Directors' incentive and technical efficiency of government linked companies in Malaysia: A Stochastic Frontier Analysis

Janang, Jennifer Tunga; Salamudin, Norhana; Suhaimi, Rosita

doi:10.1109/beiac.2013.6560177

Cited by 2 publications

(3 citation statements)

References 24 publications

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“…This finding implies that the Brazilian listed firms are more concerned about their financial efficiency rather than their ESG and governance performances and practices and maybe see those practices just as sunk costs that can decay their financials once they are already efficient. Interesting to point out that these results go against a stream of existing literature regarding the subject (Janang et al, 2018;Kahveci & Wolfs, 2019;Liu, 2020;Loprevite et al, 2020;Rahim, 2021;Wang et al, 2018). On the other hand, the ICO2 is the only ESG index that presented a positive relationship with efficiency-the higher the ICO2, the higher the firms' efficiency.…”

Section: Cause-effect Associationsmentioning

confidence: 71%

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Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies

Moskovics,

Wanke,

Tan

et al. 2023

Bus Strat Env

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Using a sample of Brazilian listed companies, our study investigates the directional cause–effect relationship between market structure, ESG performance, and firm efficiency under a Stochastic Structural Relationship Programming (SSRP) model. Our empirical evidence is threefold. First, our findings indicate that firms with better environmental performance are more efficient, whereas lower ESG performance and poorer corporate governance practices are associated with a higher level of efficiency. Second, our study suggests that market structure measures (i.e., competition, concentration, and market power) have heterogeneous impacts on various ESG indexes. Specifically, higher market competition is associated with a lower concentration, better ESG performance and environmental performance, but worse corporate governance performance, although market power can only enhance the environmental and governance performance of firms. Third, the market structure proxies employed in this study are significantly attributed to firm efficiency. Our findings provide practical implications for various stakeholders and suggest avenues for future studies that can build on our evidence.

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Section: Cause-effect Associationsmentioning

confidence: 71%

“…Regarding Governance, Janang et al (2018) applied an SFA model to measure Malaysian listed firms' efficiency and found a positive relationship between the variables, meaning that better governance leads to higher efficiency. Conversely, Kahveci and Wolfs (2019) and Wang et al (2018) found no relationship between these variables.…”

Section: Esg and Efficiencymentioning

confidence: 99%

Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies

Moskovics,

Wanke,

Tan

et al. 2023

Bus Strat Env

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“…In this regard, Securities Commission Malaysia (2021) requires at least half of the board to be independent directors. According to Janang et al (2018), an effective board is essential to the agency theory's prescription of minimizing agency costs to preserve the interests of stakeholders, principals and agents (Conheady et al, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance and Financial Performance: A Case Study in the Pharmaceutical Sector in Malaysia

ROSALAN,

HANIF,

ZAKARIA

2024

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The introduction of the Malaysian Code of Corporate Governance has been progressively updated since its inception in the year 2000 and the latest update in the year 2021, proves that the government of Malaysia has been serious in regulating to ensure that the companies in Malaysia have been compliant with good corporate governance practices. Observing that it is an evergreen issue and to have more updated research, this study evaluates factors that could influence the effectiveness of corporate governance of five pharmaceutical companies listed in Malaysia and its relationship with the financial performance for the period of 2017 - 2021. The methodologies that have been employed for this study are descriptive statistics, non-parametric correlations, scatter plots and regression linear. The findings reveal that variables of board size, board independence, and disclosure of sustainability reports have correlations with the financial performance measured by the return on assets. However, the disclosure of sustainability reports is the only variable that has a significant correlation with ROA whereas board size and board independence do not possess similar relationships. For a better representation of the results’ precision and robust findings, it is recommended to have a longer study period than five years and a larger sample size by extending it to other sectors.

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Directors' incentive and technical efficiency of government linked companies in Malaysia: A Stochastic Frontier Analysis

Cited by 2 publications

References 24 publications

Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies

Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies

Corporate Governance and Financial Performance: A Case Study in the Pharmaceutical Sector in Malaysia

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