Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and exp...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2011-09-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/496 |
| _version_ | 1811251764521861120 |
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| author | H. Ibrahim F. A. Samad |
| author_facet | H. Ibrahim F. A. Samad |
| author_sort | H. Ibrahim |
| collection | DOAJ |
| description | We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms. |
| first_indexed | 2024-04-12T16:25:12Z |
| format | Article |
| id | doaj.art-f92e2ff65eab4e7886998dfc9427252a |
| institution | Directory Open Access Journal |
| issn | 2078-5585 2078-5976 |
| language | English |
| last_indexed | 2024-04-12T16:25:12Z |
| publishDate | 2011-09-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Business Management |
| spelling | doaj.art-f92e2ff65eab4e7886998dfc9427252a2022-12-22T03:25:24ZengAOSISSouth African Journal of Business Management2078-55852078-59762011-09-01423172610.4102/sajbm.v42i3.496221Agency costs, corporate governance mechanisms and performance of public listed family firms in MalaysiaH. Ibrahim0F. A. Samad1School of Management, Universiti Sains MalaysiaFaculty of Business and Accountancy, University of MalayaWe compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms.https://sajbm.org/index.php/sajbm/article/view/496 |
| spellingShingle | H. Ibrahim F. A. Samad Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia South African Journal of Business Management |
| title | Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia |
| title_full | Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia |
| title_fullStr | Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia |
| title_full_unstemmed | Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia |
| title_short | Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia |
| title_sort | agency costs corporate governance mechanisms and performance of public listed family firms in malaysia |
| url | https://sajbm.org/index.php/sajbm/article/view/496 |
| work_keys_str_mv | AT hibrahim agencycostscorporategovernancemechanismsandperformanceofpubliclistedfamilyfirmsinmalaysia AT fasamad agencycostscorporategovernancemechanismsandperformanceofpubliclistedfamilyfirmsinmalaysia |