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
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.
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