Women directors and performance: evidence from Malaysia


Lim, Kwee Pheng and Lye, Chun Teck and Yuen, Yee Yen and Teoh, Wendy Ming Yen (2019) Women directors and performance: evidence from Malaysia. Equality, Diversity and Inclusion: An International Journal, 38 (8). pp. 841-856. ISSN 2040-7149

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Abstract Purpose – The purpose of this paper is to examine the relationship between women on board and the financial performance of Malaysian listed companies. Design/methodology/approach – Panel generalised method of moments (GMM) analysis was used over 928 public-listed companies listed on the Malaysian Stock Exchange from 2010 to 2016. GMM overcomes the problem of endogeneity and simultaneity bias. The dependent variable was firm performance, measured by Tobin’s Q. The explanatory variable was gender diversity, proxied by the percentage of women on board, the presence of women and gender heterogeneity indices, Blau and Shannon indices. Findings – More gender diversification leads to declining firm performance possibly due to issues of tokenism and gender stereotypes. Research limitations/implications – Further studies should look into the impact of various types of ownership structures on firm value and also by sectors. Practical implications – As women represent half the population in Malaysia, more positive affirmative policies must be introduced to enhance their contributions to society. Social implications – As women progress in society, their contributions towards nation building will be significant. Women not only play a nurturing role, but also can shape the destiny of a country. Originality/value – Studies on the relationship between board gender diversity and financial performance have been conducted in the context of a few developed economies. This study contributes to the literature by examining such an issue in a developing economy that has a different environment from that of developed economies

Item Type: Article
Uncontrolled Keywords: Corporate governance
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD2350.8-2356 Large industry. Factory system. Big business > HD2709-2930.7 Corporations. Including international business enterprises, diversification, industrial concentration, public utilities > HD2741 Holding companies. Corporate governance
Divisions: Faculty of Business (FOB)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 04 May 2021 15:13
Last Modified: 04 May 2021 15:36
URII: http://shdl.mmu.edu.my/id/eprint/8655


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