Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)

Board diversity is important especially in countries which practice a one-tier board system, such as Malaysia. Under the system, board appointments are usually controlled by the firm’s substantial shareholders, and as a result, directors are chosen based on “the old-boy” network or “people like us”...

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Main Author:	Abdullah , Shamsul Nahar
Format:	Article
Language:	English
Published:	Institut Aminuddin Baki MOEM 2013
Subjects:	HF5387 Business ethics
Online Access:	http://irep.iium.edu.my/33246/ http://irep.iium.edu.my/33246/ http://irep.iium.edu.my/33246/1/JPUKM_Vol_38_Gender_Ethnic_Age_.pdf

id	iium-33246
recordtype	eprints
spelling	iium-332462014-12-27T03:55:16Z http://irep.iium.edu.my/33246/ Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi) Abdullah , Shamsul Nahar HF5387 Business ethics Board diversity is important especially in countries which practice a one-tier board system, such as Malaysia. Under the system, board appointments are usually controlled by the firm’s substantial shareholders, and as a result, directors are chosen based on “the old-boy” network or “people like us”, who are typically middle-aged males and from similar ethnicity which could lead to “group think”. Board diversity ensures breadth and depth of the board’s judgments. To this end, this study examines board diversity of the top 100 non-financial Malaysian firms, specifically directors’ gender, ethnicity and age and their effects on firm performance. Data are collected from the 2007 annual reports of the sample firms. The evidence indicates the lack of diversity of the Malaysian boards of directors. Results from the multivariate analyses reveal that gender diversity is negatively associated with Tobin’s q and ROA. Age diversity is found to be negatively related to ROA. Ethnic diversity, on the other hand, is found to be positively associated with ROA. Hence, findings on the effect of board diversity and firm performance are mixed. Nevertheless, this study offers insights to policy makers in enhancing corporate governance in Malaysia where diversity is one of the areas that could strengthen the effectiveness of the board. Institut Aminuddin Baki MOEM 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/33246/1/JPUKM_Vol_38_Gender_Ethnic_Age_.pdf Abdullah , Shamsul Nahar (2013) Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi). Jurnal Pengurusan dan Kepimpinan Pendidikan, 38. pp. 27-40. ISSN 1511-4147 http://202.185.40.102/ojs/pengurusan/article/viewFile/4609/2435
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5387 Business ethics
spellingShingle	HF5387 Business ethics Abdullah , Shamsul Nahar Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
description	Board diversity is important especially in countries which practice a one-tier board system, such as Malaysia. Under the system, board appointments are usually controlled by the firm’s substantial shareholders, and as a result, directors are chosen based on “the old-boy” network or “people like us”, who are typically middle-aged males and from similar ethnicity which could lead to “group think”. Board diversity ensures breadth and depth of the board’s judgments. To this end, this study examines board diversity of the top 100 non-financial Malaysian firms, specifically directors’ gender, ethnicity and age and their effects on firm performance. Data are collected from the 2007 annual reports of the sample firms. The evidence indicates the lack of diversity of the Malaysian boards of directors. Results from the multivariate analyses reveal that gender diversity is negatively associated with Tobin’s q and ROA. Age diversity is found to be negatively related to ROA. Ethnic diversity, on the other hand, is found to be positively associated with ROA. Hence, findings on the effect of board diversity and firm performance are mixed. Nevertheless, this study offers insights to policy makers in enhancing corporate governance in Malaysia where diversity is one of the areas that could strengthen the effectiveness of the board.
format	Article
author	Abdullah , Shamsul Nahar
author_facet	Abdullah , Shamsul Nahar
author_sort	Abdullah , Shamsul Nahar
title	Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
title_short	Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
title_full	Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
title_fullStr	Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
title_full_unstemmed	Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)
title_sort	gender, ethnic and age diversity and performance of large malaysian firms (kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di malaysia dan prestasi)
publisher	Institut Aminuddin Baki MOEM
publishDate	2013
url	http://irep.iium.edu.my/33246/ http://irep.iium.edu.my/33246/ http://irep.iium.edu.my/33246/1/JPUKM_Vol_38_Gender_Ethnic_Age_.pdf
first_indexed	2023-09-18T20:48:04Z
last_indexed	2023-09-18T20:48:04Z
_version_	1777409808633167872

Gender, ethnic and age diversity and performance of large Malaysian firms (Kepelbagaian jantina, kumpulan etnik, dan umur dalam lembaga pengarah firma besar di Malaysia dan prestasi)

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