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Chapter 29
DOI: 10.4018/978-1-7998-0218-1.ch029
ABSTRACT
This chapter examines the relationship between corporate governance practices and frm performance.
The characteristics of the board of Shari’ah-compliant companies in consumer products counter of Bursa
Malaysia were examined against the frm’s performance using data from 77 companies from 2014 to
2016. Based on the result of multiple regression; board size, Muslim chairman, and Muslim director
have a weak positive correlation with the performance of the frms. However, directors with Shari’ah
background seem to have a negative correlation with the performance of the frms. The fndings of the
chapter would be very useful to the regulators to improve the Malaysian Code of Corporate Governance
(MCCG). The fndings also help to fll the gap on scarce literature that study the relationship between
the corporate governance practices involving Muslim characteristics and performance.
Corporate Governance and
Performance of Shariah-
Compliant Companies
Mustafa Bin Mohd Hanefah
Universiti Sains Islam Malaysia, Malaysia
Muhammad Iqmal Hisham Kamaruddin
Universiti Sains Islam Malaysia, Malaysia
Rosnia Masruki
https://orcid.org/0000-0003-1087-4185
Universiti Sains Islam Malaysia, Malaysia
Mohd Marzuki Ismail
Universiti Sains Islam Malaysia, Malaysia