MATEC Web of Conferences
Volume 150, 2018Malaysia Technical Universities Conference on Engineering and Technology (MUCET 2017)
|Number of page(s)||6|
|Section||Information & Communication Technology (ICT), Science (SCI) & Mathematics (SM)|
|Published online||23 February 2018|
Determining The Optimal Mix of Institutional Geopolitical Power And ASEAN Corporate Governance on the Firm Value of Malaysia’s Multinational Corporations (MNCs)
School of Business Innovation and Technopreneurship, Universiti Malaysia Perlis, 01000 Kangar, Perlis, Malaysia.
2 School of Manufacturing Engineering,Universiti Malaysia Perlis, Ulu Pauh Main Campus, 02600 Arau, Perlis.
3 School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia.
* Corresponding author: firstname.lastname@example.org
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.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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