Multiple directorships, board characteristics and firm performance in Malaysia

• Main Authors: Abdul Latif, Rohaida, Kamardin, Hasnah, Taufil Mohd, Kamarun Nisham, Che Adam, Noriah
• Format: Article
• Language: English
• Published: Scientific & Academic Publishing 2013
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/9090/1/10.5.pdf; http://repo.uum.edu.my/9090/; http://dx.doi.org/10.5923/j.mm.20130302.07

The objective of the study is two-fold.First, the study examines the extent of multiple directorship practices of Malaysian public listed companies.Secondly, the study assesses the relationship of several board characteristics with firm performance.Using a sample of 132 companies in 2008, the result shows that almost 90% of directors of Malaysian public listed firms have between 1 to 3 directorships. The multiple directorships affect firms’ market performance positively but not significantly.Ex government officials and founders have positive and significant influence on performance.Family ownership is significant and has U-shaped relationship with performance. The findings to some extent have policy implication to corporate governance practices