Abstract

The objective of this study is to investigate the relationship between Corporate Governance (CG) mechanisms and Intellectual Capital (IC) efficiency following the revision of the Malaysian Code of Corporate Governance (MCCG) in 2012. A final sample of 150 large companies was chosen from the companies listed on the main board of Bursa Malaysia for 2014. The Value Added Intellectual Coefficient (VAIC™) model was utilized to measure the IC efficiency and tested using multiple regression analysis. The multiple regression analysis revealed that board size and frequency of audit committee meetings have a significant and positive association with IC efficiency, but no evidence existed for an association between board composition and role duality on IC efficiency.The result of this study could be useful for regulators and policy makers, particularly to the Securities Commission Malaysia, to further revise and strengthen its MCCG. This study adds to the shortage of literature by providing evidence on the effects of CG attributes on IC efficiency subsequent to the revised Malaysian Code on Corporate Governance (MCCG) 2012.

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