Does ownership structure matter? Evidence from Malaysian equity market

Chu, Ei Yet; Cheah, Kooi Guan

doi:10.22495/cocv4i1p6

Cited by 18 publications

(20 citation statements)

References 38 publications

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“…This is consistent with Anderson and Reeb (2003) that the presence of family members may provide superior oversight on the firm's technology as their lengthy tenure permits them to move along the firm's learning curve. Chu and Cheah (2006) also find that firms with dispersed structure in Malaysia under-performed as compared to family firm. They infer that family controlled firms still maintain the passion for entrepreneurship, output efficiency and expansion as well as maximisation of shareholders' value.…”

Section: Resultsmentioning

confidence: 78%

“…Thus, performance should be better for family controlled firms, and likewise the post-take-over performance. This is supported by Chu and Cheah (2006). They find that by using Tobin's q and ROA, firms with dispersed structure in Malaysia under-performed as compared to family and foreign controlled firms.…”

Section: Ownershipmentioning

confidence: 79%

“…Other exclusion criteria for the sample included those targets which did not have the profit and loss account or balance sheet before the announcements. This was typically found in those newly incorporated companies, dormant companies, foreign targets, and targets that hold concession or licenses for operation 8 . The control companies should not experience any major 6 The sample in this study involves those targets with RM5 million and above.…”

Section: Datamentioning

confidence: 99%

“…7 It contains documents related to companies' announcements such as Circular to Shareholders in relation to take-overs, etc. 8 For instance, acquisition of Sampling Plywood (Baramas) Sdn Bhd which held timber concession by Glenealy Bhd were valued based on the estimated cash flow of the concession and thus financial statement were not applicable M&A activities during the period of study in order to provide a performance benchmark to the effects of M&A. It was found that only about 60 percent (466/781) of the targets announced were successfully taken over by the bidders.…”

Section: Datamentioning

confidence: 99%

See 3 more Smart Citations

Family ownership, premiums paid and performance: Evidence from corporate take-overs in Malaysia

Song¹,

Ali²,

Pillay³

2007

COC

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This study examines the relationship between ownership identity of the largest shareholders, premiums paid and takeover performance, with reference to 63 large acquisitions by Malaysian public listed firms from 1990 to 1999. It is found that the premiums paid are much higher than those in developed countries. It has a curvilinear relationship with takeover performance. At lower to moderate levels of premiums, it improves post-takeover performance while excessive premium drags down the performance of the bidding firms. The finding shows that there is an interaction effect between family ownership and premiums paid which has contributed positively to the post-takeover performance. The evidence suggests that family ownership mitigates agency problem in corporate takeovers .

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Section: Resultsmentioning

confidence: 78%

Section: Ownershipmentioning

confidence: 79%

Section: Datamentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

See 2 more Smart Citations

Family ownership, premiums paid and performance: Evidence from corporate take-overs in Malaysia

Song¹,

Ali²,

Pillay³

2007

COC

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“…For instance, determinants of ownership structure (Chu & Cheah, 2006), the nature of ownership structure, governance and firm value (Tam & Tan, 2007) and relation of investment behavior and capital structure on ownership structure. Few studies have taken into account the factors that influence the length of chain in pyramidal firms towards expropriation of minority interests.…”

Section: Introductionmentioning

confidence: 99%

Length of Chain in Pyramidal Firms towards Expropriation of Minority Interest

Malan¹,

Salamudin²,

Ahmad³

2015

IBR

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It is documented that there is a large divergence of cash flow rights and control rights in ownership concentrated corporations whereby power lies in the hands of the ultimate controlling shareholder especially for Malaysian pyramidal firms. The divergence of these two rights via length of chain leads to the expropriation of minority shareholders interest. Thus, this study aims to examine the factors influencing the length of chain of Malaysian pyramidal firms implying expropriation of minority interest. This study hypothesizes that the distance separating the ultimate controlling shareholder from their affiliated firms is positively related to the presence of eventual negative shocks and vice-versa. Applying the Attig Model and Panel Generalised Least Square (GLS) estimation on Malaysian pyramidal firms between 1990 to 2010 as the underlying statistical test, the results show that there is association between the length of chain separating ultimate controlling shareholder from the affiliated groups and the entrenchment effect. Factors influencing the length of chain such as risk, cash, size, TobinQ, duality, financial institution and liquidity posit significant results and consistent with the entrenchment effect. Future research needs to highlight on identifying the heterogeneous factors that improve the generalizability of research.

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Ethnicity and accounting conservatism: Malaysian evidence

Yunos

Ismail

Smith

2012

Asian Review of Accounting

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Purpose - The purpose of this paper is to empirically test the association between two ethnic groups: Bumiputera directors and Chinese directors, on the incidence of accounting conservatism. Design/methodology/approach - A panel data analysis of financial statement data was conducted for 300 Malaysian listed firms between 2001 and 2007. Findings - The analysis shows that the ethnic groups influence the adoption of conservatism, but that the evidence is mixed, implying that there could be factors other than ethnicity which explained the directors\u27 behaviour. Practical implications - The results provide a useful input to the proponents of harmonisation in financial reporting, in that Malaysian financial reports do not appear to be influenced by the ethnicity of participating groups. Originality/value - This is the first paper to measure empirically the impact of ethnicity on the incidence of accounting conservatism

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Does ownership structure matter? Evidence from Malaysian equity market

Cited by 18 publications

References 38 publications

Family ownership, premiums paid and performance: Evidence from corporate take-overs in Malaysia

Family ownership, premiums paid and performance: Evidence from corporate take-overs in Malaysia

Length of Chain in Pyramidal Firms towards Expropriation of Minority Interest

Ethnicity and accounting conservatism: Malaysian evidence

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