Do Board Size, Female Directors and Ownership Dispersion Influence Financial Performance of Cooperatives? An Analysis Using Upper Echelons Theory

This study employs the upper echelons theory to examine the factors that influence the financial performance of cooperatives in Malaysia. Specifically, three factors are selected in this study, namely board size, female directors, and ownership dispersion, in relation to the financial performance of the cooperatives in Malaysia. In this study, a content analysis was performed on 145 cooperatives’ annual reports. This study shows that the number of board members has no effect on the financial performance of the cooperatives, indicating that a small board with knowledgeable members can also outperform a larger board with less expertise. This study also shows that female directors do no impact on the financial performance of cooperatives. Finally, this study demonstrates that the disbursement of members in the cooperatives has no effect on their financial performance. The findings in this study provide a relevant perspective on the financial performance of cooperatives that can help regulators understand and provide proper guidance to the cooperatives. This study also provides empirical evidence on the relationship between board size, female directors, ownership dispersion, and the financial performance of the co-operatives, adding to the financial reporting literature.

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Publication Details

Journal
International Journal of Economics and Financial Issues
Published
2024-09-06
DOI
https://doi.org/10.32479/ijefi.16776
Citations
1
Primary Topic
Cooperative Studies and Economics
Type
article
Field-Weighted Citation Impact
0.55
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article

Do Board Size, Female Directors and Ownership Dispersion Influence Financial Performance of Cooperatives? An Analysis Using Upper Echelons Theory

Kamaruzzaman Muhammad, Fazlida Mohd Razali, Erlane K Ghani, Azleen Ilias et al.
1 citations
International Journal of Economics and Financial Issues
Cooperative Studies and Economics
0.55
article

Do Board Size, Female Directors and Ownership Dispersion Influence Financial Performance of Cooperatives? An Analysis Using Upper Echelons Theory

Kamaruzzaman Muhammad, Fazlida Mohd Razali, Erlane K Ghani, Azleen Ilias, Mohd Adha Ibrahim, Nazratul Aina Mohamad Anwar, Nurul Nazlia Jamil
article en
1 citations

Abstract

This study employs the upper echelons theory to examine the factors that influence the financial performance of cooperatives in Malaysia. Specifically, three factors are selected in this study, namely board size, female directors, and ownership dispersion, in relation to the financial performance of the cooperatives in Malaysia. In this study, a content analysis was performed on 145 cooperatives’ annual reports. This study shows that the number of board members has no effect on the financial performance of the cooperatives, indicating that a small board with knowledgeable members can also outperform a larger board with less expertise. This study also shows that female directors do no impact on the financial performance of cooperatives. Finally, this study demonstrates that the disbursement of members in the cooperatives has no effect on their financial performance. The findings in this study provide a relevant perspective on the financial performance of cooperatives that can help regulators understand and provide proper guidance to the cooperatives. This study also provides empirical evidence on the relationship between board size, female directors, ownership dispersion, and the financial performance of the co-operatives, adding to the financial reporting literature.

International Journal of Economics and Financial IssuesVol. 14(5)
Universiti Sains Islam Malaysia (MY), Universiti Tenaga Nasional (MY), Universiti Teknologi MARA (MY)
Openalex Percentile: Top 22%
Cooperative Studies and Economics
0.55
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Do Board Size, Female Directors and Ownership Dispersion Influence Financial Performance of Cooperatives? An Analysis Using Upper Echelons Theory — Kamaruzzaman Muhammad, Fazlida Mohd Razali, et al. · International Journal of Economics and Financial Issues (2024) | TGRS Research Map | TGRS