The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.]
This is an empirical study of troubled (i.e., PN 4) companies, and their agency costs to outsiders who invest in them. The sample consisted of 21 companies each in three groups made up ofPN4, positive economic profit and negative economic profit companies. The study finds that outside investors in...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Faculty of Accountancy & Accounting Research Institute (ARI)
2006
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/13793/1/AJ_MOHD%20HASSAN%20CHE%20HAAT%20MAR%2006.pdf |
| _version_ | 1825734160579297280 |
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| author | Che Haat, Mohd Hassan Abd Rahman, Rashidah Abd Hamid, Nadiah Mahenthiran, Sakthi |
| author_facet | Che Haat, Mohd Hassan Abd Rahman, Rashidah Abd Hamid, Nadiah Mahenthiran, Sakthi |
| author_sort | Che Haat, Mohd Hassan |
| collection | UITM |
| description | This is an empirical study of troubled (i.e., PN 4) companies, and their agency costs to outsiders who invest in them. The sample consisted of 21 companies each in three groups made up ofPN4, positive economic profit and negative
economic profit companies. The study finds that outside investors in PN 4 companies incurred extreme agency costs compared to positive economic profit companies because of poor governance. Relative to the control group, PN 4 companies had higher insider ownership, borrowing, and lower equity values. The study highlights the uniqueness of the Malaysian securities law that allows corporate insiders to proactively use monitoring mechanisms to lower agency costs. |
| first_indexed | 2024-03-06T01:27:35Z |
| format | Article |
| id | oai:ir.uitm.edu.my:13793 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T01:27:35Z |
| publishDate | 2006 |
| publisher | Faculty of Accountancy & Accounting Research Institute (ARI) |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:137932016-07-21T09:20:19Z https://ir.uitm.edu.my/id/eprint/13793/ The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] mar Che Haat, Mohd Hassan Abd Rahman, Rashidah Abd Hamid, Nadiah Mahenthiran, Sakthi Malaysia Malaysia This is an empirical study of troubled (i.e., PN 4) companies, and their agency costs to outsiders who invest in them. The sample consisted of 21 companies each in three groups made up ofPN4, positive economic profit and negative economic profit companies. The study finds that outside investors in PN 4 companies incurred extreme agency costs compared to positive economic profit companies because of poor governance. Relative to the control group, PN 4 companies had higher insider ownership, borrowing, and lower equity values. The study highlights the uniqueness of the Malaysian securities law that allows corporate insiders to proactively use monitoring mechanisms to lower agency costs. Faculty of Accountancy & Accounting Research Institute (ARI) 2006 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/13793/1/AJ_MOHD%20HASSAN%20CHE%20HAAT%20MAR%2006.pdf The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.]. (2006) Malaysian Accounting Review <https://ir.uitm.edu.my/view/publication/Malaysian_Accounting_Review/>, 5 (1). pp. 115-138. ISSN 1675-4077 https://mar.uitm.edu.my/ |
| spellingShingle | Malaysia Malaysia Che Haat, Mohd Hassan Abd Rahman, Rashidah Abd Hamid, Nadiah Mahenthiran, Sakthi The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title | The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title_full | The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title_fullStr | The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title_full_unstemmed | The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title_short | The factors that cause companies to be suspended from the Kuala Lumpur stock exchange / Mohd Hassan Che Haat … [et al.] |
| title_sort | factors that cause companies to be suspended from the kuala lumpur stock exchange mohd hassan che haat et al |
| topic | Malaysia Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/13793/1/AJ_MOHD%20HASSAN%20CHE%20HAAT%20MAR%2006.pdf |
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