Board performance and firm performance of Malaysian listed companies
Abstract
This study explores the roles of the board of directors (BOD) (as a proxy for board performance) in Malaysian listed companies and examines the relationship between board roles and firm performance. Four board roles (strategy, service, monitoring, and resource dependence) are considered in this study. Questionnaires are used to ascertain the extent of the BOD participation in the board roles in the financial year 2006. The sample of the study is 109 directors, which represents a 20.96% response rate. The results of the component factor analysis produce six roles. The strategy and service roles remain as one factor but monitoring and resource dependence has been refactorised into two categories. Results of the regression analysis between board roles and firm performance found that management oversight roles are positively related to ROA and Tobin's Q, which supports the need to have greater management oversight in companies characterised by concentrated ownership in enhancing the shareholders' wealth. The negative relationship between protecting shareholders' interests and ROA and between strategy and dependency on the expertise of outside directors and Tobin's Q are not consistent with the agency theory and resource dependency theory.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Inderscience Enterprises Ltd in its journal International Journal of Economics and Accounting.
Volume (Year): 2 (2011)
Issue (Month): 3 (January)
Pages: 282-306
Contact details of provider:
Related research
Keywords: corporate governance; board performance; strategy; service; monitoring; resource dependence; firm performance; performance evaluation; Malaysia; board of directors; BOD; board roles; management oversight; shareholder interests; agency theory; resource dependency theory;References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:ids:ijecac:v:2:y:2011:i:3:p:282-306For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ian Winship) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.