Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia
This study examines how controlling shareholders influence firm performance through the mediating role of firm efficiency in transforming inputs into outputs. To achieve this objective, it conducts a mediation analysis with 5,000 bootstraps on a dataset of 2,849 firm-year observations of publicly li...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer Science and Business Media Deutschland GmbH
2024
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| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/40955/1/Mediating%20effect%20of%20firm%20efficiency%20on%20the%20controlling%20shareholdings%E2%80%93firm.pdf |
| _version_ | 1811138338040578048 |
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| author | Ting, Irene Wei Kiong Asif, Jawad Kweh, Qian Long Phuong, Tran Thi Kim |
| author_facet | Ting, Irene Wei Kiong Asif, Jawad Kweh, Qian Long Phuong, Tran Thi Kim |
| author_sort | Ting, Irene Wei Kiong |
| collection | UMP |
| description | This study examines how controlling shareholders influence firm performance through the mediating role of firm efficiency in transforming inputs into outputs. To achieve this objective, it conducts a mediation analysis with 5,000 bootstraps on a dataset of 2,849 firm-year observations of publicly listed firms in Malaysia from 2009 to 2019. The findings reveal a positive relationship between controlling shareholdings and firm performance, with both total and indirect effects having this positive relationship. Moreover, while controlling shareholdings improve firm performance, firm efficiency partially mediates this relationship. Thus, improved firm efficiency plays a critical role in understanding the relationship between governance by controlling shareholders and enhanced firm performance. In summary, this study contributes to the existing literature by expanding our understanding of the complex relationship between controlling shareholdings, firm efficiency, and firm performance. In addition, the findings shed light on the importance of indirect channels in shaping organizational outcomes. As such, this study provides a valuable direction for future research in this area. |
| first_indexed | 2024-09-25T03:48:36Z |
| format | Article |
| id | UMPir40955 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-09-25T03:48:36Z |
| publishDate | 2024 |
| publisher | Springer Science and Business Media Deutschland GmbH |
| record_format | dspace |
| spelling | UMPir409552024-05-21T07:22:18Z http://umpir.ump.edu.my/id/eprint/40955/ Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia Ting, Irene Wei Kiong Asif, Jawad Kweh, Qian Long Phuong, Tran Thi Kim HD28 Management. Industrial Management T Technology (General) This study examines how controlling shareholders influence firm performance through the mediating role of firm efficiency in transforming inputs into outputs. To achieve this objective, it conducts a mediation analysis with 5,000 bootstraps on a dataset of 2,849 firm-year observations of publicly listed firms in Malaysia from 2009 to 2019. The findings reveal a positive relationship between controlling shareholdings and firm performance, with both total and indirect effects having this positive relationship. Moreover, while controlling shareholdings improve firm performance, firm efficiency partially mediates this relationship. Thus, improved firm efficiency plays a critical role in understanding the relationship between governance by controlling shareholders and enhanced firm performance. In summary, this study contributes to the existing literature by expanding our understanding of the complex relationship between controlling shareholdings, firm efficiency, and firm performance. In addition, the findings shed light on the importance of indirect channels in shaping organizational outcomes. As such, this study provides a valuable direction for future research in this area. Springer Science and Business Media Deutschland GmbH 2024-12 Article PeerReviewed pdf en cc_by_4 http://umpir.ump.edu.my/id/eprint/40955/1/Mediating%20effect%20of%20firm%20efficiency%20on%20the%20controlling%20shareholdings%E2%80%93firm.pdf Ting, Irene Wei Kiong and Asif, Jawad and Kweh, Qian Long and Phuong, Tran Thi Kim (2024) Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia. Financial Innovation, 10 (47). pp. 1-20. ISSN 2199-4730. (Published) https://doi.org/10.1186/s40854-023-00518-x https://doi.org/10.1186/s40854-023-00518-x |
| spellingShingle | HD28 Management. Industrial Management T Technology (General) Ting, Irene Wei Kiong Asif, Jawad Kweh, Qian Long Phuong, Tran Thi Kim Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title | Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title_full | Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title_fullStr | Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title_full_unstemmed | Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title_short | Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia |
| title_sort | mediating effect of firm efficiency on the controlling shareholdings firm performance nexus evidence from public listed firms in malaysia |
| topic | HD28 Management. Industrial Management T Technology (General) |
| url | http://umpir.ump.edu.my/id/eprint/40955/1/Mediating%20effect%20of%20firm%20efficiency%20on%20the%20controlling%20shareholdings%E2%80%93firm.pdf |
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