The impact of effective board characteristics on monitoring quality in Malaysian public listed companies / Nur Dinie Musfirah Zulkefli

The study examines four board characteristics associated with board monitoring quality in Malaysia Public Listed Companies. The four board characteristics are board size, board independence, representation of women director and non-duality structure and board monitoring quality is been measured by reduction of occurrence of negative events which in form of enforcement actions issued by Securities Commission and Bursa Malaysia towards companies that violate laws and regulations. This paper use the sample of 160 companies which consists of 80 subjected to negative events and 80 not subjected to negative events, all of which were listed on Bursa Malaysia and have a complete set of data from 2012-2017. In particular, board sizes, representation of women director and non-duality structure are associated with board monitoring quality. The implications for the study are enhance the role of board monitoring, enhance and strengthen the law on implementation of board characteristics as recommended and strengthen the regulatory enforcement. The findings of this study will contribute to the limited body of literature concerning the impact of board characteristics on board monitoring quality. Besides that, this research also would be useful for policy makers and firms in evaluating the importance of corporate governance in emerging countries, specifically on the issue of quality board monitoring.