Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia

This study aims to examine the relationship between multiple directorships and the monitoring role of the board of directors in Malaysian listed companies (PLC). The monitoring role is proxied by the percentage of directors’ attendance in board meetings, as attending meetings provides directors wi...

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Main Authors:	Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd, Noriah Che Adam
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/9410/ http://journalarticle.ukm.my/9410/ http://journalarticle.ukm.my/9410/1/9210-25186-1-PB.pdf

id	ukm-9410
recordtype	eprints
spelling	ukm-94102016-12-14T06:49:51Z http://journalarticle.ukm.my/9410/ Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd, Noriah Che Adam, This study aims to examine the relationship between multiple directorships and the monitoring role of the board of directors in Malaysian listed companies (PLC). The monitoring role is proxied by the percentage of directors’ attendance in board meetings, as attending meetings provides directors with resources about the management actions and assists directors to exercise their role effectively. The study uses a sample of 1023 directors from 134 companies on the Main Market of Bursa Malaysia (Malaysian Bourse) in year 2008. The results of the study show that the incidence of multiple directorships is low. Independent directors are found to have more multiple directorships. Directors with multiple directorships are older directors, have less director ownerships and are on boards with a high fraction of independent directors. Based on the 75% cut-off for the percentage of meetings’ attendance, the logistic regression suggests that no agency cost is associated with multiple directorships. However, the tendency to be absent from board meetings is associated with the high number of board meetings whilst the tendency to attend more board meetings is associated with the increase in age, tenure, and director ownership. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9410/1/9210-25186-1-PB.pdf Hasnah Kamardin, and Rohaida Abdul Latif, and Kamarun Nisham Taufil Mohd, and Noriah Che Adam, (2014) Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia. Jurnal Pengurusan, 42 . pp. 51-62. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/614
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study aims to examine the relationship between multiple directorships and the monitoring role of the board of directors in Malaysian listed companies (PLC). The monitoring role is proxied by the percentage of directors’ attendance in board meetings, as attending meetings provides directors with resources about the management actions and assists directors to exercise their role effectively. The study uses a sample of 1023 directors from 134 companies on the Main Market of Bursa Malaysia (Malaysian Bourse) in year 2008. The results of the study show that the incidence of multiple directorships is low. Independent directors are found to have more multiple directorships. Directors with multiple directorships are older directors, have less director ownerships and are on boards with a high fraction of independent directors. Based on the 75% cut-off for the percentage of meetings’ attendance, the logistic regression suggests that no agency cost is associated with multiple directorships. However, the tendency to be absent from board meetings is associated with the high number of board meetings whilst the tendency to attend more board meetings is associated with the increase in age, tenure, and director ownership.
format	Article
author	Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd, Noriah Che Adam,
spellingShingle	Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd, Noriah Che Adam, Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
author_facet	Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd, Noriah Che Adam,
author_sort	Hasnah Kamardin,
title	Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
title_short	Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
title_full	Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
title_fullStr	Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
title_full_unstemmed	Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia
title_sort	multiple directorships and the monitoring role of the board of directors: evidence from malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/9410/ http://journalarticle.ukm.my/9410/ http://journalarticle.ukm.my/9410/1/9210-25186-1-PB.pdf
first_indexed	2023-09-18T19:54:49Z
last_indexed	2023-09-18T19:54:49Z
_version_	1777406458238861312

Multiple directorships and the monitoring role of the board of directors: evidence from Malaysia

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