Global Journal of Economic and Finance Research

The role of women directors in strengthening corporate governance and improving company performance is well recognised, yet their representation on corporate boards remains limited. This study explores the underrepresentation of women on the boards of publicly listed companies in Malaysia and investigates the factors contributing to this issue. A qualitative research design was employed, involving in-depth interviews with six directors from publicly listed Malaysian companies. This approach provided rich insights into women directors' contributions and the barriers that hinder their broader participation. The findings reveal that women directors enhance board effectiveness by improving stakeholder representation, enriching decision-making processes, and advancing corporate social responsibility (CSR) engagement. The women directors' perspective was also noted as adding depth to boardroom discussions and strengthening governance outcomes. However, challenges persist, particularly in identifying suitable female candidates, which is often limited by industry-specific knowledge gaps and a lack of awareness of the available talent pool. These constraints highlight the structural and organisational complexities shaping gender representation on boards. The study contributes to the discourse on gender diversity by offering insights to guide future research, policymaking, and corporate practices to promote inclusivity in board leadership.

Corporate governance, corporate social responsibility, gender diversity, stakeholder representation, women directors

1. Adams, R. B., & Ferreira, D. (2009). Women in the Boardroom and Their Impact on Governance and Performance. Journal of Financial Economics, 94(2), 291 309. 
2. Al-Najjar, B., & Salama, A. (2022). Mind the gap: Are female directors and executives more sensitive to the environment in high-tech US firms? Technological Forecasting and Social Change, 184. https://doi.org/10.1016/j.techfore.2022.122024 
3. Arfken, D.E., Bellar, S.L. and Helms, M.M. (2004). The Ultimate Glass Ceiling Revisited: The Presence of Women on Corporate Boards. Journal of Business Ethics Vol. 50, No. 2, pp. 177-186. 
4. Azmi, I., & Barrett, M. (2013). Women on Boards and Company Financial Performance: A Study of Malaysian Smes. Proceedings of 3rd Global Accounting, Finance and Economics Conference, 1–14. Retrieved from http://www.wbiworldconpro.com/uploads/melbourneconference-2013/finance/1367487777_346-Ilhaamie.pdf 
5. Baum I., Gafni D., & Lazar, LR. (2022). Gender and Corporate Crime: Do Women on the Board of Directors Reduce Corporate Bad Behavior?, Retrieved on 5 July 2023 from  https://repository.law.umich.edu/cgi/viewcontent.cgi?article=1303&context=mjgl 
6. Barnes, C., Lewis, R., Yarker, J., & Whiley, L.A. (2019). Women directors on FTSE company boards: An exploration of the factors influencing their appointment. Cgen Psychology, 6(1). https://doi.org/10.1080/23311908.2019.1691848 
7. Bart, C. & McQueen, G., (2013). Why Women make better directors. International Journal of Business Governance and Ethics. 
8. Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97, 207–221. http://doi.org/10.1007/s10551-010-0505-2 
9. Berman, S.L.; Wicks, A.C., Kotha, S. and Jones, T.M. (1999). Does Stakeholder Orientation Matter? The Relationship Between Stakeholder Management Models and Firm Financial Performance. Academy of Management Journal, 42 (5), 488-506. 
10. Bénabou, R., & Tirole, J. (2009). Individual and Corporate Social Responsibility. Economica, 77(305), 1-19. https://doi.org/10.1111/j.1468-0335.2009.00843.x
11. Bowie, N. E. (2013). Stakeholder board representation as a means of governance. In Business ethics in the 21st century (pp. 161-176). Springer. https://doi.org/10.1007/978-94-0076223-7_10 
12. Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance & Economics, 26(4), 5704-5719. https://doi.org/10.1002/ijfe.2089 
13. Burke, R. J. (1994). Women on Corporate Boards of Directors: Views of Canadian Chief Executive Officers. Women in Management Review 9, 3–10. 
