Age and gender diversity of the board and solvency of companies in energy sector in Malaysia

This study investigates at how board diversity, specifically age and gender influence the solvency of Malaysia public listed companies in energy sector. The primary goal is to examine whether diversity in board composition affects a company's financial health. Using secondary data collected from the annual reports of 33 public listed companies in energy sector in year 2023, the study used multiple regression analysis to test three hypotheses about the average age of board members, the percentage of female representation, and the combined effect of both diversity dimensions on solvency, as measured using the debt-to-asset ratio. The theoretical foundation of this study is resource dependency theory, which states that diverse boards can give a larger range of knowledge, resources, and viewpoints that improve organizational outcomes. The study found no statistically significant association between age or gender diversity and company solvency when the diversity factor stands alone. However, when diversity factor of age and gender are combined, there is statistically significant association with company solvency. These findings suggest that in Malaysia's energy sector, demographic board diversity alone may not have a direct or immediate influence on financial health. The study contributes to the discourse on corporate governance However, the study adds to ongoing governance conversations by underlining the importance of considering other potential mediators or industry-specific issues such as education and background. Future research should look into various types of diversity, use longitudinal data, and make crossindustry comparisons to gain a better understanding of board dynamics and financial performance