26 research outputs found
Family firms, expropriation and firm value : Evidence from Malaysia / Liew Chee Yoong
No full textThe primary objective of this study is to examine whether minority shareholder expropriation in Malaysian firms occur through related party transactions (RPTs) which are likely to result in expropriation and the domestic banking channel as well as whether it is influence by independent directors’ tenure. An analysis is made on whether this expropriation is stronger in family firms compared to non-family firms. Furthermore, an assessment is also made whether there is a positive moderating effect of controlling shareholders’ ownership on the relationship between related party transactions (RPTs) which are likely to result in expropriation, independent directors’ tenure and the number of domestic banks that the firm engages with, and firm value in Malaysian firms. Further analysis is also made on whether this positive moderating effect (if any) is stronger in family firms compared to non-family firms. This research utilises panel data pooled Ordinary Least Square (OLS) regression model and the Fixed Effect Least Square Dummy Variable (LSDV) model for data analysis. In this research, minority shareholder expropriation is found in both family and non-family firms. However, minority shareholder expropriation through RPTs is found to be stronger in family firms compared to non-family firms. In addition, expropriation due to long tenure of independent directors occur only in family firms in exclusive industries and this expropriation cannot be proven whether it is stronger in family firms or non-family firms. In family firms, corporate reputational effects after the Transmile scandal also help reduce expropriation through the positive moderating effects of controlling shareholders’ ownership. This moderating effects is stronger in family firms compared to non-family firms. Basically, this study shows us that there is a need for the relevant authorities in this country i.e. the Securities Commission (SC) to seriously incorporate minority shareholder protection in future issuance of Codes of Corporate Governance
Family Firms, Banks and Firm Value: Evidence from Malaysia
No full textThis paper examines the relationship between the number of domestic banks that the firm engages with and firm value and how this relationship is moderated by ownership concentration at low and very high level on a sample of Malaysian family and non-family firms. We find that there is a significant negative relationship between the number of domestic banks engaged by family firms, operating in industries where these firms do not have absolute monopoly, and firm value. However, there is no evidence that this significant negative firm value effect is stronger in family firms compared to non-family firms. Furthermore, the significant positive moderating effect of ownership concentration on this relationship within family firms in such industries is evident only at low level of ownership concentration. Interestingly, at very high level of ownership concentration, this significant positive moderating effect becomes negative. There is no evidence that these significant moderating effects are stronger in family firms compared to non-family firms. An implication of this research is that there is a need for the capital market regulators to introduce appropriate policies to deter family firms from having a close relationship with domestic banks as well as monitor the number of domestic banks engaged by such firms. There may be policy implications for consideration by the Central Bank of Malaysia as well
EXAMINING THE EFFECTS OF AND MODERATING INFLUENCES ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE INFORMATION DISCLOSURE ON VALUE-AT-RISK: EVIDENCE FROM CHINESE LISTED COMPANIES: ESG
No full textGenerally, research on the effects of Environmental, Social and Governance (ESG) information disclosure on listed companies is primarily limited to developed countries. By contrast, the current study is located in China and analyses whether ESG reduces the downside risk of listed companies in China, and whether political connections and institutional investors moderate this relationship. This study uses Chinese A-share listed companies from the Shanghai and Shenzhen stock markets from 2010 to 2021 as research samples. Results demonstrated that the inhibitory effect of enhancing ESG performance on enterprise risk is more significant in non-heavy polluting industries, non-state-owned enterprises, and enterprises in areas with low levels of marketisation. This study explores the economic implications of ESG performance from a Value-at-Risk (VaR) perspective, enriching the relevant research on ESG rating in China and providing a fresh perspective to better elucidate the economic significance of companies improving their ESG performance. This study introduces institutional investors and political connections as two moderating variables to analyse their effect on the relationship between ESG performance and VaR. In addition, heterogeneity analysis is carried out in combination with the industry, region, and ownership nature of listed companies to test the “insurance” and “information” effects of ESG performance, to provide decision-making references for investors, enterprise managers, and regulators
Independent Directors’ Tenure, Expropriation, Related Party Transactions, and Firm Value: The Role of Ownership Concentration in Malaysian Publicly Listed Corporations
No full textThis chapter analyses the relationship between related party transactions (RPT) and firm value and whether independent directors' tenure (IDT) strengthens or weakens this relationship. Further, it examines ownership concentration's role on this moderating effect of IDT in Malaysian family and non-family corporations. It is found that that IDT weakens the relationship between RPT and firm value. However, ownership concentration strengthens this moderating effect of IDT. Interestingly, family corporations are more likely to show a stronger impact of ownership concentration which we allude to concerns of maintaining reputation. The research results remain after controlling for technology corporations. The findings' have important implications for policy makers, practitioners and regulators, especially in emerging economies globall
