Corporate Governance: Impact of Corporate Governance on Performance of Banking Sector in Malaysia

Development of corporate governance and the effects of this section on the review of performance and accuracy of financial statements and accounting systems around the world and by referring to studies on the linkage between corporate governance and performance, there would be significant relations between them that help the organizations to improve profitability. In some parts of corporate governance such as audit committee and board of directors, many countries such as Malaysia have set up the regulation of Sarbanes-Oxly-Act after 2002 which consists of new rules and regulations on corporate governance to increase authority and responsibility of this committee. It has helped Malaysia to recover from the financial crisis in Asia. This recovery has caused investors to have more confidence and offer investments in Malaysia. A good structure and good management of corporate governance can provide a secure platform for investors to invest more in Malaysia.