KUALA LUMPUR: Companies with at least one-third women representation correlate with 38 per cent higher median return on equity (ROE) compared with boards with no women representation, according to a 'Malaysia Board Diversity Study and Index' by the Institute of Corporate Directors Malaysia (ICDM).
Based on the Study and Index which were developed by ICDM in partnership with Willis Towers Watson (WTW), it said a larger representation of women seems to suggest more inclusive boards.
WTW global practice leader - executive compensation and governance managing director Shai Ganu said gender diverse boards with a mixed representation of male and female directors can bring different perspectives and approaches to stewardship and risk-reward orientation to the table, which in turn enhance the quality of board decisions made.
"In 2019, 19 per cent of Malaysian board seats were held by women, an increase from 2016's 14 per cent. However, there is still much room to enhance the current gender representation on Malaysian corporate boards," he said during the virtual presentation of the Study and Index today.
The Study and Index examined the performance of 312 top public listed companies on Malaysia's stock exchange, Bursa Malaysia, from 2017-2019, which covered family and non-family businesses across the small, mid to large market capitalisation segments.
It also revealed that boards with 33 per cent to 50 per cent independence correlates to better financial performance with 29 per cent higher ROE and 28 per cent higher revenue growth compared with boards with zero per cent to 33 per cent independence.
Ganu said the result thus supports the hypothesis that boards with an optimal balance between independent and non-independent representation are likely to outperform others.
"A balanced board with independent and non-independent representation allows for more considered decision-making, while independent board members can bring external expertise and are more likely to make decisions aligned with all stakeholders' interests," he added.
On international expertise, he said having board members with a broad range of expertise can help the board respond more quickly to changes, provide different experiences and expertise for sound decision making, and even provide access into critical markets.
"We see that a good mix of directors with domestic, regional, and global experiences correlates to higher financial performance.
"Particularly, boards with stronger international expertise performed 43 per cent, 27 per cent and 45 per cent higher than their peers in terms of ROE, price-to-earnings multiple, and revenue growth respectively," he said.
Meanwhile, ICDM president and chief executive officer Michele Kythe Lim said the release of the Study and Index was a significant milestone for Malaysia, specifically for the country's corporate governance (CG)landscape.
"As Malaysia moves towards strengthening of CG through adoption of codes of conduct andguidelines, establishing a holistic and systematised standard for board diversity is integral in ensuringwe continue to be aligned to the set goals of Corporate Malaysia.
"The Index will serve as a benchmark for Malaysian companies in improving their diversity on boards, which is a key strategic driver in improving the overall performance of an organisation," she said.
-- BERNAMA
Bernama
Wed Apr 07 2021
![Companies with 1/3 women representation correlate with 38 pct higher median ROE : ICDM Companies with 1/3 women representation correlate with 38 pct higher median ROE : ICDM](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2021-02/81613133147_TechnologyGeneric.jpg)
Based on the Study and Index which were developed by ICDM in partnership with Willis Towers Watson (WTW), it said a larger representation of women seems to suggest more inclusive boards.
![Warga emas bersalah bunuh abang, kakak ipar Warga emas bersalah bunuh abang, kakak ipar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/41721119130_wargaemasbersalah.jpg)
Warga emas bersalah bunuh abang, kakak ipar
Mahkamah Tinggi di sini hari ini mensabitkan kesalahan seorang warga emas atas dua pertuduhan pindaan membunuh abang dan kakak iparnya dua tahun lalu.
![PAC beri tempoh tiga bulan kepada HRD Corp kemuka laporan tindakan susulan PAC beri tempoh tiga bulan kepada HRD Corp kemuka laporan tindakan susulan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/71721120782_TBMASERMIEYATI.jpg)
PAC beri tempoh tiga bulan kepada HRD Corp kemuka laporan tindakan susulan
Mas Ermieyati Samsudin berkata tempoh itu diberikan susulan laporan audit berkaitan, baru dibentangkan pada minggu lepas.
![Buli siber: Beberapa kementerian bincang perketat undang-undang - Fahmi Buli siber: Beberapa kementerian bincang perketat undang-undang - Fahmi](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61721118437_FahmiFadzil.jpg)
Buli siber: Beberapa kementerian bincang perketat undang-undang - Fahmi
Penambahbaikan aspek perundangan akan diteliti kerajaan, termasuk mengadakan perbincangan dengan beberapa kementerian berkaitan dalam masa terdekat.
![Kementerian Digital sedia bantu PKS dalam pelaksanaan e-invois - Gobind Kementerian Digital sedia bantu PKS dalam pelaksanaan e-invois - Gobind](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2019-12/81575261818_GobindSinghDeo.jpg)
Kementerian Digital sedia bantu PKS dalam pelaksanaan e-invois - Gobind
Beliau menegaskan bahawa pelaksanaan e-Invois itu akan memberi manfaat, termasuk meningkatkan pendapatan PKS.
![Kim Pan-gon akan ke Ulsan Hyundai? Kim Pan-gon akan ke Ulsan Hyundai?](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/51721117483_KimPangon.jpg)
Kim Pan-gon akan ke Ulsan Hyundai?
Bekas pengendali skuad negara itu dilaporkan sedang menjadi calon utama untuk mengisi jawatan pengurus kelab gergasi Korea Selatan, Ulsan Hyundai.
![Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2016-12/41482504881_TamanTasikTitiwang.jpg)
Lebih 2,300 hektar kawasan lapang di ibu negara diperuntukkan kawasan hijau
Daripada keluasan itu, sebanyak 977.55 hektar tanah telah diwartakan, manakala 1,416.24 hektar tanah lapang yang berpotensi akan dan sedang dalam proses diwartakan.
Guna jawatan untuk projek pembekalan, suami isteri ditahan
Sepasang suami isteri direman enam hari dalam siasatan penyalahgunaan jawatan untuk mendapatkan projek pembekalan bernilai lebih RM200,000.
Perintah reman dikeluarkan Majistret Noor Mazrinie Mahmood bermula hari ini hingga Ahad.
Perintah reman dikeluarkan Majistret Noor Mazrinie Mahmood bermula hari ini hingga Ahad.
DBKL ubah lalu lintas Jalan Sultan Ismail bermula 22 Julai
Dewan Bandaraya Kuala Lumpur (DBKL) akan melaksanakan perubahan lalu lintas di Jalan Sultan Ismail berkuat kuasa 22 Julai ini.
![ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-07/61721116604_ChongZheminDewan.jpg)
ADUN Rembia sertai Pas, kenapa tak umum tahun lepas? - MP Kampar
Tindakan tersebut seolah-olah satu penghinaan paling besar kepada Parlimen yang telah meluluskan pindaan Perlembagaan Persekutuan berkait Akta Antilompat Parti.
[TERKINI] Perbelanjaan pengguna Malaysia dijangka kembali teguh
Perbelanjaan pengguna Malaysia dijangka teguh sepanjang tahun ini, demikian menurut BMI, iaitu syarikat Fitch Solitions.