Purpose -This paper aims to investigate whether or not there exists a relationship between network governance structures in GLCs and NGLCs and performance in Malaysia. In pursuing this objective, the study will explore whether the structures are significantly different and, if so, will seek to establish whether the relationship between their structures and performance of the two groups differs. Design/methodology/approach -The study adopts a matched-pair analysis between GLCs and NGLCs in terms of board listing, types of industry and paid-up capital. All data related to variables were collected mainly from the annual reports of companies and the Bursa Malaysia websites. Besides paired sample t-tests, univariate tests were also conducted to establish whether there is a statistically-significant relationship between each independent variable and firm performance measured by either ROA or ROE. Findings -The results showed that there were statistically-significant differences for both network governance structures of senior government officers (SGO) and politicians (POL) as directors between GLCs and NGLCs for the period under study. Therefore, the first hypothesis of significant differences between the network governance structures of GLCs and NGLCs is fully supported. However, the presence and contribution of both SGO and POL to firm performance are much more noticeable in NGLCs compared to GLCs. BSZ is generally positively correlated with performance and this relationship is stronger for GLCs than NGLCs. As for RDU, no statistically-significant relationship was found in all years. This indicates that there is no clear indication of any relationship between RDU and performance measured by ROA and ROE in all groupings of companies. Research limitations/implications -It is impossible to get an exact pair of GLCs and NGLCs companies. However, both groups of companies have been paired as close as possible based on their paid-up capital. The research was conducted in a period of three years only and before the transformation process of GLCs. As such, the findings might not reflect the general long-term performance of GLCs. Originality/value -This paper contributes to the literature as it examines the relationship between network governance variables to firm performance in the context of GLCs and NGLCs in Malaysia.
The study examines the relationship between management and governance mechanisms upon the performance of family-owned companies. The results indicated that the performances of family-owned companies' were influenced by the implementation of corporate governance in their management processes. Hence, the result reveals a significant association between family-owned companies' performance in relation to management and governance mechanisms. However, the findings found that Malaysian family-owned companies may be reluctant to protect the minority shareholders’ rights as the findings show that the independent directors portrayed significant negative association with the firm’s performance. The presence of the independent directors in the company could not improve the monitoring of the management activities and on shareholders' influence. In addition, the ROE result shows that the larger managerial ownerships, the higher the firms' performance but in turn it will heighten the minority shareholders' expropriation. The higher level of managerial.
This study examines the relationship between corporate governance structures and the performance of matched-pairs of Government Linked Companies (GLCs ) and Non-Government Linked Companies INGLCs). The empirical results indicate that there are eight statisticallv significant differences between the corporate governance structures of GLCs and NGLCs, thus providing a rationale for examining the association between corporate governance structure and firm performance of these two distinct groups. Accordingly, univariate and multivariate analyses were performed on two sample sets: GLCs and NGLCs. In the univariate analysis, only Board size (BSZ) exhibited a significant relationship with respect to firm performance, in contrast the multivariate analysis found no empirical evidence of a consistent relationship between corporate governance structure and performance, which was measured in relation to return On Assets (ROA) and Return On Equity (ROE) in GLCs and NGLCs over the same period. Statistically significant relationships were found across groupings and for different performance measures, but were not sustained across all the years considered. The results indicate that despite the identification of eight differences in the governance structures of GLCs and NGLCs, the observed differences in firm performance cannot be explained by governance structure. This finding supports the view that governance structures purely provide appropriate means to monitor company management rather than improve performance.
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