Title: Independent directors’ resource provision capability in publicly-listed companies in Malaysia
Abstract: We explore the notion that independent directors’ primary role in developing capital markets is to act as key providers of distinctive resources and/or networks that are valuable to their respective firms. These resource provision capabilities become even more crucial in times of financial crisis. With a random sample of 289 companies listed on Bursa Malaysia, we test a set of hypotheses using paired sample t-test (for both pre-crisis (2007) and onset-of-crisis (2008) periods). Our results show that in times of crisis, companies exhibit a greater tendency to appoint more independent directors, especially those who (i) possess certain skills/resources that their firms specifically lack, and/or (ii) have strong political connections to secure government projects/funding/support.