Firm efficiency and corporate performance : The moderating role of controlling shareholders
This study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables. Design/methodology/approach: This study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hyp...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English |
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Emerald Publishing
2023
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/40519/1/Firm%20efficiency%20and%20corporate%20performance_The%20moderating.pdf http://umpir.ump.edu.my/id/eprint/40519/2/Firm%20efficiency%20and%20corporate%20performance_The%20moderating%20role%20of%20controlling%20shareholders_ABS.pdf |
| _version_ | 1811138308292476928 |
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| author | Nguyen, Thien Huu Asif, Jawad Kweh, Qian Long Ting, Irene Wei Kiong |
| author_facet | Nguyen, Thien Huu Asif, Jawad Kweh, Qian Long Ting, Irene Wei Kiong |
| author_sort | Nguyen, Thien Huu |
| collection | UMP |
| description | This study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables. Design/methodology/approach: This study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hypothesised relationships among 1,295 firm-year observations of publicly listed firms in Malaysia from 2015 to 2019. Findings: The results indicate that firm efficiency (technical efficiency, pure technical efficiency and scale efficiency) has mixed relationships with firm performance (return on assets, market-to-book ratio and operating cash flows), all of which are being moderated by controlling shareholdings. Practical implications: This study highlights the importance of assessing firm efficiency as the key success factor for improving firm performance. Industrial managers should manage efficiently their resources or operating costs in achieving their corporate financial goals. Moreover, this study notes the presence of controlling shareholders, who can be either self-interested or company goal aligned. Originality/value: This study suggests becoming efficient in transforming inputs into outputs is a prerequisite before investigating accrual-based and cash-based firm performance measures, and the presence of controlling shareholders matters in these regards. |
| first_indexed | 2024-09-25T03:48:08Z |
| format | Article |
| id | UMPir40519 |
| institution | Universiti Malaysia Pahang |
| language | English English |
| last_indexed | 2024-09-25T03:48:08Z |
| publishDate | 2023 |
| publisher | Emerald Publishing |
| record_format | dspace |
| spelling | UMPir405192024-04-30T06:28:07Z http://umpir.ump.edu.my/id/eprint/40519/ Firm efficiency and corporate performance : The moderating role of controlling shareholders Nguyen, Thien Huu Asif, Jawad Kweh, Qian Long Ting, Irene Wei Kiong HD28 Management. Industrial Management This study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables. Design/methodology/approach: This study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hypothesised relationships among 1,295 firm-year observations of publicly listed firms in Malaysia from 2015 to 2019. Findings: The results indicate that firm efficiency (technical efficiency, pure technical efficiency and scale efficiency) has mixed relationships with firm performance (return on assets, market-to-book ratio and operating cash flows), all of which are being moderated by controlling shareholdings. Practical implications: This study highlights the importance of assessing firm efficiency as the key success factor for improving firm performance. Industrial managers should manage efficiently their resources or operating costs in achieving their corporate financial goals. Moreover, this study notes the presence of controlling shareholders, who can be either self-interested or company goal aligned. Originality/value: This study suggests becoming efficient in transforming inputs into outputs is a prerequisite before investigating accrual-based and cash-based firm performance measures, and the presence of controlling shareholders matters in these regards. Emerald Publishing 2023 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/40519/1/Firm%20efficiency%20and%20corporate%20performance_The%20moderating.pdf pdf en http://umpir.ump.edu.my/id/eprint/40519/2/Firm%20efficiency%20and%20corporate%20performance_The%20moderating%20role%20of%20controlling%20shareholders_ABS.pdf Nguyen, Thien Huu and Asif, Jawad and Kweh, Qian Long and Ting, Irene Wei Kiong (2023) Firm efficiency and corporate performance : The moderating role of controlling shareholders. Benchmarking: An International Journal. pp. 1-22. ISSN 1463-5771. (Published) https://doi.org/10.1108/BIJ-04-2022-0253 https://doi.org/10.1108/BIJ-04-2022-0253 |
| spellingShingle | HD28 Management. Industrial Management Nguyen, Thien Huu Asif, Jawad Kweh, Qian Long Ting, Irene Wei Kiong Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title | Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title_full | Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title_fullStr | Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title_full_unstemmed | Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title_short | Firm efficiency and corporate performance : The moderating role of controlling shareholders |
| title_sort | firm efficiency and corporate performance the moderating role of controlling shareholders |
| topic | HD28 Management. Industrial Management |
| url | http://umpir.ump.edu.my/id/eprint/40519/1/Firm%20efficiency%20and%20corporate%20performance_The%20moderating.pdf http://umpir.ump.edu.my/id/eprint/40519/2/Firm%20efficiency%20and%20corporate%20performance_The%20moderating%20role%20of%20controlling%20shareholders_ABS.pdf |
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