- 期刊
- OpenAccess
Board Governance and Performance: An Exploratory Study of Malaysian Cooperative Organizations
摘要
Cooperatives are expected to help generate economic growth; become competitive business entities; and remain as effective self-help organizations while upholding sensitivity towards the environment. However, cooperatives like their business cousins in the public corporations are plagued with governance issues (Shaw, 2006). This has prompted studies to isolate the probable causes of their predicament. The issue of corporate governance of cooperatives has begun to become mainstream in research, and conventional wisdom dictates that governance procedures and processes that abound in the corporate world can prudently be applicable in the governance of cooperatives (Cornforth, 2004). In a cooperative, the Board of Directors plays a pivotal role in safeguarding the collective interest of the members (Jussila, Goel, & Tuominen, 2012). The Board of Directors needs to demonstrate adequate and effective monitoring of the organizations they are helming. This paper examines the role of Board of Directors as custodian against financial fiasco in cooperatives organizations. This study focuses on the association of the size of Board of Directors of cooperatives and the frequency of board meetings with performance. Outcomes from the study indicated both the size of the board and the frequency of board meetings have no relationship with performance of cooperatives organizations in Malaysia. The results suggest that the board of directors may no longer be effective in managing the cooperatives towards achieving their members' objectives. Various literatures supported this finding. This result indicates that governance of cooperatives is in dire need of revision to increase its effectiveness.