Determining the Optimal Mix of Institutional Geopolitical Power and ASEAN Corporate Governance on the Firm Value of Malaysia's Multinational Corporations (MNCs)

Yusoff Wan Sallha, Handayani Wuri, Saad Mohd Sazli, Mohd Fairuz Md. Salleh

Research output: Contribution to journalConference article

Abstract

The purpose of this paper is to examine the relationship between institutional geopolitics, ASEAN corporate governance quality and the firm value of Malaysia's multinational corporation (MNC). We used the data of MNCs in Malaysia that were active from 2009 to 2013 as an evidence of MNCs from emerging market economies. Descriptive analysis, factor analysis and panel data analysis have been utilized to test the equation model. We also propose optimization analysis by using differential evolution method to capture the optimal mix of institutional geopolitics and ASEAN-CG on the firm value of MNC. Results reveal that the geopolitics of G7(Canada, France, German, Italy, Japan, Europe, and the United States), BRICS (Brazil, Russia, India, China, and South Africa), and ASEAN (Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Myanmar, Philippines, Singapore, Thailand, Vietnam, and Malaysia) are highly correlated with the firm value of Malaysia's MNC. The power of institutional geopolitics, namely, military, material, and social power, influences firm value negatively and ASEAN-CG moderate the negative influence of institutional geopolitics on the firm value of MNC. Thus, it is importance for corporate management to understand the geopolitical changes of host countries' and increase the compliance of ASEAN-CG in formulating their market value and segmentation strategies.

Original languageEnglish
Article number06017
JournalMATEC Web of Conferences
Volume150
DOIs
Publication statusPublished - 26 Feb 2018
Event2017 Malaysian Technical Universities Conference on Engineering and Technology, MUCET 2017 - Penang, Malaysia
Duration: 6 Dec 20177 Dec 2017

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Industry
Factor analysis
Power (Psychology)
Compliance

ASJC Scopus subject areas

  • Chemistry(all)
  • Materials Science(all)
  • Engineering(all)

Cite this

Determining the Optimal Mix of Institutional Geopolitical Power and ASEAN Corporate Governance on the Firm Value of Malaysia's Multinational Corporations (MNCs). / Wan Sallha, Yusoff; Wuri, Handayani; Mohd Sazli, Saad; Md. Salleh, Mohd Fairuz.

In: MATEC Web of Conferences, Vol. 150, 06017, 26.02.2018.

Research output: Contribution to journalConference article

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