Does Board of Director’s Characteristics Affect Firm Performance? Evidence from Malaysian Public Listed Companies

By Siti Norwahida Shukeri, Ong Wei Shin, Mohd Shahidan Shaari. 2012

236 citations recorded by the source corpus.

The aim of this study is to answer the question: “do board characteristics affect firm performance?” There are six board of directors’ characteristics being studied, including managerial ownership, board size, board independence, CEO duality, gender diversity and ethnic diversity. Return on Equity (ROE) is used as a measurement for firm financial performance. There are 300 Malaysian public listed companies being randomly selected from each sector. The results show that board size and ethnic diversity have positive relationship with ROE while board independence has negative relationship. There is no significant relationship between managerial ownership, CEO duality and gender diversity on firm performance. The findings may provide some implications for future research regarding the effectiveness of board of directors towards firm performance.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/785b9ddf43c7b2d05b322eaa6a08f78e914023bb

How researchers see this paper

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In Accounting

1. Zam Zuriyati Mohamad
2. N. M. Norwani
3. Nooraisah Katmon
4. O. Farooque
5. Muhammad Ishtiaq Ali
6. Yin Lu Ng

In Strategy and Management

1. Zam Zuriyati Mohamad
2. Nooraisah Katmon
3. O. Farooque
4. Muhammad Ishtiaq Ali
5. N. M. Norwani

Citations in the corpus

• Board Age and Gender Diversity: A Test of Competing Linear and Curvilinear Predictions (2014, background): “Other studies found that board gender diversity did not have a significant relationship with outcomes (e.g., Carter et al., 2010; Jhunjhunwala and Mishra, 2012; Shukeri et al., 2012; Wang and Clift, 2009) (see Appendix for details on some gender diversity studies).”
• Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market (2017, methodology): “…ages (Dagsson and Larsson 2011); ETHNIC is measured using the proportion of directors excluding majority of race/ethnic to total number of directors (Shukeri et al. 2012); TENURE is measured using the proportion of directors serving as board of director less than 3 years to total number of…”