Women in the Boardroom: The Case of Quota vs. Quality

Abstract

In its initiative to promote gender equality, the government of Malaysia had imposed a 30% quota in 2011 for women to be part of the decision makers in the corporate sector. This paper examines the evolution of women directorship on corporate boards in Malaysia, as well as their respective profiles from the perspective of academic qualification, independence, commitment, industry experience, financial background, and multiple directorships during the pre- and post-quota period. The findings indicate an increase in the women representation on corporate boards from 2010 to 2018. A closer look into the women directors’ profiles indicates that there was a positive shift from the pre- to post-quota from the perspective of academic, independence, commitment, industry experience, financial background, and multiple directorships. In other words, the appointment of women directors in Malaysia has generally been made based on quality, not just to make up the numbers in the quota.