Women directors and firm performance: Malaysian evidence post policy announcement

Ahmad, Maslina and Raja Kamaruzaman, Raja Nur Syazwani and Hamdan, Hamdino and Annuar, Hairul Azlan (2019) Women directors and firm performance: Malaysian evidence post policy announcement. Journal of Economics and Administrative Sciences. pp. 1-14. ISSN 1026-4116

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Abstract

In 2011, the Malaysian cabinet approved the policy that all board of directors of companies listed on the Bursa Malaysia should consist of 30 per cent women in decision-making positions by the year 2016. The purpose of this paper is to examine the association between the presence of women on the board and firms’ performance following the introduction of the diversity policy. The analysis uses the information of the top 200 Malaysian public listed companies for the financial year 2011–2013. The multiple regression analysis is used to estimate the relationship between the firm performance (return on assets (ROA)) as the dependent variable and the independent variables.The results show that during the period under study, the proportion of women directors on board is negatively correlated with ROA. This indicates that the firm performance may not be dependent on the number of women directors on board. However, the results of the study also show that the academic backgrounds of the women board members add some value toward generating better firm performance. The findings encourage public listed companies to appoint women with the necessary qualities as members of the board and not to simply increase the number of women on boards.

Item Type:	Article (Journal)
Additional Information:	3649/78133
Uncontrolled Keywords:	Corporate governance, Malaysia, Firm performance, Women directors, Public listed companies
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5549 Personnel management H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Accounting Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	DR MASLINA AHMAD
Date Deposited:	21 Jan 2020 16:28
Last Modified:	21 Jan 2020 16:28
URI:	http://irep.iium.edu.my/id/eprint/78133

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