CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia
In this study, we use the contestability exercised by non-dominant large shareholders to measure how internal governance mechanisms influence firm monitoring in a structure with multiple large shareholders. This extends knowledge of principal-principal conflicts and family business by introducing th...
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| Format: | Article |
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Palgrave Macmillan Ltd.
2014
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| _version_ | 1796859711740444672 |
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| author | Goh, Chin Fei Md. Rasli, Amran Khan, Saif Ur Rehman |
| author_facet | Goh, Chin Fei Md. Rasli, Amran Khan, Saif Ur Rehman |
| author_sort | Goh, Chin Fei |
| collection | ePrints |
| description | In this study, we use the contestability exercised by non-dominant large shareholders to measure how internal governance mechanisms influence firm monitoring in a structure with multiple large shareholders. This extends knowledge of principal-principal conflicts and family business by introducing the moderating effects of Chief Executive Officer (CEO) duality and board independence. Using a sample of Malaysian manufacturing family firms, we find that non-dominant large shareholders rely on board independence to strengthen firm monitoring. However, family owners do not utilise CEO duality to weaken the monitoring of non-dominant large shareholders, even though they prioritise firm control to safeguard family interests. |
| first_indexed | 2024-03-05T19:31:16Z |
| format | Article |
| id | utm.eprints-52073 |
| institution | Universiti Teknologi Malaysia - ePrints |
| last_indexed | 2024-03-05T19:31:16Z |
| publishDate | 2014 |
| publisher | Palgrave Macmillan Ltd. |
| record_format | dspace |
| spelling | utm.eprints-520732018-11-30T07:00:39Z http://eprints.utm.my/52073/ CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia Goh, Chin Fei Md. Rasli, Amran Khan, Saif Ur Rehman HD28 Management. Industrial Management In this study, we use the contestability exercised by non-dominant large shareholders to measure how internal governance mechanisms influence firm monitoring in a structure with multiple large shareholders. This extends knowledge of principal-principal conflicts and family business by introducing the moderating effects of Chief Executive Officer (CEO) duality and board independence. Using a sample of Malaysian manufacturing family firms, we find that non-dominant large shareholders rely on board independence to strengthen firm monitoring. However, family owners do not utilise CEO duality to weaken the monitoring of non-dominant large shareholders, even though they prioritise firm control to safeguard family interests. Palgrave Macmillan Ltd. 2014 Article PeerReviewed Goh, Chin Fei and Md. Rasli, Amran and Khan, Saif Ur Rehman (2014) CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia. Asian Business and Management, 13 (4). pp. 333-357. ISSN 1472-4782 http://dx.doi.org/10.1057/abm.2014.4 DOI: 10.1057/abm.2014.4 |
| spellingShingle | HD28 Management. Industrial Management Goh, Chin Fei Md. Rasli, Amran Khan, Saif Ur Rehman CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title | CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title_full | CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title_fullStr | CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title_full_unstemmed | CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title_short | CEO duality, board independence, corporate governance and firm performance in family firms: evidence from the manufacturing industry in Malaysia |
| title_sort | ceo duality board independence corporate governance and firm performance in family firms evidence from the manufacturing industry in malaysia |
| topic | HD28 Management. Industrial Management |
| work_keys_str_mv | AT gohchinfei ceodualityboardindependencecorporategovernanceandfirmperformanceinfamilyfirmsevidencefromthemanufacturingindustryinmalaysia AT mdrasliamran ceodualityboardindependencecorporategovernanceandfirmperformanceinfamilyfirmsevidencefromthemanufacturingindustryinmalaysia AT khansaifurrehman ceodualityboardindependencecorporategovernanceandfirmperformanceinfamilyfirmsevidencefromthemanufacturingindustryinmalaysia |