Malaysian SMEs experience toward effective corporate governance Adaptability and Challenges

Authors

lahcenc makgloufi, Yarmouk University, JordanFollow
bader al-qaied, Yarmouk University, JordanFollow

Abstract

Currently, SMEs are recognized as a crucial impact on economic growth in both developed and the developing economies. SMEs are the backbone contributor to the GDP and employment in everywhere the world. Today, the corporate governance practices it is critical for the company and it is essential to be implemented in order to monitor and control firms. The ownership focusing in Malaysian SMEs has resulted in less protection of the minority shareholders. This is because; most of the companies are family based, where the family members hold the top management positions. Thus, the majority shareholders are involved in the act of expropriation, which results in loss of huge amount of money and trust of the minority shareholders. SMEs in Malaysia does not have any documented corporate governance code, this led to many problems like confiscation. This paper is investigated on the medium sized company. Moreover, this research discusses the extent of confiscation of minority shareholders and the need to have an overall code to monitor the firms and control the stakeholders, and as well it assists to keep the minority shareholders' rights

Recommended Citation

makgloufi, lahcenc and al-qaied, bader (2016) "Malaysian SMEs experience toward effective corporate governance Adaptability and Challenges," Jerash for Research and Studies Journal مجلة جرش للبحوث والدراسات: Vol. 17: Iss. 2, Article 8.
Available at: https://digitalcommons.aaru.edu.jo/jpu/vol17/iss2/8