14. Carmo, C., Alves, S., & Quaresma, B. (2022). Women on Boards in Portuguese Listed Companies: Does Gender Diversity Influence Financial Performance? Sustainability, 14(10), 6186. https://doi.org/10.3390/su14106186 
15. Catalyst, (2012). Advancing Women Leaders: The Connection Between Women Board Directors and Women Corporate Officers. (New York: Catalyst, 2008); Retrieved on 3 December 2018 from https://www.catalyst.org/knowledge/2012-catalyst-census-fortune-500women-board-directors 
16. Catalyst (2004). The Bottom Line: Connecting Corporate Performance and Gender Diversity.  Retrieved on 16 November 2018 from https://www.catalyst.org/system/files/The_Bottom_Line_Connecting_Corporate_Performance_and_Gender_Diversity.pdf 
17. Chatterjee, C., & Nag, T. (2022). Do women on boards enhance firm performance? Evidence from top Indian companies. International Journal of Disclosure and Governance, 20, 155-167. https://doi.org/10.1057/s41310-022-00153-5 
18. Christiansen, L., Lin, H., Pereira, J., Topalova, P., & Turk, R. (2016). Gender Diversity in Senior Positions and Firm Performance: Evidence from Europe. International Monetary Fund (IMF) Working Paper. 
19. Conde-Ruiz, J.I. and de Artinano, I.M. (2016). Gender gaps in the Spanish labor market. Studies on the Spanish Economy eee2016-32, FEDEA. 
20. Daily, C. M., & Dalton, D. R. (2003). Women in the Boardroom: A Business Imperative. Journal of Business Strategy, 24(5), 8. 
21. Dani, A., Picolo, J., Klan, C. (2019). Gender influence, social responsibility and governance in performance. RAUSP Management Journal, 54(2). https://doi.org/10.1108/RAUSP-072018-0041 
22. Erhardt, NL., Werbel JD., Shrader, CB. (2004). Board of Director Diversity and Firm Financial Performance. Corporate Governance: An International Review, Vol. 11, No. 2, pp. 102111. 
23. Francoeur, C., Labelle, R., Balti, S. et al. To What Extent Do Gender Diverse Boards Enhance Corporate Social Performance?. Journal of Business Ethics. 155, 343–357 (2019). https://doi.org/10.1007/s10551-017-3529-z 
24. García-Sánchez, Isabel-María, Lázaro Rodríguez-Ariza, and María-del-Carmen GranadaAbarzuza. (2021). The Influence of Female Directors and Institutional Pressures on Corporate Social Responsibility in Family Firms in Latin America. Journal of Risk and Financial Management, 14(1), 28 https://doi.org/10.3390/jrfm14010028 
25. García-Meca, E., Santana-Martín, D.J. Board gender diversity and performance in family firms: exploring the faultline of family ties. Review of Managerial Science, 17, 1559–1594 (2023). https://doi.org/10.1007/s11846-022-00563-3 
26. Ho, W.F. (2017, November 18). Aye to 30% Women Agenda. The Star. Retrieved on 19 October 2018 from https://www.thestar.com.my/ 
27. Hunt, DV., Layton, D. & Prince, S. (2015). Why Diversity Matters. Retrieved on 13 March 2017 from http://www.mckinsey.com/business-functions/organization/our-insights/whydiversity-matters 
28. Hyun, E., Yang, D., Jung, H., & Hong, K. (2016). Women on Boards and Corporate Social Responsibility. Sustainability, 8(4), 300. https://doi.org/10.3390/su8040300 
29. Ijas, J. (2012). The Impact of Board Gender Diversity on Corporate Responsibility Performance in the FTSE 100. Dissertation submitted in partial fulfilment of the requirement for the MSc in Corporate Governance & Business Ethics Department of Management, Birkbeck College, (October). 
30. Kaspereit, T., Lopatta, K., & Matolcsy, Z. (2016). Board Gender Diversity and Dimensions of Corporate Social Responsibility. Journal of Management & Sustainability, 6(2), 50–66. 
