Ribed Vianneca W. Jubilee, Roy W.L. Khong and Woan Ting Hung
Board diversity has gained increasing attention and has been widely posited as a driver for firm value. The purpose of this paper is to provide empirical evidence on the relation…
Abstract
Purpose
Board diversity has gained increasing attention and has been widely posited as a driver for firm value. The purpose of this paper is to provide empirical evidence on the relation of gender diversity of corporate boards with the value of banking institutions in Malaysia.
Design/methodology/approach
The sample comprised of ten banking institutions listed on Bursa Malaysia with data observations from 2007 to 2016. Panel data techniques were employed to investigate the relationship between having female directors and firm performance in terms of values generated as indicated by Tobin’s Q.
Findings
The results revealed a positive relationship between the proportion of female director and the value of the bank. Interestingly, this study found that appointment of female independent directors tends to be negatively related to the value of such institutions.
Practical implications
There remains a shortage of research studying the impact of gender equality on corporate boards in Malaysia generally and in the banking sector specifically. Thus, this study contributes a significant knowledge on the value implication of board diversity. The findings also provide useful insights on the developmental policy initiated by the government to increase female participation in the top management.
Originality/value
This study contributes to the literature by bridging the knowledge gap on board diversity in the governance structure of banking institutions. It also provides theoretical contributions to the development of regulatory policy in relation to gender diversification in corporate leadership.
Details
Keywords
Hung Woan Ting, Bala Ramasamy and Lee Chew Ging
The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.
Abstract
Purpose
The purpose of this paper is to identify the most potent internal resources of a firm that contribute to the CSR agenda.
Design/methodology/approach
The study adopts a quantitative approach to analyze Malaysian companies. A scorecard is devised according to the Global Reporting Initiative (GRI) framework. A logit/probit model is employed to differentiate firms that are CSR‐active from their non‐active counterparts.
Findings
The results indicate that having universal accredited management systems in place differentiates CSR‐active companies from inactive companies. Also, firm size does not matter for CSR performance.
Research limitations/implications
The study uses proxies to examine a firm's resources, and thus it might not have captured the implication of the resources fully. Also it identifies resources that have a bearing on the CSR level but does not investigate the conditions in which such resources can be relevant.
Practical implications
The results imply that firms that are intent on being CSR‐active should consider implementing the various management systems relevant for their businesses. Managers responsible for the CSR agenda might wish to highlight the fact that adherence to such systems actually contributes to the bottom line, thus minimizing resistance from decision‐makers, who might view CSR as a costly initiative.
Originality/value
The study provides an insight into the influence of management systems on CSR performance among firms in a developing country in Asia. This, to the best knowledge of the authors, has not been studied before.