The Effects of Corporate Governance Mechanisms on Firm Financial Performance Pre- and Post-Covid-19 of Public Listed Companies in Malaysia

Abstract

This study investigated the effects of corporate governance mechanisms, on the financial performance of the top 500 publicly listed companies in Malaysia. DuPont Analysis and Multiple Linear Regression identified and addressed critical research gaps. The study analyzed the financial landscapes of Malaysia’s top 500 public listed companies from various sectors in 2018 and 2021. The results showcased a nuanced understanding of return on equity distribution, revealing a trend of moderately positive ROE for most PLCs in 2018. The 2021 analysis data revealed insignificant and bare disruptive effects of the COVID-19 outbreak on the sampled public listed companies as there was an almost negligible number of companies that were affected by the outbreak. Multiple Linear Regression is showing a statistically significant positive relationship with firm financial performance. In contrast, board independence, size and tenure exhibited non-significant relationships, with nuanced interpretations of their potential impact. This study insights into the evolving landscape of corporate governance in Malaysia, highlighting the importance of resilience in the face of economic disruptions. This study advocates for continuous research to understand and enhance the resilience of corporate governance mechanisms in ensuring sustained financial performance in diverse industry contexts.