31. Konrad, A. M., Kramer, V., & S. Erkut. 2008. Critical mass: The impact of three or more women on corporate boards. Organizational Dynamics 37 (2): 145–164. https://doi.org/10.1016/j.orgdyn.2008.02.005 
32. Linggih, A.D. & Wiksuana, I.G.B. (2018). The Effects of Gender Diversity in The Boardroom on Firm Financial Performance in Indonesia. Jurnal Ekonomi Kuantitatif Terapan, v11. https://doi.org/10.24843/jekt 
33. Lückerath-Rovers, M. (2013). Women on boards and firm performance. Journal of Management and Governance, 17, 491–509 (2013). https://doi.org/10.1007/s10997-011-9186-1 
34. Maiso Fontecha, L. (2013) Women on boards. ERA Forum 14, 315–318 (2013). https://doi.org/10.1007/s12027-013-0318-8 
35. Martínez, M.C.V., & Rambaud, S.C. (2019). Women on corporate boards and firm's financial performance. Women's Studies International Forum., 76, September-October 2019, 102251. https://doi.org/10.1016/j.wsif.2019.102251 
36. Navarro-García, J. C., Ramón-Llorens, M. C., & García-Meca, E. (2020). Female directors and corporate reputation. Business Research Quarterly. https://journals.sagepub.com/doi/10.1177/2340944420972717 
37. Perryman, AA., Fernando, GD., & Tripathy, A. (2015). Do gender differences persist? An examination of gender diversity on firm performance, risk, and executive compensation. Journal of Business Research, 69(2), pp. 579-586. https://doi.org/10.1016/j.jbusres.2015.05.013 
38. Reguera-Alvarado, N., de Fuentes, P., & Laffarga, J. (2017). Does board gender diversity influence financial performance? Evidence from Spain. Journal of Business Ethics, 141(2), 337-350. 
39. Renuka Rayasam (2013). The New Yorker: Do more Women on the Board Mean Better Results?. Retrieved on 16th May 2017 from: https://www.newyorker.com/business/currency/domore-women-on-the-board-mean-better-results 
40. Rosener, J. (2003). “Women on Corporate Boards Make Good Business Sense”, Directorship Vol. 29, No. 5, pp. 7-11 
41. Singh, A. K., Singhania, S., and Sardana, V. (2019). Do Women on Boards affect Firm's Financial Performance? Evidence from Indian IPO Firms. Australasian Accounting, Business and Finance Journal, 13(2), 53-68. https://doi.org/10.14453/aabfj.v13i2.4 
42. Smith, N., Smith, V. and Verner, M. (2006), Do women in top management affect firm performance?A panel study of 2,500 Danish firms. International Journal of Productivity and Performance Management, Vol. 55 No. 7, pp. 569-593. https://doi.org/10.1108/17410400610702160 
43. Tanasuica, C. (2023). Does Board Gender Diversity Really Improve Financial Performance and Default Risk? Evidence from Romanian Companies Engaged in International Trade. Journal of Social and Economic Statistics, 12(1), 84-107 
44. Terjesen, S., Couto, E.B. & Francisco, P.M. (2016). Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity. Journal of Management & Governance 20, 447–483 (2016). https://doi.org/10.1007/s10997-0149307-8 
45. The Business Times. (2021). Malaysia Mandates Companies To Have At Least One Woman Director. Retrieved on 14 April               2023      from https://www.businesstimes.com.sg/international/malaysia-mandates-companies-haveleast-one-woman-director
46. The Edge Malaysia (2023). 24 Public-Listed Companies Still Have No Women Directors. Retrieved on 18 January 2024 from https://theedgemalaysia.com/node/669954 
47. Torchia, M., Calabrò, A., and Huse, M. (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. Journal of Business Ethics, Vol.102, pp. 299–317. 
48. Wang, C., Deng, X., Álvarez-Otero, S., Sial, M.S., Comite, U., Cherian, J., Oláh, J. (2021). Impact of Women and Independent Directors on Corporate Social Responsibility and Financial Performance: Empirical Evidence from an Emerging Economy. Sustainability 2021, 13(11), 6053. https://doi.org/10.3390/su13116053 
49. Wardhani, D. & Supratiwi, W. (2023). Characteristics of a Good Board of Directors For Indonesian SOEs. Journal of Indonesian Economy and Business, Volume 38, Number 1, 2023, 1-18. 
50. Zhang, J.Q., Zhu, H. and Ding, H.B. (2013). Board composition and corporate social responsibility: An empirical investigation in the post Sarbanes-Oxley era. Journal of Business Ethics, Vol. 114 No. 3, pp. 381-392. https://doi.org/10.1007/s10551-012-1352-0