Motivated by recent studies on political connections and stock price crash risk, this study investigates whether there is an association between politically connected (POLCON) firms and stock price crash risk. Further, we examine whether institutional investors’ ownership can moderate this association. Using a dataset of Malaysian firms for the period 2002–2012, we show that POLCON firms are associated with higher risk of stock price crashes. However, the positive association between POLCON and stock crashes is attenuated by higher institutional ownership, implying effective monitoring. Finally, we find that only local institutional investors can significantly mitigate the positive association between POLCON firms and stock price crash risk. This suggests that different types of institutional investors can produce different monitoring outcomes in POLCON firms.

Purpose The purpose of this paper is to examine the effects of entrepreneur orientation (EO) on firm performance of the Malaysian manufacturing sector. Design/methodology/approach Data for the study were collected through a survey of 321 companies registered with the Federation of Malaysian Manufacturers. Responses were analyzed using PLS-SEM to assess the relationships between transformational leadership and firm performance. Findings The findings show that amongst Malaysian manufacturers, transformational leadership has a strong direct effect on firm performance. Practical implications These findings provide useful insights for organizations, particularly in the Malaysian manufacturing sector, seeking to be competitive and responsive to environmental changes by successfully introducing EO. Originality/value EO has been studied in detail in the recent literature. Many new researchers have explored various composition factors of EO, and how this will have an effect on firm performance. However, there are few research studies in the area of transformational leadership amongst Malaysian manufacturing companies. This research makes an important contribution to the existing literature by empirically examining the relationship between EO and firm performance, particularly in the Malaysian manufacturing sector. Conclusion emphasizes that mechanisms to encourage and foster EO mainly autonomy, competitive aggressiveness and proactiveness are likely to result in the achievement of superior firm performance.

No abstract

No abstract

No abstract