Effects of ownership structure on Malaysian companies performance
The aim of this paper is to examine effects of managerial and family ownership structure on the company performance. The sample consists of four hundred and twenty companies listed on Bursa Malaysia for the year from 2003 to 2007. The study shows that equity ownerships in Malaysia are concentrated o...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
FEP
2013
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| Online Access: | http://journalarticle.ukm.my/7021/1/vol4ch5.pdf |
| _version_ | 1796930442204545024 |
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| author | Noor Afza Amran, Ayoib Che Ahmad, |
| author_facet | Noor Afza Amran, Ayoib Che Ahmad, |
| author_sort | Noor Afza Amran, |
| collection | UKM |
| description | The aim of this paper is to examine effects of managerial and family ownership structure on the company performance. The sample consists of four hundred and twenty companies listed on Bursa Malaysia for the year from 2003 to 2007. The study shows that equity ownerships in Malaysia are concentrated on few owners mainly by the State government, families or large corporations. Results reveal that managerial ownership relates significantly to return on assets (ROA) and return on equity (ROE) while family ownership relates significantly to Tobin’s Q, ROA and ROE. Results suggest that an increase in the proportion of insider ownerships enhances the company performance due to re-alignment of internal and external interests and reduction in conflict of interests among shareholders. The results further indicate that the firm performance decreases when the managers’ share ownership increases. Managers with greater control and large shareholdings are more concerned with their own self-interests than the interests of the shareholders at large. |
| first_indexed | 2024-03-06T04:03:07Z |
| format | Article |
| id | ukm.eprints-7021 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:03:07Z |
| publishDate | 2013 |
| publisher | FEP |
| record_format | dspace |
| spelling | ukm.eprints-70212016-12-14T06:42:53Z http://journalarticle.ukm.my/7021/ Effects of ownership structure on Malaysian companies performance Noor Afza Amran, Ayoib Che Ahmad, The aim of this paper is to examine effects of managerial and family ownership structure on the company performance. The sample consists of four hundred and twenty companies listed on Bursa Malaysia for the year from 2003 to 2007. The study shows that equity ownerships in Malaysia are concentrated on few owners mainly by the State government, families or large corporations. Results reveal that managerial ownership relates significantly to return on assets (ROA) and return on equity (ROE) while family ownership relates significantly to Tobin’s Q, ROA and ROE. Results suggest that an increase in the proportion of insider ownerships enhances the company performance due to re-alignment of internal and external interests and reduction in conflict of interests among shareholders. The results further indicate that the firm performance decreases when the managers’ share ownership increases. Managers with greater control and large shareholdings are more concerned with their own self-interests than the interests of the shareholders at large. FEP 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7021/1/vol4ch5.pdf Noor Afza Amran, and Ayoib Che Ahmad, (2013) Effects of ownership structure on Malaysian companies performance. Asian Journal of Accounting and Governance, 4 . pp. 51-60. ISSN 2180-3838 http://www.ukm.my/ajag/index.html |
| spellingShingle | Noor Afza Amran, Ayoib Che Ahmad, Effects of ownership structure on Malaysian companies performance |
| title | Effects of ownership structure on Malaysian companies performance |
| title_full | Effects of ownership structure on Malaysian companies performance |
| title_fullStr | Effects of ownership structure on Malaysian companies performance |
| title_full_unstemmed | Effects of ownership structure on Malaysian companies performance |
| title_short | Effects of ownership structure on Malaysian companies performance |
| title_sort | effects of ownership structure on malaysian companies performance |
| url | http://journalarticle.ukm.my/7021/1/vol4ch5.pdf |
| work_keys_str_mv | AT noorafzaamran effectsofownershipstructureonmalaysiancompaniesperformance AT ayoibcheahmad effectsofownershipstructureonmalaysiancompaniesperformance |