CEO GENDER AND FIRM PERFORMANCE IN MALAYSIA

Authors

  • Bakri Abdul Karim 082584396
  • Norlina Kadri
  • Jenifer Yam Sat
  • Nur Hazwani Maryam Kassim
  • Wong Yi Ting

DOI:

https://doi.org/10.33736/uraf.6382.2023

Keywords:

Malaysia, CEO gender, firm size, firm age, number of directors, firm performance

Abstract

This study aims to examine the link between CEO gender and company performance in Malaysia Using 30 companies for the period from 2018 to 2022 and a panel data analysis, the findings show that gender, firm age, and the number of directors have no effect on a company's performance. Contrarily, firm size significantly enhances the performance of the firm. The study has major implications to investors, businesses, and policy makers.

References

Allgood, S., & Farrell, K. A. (2000). The effect of CEO tenure on the relation between firm performance and turnover. Journal of financial research, 23(3), 373-390.
Amran, N. A., Yusof, M. A. M., Ishak, R., & Aripin, N. (2014). Do characteristics of CEO and chairman influence government-linked companies performance? Procedia— Social and Behavioral Sciences, 109, 799–803. Retrieved from https://doi.org/10.1016/ j.sbspro.2013.12.546
Ball, R., & Shivakumar, L. (2006). The role of accurals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207
Barsky, A. (2008). Understanding the ethical cost of organizational goal-setting: A review and theory development. Journal of Business Ethics, 81, 63-81.
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37
Coleman, S. and Robb, A. (2009), “A comparison of new firm financing by gender: evidence from the Kauffman firm survey data”, Small Business Economics, Vol.33No.4, pp.397-411.
Daily, C. M., Certo, S. T., & Dalton, D. R. 1999. Research notes and communications a decade of corporate women: Some progress in the boardroom, none in the executive suite. Strategic Management Journal, 20(1): 93–99.
Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management review, 22(1), 20-47.
Dezsö, C. L., & Ross, D. G. 2012. Does female representation in top management improve firm performance? A panel data investigation. Strategic Management Journal, 33(9): 1072– 1089.
Eckel, C. C., & Grossman, P. J. (2008). Men, women and risk aversion: Experimental evidence. Handbook of experimental economics results, 1, 1061-1073.
Eisenbiess, S. A., Knippenberg, D. V., & Fahrbach, C. M. (2014, March 19). Doing Well by Doing Good? Analyzing the Relationship Between CEO Ethical Leadership and Firm Performance. Journal of Business Ethics, 635-651. Retrieved from https://link.springer.com/article/10.1007/s10551-014-2124-9
Ernestine, I. E., & Setyaningrum, D. (2019, October). CEO Characteristics and Firm Performance; Empirical Studies from ASEAN Countries. In 2018 International Conference on Islamic Economics and Business (ICONIES 2018) (pp. 423-427). Atlantis Press.
Fama, E. F., & Jensen, M. C. (1983). Agency problems and residual claims. The journal of law and Economics, 26(2), 327-349.
Faccio, M., Marchica, M. T., & Mura, R. (2016). CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of corporate finance, 39, 193-209.
Georgakakis, D., & Ruigrok, W. (2016, January 19). CEO Succession Origin and Firm Performance: A Multilevel Study. Journal of Management Studies, 54(1), 58-87. Retrieved from https://doi.org/10.1111/joms.12194
Givoly, D., & Hayn, C. (2000). The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative? Journal of Accounting and Eco nomics, 29(3), 287-3
Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organisation as a reflection of its top managers. The Academy of Management Review, 9(2), 193–206. Retrieved from https://doi.org/10.2307/258434
Helfat, C. E., Harris, D., & Wolfson, P. J. 2006. The pipeline to the top: Women and men in the top executive ranks of US corporations. The Academy of Management Perspectives, 20(4): 42–64.
Ho, S. S., Li, A. Y., Tam, K., & Zhang, F. (2015). CEO gender, ethical leadership, and accounting conservatism. Journal of Business Ethics, 127, 351-370.
Hu, H. W., & Alon, I. (2014). Are Chinese CEOs stewards or agents? revisiting the Agency–Stewardship debate. In Emerging market firms in the global economy. Emerald Group Publishing Limited.
