Publication: The Impact Of Board Size On The Performance Of Shariah Compliant Companies In Malaysia
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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Blue Eyes Intelligence Engineering & Sciences Publication
Abstract
The objective of this study is to examine the relationship between the board size and firm performance of Shariah-Compliant companies in Malaysia. The characteristics of the board of Shariah-compliant companies in Consumer Products counter of Bursa Malaysia are being examined against the firm’s performance using data from 77 companies from year 2014 to 2016. Based on the result of regression, board size has a strong positive correlation with the performance of the firms. This study suggests that Shariah-Compliant Companies need to strengthen the Shariah governance to produce products that Muslim consumer use in their daily lives. The appointment of director with Shariah background must be highly encouraged if not mandatory to companies involved in producing food, drinks, pharmaceutical and cosmetics in order for the companies to tap their expertise in enhancing halal governance. The findings of the study would be very useful to the regulators to improve the Malaysian Code of Corporate Governance. Furthermore, the findings of the study also help to fill the gap on scarce of literatures that study the relationship between the corporate governance practices and performance. Mohd Marzuki Ismail more long-term values. Proper governance entails the distribution of rights and responsibilities to company participants and outlining of rules and measures for risk management, internal control and decision making. Corporate governance does not constrain itself to serving the interests of shareholders but as well other stakeholders of the company, which include among others its employees, clients, suppliers, society and communities in which the company carry out its business.
Keywords: Islamic finance, Board Size, Financial Performance, Shariah-Compliant Companies.
Description
International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-4, November 2019
Keywords
Islamic finance,, Board Size,, Financial Performance,, Shariah-Compliant Companies.