Board Gender Diversity and Its Risk Monitoring Role: Is It Significant
In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholders’ interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate...
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| Format: | Article |
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Penerbit Universiti Sains Malaysia
2018
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| _version_ | 1796961472759201792 |
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| author | Khaw, Karren Lee Hwei Liao, Jing |
| author_facet | Khaw, Karren Lee Hwei Liao, Jing |
| author_sort | Khaw, Karren Lee Hwei |
| collection | UM |
| description | In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholders’ interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the ‘old boys club’ corporate boardrooms. |
| first_indexed | 2024-03-06T05:54:37Z |
| format | Article |
| id | um.eprints-21615 |
| institution | Universiti Malaya |
| last_indexed | 2024-03-06T05:54:37Z |
| publishDate | 2018 |
| publisher | Penerbit Universiti Sains Malaysia |
| record_format | dspace |
| spelling | um.eprints-216152019-07-15T04:54:08Z http://eprints.um.edu.my/21615/ Board Gender Diversity and Its Risk Monitoring Role: Is It Significant Khaw, Karren Lee Hwei Liao, Jing HF Commerce In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholders’ interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the ‘old boys club’ corporate boardrooms. Penerbit Universiti Sains Malaysia 2018 Article PeerReviewed Khaw, Karren Lee Hwei and Liao, Jing (2018) Board Gender Diversity and Its Risk Monitoring Role: Is It Significant. Asian Academy of Management Journal of Accounting and Finance, 14 (1). pp. 83-106. ISSN 1823-4992, DOI https://doi.org/10.21315/aamjaf2018.14.1.4 <https://doi.org/10.21315/aamjaf2018.14.1.4>. https://doi.org/10.21315/aamjaf2018.14.1.4 doi:10.21315/aamjaf2018.14.1.4 |
| spellingShingle | HF Commerce Khaw, Karren Lee Hwei Liao, Jing Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title | Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title_full | Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title_fullStr | Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title_full_unstemmed | Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title_short | Board Gender Diversity and Its Risk Monitoring Role: Is It Significant |
| title_sort | board gender diversity and its risk monitoring role is it significant |
| topic | HF Commerce |
| work_keys_str_mv | AT khawkarrenleehwei boardgenderdiversityanditsriskmonitoringroleisitsignificant AT liaojing boardgenderdiversityanditsriskmonitoringroleisitsignificant |