Multiple Directorships, Board Characteristics and Firm Performance in Malaysia

The objective of the study is two-fold. First, the study examines the extent of multiple directorship practices of Malaysian public listed companies. Secondly, the study assesses the relationship of several board characteristics with firm performance. Using a sample of 132 companies in 2008, the result shows that almost 90% of directors of Malaysian public listed firms have between 1 to 3 directorships. The multiple directorships affect firms’ market performance positively but not significantly. Ex-government officials and founders have positive and significant influence on performance. Family ownership is significant and has U-shaped relationship with performance. The findings to some extent have policy implication to corporate governance practices.