Board Characteristics and Bank Performance in Malaysia

Abstract

Based on panel data analysis, this study examined the impact of board characteristics such as board size, board independent, board average age, audit committee meeting, board meeting and board diversity on the bank’s performance in Malaysia. The study based on six Malaysia commercial banks for the periods of 2010 – 2016. Proxy for bank performance is return on equity (ROE), return on assets (ROA), Net Interest Margin and Tobin Q. The findings of this research show bank with large board size and higher average age of among board members positively related to bank performance. In addition, bank performance positively influenced by board meeting audit committee meeting. If bank board members consist of independent member and females’ directors, it adversely affects bank performance.

Keywords: Performance, Board size, Board independence, Board meeting, Board average age