Abstract:

The study objective is to examine and assess the effect of board composition in the boardroom and the corporate reputation of Malaysian public listed companies (PLCs) using the new derivational reputation measurement. Prior studies reported that board compositions (e.g., board experience, education, independent, board size) and company characteristics can accurately predict a stronger company reputation. However, very scarce evidence has been produced concerning these variables' effects on the new measurement method of reputation. This is particularly relevant when looking at the transparency level of corporate reputation in developing countries like Malaysia. The current study collected secondary data from the company's annual report from 2017 to 2020 and used content analysis for four years of study. A self-constructed corporate reputation checklist was used to measure company reputation. A number of statistical analyses also were employed to assess whether board composition influences reputation among Malaysian PLCs. The findings suggested that the presence of Malaysian board members with experience contributed to the public listed companies' (PLCs) reputation through a high level of transparency. Research has also shown that the experience and expertise of board members have a major impact on the organization's reputation. The findings provide useful support and proof for the management of companies in Malaysia and companies in other developing nations to have more experienced directors as a fundamental component of their strategy and reputation management. This study is one of the few papers investigating the influence of board composition and the new proxy of reputation measurement in developing countries.

Keywords:

Board experience, board education, corporate reputation disclosure, transparency, Malaysian public listed companies.

How to Cite:

Elinda Esa, Nor Raihan Mohamad, Wan Zuriati Wan Zakaria and Nor Azlina Illias. The Effect of Board Experience and Education on Corporate Reputation of Malaysian Public Listed Companies (PLCs). [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a227/