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The effect of busy directors, CEO duality and ownership on firm performance

Taufil Mohd, Kamarun Nisham and Abdul Latif, Rohaida and Kamardin, Hasnah and Che Adam, Noriah (2016) The effect of busy directors, CEO duality and ownership on firm performance. Information, 19 (8A). pp. 3149-3154. ISSN 1343-4500

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This study examines the effect of multiple directorships, CEO Duality and board ownership on firm performance.Based on panel data analysis of 792 observations on Malaysian public listed companies during 2006 to 2010, we find that executive directors and non-independent non-executive directors who hold multiple directorships can severely deteriorate company performance.Similarly, CEO Duality has a significant negative relationship on company performance.On the other hand, high level of board ownership has significant and positive effect on returns on equity (ROE).The study has policy implication on the board of directors' best practice in Malaysia given many Malaysian companies are characterized as having pyramidal and cross holding structure.It is recommended that directors limit their involvement as directors in multiple firms to allow proper engagement of their fiduciary duties.

Item Type: Article
Uncontrolled Keywords: Multiple directorships, corporate governance, firm performance, board structure, board diversity.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: School of Economics, Finance & Banking
Depositing User: Dr. Kamarun Nisham Taufil Mohd
Date Deposited: 30 Apr 2017 03:04
Last Modified: 30 Apr 2017 03:04
URI: http://repo.uum.edu.my/id/eprint/21899

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