Ethnic and Gender Diversity in Boards of Directors and Their Relevance to Financial Performance of Malaysian Companies

By Maran Marimuthu, Indraah Kolandaisamy. 2009

140 citations recorded by the source corpus.

The purpose of this paper is to empirically examine the effect of demographic diversity on boards of directors with regard to firm financial performance. This paper uses secondary data of non-financial listed companies over the period 2000 to 2006. Relevant concepts, propositions, hypotheses and control variables are specially developed to meet our requirements. Demographic diversity is represented by ethnic and gender diversity and performance is measured by return on asset (ROA) and return on equity (ROE). A series of OLS regressions using on the cross-sectional data are also presented. The results seem to be quite inconsistent to prove the relevance of diversity among the board members with regard to financial performance.

Subfields: Accounting, Gender Studies, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/662c2865f244e6c9b11b770c8c1e73abbd3a7406

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Citations in the corpus

Does Board of Director’s Characteristics Affect Firm Performance? Evidence from Malaysian Public Listed Companies (2012, result): “The result is contradict to Amran (2011) but consistent with the result found by Marimuthu (2009), given the reason that there is no actual effect of gender diversity to firm performance because it is depending on the country and corporate culture.”
The Impact of Board Characteristics on the Financial Performance of Tanzanian Firms. (2018, background): “Conversely, Ahern and Dittmar (2012) found a negative relationship, and Marimuthu and Kolandaisamy (2009) did not find any link between the ratio of women on boards and firm performance.”
Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market (2017, background): “Diversity in boards is favorable to improving the quality of corporate decisions (Marimuthu and Kolandaisamy 2009), offering better problem solving (Dobbin and Jung 2011), increasing organizational competitiveness (Gregoric et al. 2009) and providing new insights that lead to innovation (Cook and…”