The Board Diversity and Firm Performance: Malaysia Context

The large firms like Enron, WorldCom and Freddie Mac were involved in the crisis and the bankruptcy of corporate frauds and accounting scandals which were lack of effectiveness of their board of directors in those firms. Great board diversity will affect the firm performances in term of return on asset (ROA) and return of equity (ROE). This research used data of 385 samples of annual reports listed companies in Bursa Malaysia for the period of 2014 to 2016 were obtained and examined. The independent variables of board diversities are women in the board, board size, boards’ educational level and the boards’ experiences and control variables; firm size and firm leverage. After controlling the variables, the research shows only female has negatively significant towards ROE. It is because the number of female in board is very small. It also can be concluded that women have no power in board which the needed of them in making decision is low. For the control variables, firm size has positively significant towards ROA and ROE. Then, the firm financial leverage has a negatively significant towards ROA and ROE. For the future research, researchers are recommended for use other variables for board diversity such as board age and board independent and also use a long period of research such as for 5 to 10 years.

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Does Diversity in The Boardroom Add Value to a Firm?

American Journal of Management ◽

10.33423/ajm.v18i5.255 ◽

2018 ◽

Vol 18 (5) ◽

Keyword(s):

Firm Performance ◽

Panel Data ◽

Firm Size ◽

Significant Influence ◽

Negative Influence ◽

Positive Influence ◽

Future Research ◽

Board Composition ◽

Board Diversity

This study examines whether board diversity affects firm performance. We investigate this study using panel data of a sample of S&P 500 firms during a 12 year period. After controlling for industry, firm size, and other board composition variables, we find that all three board diversity variables of interest – gender, ethnicity, and age have a significant influence on firm performance. While ethnicity and age have a positive influence on firm performance, it was found that gender has a negative influence. Implications for future research are discussed.

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Pengaruh Likuiditas, Leverage, Profitabilitas, dan Ukuran Perusahaan terhadap Financial Distress di Sektor Trade, Service, and Invesment

Jurnal Ilmu Manajemen ◽

10.26740/jim.v9n3.p1227-1240 ◽

2021 ◽

Vol 9 (3) ◽

pp. 1227-1240

Author(s):

Hasivatus Sariroh

Keyword(s):

Firm Size ◽

Financial Distress ◽

Ordinal Data ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Annual Reports ◽

Return On Assets ◽

Current Ratio ◽

Independent Variables

This study is a quantitative study that aims to determine the effect of the current ratio, debt to asset ratio, return on assets, and firm size on financial distress. Logistic regression method was used to test all relationships between independent variables and dependent variables with nominal/ordinal data scales. The dependent variable in this study is financial distress. The independent variables in this study are liquidity, leverage, profitability and firm size. This study uses secondary data from annual reports of trading, service, and investment companies listed on the Indonesia Stock Exchange from 2016 to 2018. The population used is companies in the trade, services, and investment sectors listed on the Indonesia Stock Exchange (IDX). from 2016 to 2018 with a total of 162 companies selected using purposive sampling technique. The results of hypothesis testing indicate that the current ratio, debt to asset ratio, return on assets, and firm size have no effect on the company's financial distress. From research conducted by researchers, for management to be used as a basis to take corrective actions if there are indications that the company experiencing financial distress. For investors, to be used as a basis in making the right decision to invest in a company.

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The effect of internal factors and family influence on firms’ adoption of green product innovation

Management Research Review ◽

10.1108/mrr-02-2015-0031 ◽

2016 ◽

Vol 39 (10) ◽

pp. 1167-1198 ◽

Cited By ~ 12

Author(s):

Yi-Chun Huang ◽

Min-Li Yang ◽

Ying-Jiuan Wong

Keyword(s):

