The impact of board of directors' characteristics and remuneration on companies performance in Malaysia
This study aims at investigating the impact of board size, board independence, CEO duality, board gender diversity and board remuneration on the performance of public listed firms in Malaysia. Using the fixed effect and random effect models, the result showed that board independence and board remune...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Institute of Medico-Legal Publications
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/74191/ http://psasir.upm.edu.my/id/eprint/74191/1/The%20impact%20of%20board%20of%20director.pdf |
| _version_ | 1848857451915378688 |
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| author | Chua, Mei Shan Ab Razak, Nazrul Hisyam Ismail @ Ali, Aiwan |
| author_facet | Chua, Mei Shan Ab Razak, Nazrul Hisyam Ismail @ Ali, Aiwan |
| author_sort | Chua, Mei Shan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study aims at investigating the impact of board size, board independence, CEO duality, board gender diversity and board remuneration on the performance of public listed firms in Malaysia. Using the fixed effect and random effect models, the result showed that board independence and board remuneration have positively influenced firm performance respectively to ROA and TQ. However, board gender diversity was negatively associated with ROA. These results imply that higher number of board independence and higher amount of board remuneration can enhance firm performance. Though the Malaysian Code of corporate governance, the importance of having more female on board with the quota of 30% has been stressed with the result apparently presented that many female representations on the board may not enhance but deteriorate firm performance. The result of this study supported the notion of board remuneration and board independence that act as effective governance mechanisms to mitigate agency cost. With these results, firms must carefully design the director remuneration and determine appropriate numbers of independent director and female director on the board since they can influence firm performance. |
| first_indexed | 2025-11-15T11:57:46Z |
| format | Article |
| id | upm-74191 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:57:46Z |
| publishDate | 2018 |
| publisher | Institute of Medico-Legal Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-741912021-09-23T21:47:30Z http://psasir.upm.edu.my/id/eprint/74191/ The impact of board of directors' characteristics and remuneration on companies performance in Malaysia Chua, Mei Shan Ab Razak, Nazrul Hisyam Ismail @ Ali, Aiwan This study aims at investigating the impact of board size, board independence, CEO duality, board gender diversity and board remuneration on the performance of public listed firms in Malaysia. Using the fixed effect and random effect models, the result showed that board independence and board remuneration have positively influenced firm performance respectively to ROA and TQ. However, board gender diversity was negatively associated with ROA. These results imply that higher number of board independence and higher amount of board remuneration can enhance firm performance. Though the Malaysian Code of corporate governance, the importance of having more female on board with the quota of 30% has been stressed with the result apparently presented that many female representations on the board may not enhance but deteriorate firm performance. The result of this study supported the notion of board remuneration and board independence that act as effective governance mechanisms to mitigate agency cost. With these results, firms must carefully design the director remuneration and determine appropriate numbers of independent director and female director on the board since they can influence firm performance. Institute of Medico-Legal Publications 2018-10 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/74191/1/The%20impact%20of%20board%20of%20director.pdf Chua, Mei Shan and Ab Razak, Nazrul Hisyam and Ismail @ Ali, Aiwan (2018) The impact of board of directors' characteristics and remuneration on companies performance in Malaysia. Indian Journal of Public Health Research and Development, 9 (10). 24 - 34. ISSN 0976-0245; ESSN: 0976-5506 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3317189 |
| spellingShingle | Chua, Mei Shan Ab Razak, Nazrul Hisyam Ismail @ Ali, Aiwan The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title | The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title_full | The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title_fullStr | The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title_full_unstemmed | The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title_short | The impact of board of directors' characteristics and remuneration on companies performance in Malaysia |
| title_sort | impact of board of directors' characteristics and remuneration on companies performance in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/74191/ http://psasir.upm.edu.my/id/eprint/74191/ http://psasir.upm.edu.my/id/eprint/74191/1/The%20impact%20of%20board%20of%20director.pdf |