Political Connection Firms, Female Directors and the Appointment of Female Executives: Evidence from an Emerging Country

This study examines whether firm political connection and female directorship influence the appointment of female executives, namely the chief executive officers and chief financial officers in Malaysia. Based on 450 firm-year observations of Malaysian Top100 public listed firms over five years, i.e. 2016-2020, this study finds political connection firms are less likely to appoint female executives. However, firms with female directors are more likely to appoint female executives. The result is stronger when the female is an executive director. This study also examines the moderating effect of female directors on the relationship between political connection firms and the appointment of female executives. The results show that female directorship weakens the negative relationship between political connection firms and the appointment of female executives. The results are robust after controlling for various additional tests and conducting robustness tests. Overall, the findings inform the government that one way to increase the number of female executives, especially in political connection firms, is by increasing the presence of female directors on the boards.