Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5101619 | Journal of Multinational Financial Management | 2016 | 14 Pages |
Abstract
This study examines market reactions to the appointment of women to corporate boards, and observes if their attributes and role they play in monitoring affect firm value. We observe 127 Malaysian firms that appoint women directors over the period 1999-2011. We use the market model to assess abnormal returns surrounding the appointment of women directors from day â10 to day 10. Using conventional t-tests, share time series tests and rank tests, we find that investors welcome the appointment of women directors. A positive average abnormal return (AAR) is observed on day â1 using all three tests. Cumulative average abnormal returns (CAAR) are positive over the period day 1 to day 10. We also find that investors are more likely to favor women who are prominent, young, have no international exposure, and have no family relationship with any other director. Our findings support the initiative taken by the Malaysian Government to promote women's participation on corporate boards.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ku Nor Izah Ku Ismail, Kamarul Bahrain Abdul Manaf,