Are Malaysian Women Directors Associated with High Earnings Quality?

The roles of women have become significant in today's environment. Literature worldwide has greatly concurred that board diversity does contribute to better company performance. In this paper, we examine the effect of gender diversity on earnings quality, whether enhanced or decreased. The sample for this study is all Main Board companies listed on Bursa Malaysia from 2001 to 2012. Using the regression analysis, we find that women representations on boards do not enhance earnings quality. Our finding is consistent with previous studies in Malaysia that show women directors do not create value. These findings do give signals to researchers, regulators and companies on women involvement in the Malaysian board of directors. Therefore, future study should explore the reasons behind why actually women do not influence firm value. Are they just sitting on boards to fulfill the board composition or are they not giving space to exercise their roles?