Does Corporate Governance Reformations Make the Difference? The Case of Malaysia

Abstract

This paper reviews the performance of corporate governance practices in Malaysia from the beginning of the twenty-first century until recently. This paper also highlights the history of corporate governance practices in Malaysia and the scenario of accounting manipulations. Malaysia is a multi-ethnic society that requires managing corporations and firms collectively. Hence, corporate governance practices and good practices are compelled to fit society’s uniqueness. This paper used the survey findings from the year 2002 to the year 2018 and discussed the corporate governance performance related to accounting manipulations in Malaysia. The market ranking survey oversees five (5) categories of corporate governance scores: rules and regulations, enforcement, political/ regulatory environment, adoption of International Generally Accepted Accounting Principle, and corporate governance culture. The findings reported that firms in Malaysia have benefited from good laws and regulations through corporate governance reforms.