A Conceptual Perspective On Corporate Governance And Financial Distress In Malaysia

Abstract

Forecasting financial stability and the potential occurrence of financial distress has been a subject of considerable interest for many years due to its significant implications for listed companies, stakeholders, and the overall economy of a country. Financial difficulties may expose the companies to the risk of bankruptcy or liquidation. This study aims to explore whether corporate governance, specifically on the characteristics of the board of directors, has an impact on the financial well-being of the company. This study also employs a corporate governance perspective to examine the composition of the board and its influence on the financial well-being of the companies. By demonstrating the relevance of corporate governance concerning financial distress, this study provides valuable insights for shareholders and financial institutions.