Firm Size ◽

Family Firms ◽

Behavioral Theory ◽

Family Influence ◽

Future Research ◽

Green Product ◽

Internal Factors ◽

Content Type ◽

And Control ◽

The Relationship

Purpose Little research has been conducted on the internal factors that drive green product (GP) innovation and how family influence affects firm adoption of GP innovation. This study aims to apply multiple perspectives to bridge this research gap, adopting the resource-based view (RBV) to examine what and how internal factors affect firm adoption of GP innovation, and using the behavioral theory of family firms to investigate whether family influence fosters or hinders firm adoption of GP innovation. Design/methodology/approach This study used a multichannel approach and adopted content analysis to collect and evaluate data on listed Taiwanese firms and used cross-sectional regression analysis to examine the effect of internal factors and family influence on firm adoption of GP innovation. Findings The results showed that the internal factors of green capabilities, R&D intensity and firm size significantly and positively affected firm adoption of GP innovation separately. Furthermore, the study found that family influence (ownership and control) significantly and negatively affects firm adoption of GP innovation separately. Research limitations/implications This study contributes to the academic research of innovation management, green management and family firms in several aspects, but also has some limitations. This study examined only the relationship between a firm’s internal factors and GP innovation. Future research might test the relationship between a firm’s internal factors and adoption of green process innovation. In addition, such research can explore how integrated internal and external factors influence firm adoption of GP innovation. Practical implications From the RBV, the internal factors of green capabilities, R&D intensity and firm size that can exert crucial effects on firm engage in firm’s adoption of GP innovation. This study suggests that top managers in family-influenced businesses should maintain appropriate commitment and support for fostering and facilitating firm GP innovation. Social implications From the RBV, this study examined how internal factors affect firm adoption of GP innovation. Moreover, based on the behavioral theory of family firms, this study further examined how family influence (ownership and control) affects firm adoption of GP innovation. This paper extended both perspectives to examine green issues. Originality/value From the RBV, this study examined how internal factors affect firms’ GP innovation. Moreover, based on institutional theory, this study further examines how a family firm moderates the relationship between a firm’s internal factors and GP innovation. The paper extended both perspectives to probe further the green issues.

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Analisis Rasio-Rasio Dan Ukuran Keuangan, Prediksi Financial Distress, Dan Reaksi Investor

AKRUAL Jurnal Akuntansi ◽

10.26740/jaj.v5n1.p26-44 ◽

2014 ◽

Vol 5 (1) ◽

pp. 26

Author(s):

Mekani Vestari ◽

Dessy Noor Farida

Keyword(s):

Logistic Regression ◽

Firm Size ◽

Financial Distress ◽

Financial Ratios ◽

Business Risk ◽

Independent Variables ◽

Long Period ◽

Investor Reaction

AbstractThe purpose of this paper is to investigate financial ratios and financial measurements that can predict financial distress. This study also examined investor reaction. To proved the effect for the long period this study not only examined the effect of independent variables per year to the prediction of financial distress, but also examined the average for five years.Using logistic regression the results showed that there are four financial ratios that can predict financial distress. Business risk and firm size is not proven to predict financial distress. Using Kruskall-Wallis test this study also proved that investors can predict financial distress.

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Pengaruh Nilai Wajar Aset Biologis terhadap Manajemen Laba

Jurnal Ekonomi Akuntansi dan Manajemen ◽

10.19184/jeam.v19i1.15199 ◽

2020 ◽

Vol 19 (1) ◽

pp. 45

Author(s):

Vista Febryanti ◽

Yosefa Sayekti ◽

Aisa Tri Agustini

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Fair Value ◽

Earning Management ◽

Control Variables ◽

Independent Variable ◽

Model Independent ◽

And Control ◽

Positive Effect

The purpose of this study is to examine and analyze the effect of the biological asset’s fair value on the earning management in the agroindustry companies that listed at the Indonesia Stock Exchange (BEI). This research is a quantitative study using secondary data from annual and quarterly reports of agroindustry companies 2018. This study uses the dependent variable earning management which is measured by Stubben’s model, independent variable biological asset’s fair value which is measured by gains or losses from the implementation of fair value to biological assets, and control variables firm size (logarithm of total assets) and leverage (DER). The results of this study shows that the biological asset’s fair value which is implemented through the PSAK 69: Agriculture has the positive effect on the earning management, and control variables (firm size and leverage) have no effect on earning management. This results indicates that the implementation of biological asset’s fair value through PSAK 69 in agroindustry companies enhances earning management action taken by manager. Keywords: biological assets; earning management; fair value; PSAK 69.

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Board Of Directors’ Diversity And Effect On Strategy. A Study Of The Lebanese Banking Industry

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n13p257 ◽

2016 ◽

Vol 12 (13) ◽

pp. 257

Author(s):

Jacques L. Hendieh

Keyword(s):

Logistic Regression ◽

Regression Analysis ◽

Strategic Management ◽

Board Of Directors ◽

Logistic Regression Analysis ◽

Boards Of Directors ◽

Banking Industry ◽

Annual Reports ◽

Future Research ◽

Board Diversity

The purpose of this study was to examine the effect of the functional background diversity of boards of directors on banks’ strategy. This relationship is examined using the annual reports between 2005 and 2014 for 16 Lebanese banks. Logistic regression analysis indicates that board diversity is positively associated with the strategies adopted by banks. Implications for both strategic management and future research are discussed.

