Women on boards and bank efficiency in ASEAN-5: the moderating role of the independent directors

Ramly, Zulkufly and Chan, Sok Gee and Mustapha, Mohd Zulkhairi and Sapiei, Noor Sharoja (2017) Women on boards and bank efficiency in ASEAN-5: the moderating role of the independent directors. Review of Managerial Sciences, 11 (1). pp. 225-250. ISSN 1863-6683 (In Press)

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Abstract

Corporate governance codes around the world promote women’s presence in corporate board. The extant literature suggests women directors contribute to improve monitoring and advisory role of the board. This study aims to examine the role of independent women directors in improving banks’ efficiency. Using 102 commercial banks from ASEAN-5 countries for a period of 1999–2012, we run generalized method of moments models to test the relationship between the variables. Our results show that banks with independent women directors on board contribute significantly to the bank’s efficiency level. Contrary to the literature, we found that the appointment of women directors or independent directors alone does not significantly enhance banks’ efficiency. The result suggests that women directors are more effective on boards if they are also appointed as independent directors. This finding implies that a combination of corporate governance mechanism is more powerful than relying on a single element of corporate governance.

Item Type:	Article (Journal)
Additional Information:	7002/47711
Uncontrolled Keywords:	Banks, gender diversity,board independence, board size, efficiency,ASEAN-5
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	Dr Zulkufly Ramly
Date Deposited:	22 Jan 2016 11:00
Last Modified:	12 Jul 2017 14:46
URI:	http://irep.iium.edu.my/id/eprint/47711

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