Abstract
This study examines the complex dynamics of foreign board membership in corporate governance within 266 family-owned corporations in Indonesia and Malaysia. By employing multiple regression analysis, we have determined a turning point in the level of foreign board representation. Once this threshold is surpassed, the advantages of governance start to diminish, indicating the necessity for a more balanced and diverse board composition. Surprisingly, the presence of women on corporate boards did not have a significant effect on governance practices. The findings indicate that although foreign expertise might be advantageous, relying too much on it can have negative consequences. These observations encourage a reassessment of the makeup of boards in developing economies, suggesting areas for further investigation into governance methods in different types of organizations and cultural contexts.
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