Corporate governance reforms in Malaysia: insights from institutional theory
by Iqbal Khadaroo, Junaid M. Shaikh
World Review of Entrepreneurship, Management and Sustainable Development (WREMSD), Vol. 3, No. 1, 2007

Abstract: This paper uses the institutional theory framework to explain the current corporate governance reforms in Malaysia between 1998 and 2004. It explores the roles played by both existing and new institutions in promulgating regulations and voluntary codes on corporate governance. It is argued that 'coercive', 'normative' and 'mimetic' pressures have shaped current corporate governance practices in Malaysia. 'Normative' pressures from the accounting and legal professions and international developments have 'coerced' Malaysia into reforming and strengthening its existing corporate governance practices. This study further highlights that the Malaysian approach to corporate governance reforms is mostly geared towards regulation.

Online publication date: Tue, 23-Jan-2007

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