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Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity

Author

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  • Dalilawati Zainal

    () (University of Malaya)

  • Norhayah Zulkifli

    () (University of Malaya)

  • Zakiah Saleh

    () (University of Malaya)

Abstract

This study examines the trend of gender and nationality diversity of corporate board in top 300 Malaysian public listed firms over a five-year period from year 2005 to 2009. It also identifies any significant difference in characteristics of firms with women and foreign directors and those without women and foreign directors. Based on the secondary data derived from firms’ annual report, a longitudinal descriptive analysis on the trend of board diversity is presented. Mann-Whitney U test is conducted to identify several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors. This study found little change in the presence of women directors and foreign directors over the five-year period, which reflects a slow progress in board diversity in Malaysia. Other than that, several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors were highlighted. Overall, this study indicates the need for more efforts to encourage board diversity in Malaysia. It shed some light on board diversity issue from a developing country’s perspective, particularly Malaysia. With the unique corporate ownership structure that is different from the developed countries, Malaysia provides an interesting avenue for research.

Suggested Citation

  • Dalilawati Zainal & Norhayah Zulkifli & Zakiah Saleh, 2013. "Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(1), pages 136-148, January.
  • Handle: RePEc:hur:ijaraf:v:3:y:2013:i:1:p:136-148
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    References listed on IDEAS

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    Cited by:

    1. Rohail Hassan & Maran Marimuthu, 2016. "Corporate Governance, Board Diversity, and Firm Value: Examining Large Companies Using Panel Data Approach," Economics Bulletin, AccessEcon, vol. 36(3), pages 1737-1750.
    2. repec:gam:jijfss:v:5:y:2017:i:3:p:17-:d:109796 is not listed on IDEAS
    3. Ku Ismail, Ku Nor Izah & Abdul Manaf, Kamarul Bahrain, 2016. "Market reactions to the appointment of women to the boards of Malaysian firms," Journal of Multinational Financial Management, Elsevier, vol. 36(C), pages 75-88.
    4. Low, Daniel C.M. & Roberts, Helen & Whiting, Rosalind H., 2015. "Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 381-401.
    5. Tran Thi Thanh Tu & Hoang Huu Loi & Tran Thi Hoang Yen, 2015. "Relationship between Gender Diversity on Boards and Firm¡¯s Performance - Case Study about ASEAN Banking Sector," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 6(2), pages 150-159, April.

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