Corporate Governance, Institutional Characteristics, and Director
                        Networks in Malaysia

Jamaludin, Mohd Faizal; Hashim, Fathyah

doi:10.21315/aamjaf2017.13.2.7

Cited by 11 publications

(17 citation statements)

References 30 publications

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“…Although the efficiency and financial performance of mining firms are essential to contribute to the creation of real value-added to stakeholders significantly, the corporate governance factors always play a critical role in these problems (Moreno-Bromberg & Vo, 2017). The interplay between three factors, financial performance, corporate governance, and financial distress, is essential in mining firms because of the uncertainty of commodity prices, and regulation-political sentiments are relatively high (Jamaludin & Hashim, 2017) Predicting corporate failure has become a long-standing problem in the study of corporate finance and credit risk. So far, researchers have relied on the Altman z-score model (1968), which uses accounting ratio-based information in determining how the probability of default is related to financial ratios (Waqas & Md-Rus, 2018;Li & Miu, 2010).…”

Section: Introductionmentioning

confidence: 99%

The role of moderating audit quality relationship between corporate characteristics and financial distress in the Indonesian mining sector

Santosa

Tambunan

Kumullah

2020

Investment Management and Financial Innovations

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Financial performance and corporate governance play an important role in financial distress in the mining sector, which is one of the most significant contributors to the Indonesian economy. This study aims to analyze the effect of corporate characteristics on financial distress (FD), which is moderated by corporate governance (audit quality), and uses the controlling variables (inflation rate and GDP). The study uses data from audited financial statements from mining sector in the Indonesia Stock Exchange for the period 2013–2018. Since the dependent variable (FD) is dichotomous, this study used a binary logistic regression model, as it is the case in many studies regarding the probability of bankruptcy filing. In line with the current study and some previous studies, leverage, efficiency (activity), market-to-book value, audit quality, and GDP affect the probability of financial distress significantly. Only liquidity and inflation do not impact FD. Besides, the moderating audit quality weakens the effect of liquidity and PBV; otherwise, it strengthens leverage and efficiency in predicting financial distress. As for managerial implications, this study concludes that corporate performance, corporate governance, and macro-risk factors affect the probability of financial distress. The authors suggest that mining firms need to pay attention to corporate governance and should watch the economic condition for business sustainability.

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Section: Introductionmentioning

confidence: 99%

The role of moderating audit quality relationship between corporate characteristics and financial distress in the Indonesian mining sector

Santosa

Tambunan

Kumullah

2020

Investment Management and Financial Innovations

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“…An exploratory study in Malaysia found that the business network has moderate connectivity overall, although a small portion is highly interconnected (Jamaludin & Hashim, 2018).…”

Section: Southeast Asian Studiesmentioning

confidence: 99%

The Properties of Interlocking Directorates in the Philippines: An Exploratory Analysis

2022

RMRJ

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Governance has become an increasingly important factor in the investment decisions of firms and investors. Thus, it is important to determine the quality and composition of corporate boards, which are vital overseers who act in the best interests of shareholders to improve and strengthen them. While interlocking directorates are not a recent occurrence in the Philippines, updated literature on the structure of the country’s board interlock network is sparse. Thus, this study provides a baseline snapshot by analyzing all 251 publicly-listed companies on the Philippine Stock Exchange at the director and board levels. More so, the study utilizes social network analysis tools to describe the properties of interlocking directorates and visually maps out the social network that underpins these relationships. It reveals that the board network is extensive, with almost 90% of firms connected, thanks to a handful of key directors who have high degrees of connectivity.

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“…The effectiveness of corporate innovation activities can be increased by directly or indirectly leveraging each director's network. However, Jamaludin and Hashim (2017) contended that the company still neglects the significant role of the director's network in the firm. A similar idea was proposed by Hamid (2011) which stated that the need to nominate and retain a member of the board was less concerned with the influence of the networks of the director.…”

Section: Directors Network In Technological Innovationmentioning

confidence: 99%

“…Surprisingly, not all companies fully utilize the advantages of directors' networks especially in terms of corporate innovation. As argued by Jamaludin and Hashim, (2017), little is known about the effect of directors network. Besides, it might help the company to increase its innovation activities while also enhancing its performance.…”

Section: Introductionmentioning

confidence: 99%

The Moderating Effect of Directors’ Network Towards Technological Innovation and Firms’ Performance: A Conceptual Paper

Hussain

Hashim

Jamaludin

2020

IJIM

Self Cite

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Scholars have given increased attention to seek for a solution to improve firms’ performance. The literature demonstrated that technology innovation is considered the most powerful means of firms’ performance for modern companies. Empirical findings showed, however, that the relationship between technological innovation and firms’ performance continues to be inconclusive as it has a negative, positive or no impact on firms’ performance. In order to address such gap, this paper proposes a theoretical framework to describe the moderating effect of directors’ network on technological innovation and firms’ performance. It shows that the effectiveness of business innovation can be enhanced through direct or indirect use of each network of directors. The firm still neglects the significant capacity of the board of directors' network in a firm. In short, the crucial discussion found in this paper will lead to improving the information on innovation, networking and organizational studies as well as act as a reference to study in other countries. This study is a promising field. The business will benefit from a large social network of directors. Thus, the company is proposing to fully utilize the function of directors’ network to leverage the innovation activities and firm’s performance.

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Corporate Governance, Institutional Characteristics, and Director Networks in Malaysia

Cited by 11 publications

References 30 publications

The role of moderating audit quality relationship between corporate characteristics and financial distress in the Indonesian mining sector

The role of moderating audit quality relationship between corporate characteristics and financial distress in the Indonesian mining sector

The Properties of Interlocking Directorates in the Philippines: An Exploratory Analysis

The Moderating Effect of Directors’ Network Towards Technological Innovation and Firms’ Performance: A Conceptual Paper

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