Title: The impact of board of directors on value addition efficiency of corporate resources in emerging economies

Authors: Syed Abdulla Al Mamun; Yuosre F. Badir

Addresses: School of Accountancy, University Utara Malaysia (UUM), 06010 UUM Sintok, Malaysia ' Asian Institute of Technology, P.O. Box 4, Klong Luang, Pathumthani 12120, Thailand

Abstract: This research draws on agency theory and resource-dependency theory, to examine the impact of the board of directors (BOD) on the value addition efficiency (VAE) of corporate resources in Southeast Asia. The study investigates the top 100 companies from two emerging economies, Malaysia and Thailand, and focuses on two specific post-Asian crisis years: 2005 and 2008. While the findings show that board independence has a significant impact on the VAE of corporate resources in both countries, the overall results, however, reveal that board attributes had a mixed impact on the VAE of corporate resources within each country and that the degree of impact varied from one country to another. The mixed results suggest that agency theory and resource-dependency theory are limited in their ability to explain the board-performance relationship in emerging economies.

Keywords: agency theory; resource dependency theory; corporate governance; BOD; board of directors; VAE; value addition efficiency; corporate resources; emerging economies; Malaysia; Thailand; firm performance.

DOI: 10.1504/IJCG.2013.060456

International Journal of Corporate Governance, 2013 Vol.4 No.4, pp.305 - 342

Received: 21 Dec 2012
Accepted: 21 Jun 2013
Published online: 16 Apr 2014 *

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