Independent directors crucial for Malaysian firms during financial crises
Independent directors in Malaysian companies play a crucial role by providing valuable resources and networks, especially during financial crises. A study of 289 publicly-listed companies in Malaysia found that during times of crisis, companies tend to appoint more independent directors who possess skills or resources that the firms lack, or have strong political connections to secure government support. This shows that independent directors' resource provision capabilities are essential for companies, particularly in challenging economic situations.