This paper provides evidence on the role of board diversity in dealing with corporate expropriation of listed companies in Malaysia. Diverse boards become important tool in corporate governance by providing board heterogeneity and effective monitoring that would enhance boardroom discussion and promote quality governance in the firms in order to lessen the possibility of expropriation. This study makes use of women on board, foreign directors on board and board tenure to describe the diverse boards. Though there is a positive relationship between women on board and corporate expropriation, the result is insignificant. It is evident that there is a negative relationship between foreign directors and corporate expropriation. Meanwhile, board tenure shows an inverse relationship with corporate expropriation.
Keywords: Corporate governance; corporate expropriation; board diversity
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