The impact of board composition on financial performance of commercial banks in Malaysia

Corporate governance refers to the set of rules, policies, and practices that a company uses to guide and regulate its operations. This study adds to the body of knowledge on corporate governance by performing the empirical analysis on the impact of board composition on bank financial performance in...

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Main Author: Hanisa, Mat
Format: Thesis
Language:English
English
English
Published: 2021
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Online Access:https://etd.uum.edu.my/10297/1/Permission%20to%20deposit-s825549.pdf
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https://etd.uum.edu.my/10297/3/s825549_02.pdf
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spelling my.uum.etd.102972023-02-09T02:14:49Z https://etd.uum.edu.my/10297/ The impact of board composition on financial performance of commercial banks in Malaysia Hanisa, Mat HG Finance HJ Public Finance Corporate governance refers to the set of rules, policies, and practices that a company uses to guide and regulate its operations. This study adds to the body of knowledge on corporate governance by performing the empirical analysis on the impact of board composition on bank financial performance in the context of the Malaysian market. Various determinants have been identified to analyze the impact of board composition and bank performance as measured by return on assets (ROA), namely board independence, board diversity, and board size. The involvement of firm age, size, growth, and leverage as moderators are recognized in the relationship between board composition determinants and bank financial performance. To examine the relationships of these variables with bank performance, the study collected the data from 26 samples of commercial banks listed on Bank Negara Malaysia over the period of 2016 to 2020. The dataset used from secondary sources and extracted from the banks' published annual reports and corporate governance reports. The study performed descriptive statistics, multiple regression and correlation to analyze the impact of these relationships. The findings of the research revealed that the proportion of independent directors on the board, board diversity, the board size, and bank financial performance metrics have no significant relationships. As a result of this research, it appeared that board composition has little bearing on the success of Malaysia's bank performance. 2021 Thesis NonPeerReviewed text en https://etd.uum.edu.my/10297/1/Permission%20to%20deposit-s825549.pdf text en https://etd.uum.edu.my/10297/2/s825549_01.pdf text en https://etd.uum.edu.my/10297/3/s825549_02.pdf Hanisa, Mat (2021) The impact of board composition on financial performance of commercial banks in Malaysia. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
English
topic HG Finance
HJ Public Finance
spellingShingle HG Finance
HJ Public Finance
Hanisa, Mat
The impact of board composition on financial performance of commercial banks in Malaysia
description Corporate governance refers to the set of rules, policies, and practices that a company uses to guide and regulate its operations. This study adds to the body of knowledge on corporate governance by performing the empirical analysis on the impact of board composition on bank financial performance in the context of the Malaysian market. Various determinants have been identified to analyze the impact of board composition and bank performance as measured by return on assets (ROA), namely board independence, board diversity, and board size. The involvement of firm age, size, growth, and leverage as moderators are recognized in the relationship between board composition determinants and bank financial performance. To examine the relationships of these variables with bank performance, the study collected the data from 26 samples of commercial banks listed on Bank Negara Malaysia over the period of 2016 to 2020. The dataset used from secondary sources and extracted from the banks' published annual reports and corporate governance reports. The study performed descriptive statistics, multiple regression and correlation to analyze the impact of these relationships. The findings of the research revealed that the proportion of independent directors on the board, board diversity, the board size, and bank financial performance metrics have no significant relationships. As a result of this research, it appeared that board composition has little bearing on the success of Malaysia's bank performance.
format Thesis
author Hanisa, Mat
author_facet Hanisa, Mat
author_sort Hanisa, Mat
title The impact of board composition on financial performance of commercial banks in Malaysia
title_short The impact of board composition on financial performance of commercial banks in Malaysia
title_full The impact of board composition on financial performance of commercial banks in Malaysia
title_fullStr The impact of board composition on financial performance of commercial banks in Malaysia
title_full_unstemmed The impact of board composition on financial performance of commercial banks in Malaysia
title_sort impact of board composition on financial performance of commercial banks in malaysia
publishDate 2021
url https://etd.uum.edu.my/10297/1/Permission%20to%20deposit-s825549.pdf
https://etd.uum.edu.my/10297/2/s825549_01.pdf
https://etd.uum.edu.my/10297/3/s825549_02.pdf
https://etd.uum.edu.my/10297/
_version_ 1758580782114275328
score 13.211869