Blockholders and firm performance: a Malaysian evidence
This study enhances the corporate governance literature by investigating the influence of blockholders on firm performance. Employing panel data estimations, this study works on a sample of 526 non-financial listed firms in Malaysia from 2006 to 2015. Overall, our findings reveal that firm perform...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Academic Research Publishing Group
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/77893/ http://irep.iium.edu.my/77893/ http://irep.iium.edu.my/77893/ http://irep.iium.edu.my/77893/1/JSSR_2018_spi5.1-885-893.pdf |
| Summary: | This study enhances the corporate governance literature by investigating the influence of blockholders on firm
performance. Employing panel data estimations, this study works on a sample of 526 non-financial listed firms in
Malaysia from 2006 to 2015. Overall, our findings reveal that firm performance is negatively associated with
blockholders presence but positively related to blockholders total ownership concentration. Further examinations
reveal that identity of blockholders matters in influencing performance of the firm. We also found that board
governance mechanisms particularly independent directors and CEO duality play a significant monitoring role in
relation to firm performance. More importantly, our findings are robust to a wide variety of performance measure
which includes accounting, market and value based measures. Finally, findings of our study could facilitate the
regulatory bodies and firm managers in promoting better and effective corporate governance in Malaysia. Investors
may also benefit from our findings in understanding corporate governance of Malaysian firms and thus diversify
their investment portfolios. |
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