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The empirical evidence of the voluntary information disclosure in the annual reports of banking companies: The case of Bangladesh

Corporate Ownership and Control ◽

10.22495/cocv4i3p10 ◽

2007 ◽

Vol 4 (3) ◽

pp. 111-125 ◽

Cited By ~ 3

Author(s):

Mohammed Hossain ◽

Peter Taylor

Keyword(s):

Financial Reporting ◽

Commercial Banks ◽

Voluntary Disclosure ◽

Information Disclosure ◽

Annual Reports ◽

Future Research ◽

Audit Firm ◽

Independent Variables ◽

Political Incentives ◽

The Relationship

This study reports the results of an empirical study of the effect of firm- specific characteristics on the voluntary disclosure in the 2000/2001 annual reports of 20 commercial banks in Bangladesh. The conceptual model underlying the study is based on economic and political incentives for providing greater detail in the annual reports and accounts. Three hypotheses have been developed and also a regression has been run to investigate the relationship between dependent and independent variables. The results indicate that size and audit firm variables to be significant in determining the disclosure Thus, the study contributes to the enhancement of knowledge regarding financial reporting and disclosure practices of financial companies under the developing countries context, and provides a basis for the conduct of future research in this area

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DAYA PREDIKSI PAJAK, LABA DAN ARUS KAS TERHADAP PAJAK MASA DEPAN PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2011.v15.i3.370 ◽

2018 ◽

Vol 15 (3) ◽

pp. 291-306

Author(s):

Ardi Hamzah

Keyword(s):

Cash Flow ◽

Firm Size ◽

Stock Exchange ◽

Control Variable ◽

Control Variables ◽

Purposive Sampling ◽

Independent Variables ◽

Regression Test ◽

Better Than

The objectives of this research are to examine prediction power of tax, earnings, and cash flow on future tax with firms size namely asset total and sales value as control variable. The samples of data are manufactur firm that listed in Indonesia Stock Exchange in period 2003 – 2008. Data total is 270 firm that fulfill requirement namely have not negative tax, earnings, and cash flow. The source of data is Indonesian Stock Exchange. Technic of data gathered is purposive sampling. Independent variables are taxt-1, earningst-1 and cash flowt-1, while control variables are firm size namely asset total dan sales value. Dependent variable is taxt. The analysis that use in this research is statistic descriptif and regression test. The result of this research indicate that partially earnings, cash flow, and firm size namely asset total and sales value have significantly effect on tax future, while tax have not significantly effect on future tax. For examining simultantly indicate that tax, earnings, cash flow, and firm size have significantly effect on future tax. The prediction power earnings on future tax better than cash flow and tax.

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Company characteristics and risk management disclosure: empirical study of manufacturing companies listed on the Indonesia stock exchange

Problems and Perspectives in Management ◽

10.21511/ppm.16(2).2018.36 ◽

2018 ◽

Vol 16 (2) ◽

pp. 396-411 ◽

Cited By ~ 1

Author(s):

Bambang Bemby Soebyakto ◽

Mukhtaruddin ◽

Relasari ◽

Alfianto Sinulingga

Keyword(s):

Risk Management ◽

Firm Size ◽

Stock Exchange ◽

Total Sample ◽

Annual Reports ◽

Manufacturing Companies ◽

Public Ownership ◽

Independent Variables ◽

Management Ownership ◽

Business Complexity

This research aims to obtain empirical evidence on the effect of company characteritics on risk management disclosure (RMD) from the annual reports of manufacturing companies. The sample consists of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period 2010–2012. The total sample included 72 companies with three years observation and the examined firms reached 216. Results indicate that independent variables (firm size, profitability, leverage, public ownership, management ownership, and business complexity) have a significant effect on RMD. However, the hypotheses test with partial t-test indicate different results. Firm size (FS) and management ownership (MO) have significant effects, whereas leverage (LEV) has a negative and significant effect on RMD. Other variables, namely profitability (PRO), public ownership (PO), and business complexity (BC), have no significant effect on RMD.

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