Title: Firm performance, CEO tenure and corporate governance reporting in Malaysia

Authors: Norman Mohd-Saleh; Zuraidah Mohd-Sanusi; Rashidah Abd-Rahman; Rina Bukit

Addresses: Faculty of Accountancy School of Accounting, Universiti Kebangsaan Malaysia, Bangi 43600, Selangor, Malaysia ' Accounting Research Institute, Universiti Teknologi MARA 40450 Shah Alam, Selangor, Malaysia ' Accounting Research Institute, Universiti Teknologi MARA 40450 Shah Alam, Selangor, Malaysia ' Universitas Sumatra Utara, T.M. Hanafiah, Kampus Padang Bulan, Medan, North Sumatera 20155, Indonesia

Abstract: The current study examines the relationship between chief executive officer (CEO) tenure, firm performance and corporate governance reporting (CGR) for the period 2002-2005. The sample comprises 76 large public firms listed in Bursa Malaysia (304 firm-year observations). Results demonstrate that performance is negatively related to CGR. Subsequent analysis suggests that firms with shorter-tenured CEOs disclose more information about corporate governance practices than those with longer-tenured CEOs. Evidence suggests that new managers disclose more information to convince shareholders monitoring through corporate governance mechanisms are in place to justify their positions in the firms when firm performance is weak.

Keywords: corporate governance; corporate reporting; disclosure; CEO tenure; firm performance; Chief Executive Officer; Malaysia.

DOI: 10.1504/IJMP.2012.047583

International Journal of Management Practice, 2012 Vol.5 No.2, pp.170 - 189

Published online: 28 Jun 2012 *

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