The impact of corporate governance towards companies performance : the case of consumer product industry in Malaysia / Siti Fatimah Norraini Abdul Rahim

The impact of corporate governance towards company performance is analyzed with a four years data from 20 companies in consumer product industry that are listed in the main board. After a thorough review of literatures, board activity, board remuneration and board size are engaged to explain the performance of companies in consumer product industry. The performance of the companies is measured using a profit margin. Also, a number of literatures from various sources and country are used to corroborate the findings, the relationship between board size, board activity and board remuneration towards profit margin gain by the companies is measured using the summary statistics, correlation analysis and ordinal least square regression analysis. The findings of this study show only board activity have a significant in which means that the higher frequency of meeting held in a company will lead to a higher performance of the company. On the other hand, the other two independent variables that are board remuneration and board size are not significant. This results bring a meaning that there is a needs to decrease the amount of remuneration for the directors and smaller the size of board in order to boost up the company’s performance.