The impact of COVID-19 and Corporate Governance: The Empirical study of Malaysia emerging market

Abstract

Corporate governance has been a key pillar of company performance. Past research has highlighted the importance of corporate governance and the Securities Commission Malaysia has recently introduced the Malaysia Code of Corporate Governance 2021 to enhance corporate practice. There were different concepts of corporate governance being practice globally, and Malaysia being a commonwealth country is practicing the Anglo-American approach of corporate governance. The corporate governance in Malaysia emphasis on board of directors, monitoring mechanism of management and align with what being mentioned in the Agency theory where there is a misalignment of goal between shareholders and management. In light of the COVID-19 Pandemic, there is new norm being practice such as virtual audit and virtual meeting, monitoring mechanism and corporate governance have changed. This empirical research reviews the past literature on corporate governance and conceptualizes a research framework that includes COVID-19 factors that might affect corporate governance in Malaysia. In addition, this research paper performed a  empirical study to assess the  impact corporate governance incorporating the COVID financial factors - on firm’s performance.