Gender diversity on Malaysian corporate boards: a law and social movements perspective

Chen, Vivien; Welsh, Michelle Anne; Cheong, May Fong

doi:10.1111/jols.12341

Cited by 7 publications

(8 citation statements)

References 11 publications

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“…The positive association between independent female directors and the level of net operating WC may be driven by newly hired female directors in the Malaysian context [1]. As reported by Chen et al (2022), there is a limited pool of women with the requisite experience for Malaysian companies to draw from. Accordingly, newly appointed female directors may have reduced risk-taking incentives because of insufficient experience in leadership positions, resulting in more conservative WCM strategies.…”

Section: Regression Analyses and Discussionmentioning

confidence: 99%

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Female directors and working capital management: aggressive vs. conservative strategy

Guizani

Abdalkrim²

2022

MRR

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Purpose The purpose of this study is to analyze the impact of board gender diversity (BGD) on working capital management (WCM) decision by scrutinizing different positions covered by female board directors. Design/methodology/approach This study uses a panel data regression model with fixed effect estimations and the generalized method of moments (GMM) to determine the impact of BGD on WCM strategy. This study uses a panel data analysis for 277 non-financial firms listed on Bursa Malaysia over the period from 2011 to 2019. Findings The results of this study show that female directors fulfilling either monitoring or executive positions increase the investment in working capital (WC), suggesting a conservative WCM. Precisely, results from this study are consistent with the embedded risk aversion traits of female executives and, hence, preserve high level of investment in WC, which allows superior levels of liquidity to meet firms’ financial commitments. The results also show that Malaysia commitment to gender equality is a key moderator in the female directors – firm WCM relation. The authors find that when the level of gender equality is greater, female directors support firms in adopting aggressive WCM strategies. Practical implications This study’s findings provide insights for corporate decision-makers in helping them to determine the board’s design in term of roles and composition that enhances the efficiency of WC. The results also provide guidelines for policymakers and regulators to formulate strategies that support more female board representation. In this way, firms should appoint more female directors on their boards to ensure prudent WC decisions. Moreover, given that female directors are an important determinant of a firm’s WC policy, investors and various internal or external monitoring groups need to factor boardroom gender diversity into their investing, hiring and monitoring mechanisms. Originality/value While prior research has examined the effect of BGD on firm performance, to the best of the authors’ knowledge, this study is the first to investigate the effect of BGD on the WCM decision.

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Section: Regression Analyses and Discussionmentioning

confidence: 99%

“…Note1. Recently, Malaysia adopted reforms aimed at increasing gender diversity on corporate boards through the Malaysian Code on Corporate Governance (Malaysian Code), which was revised in 2017 to require large companies to have at least 30% women on their board of directors(Chen et al, 2022).…”

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confidence: 99%

Female directors and working capital management: aggressive vs. conservative strategy

Guizani

Abdalkrim²

2022

MRR

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“…No universal typology was found in the literature for classifying the glass ceiling antecedents and have been classified differently by diverse authors and organisations (Taparia & Lenka, 2022). On the basis of the literature review, barriers women face in their journey to corporate boards, have been classified into three types of barriers namely societal, individual, and organisational barriers, but it was observed that all these hindering factors are mostly interrelated (Chawla & Sharma, 2016, Chen et al, 2022; Tripathy, 2018).…”

Section: Review Of Literaturementioning

confidence: 99%

Women on Boards Scale: Cordons and Catalysts to Enter Boardroom

Sunita,

Jhunjhunwala

2023

Indian Journal of Corporate Governance

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The underrepresentation of women on corporate boards and its influencers is an under-researched area in Asia, with the absence of standard scales measuring the catalysts and cordons for women’s career progression to boards. The research paper aims to develop and validate a multidimensional scale to measure the influences impacting women’s representation on boards in the Indian context. A pool of items was generated after a thorough review of existing literature and discussion with the experts. The Women on Boards Scale (WOBS) was constructed and validated based on a quantitative study of 509 female and male employees working in companies in Delhi and NCR. Exploratory factor analysis and confirmatory factor analysis techniques were applied for the study. The study confirms the structure of major barriers as individual, societal, and organisational barriers, along with the entry barriers that women face during entry or re-entry into the organization and enablers as well for women to reach boards. A comprehensive scale was constructed with significant psychometric properties to measure the barriers and enablers for women to reach boards. The scale provides a robust and useful tool for policymakers and corporations to improve gender diversity on corporate boards.

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“…Research has gestured to the influence of public activism, with the appointment of women directors often used to signal the firm's alignment with values of social justice and equality (Ghauri et al, 2021; Perrault, 2015; Rose & Bielby, 2011; Spear & Roper, 2013). Some have addressed the influence of activism on board appointments (Briscoe & Gupta, 2016; Buchter, 2021; DeCelles et al, 2020; Perrault, 2015), the way that global activism interacts with local conditions (Chen et al, 2022; Clark et al, 2022; Seierstad et al, 2017) and the intercepting of social movements by other campaigns (Geletkanycz, 2020). A popular thread of literature on board gender diversity has examined the introduction of regulatory initiatives such as quotas and “comply or explain” regimes, finding that it has served to increase the number of women on boards, but with the risk of tokenism and “golden skirts” among the most privileged women in society (Clark et al, 2022; De Vos & Culliford, 2014; Huse et al, 2011; Seierstad & Opsahl, 2011).…”

Section: Literature Reviewmentioning

confidence: 99%

Interrogating diversity: Feminism and the destructuration of Australian board appointment practices

Wright,

Cortese,

Al‐Mamun

et al. 2023

Corporate Governance

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Research Question/IssueHow have social movements influenced the diversity of Australian corporate leadership? Although board diversity is crucial for corporate governance, the research in this topic is bifurcated between studies examining interlocking directorates and the presence of boardroom gender diversity.Research Findings/InsightsIn this study, we use a novel dataset and method to understand board diversity. We integrate the analysis of social diversity (structural connections) and demographic diversity among ASX50 boards in 2019 and 2023. Social network analysis (SNA) reveals a closely connected corporate community, with prosopography data identifying a narrow range of “acceptable” demographic characteristics.Theoretical/Academic ImplicationsWe extend institutional theory by examining the role of global social movements (GSMs) for the destructuration of board appointment practices and the resulting uneven progress on equality. Activism from the global feminist movement has applied multi‐dimensional coercive and normative pressures to develop a “pipeline” and “catalyst” for women's board appointments. Simultaneously, the absence of targeted action on other diversities and the intensification of directors' professional requirements have institutionalized the group's social and demographic profile.Practitioner/Policy ImplicationsThese findings are relevant to policymakers and corporations, highlighting the role of social movements for disrupting the status quo and the multidimensional institutional pressures needed to destructure entrenched appointment practices.

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Gender diversity on Malaysian corporate boards: a law and social movements perspective

Cited by 7 publications

References 11 publications

Female directors and working capital management: aggressive vs. conservative strategy

Female directors and working capital management: aggressive vs. conservative strategy

Women on Boards Scale: Cordons and Catalysts to Enter Boardroom

Interrogating diversity: Feminism and the destructuration of Australian board appointment practices

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