Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

Ibrahim, Haslindar; Samad, Fazilah Abdul

doi:10.4102/sajbm.v42i3.496

Cited by 44 publications

(22 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…While political connections exploited via interlocking directorships in non‐family firms (Ibrahim and Samad ) may decline over time, family firms ensure that this ‘specialized asset’ (Bennedsen et al . ) is properly transferred through generations or build new political connections by sending their children into politics (Bertrand and Schoar ).…”

Section: Political Connections As a Governance Mechanismmentioning

confidence: 99%

Asian Family Firms through Corporate Governance and Institutions: A Systematic Review of the Literature and Agenda for Future Research

Dinh

Calabrò

2018

Int J Management Reviews

View full text Add to dashboard Cite

Although the corporate governance model of Asian family firms has recently gained increased attention, it remains unclear how these firms’ corporate governance mechanisms (and their effectiveness) differ from those of family firms in the western world. Drawing upon a comparative institutional perspective, this paper systematically reviews 148 published articles in peer‐reviewed journals from 1980 to 2015. The aim of this paper is to contribute to the understanding of institutional complementarities that constitute informal governance mechanisms adopted by Asian family firms by considering a wider set of institutional factors (i.e. political environment, cultural values and social norms) embedded in the Asian context. The main findings suggest that: (i) given the lack of market‐supporting institutions and the presence of strong political control over Asian economies, family firms tend to cultivate political connections to respond to the failure of legal systems; (ii) Asian family firms still rely heavily on personal networks (e.g. guanxi) to reduce uncertainty, strengthen business ties, and gain access to external resources; and (iii) cultural values and social norms (e.g. ‘face’ saving, reputational concerns and adult child adoption) lead to functionally equivalent corporate governance mechanisms in Asian family firms. The downstream effects of such mechanisms are also discussed, and future research avenues are identified.

show abstract

Section: Political Connections As a Governance Mechanismmentioning

confidence: 99%

Asian Family Firms through Corporate Governance and Institutions: A Systematic Review of the Literature and Agenda for Future Research

Dinh

Calabrò

2018

Int J Management Reviews

View full text Add to dashboard Cite

show abstract

“…This result might indicate that larger board size increases the independence of the board and reduces the problem of managerial entrenchment (Zahra & Pearce, 1989). Yermack (1996) and Ibrahim and Samad (2008) found that performance is negatively and significantly related to board size. This result indicates that it is easier to monitor managers with a small board and a small board leads to better decision-making.…”

Section: Board Sizementioning

confidence: 95%

The Role of Board Structure in Predicting Financial Distress in Malaysia

Rus

2017

International Journal of Management Studies

View full text Add to dashboard Cite

The aim of this study is to examine the impact of board characteristics on financial distress companies. Specifically this study examines board attributes (size of board, percentage of inside directors, CEO is founder, CEO is chairman and CEO duality) and its relation with companies that experienced financial distress after controlling for leverage, market return, lagged of market return, and GDP growth. Compared with previous studies in Malaysia, this study uses PN17 criterion to select the sample and that is defines as the shareholder’s equity is less than 25% of issued and paid-up capital of a firm. Using a data, the results show size and CEO-founder are negatively significantly related to distress while CEO duality and fraction of independent director affect distress positively. This study could be used to measure the effectiveness of The Malaysian Code on Corporate Governance (MCCG). This study is also useful to directors, investors and authorities who would want to know which corporate governance factors explain distress.

show abstract

“…Gill and Obradovich (2012) found that larger board size negatively affects the value of American firms. Other stream of studies that found negative relationship between board size and firm performance include (Ali and Nasir, 2014;Ibrahim and Abdul Samed, 2011) among others. However, Yasser, Entebang and Abu Mansor, 2011) found a significant positive relationship between board size and performance measured by return on equity (ROE).…”

Section: Board Size and Financial Performancementioning

confidence: 99%

Board Attributes and Financial Performance of Listed Firms in Uganda

Akileng¹,

Nzibonera²,

Kobumanzi³

2019

RJFA

View full text Add to dashboard Cite

This study examines the relationship between Board of director attributes and financial performance of listed firms in Uganda. Board attributes of board size, Non-executive directors (board independence) and directors' shareholding are examined while controlling for firm size and leverage. The study uses a cross sectional research design, employing panel data of listed firms in Uganda for a period of four years. Financial and board attributes information is collected from annual reports of each firm. The study finds that non executive director's independence on board and large boards increase firm performance. We do not provide evidence to suggest that director's shareholding affects firm performance differently. Thus this study is consistent with evidence that shows the importance of board of directors' attributes on firm´s financial performance.

show abstract

Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

Cited by 44 publications

References 33 publications

Asian Family Firms through Corporate Governance and Institutions: A Systematic Review of the Literature and Agenda for Future Research

Asian Family Firms through Corporate Governance and Institutions: A Systematic Review of the Literature and Agenda for Future Research

The Role of Board Structure in Predicting Financial Distress in Malaysia

Board Attributes and Financial Performance of Listed Firms in Uganda

Contact Info

Product

Resources

About