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Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?

Year 2016, Volume: 6 Issue: 6, 1 - 5, 01.08.2016

Maziar Ghasemi Nazrul Hisyam Ab Razak

Abstract

The worldwide business practices bring more attention to corporate governance. Board of directors is also assumed as the central mechanism of corporate governance. However, whether the board composition will influence firm profitability is still questionable. This paper investigates the effect of the size of board of directors (BOD) and magnitude of executive directors on the firm profitability. Based on GMM regressions on a sample of 267 companies listed on Bursa Malaysia during 2010-2013, it is found that the board size and executive ratio have a positive impact on the firm profitability, although the coefficient value of the executive ratio considerably is greater than the coefficient of the board size. Moreover, persistent profitability is remarked by both models‎. The age of the firm factor has an insignificant relationship with firm profitability. However, leverage has a negative significant influence on the firm profitability, but the effect of liquidity on profitability is positive.

Keywords

ACE Market Capital Structure Board Size Firm Profitability

Year 2016, Volume: 6 Issue: 6, 1 - 5, 01.08.2016

Maziar Ghasemi Nazrul Hisyam Ab Razak

Abstract

There are 0 citations in total.

Details

Other ID JA32ZV66YS
Journal Section Research Article
Authors

Maziar Ghasemi This is me

Nazrul Hisyam Ab Razak This is me

Publication Date August 1, 2016
Published in Issue Year 2016 Volume: 6 Issue: 6

Cite

APA Ghasemi, M., & Razak, N. H. A. (2016). Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?. International Journal of Economics and Financial Issues, 6(6), 1-5.
AMA Ghasemi M, Razak NHA. Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?. IJEFI. August 2016;6(6):1-5.
Chicago Ghasemi, Maziar, and Nazrul Hisyam Ab Razak. “Does the Size of Board of Directors and Executives Affect Firm Performance in Malaysian Listed Firms?”. International Journal of Economics and Financial Issues 6, no. 6 (August 2016): 1-5.
EndNote Ghasemi M, Razak NHA (August 1, 2016) Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?. International Journal of Economics and Financial Issues 6 6 1–5.
IEEE M. Ghasemi and N. H. A. Razak, “Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?”, IJEFI, vol. 6, no. 6, pp. 1–5, 2016.
ISNAD Ghasemi, Maziar - Razak, Nazrul Hisyam Ab. “Does the Size of Board of Directors and Executives Affect Firm Performance in Malaysian Listed Firms?”. International Journal of Economics and Financial Issues 6/6 (August 2016), 1-5.
JAMA Ghasemi M, Razak NHA. Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?. IJEFI. 2016;6:1–5.
MLA Ghasemi, Maziar and Nazrul Hisyam Ab Razak. “Does the Size of Board of Directors and Executives Affect Firm Performance in Malaysian Listed Firms?”. International Journal of Economics and Financial Issues, vol. 6, no. 6, 2016, pp. 1-5.
Vancouver Ghasemi M, Razak NHA. Does the Size of Board of Directors and Executives affect Firm Performance in Malaysian Listed Firms?. IJEFI. 2016;6(6):1-5.