DOI: 10.5176/2251-1997_AF17.11
Authors: Siti Balqis Mohd Nor, Hafiz Majdi Abdul-Rashid and Sherliza Puat Nelson
Abstract:
Multiple directorships are found to be common among outside directors. Previous literature does not show robust findings concerning the ineffectiveness of these directors in performing their role. Using samples of Main Market Bursa Malaysia firms, this study aims to examine the impact of multiple directorships and diligence on firm performance. Multiple directorships are measured by the number of outside directorships held by independent directors and diligence is measured by the number of board meeting attendance of independent directors. Two theories are employed in this study which is agency theory and resource dependence theory. The results revealed that a higher number of multiple directorships results in higher firm performance, and no significant relationship is found between diligence and firm performance.
Keywords: independent directors, multiple directorships, diligence
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