Board composition, CEO duality and firm performance: Malaysian plantation sector

This paper seeks to examine the roles of independent members on the board and CEO duality on firm performance in Malaysia. Data on 40 Malaysian plantation companies over 2007 and 2010 are used. The result shows that independent directors may not fully understand the operations of their firms since t...

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Main Authors: Ong, Tze San, Lee, Soon Yau
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2013
Online Access:http://psasir.upm.edu.my/id/eprint/28343/
http://psasir.upm.edu.my/id/eprint/28343/1/28343.pdf
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author Ong, Tze San
Lee, Soon Yau
author_facet Ong, Tze San
Lee, Soon Yau
author_sort Ong, Tze San
building UPM Institutional Repository
collection Online Access
description This paper seeks to examine the roles of independent members on the board and CEO duality on firm performance in Malaysia. Data on 40 Malaysian plantation companies over 2007 and 2010 are used. The result shows that independent directors may not fully understand the operations of their firms since they might not be fully involved in business activities. The findings indicate that a dual leadership structure is more effective with larger board sizes and longer years of operation. In the context of Malaysian plantations, firms should balance their number of outsiders and adopt a CEO duality structure in order to be competitive in facing external threats.
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spelling upm-283432015-09-21T02:46:50Z http://psasir.upm.edu.my/id/eprint/28343/ Board composition, CEO duality and firm performance: Malaysian plantation sector Ong, Tze San Lee, Soon Yau This paper seeks to examine the roles of independent members on the board and CEO duality on firm performance in Malaysia. Data on 40 Malaysian plantation companies over 2007 and 2010 are used. The result shows that independent directors may not fully understand the operations of their firms since they might not be fully involved in business activities. The findings indicate that a dual leadership structure is more effective with larger board sizes and longer years of operation. In the context of Malaysian plantations, firms should balance their number of outsiders and adopt a CEO duality structure in order to be competitive in facing external threats. Universiti Putra Malaysia Press 2013-10 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28343/1/28343.pdf Ong, Tze San and Lee, Soon Yau (2013) Board composition, CEO duality and firm performance: Malaysian plantation sector. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Oct.). pp. 85-98. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Oct.%202013/06%20Page%2085-98.pdf
spellingShingle Ong, Tze San
Lee, Soon Yau
Board composition, CEO duality and firm performance: Malaysian plantation sector
title Board composition, CEO duality and firm performance: Malaysian plantation sector
title_full Board composition, CEO duality and firm performance: Malaysian plantation sector
title_fullStr Board composition, CEO duality and firm performance: Malaysian plantation sector
title_full_unstemmed Board composition, CEO duality and firm performance: Malaysian plantation sector
title_short Board composition, CEO duality and firm performance: Malaysian plantation sector
title_sort board composition, ceo duality and firm performance: malaysian plantation sector
url http://psasir.upm.edu.my/id/eprint/28343/
http://psasir.upm.edu.my/id/eprint/28343/
http://psasir.upm.edu.my/id/eprint/28343/1/28343.pdf