This paper was designed to understand the implications and significance of management ethics over stock performance in Malaysia. The stock performance was measured using Return on Equity (ROE), Return on Asset (ROA), Earnings Per Share (EPS) and Price Earnings ratio (PE). A scorecard method used in ASEAN Corporate Governance report 2014 has been used to rank the firms based on their ethical performances. The published rankings for top 20 firms with good corporate governance are used as measure of management ethics. The theoretical relationship between shareholder’s wealth, management ethics and efficient market hypothesis explains how management ethics impact the stock performance. The findings could be used to understand how shareholders could be affected by the managers’ ethical or unethical behavior.
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