Board Characteristics: Survey Evidence from Large Companies in South East Asia

Abstract

Purpose - The purpose of this study is to examine the characteristics of the Board of Directors (BOD), an important mechanism for effective Corporate Governance (CG) across 5 leading economies in the Association of South East Asian Nations (ASEAN). Design/Methodology/Approach - Based on the findings of prior studies which found size to be a significant explanatory variable of quality of CG, this study uses a sample of the largest companies in each of the 5 countries based on market capitalization. Relevant characteristics of the Board are identified based on a survey of literature. Data on Board characteristics is collected mainly from the published Annual Reports of these companies. A specially developed Excel based template supports the compilation and analysis of the data. The template allows easy extension of the sample size and sample countries. The survey results are interpreted in the context of the BOD related rules and regulations in these countries. Findings - Our survey shows significant divergence in BOD characteristics across the 5 countries. Given the fact that our sample includes only the large companies from these countries, such divergence suggests that factors beyond nationality and size must be at work.Originality/Value - There have been no prior surveys of the kind presented in this paper of the 5 countries. The findings suggest several promising areas for research in CG in the region.