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Board diversity: lessons from Malaysia

Author

Listed:
  • Shanthy Rachagan
  • Shelley Marshall
  • Wai Ching Poon
  • Elsa Satkunasingam

Abstract

This study examines new data concerning the extent of board diversity in Malaysia and the effect of that diversity on firm performance. We find that the presence of non-Malay ethnic minorities and women on Malaysian boards is significantly associated with firm performance. This study provides empirical support that the presence of non-Malay ethnic minorities and women on Malaysian boards are significant with firm performance. This paper recommends that policies that foster board diversity remain important. However, in contexts where diversity is not empirically linked with firm performance, the policy focus should first be directed to measures that encourage openness.

Suggested Citation

  • Shanthy Rachagan & Shelley Marshall & Wai Ching Poon & Elsa Satkunasingam, 2015. "Board diversity: lessons from Malaysia," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 6(2/3/4), pages 194-216.
    • Handle: RePEc:ids:ijcgov:v:6:y:2015:i:2/3/4:p:194-216
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