Jadiyappa, N., Jyothi, P., Sireesha, B., & Hickman, L. E. (2019). CEO gender, firm performance and agency costs: evidence from India. Journal of Economic Studies, 46(2), 482-495.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Kaur, R., & Singh, B. (2018). CEOs’ characteristics and firm performance: A study of Indian firms. Indian Journal of Corporate Governance, 11(2), 185-200.
Khan, W. A., & Vieito, J. P. (2013). CEO gender and firm performance. Journal of Economics and Business, 67, 55-66.
Kirchmaier, T., & Stathopoulos, K. (2008). From fiction to fact: The impact of CEO social networks (No. 537). Manchester Business School Working Paper.
Lam, K. C., McGuinness, P. B., & Vieito, J. P. (2013). CEO gender, executive compensation and firm performance in Chinese‐listed enterprises. Pacific-Basin Finance Journal, 21(1), 1136-1159.
Marinova, J., Plantenga, J., & Remery, C. (2016). Gender diversity and firm performance: Evidence from Dutch and Danish boardrooms. The International Journal of Human Resource Management, 27(15), 1777-1790.
Martin, A., Nishikawa, T., & Williams, M. (2009). CEO gender: Effects on valuation and risk. Quarterly Journal of Finance and Accounting, 48(3), 23-40.
Mateos de Cabo, R., Gimeno, R., & Nieto, M. J. (2012). Gender diversity on European banks’ boards of directors. Journal of business ethics, 109, 145-162.
Nielsen, S. (2010). Top management team diversity: A review of theories and methodologies. International Journal of Management Reviews, 12(3), 301–316. Retrieved from https:// doi.org/10.1111/j.1468-2370.2009.00263.x
Peni, E. (2014). CEO and Chairperson characteristics and firm performance. Journal of Management & Governance, 18, 185-205.
Robb, A. and Watson, J. (2010), “Comparing the performance of female- and male-controlled SMEs: evidence from the United States and Australia”, Frontiers of Entrepreneurship Research, Vol.30 No.8, pp.1-12.
Schubert, R., Brown, M., Gysler, M., & Brachinger, H. W. (1999). Financial decision-making: are women really more risk averse?. American economic review, 89(2), 381-385.
Solakoglu, M. N., & Demir, N. (2016). The role of firm characteristics on the relationship between gender diversity and firm performance. Management Decision, 54(6), 1407-1419.
Sunil, P. (2023, March 29). Percentage of women in senior management roles in Malaysia. Human Resources Online. https://www.humanresourcesonline.net/percentage-of-women-in-senior-management-roles-in-malaysia
Tichy, N. M., & Devanna, M. A. (1986). The transformational leader. Training & Development Journal, 40(7), 27–32.
Urquhart, A., & Zhang, H. (2021). PhD CEOs and firm performance. European Financial Management, 28(2), 433-481. Retrieved from https://doi.org/10.1111/eufm.12316
Vintilă, G., Onofrei, M., & Gherghina, Ş. C. (2015). The effects of corporate board and CEO characteristics on firm value: Empirical evidence from listed companies on the Bucharest stock exchange. Emerging Markets Finance and Trade, 51(6), 1244–1260. Retrieved from https://doi.org/10.1080/1540496X.2015.1073518
Westphal, J. D. (1999). Collaboration in the boardroom: Behavioral and performance consequences of CEO-board social ties. Academy of management Journal, 42(1), 7-24.
Zhang, Y., & Qu, H. (2016). The impact of CEO succession with gender change on firm performance and successor early departure: Evidence from China’s publicly listed companies in 1997–2010. Academy of Management Journal, 59(5), 1845-1868.

Downloads

Published

2023-12-24

How to Cite

Karim, B. A., Kadri, N., Sat, J. Y. ., Kassim , N. H. M. ., & Yi Ting, W. . (2023). CEO GENDER AND FIRM PERFORMANCE IN MALAYSIA. UNIMAS Review of Accounting and Finance, 7(1), 57–73. https://doi.org/10.33736/uraf.6382.2023

Issue

Vol. 7 No. 1 (2023)

Section

Articles

License

Copyright Transfer Statement for Journal

1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.

2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.

3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.

4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.

5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.

6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.