Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies
The prime objective of this study is to investigate the legitimate role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies during 2006–2017. Elements of corporate boards include board size, board independence and board diversity, whereas corporat...
Saved in:
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English |
Published: |
Sage Journal
2019
|
Subjects: | |
Online Access: | http://repo.uum.edu.my/27801/1/IJCG%202019%201%2017.pdf http://repo.uum.edu.my/27801/ http://doi.org/10.1177/0974686219881092 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my.uum.repo.27801 |
---|---|
record_format |
eprints |
spelling |
my.uum.repo.278012020-10-27T01:22:25Z http://repo.uum.edu.my/27801/ Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies Karim, Sitara Abdul Manab, Norlida Ismail, Rusmawati HC Economic History and Conditions The prime objective of this study is to investigate the legitimate role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies during 2006–2017. Elements of corporate boards include board size, board independence and board diversity, whereas corporate social responsibility (CSR) dimensions constitute marketplace, environment, community and workplace. Both accounting-based (return on assets [ROA], return on equity [ROE]) and market-based (earnings per share [EPS]) performance measures have been employed for measuring performance. Pooled ordinary least squares method (OLS) and multiple regressions are used to estimate the dataset. Findings reveal larger board size and higher board independence positively affect firm performance and significantly legitimise the board role in firms. However, the presence of women on Malaysian corporate boards does not legitimate the performance due to their lower percentage on board, hence insignificantly affecting firm value. Additionally, out of four CSR dimensions, only marketplace is positively and significantly related to EPS and negatively and significantly related to ROA. Conversely, environment, community and workplace are insignificantly related to all performance measures, leaving firms in a questionable legitimate state. This study embraces support from agency theory,resource dependence theory, legitimacy theory and stakeholder theory. However, this research raises questionable insights for regulatory bodies and academicians in the form of corporate legitimacy. Sage Journal 2019 Article PeerReviewed application/pdf en http://repo.uum.edu.my/27801/1/IJCG%202019%201%2017.pdf Karim, Sitara and Abdul Manab, Norlida and Ismail, Rusmawati (2019) Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies. Indian Journal of Corporate Governance. pp. 1-17. ISSN 0974-6862 http://doi.org/10.1177/0974686219881092 doi:10.1177/0974686219881092 |
institution |
Universiti Utara Malaysia |
building |
UUM Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
Universiti Utara Malaysia |
content_source |
UUM Institutional Repository |
url_provider |
http://repo.uum.edu.my/ |
language |
English |
topic |
HC Economic History and Conditions |
spellingShingle |
HC Economic History and Conditions Karim, Sitara Abdul Manab, Norlida Ismail, Rusmawati Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
description |
The prime objective of this study is to investigate the legitimate role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies during 2006–2017. Elements of corporate boards include board size, board independence and board diversity, whereas corporate social responsibility (CSR) dimensions constitute marketplace, environment, community and workplace. Both accounting-based (return on assets [ROA], return on equity [ROE]) and market-based (earnings per share [EPS]) performance measures have been employed for measuring performance. Pooled ordinary least squares method (OLS) and multiple regressions are used to estimate the dataset. Findings reveal larger board size and higher board independence positively affect firm performance and significantly legitimise the board role in firms. However, the presence of women on Malaysian corporate boards does not legitimate the performance due to their lower percentage on board, hence insignificantly affecting firm value. Additionally, out of four CSR dimensions, only marketplace is positively and significantly related to EPS and negatively and significantly related to ROA. Conversely, environment, community and workplace are insignificantly related to all performance measures, leaving firms in a questionable legitimate state. This study embraces support from agency theory,resource dependence theory, legitimacy theory and stakeholder theory. However, this research raises questionable insights for regulatory bodies and academicians in the form of corporate legitimacy. |
format |
Article |
author |
Karim, Sitara Abdul Manab, Norlida Ismail, Rusmawati |
author_facet |
Karim, Sitara Abdul Manab, Norlida Ismail, Rusmawati |
author_sort |
Karim, Sitara |
title |
Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
title_short |
Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
title_full |
Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
title_fullStr |
Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
title_full_unstemmed |
Legitimising the role of corporate boards and corporate social responsibility on the performance of Malaysian listed companies |
title_sort |
legitimising the role of corporate boards and corporate social responsibility on the performance of malaysian listed companies |
publisher |
Sage Journal |
publishDate |
2019 |
url |
http://repo.uum.edu.my/27801/1/IJCG%202019%201%2017.pdf http://repo.uum.edu.my/27801/ http://doi.org/10.1177/0974686219881092 |
_version_ |
1683233071220916224 |
score |
13.159267 |