Directorship appointments and firm performance in an emerging economy, Malaysia

The number of directorships that directors can hold has been a contentious corporate governance issue around the world. The issue of multiple directorships and its effects to firm performance as well as value creations are still attracts considerable debate since it brings benefit and disadvantages...

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Main Author:	Pang, Shwu Fen
Format:	Thesis
Language:	English
Published:	2013
Subjects:	HC Economic History and Conditions
Online Access:	http://ir.unimas.my/id/eprint/9206/1/Pang%20Shwu%20Fen%20ft.pdf
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id	my-unimas-ir.9206
record_format	uketd_dc
spelling	my-unimas-ir.92062023-06-22T03:23:08Z Directorship appointments and firm performance in an emerging economy, Malaysia 2013 Pang, Shwu Fen HC Economic History and Conditions The number of directorships that directors can hold has been a contentious corporate governance issue around the world. The issue of multiple directorships and its effects to firm performance as well as value creations are still attracts considerable debate since it brings benefit and disadvantages to firms. This study examines three major parts: (1) The relationship between multiple board appointments and firm performance. (2) The relationship between other governance characteristic and firm performance. (3) The relationship between busy director and attendance of meetings. For the firm performance, we used three types of measurements which are operating margin, Tobin’s Q and market-to-book ratio. We use of a sample of 504 listed firms in Malaysia in 2009 and regression models to investigate the relationship. We found evidence that multiple directorships are positively linked to firm performance in all models. Director with multiple board appointments are able to bring benefit to the firm as they have broad experience, knowledge and skills to monitor the firm. Other than that, we also found that board size is also positively significant in all three models which indicated that larger boards benefit the firm as they provide diversity in terms of experience, skill and helping firms to secure critical resources and contracts. Lastly, we found that the relations between busy director and their attendance of meetings are significantly related at a negative direction. This implies that director with more directorships are likely to be absence in the board meetings. This study clarifies similar results with some prior literature on the impact of multiple directorships. Universiti Malaysia Sarawak, (UNIMAS) 2013 Thesis http://ir.unimas.my/id/eprint/9206/ http://ir.unimas.my/id/eprint/9206/1/Pang%20Shwu%20Fen%20ft.pdf text en validuser masters Universiti Malaysia Sarawak, (UNIMAS) Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
language	English
topic	HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions Pang, Shwu Fen Directorship appointments and firm performance in an emerging economy, Malaysia
description	The number of directorships that directors can hold has been a contentious corporate governance issue around the world. The issue of multiple directorships and its effects to firm performance as well as value creations are still attracts considerable debate since it brings benefit and disadvantages to firms. This study examines three major parts: (1) The relationship between multiple board appointments and firm performance. (2) The relationship between other governance characteristic and firm performance. (3) The relationship between busy director and attendance of meetings. For the firm performance, we used three types of measurements which are operating margin, Tobin’s Q and market-to-book ratio. We use of a sample of 504 listed firms in Malaysia in 2009 and regression models to investigate the relationship. We found evidence that multiple directorships are positively linked to firm performance in all models. Director with multiple board appointments are able to bring benefit to the firm as they have broad experience, knowledge and skills to monitor the firm. Other than that, we also found that board size is also positively significant in all three models which indicated that larger boards benefit the firm as they provide diversity in terms of experience, skill and helping firms to secure critical resources and contracts. Lastly, we found that the relations between busy director and their attendance of meetings are significantly related at a negative direction. This implies that director with more directorships are likely to be absence in the board meetings. This study clarifies similar results with some prior literature on the impact of multiple directorships.
format	Thesis
qualification_level	Master's degree
author	Pang, Shwu Fen
author_facet	Pang, Shwu Fen
author_sort	Pang, Shwu Fen
title	Directorship appointments and firm performance in an emerging economy, Malaysia
title_short	Directorship appointments and firm performance in an emerging economy, Malaysia
title_full	Directorship appointments and firm performance in an emerging economy, Malaysia
title_fullStr	Directorship appointments and firm performance in an emerging economy, Malaysia
title_full_unstemmed	Directorship appointments and firm performance in an emerging economy, Malaysia
title_sort	directorship appointments and firm performance in an emerging economy, malaysia
granting_institution	Universiti Malaysia Sarawak, (UNIMAS)
granting_department	Faculty of Economics and Business
publishDate	2013
url	http://ir.unimas.my/id/eprint/9206/1/Pang%20Shwu%20Fen%20ft.pdf
_version_	1783728038899351552

Directorship appointments and firm performance in an emerging economy, Malaysia

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