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Abstract

This study examines the relationship between demographic diversity in top management levels with a firms’ financial performance using 84 non-financial companies in Malaysia. Demographic diversity consists of ethnic diversity and gender diversity. The top management level includes both the top management team and the board of directors. This study uses data from 2008 to 2012. Return on assets measures the financial performance. Ethnic and gender diversity measured by the number of Non-Malays and the number of females in top management respectively. This study incorporates descriptive statistics, correlation testing, and regression analysis. The results show that ethnic diversity in the top management team as well as in a board of directors has no impact on firm performance (ROE). However, the results of gender diversity have a positive impact on performance (ROE) in both perspectives (TMTs and BODs).

Note on the Author

Rohail Hassan is currently pursuing Ph.D. in Management Sciences and working as Graduate Research Assistant at Universiti Teknologi PETRONAS, Malaysia. He obtained his Masters of Philosophy (TQM) in 2012 and BS (HONS) in Business & Management Sciences from University of the Punjab, Pakistan in 2010 consecutively. He is also working as freelancer trainer. To date, he has published more than twenty international refereed journals and conference proceedings (local and overseas). His research interests fall in the areas of Corporate Governance, Women Empowerment, Gender issues, Diversity Management, Financial Management, TQM, SCM and Firm Performance

Dr. Maran Marimuthu is a Senior Lecturer at the Department of Management and Humanities, Universiti Teknologi PETRONAS. To date, he has published more than fifty international refereed journals and conference proceedings (local and overseas). He has co-authored books on Financial Management, International Finance and contributed articles for both local and international magazines. He also has a special interest in the multidisciplinary work. Dr. Maran Marimuthu has corporate experience of four years, fifteen years of academia career.

Eraj Tariq, Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Malaysia.

Raja Aqeel, Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Malaysia.

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