Market reactions towards the appointment of women to the boards of Malaysian firms
This study examines market reactions towards the appointment of women to corporate boards and observes if women’s attributes as well as the role that they play in discharging their monitoring responsibilities would affect the value of firms. We observe 127 Malaysian firms that appoint women director...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Izdano: |
Elsevier B.V.
2016
|
| Teme: |
| _version_ | 1825804009953296384 |
|---|---|
| author | Ku Ismail, Ku Nor Izah Abdul Manaf, Kamarul Bahrain |
| author_facet | Ku Ismail, Ku Nor Izah Abdul Manaf, Kamarul Bahrain |
| author_sort | Ku Ismail, Ku Nor Izah |
| collection | UUM |
| description | This study examines market reactions towards the appointment of women to corporate boards and observes if women’s attributes as well as the role that they play in discharging their monitoring responsibilities would affect the value of firms. We observe 127 Malaysian firms that appoint women directors over the period 1999–2011.We use the market model to assess abnormal returns surrounding the appointment of women directors from day −10 to day 10. Using conventional t-test, share time series test and rank test, we find that investors welcome the appointment of women directors.A positive average abnormal return (AAR) is observed on day −1 using all the three tests. Cumulative average abnormal returns (CAAR) are positive over the period day 1 to day 10.We also find that investors are more likely to favour women who are prominent, younger, have no international exposure and no family relationship with any other directors.Our findings support the initiative taken by the Malaysian Government to promote greater women participation on corporate boards. Policy makers may benefit from this study because it provides them an input at enhancing the policy related to women on boards. |
| first_indexed | 2024-07-04T06:07:25Z |
| format | Article |
| id | uum-18267 |
| institution | Universiti Utara Malaysia |
| last_indexed | 2024-07-04T06:07:25Z |
| publishDate | 2016 |
| publisher | Elsevier B.V. |
| record_format | eprints |
| spelling | uum-182672016-06-27T07:07:49Z https://repo.uum.edu.my/id/eprint/18267/ Market reactions towards the appointment of women to the boards of Malaysian firms Ku Ismail, Ku Nor Izah Abdul Manaf, Kamarul Bahrain HF5601 Accounting This study examines market reactions towards the appointment of women to corporate boards and observes if women’s attributes as well as the role that they play in discharging their monitoring responsibilities would affect the value of firms. We observe 127 Malaysian firms that appoint women directors over the period 1999–2011.We use the market model to assess abnormal returns surrounding the appointment of women directors from day −10 to day 10. Using conventional t-test, share time series test and rank test, we find that investors welcome the appointment of women directors.A positive average abnormal return (AAR) is observed on day −1 using all the three tests. Cumulative average abnormal returns (CAAR) are positive over the period day 1 to day 10.We also find that investors are more likely to favour women who are prominent, younger, have no international exposure and no family relationship with any other directors.Our findings support the initiative taken by the Malaysian Government to promote greater women participation on corporate boards. Policy makers may benefit from this study because it provides them an input at enhancing the policy related to women on boards. Elsevier B.V. 2016-05 Article PeerReviewed Ku Ismail, Ku Nor Izah and Abdul Manaf, Kamarul Bahrain (2016) Market reactions towards the appointment of women to the boards of Malaysian firms. Journal of Multinational Financial Management. ISSN 1042-444X (In Press) http://doi.org/10.1016/j.mulfin.2016.04.004 doi:10.1016/j.mulfin.2016.04.004 doi:10.1016/j.mulfin.2016.04.004 |
| spellingShingle | HF5601 Accounting Ku Ismail, Ku Nor Izah Abdul Manaf, Kamarul Bahrain Market reactions towards the appointment of women to the boards of Malaysian firms |
| title | Market reactions towards the appointment of women to the boards of Malaysian firms |
| title_full | Market reactions towards the appointment of women to the boards of Malaysian firms |
| title_fullStr | Market reactions towards the appointment of women to the boards of Malaysian firms |
| title_full_unstemmed | Market reactions towards the appointment of women to the boards of Malaysian firms |
| title_short | Market reactions towards the appointment of women to the boards of Malaysian firms |
| title_sort | market reactions towards the appointment of women to the boards of malaysian firms |
| topic | HF5601 Accounting |
| work_keys_str_mv | AT kuismailkunorizah marketreactionstowardstheappointmentofwomentotheboardsofmalaysianfirms AT abdulmanafkamarulbahrain marketreactionstowardstheappointmentofwomentotheboardsofmalaysianfirms |