Corporate Governance, Institutional Characteristics, And Director Networks In Malaysia

Jamaludin, Mohd Faizal and hashim, Fathyah (2017) Corporate Governance, Institutional Characteristics, And Director Networks In Malaysia. Asian Academy of Management Journal of Accounting and Finance, 13 (2). pp. 1-20. ISSN 1823-4992

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Abstract

This study explores the structural relationship of director networks among boards of directors in publicly listed companies in Malaysia using social network analysis (SNA) techniques at both the director and company levels. This paper examines whether company corporate governance practices and institutional characteristics are associated with company network size and pattern. SNA performed using UCINET and NetDraw software shows that the directors and company in the networking are moderately connected. This suggests that there is a small group of directors or companies that are well-connected and well-positioned to exercise power, control, and influence over the network. This study also reveals the interconnectedness of board members and companies. The regression results also identify a group of the most well-connected and well-positioned directors and companies in Malaysia’s corporate governance environment. The results suggest that board size, board meeting, and duality are the corporate governance practices, which most influence company network size and pattern. The presence of a Bumiputera or politicallyconnected director is an institutional characteristic, which especially determines the network of a company.

Item Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management
Divisions: Penerbit Universiti Sains Malaysia (USM Press) > Asian Academy of Management Journal of Accounting and Finance
Depositing User: Mr Firdaus Mohamad
Date Deposited: 20 Apr 2018 09:01
Last Modified: 20 Apr 2018 09:01
URI: http://eprints.usm.my/id/eprint/40157

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