The moderating effect of firm age on capital structure choices: evidence from emerging markets
No full textThis research analyses how a firm’s age moderates the link between emerging market firm characteristics such as their profitability, firm size, asset tangibility, and their financing decisions (i.e., the level of leverage undertaken by these firms). Our empirical analysis reveals more evidence that firm age, as a firm-specific factor, not only amplifies the negative influence of profitability on leverage but also reinforces the adverse relationship between firm size and leverage. In addition, we also found that firm age weakens the positive relationship between asset tangibility and leverage. This research contributes to the corporate finance, corporate governance and emerging market finance literature by analysing how firm age influences the effects of emerging market firm characteristics. Additionally, this study contributes to the growing literature on the determinants of the gearing of firms, particularly on the role of firm-specific factors in explaining the variation in firms’ leverage. © The Author(s) under exclusive licence to Associazione Amici di Economia e Politica Industriale 2024
Consumers’ Perception on Organisational Corporate Social Responsibility Practices and its Implications on Consumer Attitude: Evidence from the Malaysian Telecommunication Industry
No full textThis paper aims at investigating consumers’ perception on the Corporate Social Responsibility (CSR) practices of the telecommunication service companies in Malaysia, and its antecedent to consumer attitude. The local telecommunication service providers have emphasized on service quality, stakeholder value, corporate reputation, and innovation to achieve good business performance. However, little is known about the contribution of service quality, stakeholder value, corporate reputation, and innovation on the effectiveness of organisational CSR practices. Furthermore, lack of previous studies that have investigated the impact of organisational CSR practices on consumer attitude, particularly in the context of Malaysian telecommunication industry. With the adoption of structural equation modeling approach and survey method, a total of 360 samples comprising the prepaid and postpaid mobile consumers were obtained for this study. The results shown that consumers’ perception on service quality and stakeholder value had significant relationship with CSR practices. However, consumers’ perception on corporate reputation and innovation had no significant relationship with CSR practices. CSR practices was positively related to consumer attitude. In the theoretical implications, service quality and stakeholder value variables were found as important elements in the proponents of Strategic CSR Theory. In the managerial implications, this study recommended that the telecommunication service providers should highly focus on more effective planning and implementation of CSR practices through better integration of CSR in its core business functions and value chain system, diversification of CSR scope and stakeholders engagement. </jats:p
Independent Directors' Tenure, Expropriation, Related Party Transactions, and Firm Value
No full textThe Effectiveness of Strategic Relationship Marketing: Exploring Relationship Quality towards Customer Loyalty
No full textThis study examines customer satisfaction, trust, control mutuality and communication as determinants of relationship quality and customer loyalty in relationship marketing. The study focuses on Malaysian telecommunication industry in the business-to-customer context. The structural equation modelling technique is used to empirically test the proposed hypotheses based on the sample size of 405 customers collected by a questionnaire survey. Trust had the greatest positive influence on relationship quality, followed by satisfaction. Subsequently, there was no significant effect of control mutuality and communication on relationship quality. Customer loyalty was significantly affected by relationship quality. The contribution of this paper is twofold. From a theoretical perspective, the social exchange theory is validated and it offers both a conceptual foundation and empirical-based evaluation of customer loyalty through the context of relationship quality. In the practical perspective, the findings proposed useful information to the telecommunication service providers in developing more effective relationship marketing strategies to build better relationship quality and customer loyalty.</jats:p
Relationship Value and Relationship Quality: An Exploration of Its Antecedents on Customer Loyalty
No full textThe aim of this study is to examine relationship value and relationship quality, and its effect on customer loyalty in the context of relationship marketing. Four key relationship value variables of economic value, service value, relational value and social value are examined in this study. The study focuses on the Malaysian telecommunication industry and based on the business-to-customer environment. The structural equation modelling technique is used to empirically test the proposed hypotheses using a sample of 350 customers collected by a questionnaire survey. The results showed that three relationship value variables of economic value, service value, and social value have significantly influenced relationship quality. Customer loyalty is significantly affected by relationship quality. There is no significant effect of relational value and relationship quality. The contribution of this paper is twofold. From a theoretical perspective, the social exchange theory is used to explain and conceptualize relationship marketing paradigms. It offers both a conceptual foundation and empirical-based evaluation of customer loyalty through the context of relationship value and relationship quality. The relationship value dimensions of economic value, service value, and social value is the antecedent to relationship quality, which lead to customer loyalty. In the practical perspective, the findings proposed that the telecommunication service providers should focus on relationship value through providing better value for money packages, innovation of services and improve social interaction with customers to build stronger relationship quality and achieve customer loyalty.</jats:p
