Center of Sustainable and Inclusive Development Faculty of Economics and Management Universiti Kebangsaan Malaysia

imna@ukm.edu.my

Center of Governance, Resilience and Accountability Faculty of Economics and Management
Universiti Kebangsaan Malaysia

shifa@ukm.edu.my

Abstract

This research investigates the effect of board diversity on Malaysia’s firm performance from an industry specificities angle. The study focuses on three major industries i.e. construction, manufacturing, and trading/services (CMTS) from the year 2012 to 2016. Board personalities measure gender and ethnicity while board characteristics indicate managerial ownership, board size, board independence, and CEO duality. The results obtained proposed that board independence, CEO duality, gender diversity, and managerial ownership are significant factors affecting firm performance. Meanwhile, board size and ethnic diversity are not significant. The results are different due to the differences in industry specialisations. In sum, the mixed evidence implies that Malaysian industries’ sectors are not homogenous and unique by nature.

Keywords

agency theory, Board diversity, corporate governance, firm performance

DOI

http://dx.doi.org/10.17576/AJAG-2019-12-15

Bibliography

Mohd Amin, S. I., & Mohd Nor, S. (2019). Board Diversity and Firm Performance in the Construction, Manufacturing, and Trading/Services Industries. Journal of Accounting and Governance, 12, 183–193.  http://dx.doi.org/10.17576/AJAG-2019-12-15

12 : 183–193 (2019)

View Full Paper
Article Views: 337

Similar Articles

  1. The Moderating Role of Corporate Governance on the Relationship between a Firm’s Product Lifecycle and Risk-Taking
  2. Audit Committee Characteristics and Earnings Management: The Moderating Effect of Accountability of the State Authority in Egypt
  3. Do Board of Directors and Shariah Supervisory Board Characteristics Affect Performance?
  4. The Role of Family Ownership in the Relationship between Board Characteristics and Corporate Social Environmental Reporting: Evidence from Malaysia
  5. Trends and Patterns in Indian Board Structure

Share article: