Effects of Ownership Structure on Malaysian Companies Performance

Amran, Noor Afza; Ahmad, Ayoib Che

doi:10.17576/ajag-2013-4-5774

Cited by 44 publications

(32 citation statements)

References 46 publications

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“…Indonesia and Malaysia have a similar condition in ownership structure. A concentrated ownership structure on the controlling shareholders happens in firms in Indonesia (Mutamimah & Hartono, 2010) and Malaysia (Amran & Ahmad, 2013). Commonly, controlling shareholders in Malaysia are state, family, and individual (Amran & Ahmad, 2013).…”

Section: Resultsmentioning

confidence: 99%

“…A concentrated ownership structure on the controlling shareholders happens in firms in Indonesia (Mutamimah & Hartono, 2010) and Malaysia (Amran & Ahmad, 2013). Commonly, controlling shareholders in Malaysia are state, family, and individual (Amran & Ahmad, 2013). In Indonesia, controlling shareholders are family or founder having a immense control managers to make a decision (Mutamimah & Hartono, 2010).…”

Section: Resultsmentioning

confidence: 99%

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Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Sahabuddin¹

2017

Jurnal Keuangan Dan Perbankan

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Debt was able to be used by firm as source of funds for investment-related activities, especially when the amount of retained earnings was not sufficient to cover the amount of investment needed. Naturally, the use of debt definitely caused the agency conflict between firm shareholders and debt holders. To reduce this conflict, the existence of fixed assets as collateral was needed when firm decided to borrow money from debt holders. The purpose of this study was to prove the agency theory perspective by testing an impact of asset structure on capital structure of firms. The population of this study was the firms listed on Indonesia Stock Exchange and Malaysian Stock Exchange. The firms as sample were taken from the population by conducting stratified random sampling method. The pooled data regression model was used as the data analysis method. This result of this study showed that asset structure had the positive impact on capital structure. It meant the causal relationship between asset structure and capital structure happened and was supported by the agency theory perspective. ABSTRAKPinjaman dapat digunakan oleh sebuah perusahaan sebagai sumber dana untuk membiayai kegiatan-kegiatan yang berkaitan dengan investasi, terutama ketika laba ditahan tidak lagi mencukupi kebutuhan untuk investasi. Penggunaan pinjaman tentu saja menyebabkan konflik agensi antara pemegang saham dengan kreditur atau pemegang utang. Untuk mengurangi konflik agensi ini, keberadaan aset tetap sebagai barang jaminan diperlukan ketika perusahaan memutuskan untuk meminjam uang dari kreditur.Tujuan penelitian ini yaitu untuk membuktikan berlakunya perspektif teori agensi dengan menguji pengaruh struktur aktiva terhadap struktur modal perusahaan. Populasi yang digunakan dalam penelitian ini yaitu perusahaan-perusahaan yang tercatat di Bursa Efek Indonesia dan Bursa Malaysia. Perusahaan-perusahaan yang digunakan sebagai sampel diambil dari populasinya dengan menggunakan metode stratifikasi random. Penelitian ini menggunakan model regresi data gabungan sebagai metode analisis data. Hasil penelitian ini menunjukkan bahwa struktur aktiva berpengaruh positif terhadap struktur modal. Hal ini berarti hubungan kausalitas antara struktur aktiva dan struktur modal terjadi dan didukung oleh perspektif teori agensi.

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Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Sahabuddin¹

2017

Jurnal Keuangan Dan Perbankan

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“…Using regression analysis, Amran and Ayoib (2013) showed that managerial and family ownership relates significantly to ROA and ROE; and firm performance decreases when the managers' share ownership increases. Furthermore, by employing the common effect robust model, Wahla et al (2012) concluded that managerial ownership has a significant negative relationship with firm performance; concentrated ownership showed insignificant relationship with firm performance; leverage showed a significant negative relationship with firm performance; and insignificant relationship between asset turnover and firm performance.…”

Section: Previous Researchmentioning

confidence: 99%

Ownership structure and corporate performance: evidence from property and real estate public companies in Indonesia

Saleh¹,

Zahirdin²,

Octaviani³

2017

Investment Management and Financial Innovations

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This paper has proposed a specific case in the property and real estate sector regarding the impact of ownership structure and corporate performance, since this sector is one of those with booming investment in Indonesia. The ownership structure was represented by the institutional investor and managerial ownership, and the Economic Value Added (EVA) and Tobin's Q were used as a proxy for firm performance. This study utilized the purposive sampling of 240 observations over the period 2010-2015. The fixed and random effect panel data model was employed to determine the relationship among the variables. Findings show that the institutional investor and company's size, as well as debt ratio, are important in explaining firm performance, while managerial ownership has a partially significant effect on the performance of companies in this industry.

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“…However, the extent of the eISSN: 2357-1330 Selection and peer-review under responsibility of the Organizing Committee 261 alignment is determined by the degree of the ownership (Jusoh & Che-Ahmad, 2014). The greater the MO, the less severe the agency problem (Amran & Che-Ahmad, 2013). However, this could be to the detriment of the minority shareholders.…”

Section: Managerial Ownership (Mo)mentioning

confidence: 99%

Managerial Ownership, Horizontal Agency Costs and Monitoring Mechanisms

Arowolo¹

2016

European Proceedings of Social &Amp; Behavioural Sciences

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Company operations are characterized by information asymmetry between the agent (management and the board of directors) and the principal (shareholders). The purpose of this study is to empirically examine the extent of monitoring mechanisms in Nigerian non-financial listed companies and the impact of managerial ownership and horizontal-agency-costs on the mechanisms. The study adopted a quantitative approach and distributed 332 questionnaires to 166 non-financial listed companies to obtain a cross-sectional data for the internal auditing. The findings give credible evidence that the horizontal-agency-cost is positively significant while managerial ownership is negatively significant. The findings of this study suggest policy implications for the monitoring roles of the board of directors as well as the internal and external auditors. Likewise, the findings are useful to the regulatory agencies and government for a further review of corporate governance guidelines. This paper contributes to knowledge by combining the three dimensions of monitoring mechanisms (directorship, internal and external auditing) in Sub-Saharan Africa.

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Effects of Ownership Structure on Malaysian Companies Performance

Abstract: The aim of this paper is to examine effects of managerial and family ownership structure on the company performance.

Cited by 44 publications

References 46 publications

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Asset Structure Impact on Capital Structure of Capital Market-Listed Firms in Indonesia and Malaysia

Ownership structure and corporate performance: evidence from property and real estate public companies in Indonesia

Managerial Ownership, Horizontal Agency Costs and Monitoring Mechanisms

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