Women on boards and firm performance: Malaysian evidence

There are many studies in developed countries that show positive relationship between the presence of women in top management and firm financial performance. This maybe due to the number of educated women who join the workforce and hold top executive positions in organisations in these countries has...

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Main Authors:	Raja Kamaruzaman, Raja Nur Syazwani, Ahmad, Maslina, Annuar, Hairul Azlan
Format:	Conference or Workshop Item
Language:	English
Published:	2016
Subjects:	HF5381 Vocational guidance. Career development
Online Access:	http://irep.iium.edu.my/53391/ http://irep.iium.edu.my/53391/ http://irep.iium.edu.my/53391/6/PICCWED%20Conference.pdf

id	iium-53391
recordtype	eprints
spelling	iium-533912016-12-20T00:56:10Z http://irep.iium.edu.my/53391/ Women on boards and firm performance: Malaysian evidence Raja Kamaruzaman, Raja Nur Syazwani Ahmad, Maslina Annuar, Hairul Azlan HF5381 Vocational guidance. Career development There are many studies in developed countries that show positive relationship between the presence of women in top management and firm financial performance. This maybe due to the number of educated women who join the workforce and hold top executive positions in organisations in these countries has increased steadily. Nevertheless, the participation of women in board directorships is still low, particularly in the Asean region despite more of them being better educated. In 2011, the Malaysian cabinet approved the policy that all board of directors of companies listed on the Bursa Malaysia should consist of 30% women in decision-making positions by the year 2016. This study therefore examines the association between the presence of women on the board and firms’ performance following the introduction of diversity policy. The analysis uses information of the top 200 Malaysian public listed companies for the financial year 2011 to 2013. The multiple regression analysis is used to estimate the relationship between the firm performance (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. The results of the study also show that the academic backgrounds of the women board members adds some value toward generating better firm performance. This study contributes to the rising literature on women board member representation based on the firm performance of the top 200 listed companies in Malaysia. The findings encourage public listed companies to appoint women with the necessary qualities as members of the board of directors and to analyse the effects of the diversity policy introduced by the government. 2016 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/53391/6/PICCWED%20Conference.pdf Raja Kamaruzaman, Raja Nur Syazwani and Ahmad, Maslina and Annuar, Hairul Azlan (2016) Women on boards and firm performance: Malaysian evidence. In: Putrajaya International Conference On Children, Women, Elderly And Disabled People, 3rd-4th December 2016, Putrajaya. (Unpublished) http://www.piccwed.com/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5381 Vocational guidance. Career development
spellingShingle	HF5381 Vocational guidance. Career development Raja Kamaruzaman, Raja Nur Syazwani Ahmad, Maslina Annuar, Hairul Azlan Women on boards and firm performance: Malaysian evidence
description	There are many studies in developed countries that show positive relationship between the presence of women in top management and firm financial performance. This maybe due to the number of educated women who join the workforce and hold top executive positions in organisations in these countries has increased steadily. Nevertheless, the participation of women in board directorships is still low, particularly in the Asean region despite more of them being better educated. In 2011, the Malaysian cabinet approved the policy that all board of directors of companies listed on the Bursa Malaysia should consist of 30% women in decision-making positions by the year 2016. This study therefore examines the association between the presence of women on the board and firms’ performance following the introduction of diversity policy. The analysis uses information of the top 200 Malaysian public listed companies for the financial year 2011 to 2013. The multiple regression analysis is used to estimate the relationship between the firm performance (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. The results of the study also show that the academic backgrounds of the women board members adds some value toward generating better firm performance. This study contributes to the rising literature on women board member representation based on the firm performance of the top 200 listed companies in Malaysia. The findings encourage public listed companies to appoint women with the necessary qualities as members of the board of directors and to analyse the effects of the diversity policy introduced by the government.
format	Conference or Workshop Item
author	Raja Kamaruzaman, Raja Nur Syazwani Ahmad, Maslina Annuar, Hairul Azlan
author_facet	Raja Kamaruzaman, Raja Nur Syazwani Ahmad, Maslina Annuar, Hairul Azlan
author_sort	Raja Kamaruzaman, Raja Nur Syazwani
title	Women on boards and firm performance: Malaysian evidence
title_short	Women on boards and firm performance: Malaysian evidence
title_full	Women on boards and firm performance: Malaysian evidence
title_fullStr	Women on boards and firm performance: Malaysian evidence
title_full_unstemmed	Women on boards and firm performance: Malaysian evidence
title_sort	women on boards and firm performance: malaysian evidence
publishDate	2016
url	http://irep.iium.edu.my/53391/ http://irep.iium.edu.my/53391/ http://irep.iium.edu.my/53391/6/PICCWED%20Conference.pdf
first_indexed	2023-09-18T21:15:33Z
last_indexed	2023-09-18T21:15:33Z
_version_	1777411537594482688

Women on boards and firm performance: Malaysian evidence

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