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Women participation on the boards of Malaysian companies and firm performance

Ku Ismail, Ku Nor Izah and Abdullah, Shamsul Nahar (2011) Women participation on the boards of Malaysian companies and firm performance. In: The 5th Annual International Conference on Business Society and Society on a Global Economy, 19-22 December 2011, Athens, Greece.

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Abstract

This study examines the level of women participation on the boards of Malaysian listed companies, and examines the association between women participation on the board and firm performance. We use normalized Tobin’s q and return on assets (ROA) to measure firm performance. An analysis of 841 companies in 2008 shows that 362 (43 percent) of the boards are represented by women, a majority of which are represented by only one woman. On average, women occupy only 7.72 percent of the board seats. This study also shows that a majority of the female directors belong to the Chinese ethnic group, younger than their male counterparts, have one to five years of director experience, and are non-independent directors. Results on the association between women participation on the boards and firm performance are mixed. Using normalized Tobin’s q as a measure of performance, we find that firms with women directors perform poorer than those without women, at a 10 percent significant level. On the other hand, when the ROA is employed, firms with women on boards perform better than those without women, at a 10 percent significant level. This result is consistent with the hypothesis that women representation on the boards of companies is positively associated with company performance. The findings of this study may provide input to the authority responsible for promoting women to become company directors.

Item Type: Conference or Workshop Item (Full Paper)
Additional Information: 6708/26332
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5387 Business ethics
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Prof. Dr. Shamsul Nahar Abdullah
Date Deposited: 12 Jul 2013 10:58
Last Modified: 12 Jul 2013 11:00
URI: http://irep.iium.edu.my/id/eprint/26332

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