Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles

Purpose – The overall purpose of the research presented is to ascertain whether independent non-executive directors (INEDs) in Malaysian public listed companies (PLCs) may be facing certain barriers in the performance of their roles. The findings may provide helpful insights to Arab businessmen who...

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Main Author:	Annuar, Hairul Azlan
Format:	Conference or Workshop Item
Language:	English English
Published:	2010
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/23657/ http://irep.iium.edu.my/23657/2/AMIGBE2010.pdf http://irep.iium.edu.my/23657/3/INEDs_-_Barriers_to_INEDs_performance_%2528Full_paper%2529_JordanSyria.pdf

id	iium-23657
recordtype	eprints
spelling	iium-236572013-02-13T19:21:59Z http://irep.iium.edu.my/23657/ Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping Purpose – The overall purpose of the research presented is to ascertain whether independent non-executive directors (INEDs) in Malaysian public listed companies (PLCs) may be facing certain barriers in the performance of their roles. The findings may provide helpful insights to Arab businessmen who wish to do business in Malaysia, notably with PLCs, as they may depend upon local INEDs to protect their investments and to act on their behalf. The absence of barriers to the performance of INEDs’ role may provide these businessmen with the confidence and added assurance to invest safely and profitably in Malaysia. Design/methodology/approach – A qualitative approach, consisting of a series of interviews with board members, was chosen. The sampling frame was made as large as possible and for the purpose of this study, consisted of board members who sit on publicly listed companies (PLCs) of the main board and Malaysian-owned. Findings – The interviews revealed that a majority of the interviewees perceived that the barriers were either non-existent or at the least manageable. There were indications however that INEDs in small firms might face some of the problems suggested. The culture effect may also mediate their effectiveness in performing their roles. When there are barriers present, the most difficult problem faced by the INEDs concern time available to spend with the company. Research limitations – This research utilised interviews. Generalisations may be an issue when interviews are used as the method of inquiry. Also, the sample is not random as access to many directors depended on recommendations. In addition, respondents were consciously selected in order to obtain various board positions that include independent and non-independent directors. Originality/value – There is a lack of work on studying barriers to INEDs effectiveness in developing countries, whereby previous work and literature review were predominantly based upon the experience of Western economies. 2010 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/23657/2/AMIGBE2010.pdf application/pdf en http://irep.iium.edu.my/23657/3/INEDs_-_Barriers_to_INEDs_performance_%2528Full_paper%2529_JordanSyria.pdf Annuar, Hairul Azlan (2010) Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles. In: 2nd International Conference on Arab-Malaysian Islamic Global Business and Entrepreneurship, 20 - 24 March 2010, Yarmouk, Jordan and Damascus, Syria. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Annuar, Hairul Azlan Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
description	Purpose – The overall purpose of the research presented is to ascertain whether independent non-executive directors (INEDs) in Malaysian public listed companies (PLCs) may be facing certain barriers in the performance of their roles. The findings may provide helpful insights to Arab businessmen who wish to do business in Malaysia, notably with PLCs, as they may depend upon local INEDs to protect their investments and to act on their behalf. The absence of barriers to the performance of INEDs’ role may provide these businessmen with the confidence and added assurance to invest safely and profitably in Malaysia. Design/methodology/approach – A qualitative approach, consisting of a series of interviews with board members, was chosen. The sampling frame was made as large as possible and for the purpose of this study, consisted of board members who sit on publicly listed companies (PLCs) of the main board and Malaysian-owned. Findings – The interviews revealed that a majority of the interviewees perceived that the barriers were either non-existent or at the least manageable. There were indications however that INEDs in small firms might face some of the problems suggested. The culture effect may also mediate their effectiveness in performing their roles. When there are barriers present, the most difficult problem faced by the INEDs concern time available to spend with the company. Research limitations – This research utilised interviews. Generalisations may be an issue when interviews are used as the method of inquiry. Also, the sample is not random as access to many directors depended on recommendations. In addition, respondents were consciously selected in order to obtain various board positions that include independent and non-independent directors. Originality/value – There is a lack of work on studying barriers to INEDs effectiveness in developing countries, whereby previous work and literature review were predominantly based upon the experience of Western economies.
format	Conference or Workshop Item
author	Annuar, Hairul Azlan
author_facet	Annuar, Hairul Azlan
author_sort	Annuar, Hairul Azlan
title	Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
title_short	Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
title_full	Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
title_fullStr	Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
title_full_unstemmed	Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles
title_sort	barriers to independent non-executive directors’ effectiveness in performing their roles
publishDate	2010
url	http://irep.iium.edu.my/23657/ http://irep.iium.edu.my/23657/2/AMIGBE2010.pdf http://irep.iium.edu.my/23657/3/INEDs_-_Barriers_to_INEDs_performance_%2528Full_paper%2529_JordanSyria.pdf
first_indexed	2023-09-18T20:35:45Z
last_indexed	2023-09-18T20:35:45Z
_version_	1777409034319560704

Barriers to Independent Non-Executive Directors’ Effectiveness in Performing Their Roles

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