Abstract
This study aims to investigate the business case of academic
directors on the boards of randomly selected 350 non-financial
Malaysian listed companies for 5 years from 2010 to 2014. The
findings revealed thatonly 6.56% of the board seats held by
academic directors. By employing Seemingly Unrelated Regression
(SUR) and Driscoll-Kraay Standard Errors (DKSEs),the study also
found that professor not only enhances the independence of the
board but also improves ROAand firms’ market value.
Furthermore, the study also noted that the shareholders appreciate
the nomination of a professor to the board. The study contributes to
the scare and incongruent prior literature that not only overlooked
the presence of a professor on the board but also relied on small
samplescomposed of the top companies indeveloped countries.
Haseeb Ur Rahman, Muhammad Zahid. (2018) Does the ‘Business Case’ for Academic Directors on Corporate Board Stand Up?, Journal of Managerial Sciences, Volume 12, Issue 3.
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