The Influence of Directors’ Diversity and Corporate Sustainability Practices on Firm Performance

• 발행기관: 한국유통과학회
• 저자명: Mohammad Shahansha MOLLA Mohammad Tariq HASAN Mahadi Hasan MIRAZ Mohammad Tahlil AZIM Md. Kaium HOSSAIN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.6, 201~212쪽, 전체 12쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

This study aims to examine the relationship between directors’ diversity (DIRDIV) and financial performance (FP) with a particular focus;on the moderating effect of corporate sustainability practices (CSP). The study analyzes a sample of 104 firms listed on the Bursa Malaysia;for the period from 2015 to 2017. Directors’ diversity is measured by the Blau index, and Tobin’s Q is used as a proxy of FP of the firms;while the content analysis method is adopted to measure CSP. The study also employs three control variables, namely, board size, firm size,;and leverage. Panel corrected standard errors (PCSE) estimator model has been used to test the hypotheses by STATA software. It is found;that directors’ diversity in terms of independent and non-independent directors significantly and positively affect the financial performance;of the firms. Furthermore, this study reveals that CSP significantly moderates the relationship between directors’ diversity and financial;performance. This study suggests that the government and regulatory bodies should put more emphasis on diversifying the board and follow;up the mandatory CSP to enhance financial performance of the firms, which is likely to ensure their long-term survival and to reduce the;risk of collapse in the future.

목차

1. Introduction

2. Literature Review and Hypothesis Development

3. Research Framework

4. Materials and Method

5. Results

6. Conclusion

키워드

Directors’ Diversity Financial Performance Corporate Sustainability Practices Malaysia