Impact of corporate governance on financial performance: A study of federal land development authority (FELDA)

This study investigates the effect of the corporate governance on firm performance of the Federal Land Development Authority (FELDA). These two items represent Corporate Governance which are board characteristics and audit committee characteristics. Committee characteristics also work as an independent variable and firm’s performance is dependent variable. To achieve these, the researcher conducts a data sample based on 200 respondents through questionnaires. SPSS was used in data collection to analyse the data. The findings of this study show that the board characteristics have a positive relationship with firm financial performance. However, audit characteristics have a negative relationship with firm financial performance. Findings from this study may serve as guidance for authorities in enhancing the existing regulation and enforcement on corporate governance in firm. The findings also be beneficial for other organizations that are working in developing countries to further conceptualize the importance of corporate governance determinants in relation to firm performance. Overall, the current research contributes to systems of corporate governance which plays important roles in giving differences to the financial performance of organizations. For future study, it is suggested that investigations on the other items in Corporate Governance in different areas to be carried out.