Abstract
This paper investigates the relationship between board size, board qualifications and firm performance of family CEO and non-family CEO listed firms in Malaysia mainly in construction, consumer, property and trading and services sectors in Bursa Malaysia. These sectors appeared to have more appropriate samples for the study. The total sample of 38 firms has met the criteria and the data has been collected for the period of 5 years from 2012 until 2016. The 38 samples of family firms were further divided into family CEO (21) and non-family CEO (17) firms. The independent variables are board size (BSIZE) and board qualification as measured by the proportion of board degree (BDEG) and the proportion of board professional qualification (BPRO). Meanwhile, for firm performance measurement, this study applied return on assets (ROA) and return on equity (ROE) for analysing the relationship between board size and board qualifications against firm performance. The findings show that there is a significant difference between family CEO and non-family CEO firms at 5% level for board professional qualification confirming altruism and nepotism practices among family members and support the argument of nepotism’s characteristic which can be granting jobs to family members regardless of merit. In addition, this study also finds board professional qualification is significantly and negatively related to external firm performance in family CEO firms showing that board education is not really been emphasized more among board members.
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