SUSTAINABLE CORPORATE GOVERNANCE INDEX AND FIRMS' PERFORMANCE: A STUDY ON PUBLIC LISTED COMPANIES IN MALAYSIA

The increasing cases offinancial crises and corporate scandals have stained corporate
governance reputation and further implanted doubt in the minds of stakeholders about
the effectiveness of the current governance structure. In spite of the significance of
corporate governance, identifying governance practices that result in corporate
profitability has been very challenging. Similarly, identifying a well-accepted index to
benchmark good corporate governance practices is also amajor concern.
The purpose ofthis study is to develop a sustainable corporate governance index and
examine the relationship between the index components and firm's performance. This
study further examines the relationship between the sustainable corporate governance
index and firm performance.