ISSN: 2225-8329
Open access
Corporate governance is an effective mechanism to supervise and evaluate decisions made by a firm. It also could curtail the agency cost and information asymmetry between the management and stakeholders. The role of corporate governance thru the presence of board of directors has received increased attention across a number of disciplines in recent years. Thus, this study intended to examine the relationship between board characteristics and firms’ performance. Panel data regression of Fixed Effect Model was applied to estimate the influence of the board characteristics and performance (ROA) of firms listed in the FTSE Bursa Malaysia KLCI Index starting from 2011 to 2019. The findings have indicated that board size, board meeting and director’s higher educational qualification are the characteristics that significantly influenced firm’s performance. However, in oppose to the expectations of the study, inconclusive results are found concerning board independence. The result also shows that composition of board gender does not influence firms’ performance, although several initiatives have been made to reform corporate governance. This result managed to ascertain the board directors’ characters that influence the firms’ performance and provided a useful insight to policy makers for their supervision purposes. As such, this paper offers several implications for corporate governance and firm performance.
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In-Text Citation: (Jaafar et al., 2021)
To Cite this Article: Jaafar, M. N., Muhamat, A. A., Shahar, W. S., & Saddam, S. Z. (2021). Characteristic of Board Directors and Financial Performance: Evidence from Companies Listed in Ftse Bursa Malaysia Klci Index. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 512-528.
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