revision is significant to influence the effectiveness of code revisions. Further analysis reveals that the relationship between code revision interval and firm value is non-linear, whichis depicted in inverted U-shaped. The findings suggest that a moderate code revision interval, i.e. 4 years once is optimal to maximize firm value. In overall, the findings of thisstudy have suggestedseveral practical implications to the development of thenationalcodesof corporate governance.

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Published

2017-12-31

How to Cite

Abdul Hadi Zulkafli, Chee-Wooi Hooy, & Chai-Aun Ooi. (2017). Investigating The Effectiveness Of Corporate Governance Code Revisions On The Perspective Of The Revision Interval. International Journal of Business and Society, 18(3), 503–514. https://doi.org/10.33736/ijbs.3142.2017