The Effects of Concentrated Ownership on The Performance of The Firm: Do External Shareholdings and Board Structure Matter?
Kesan Pemusatan Milik Terhadap Prestasi Syarikat: Adakah Pemilikan Ekuiti Luar dan Struktur Lembaga Pengarah Memberi Kesan?


Graduate School of Business
Universiti Kebangsaan Malaysia
43600 UKM Bangi
Malaysia

izani@ukm.my

Abstract

The Malaysian corporate governance varies according to the ownership structure of the corporate sector. At one end of the spectrum there are companies in which ownership is dispersed among small shareholders, while control is concentrated in the hands of the large shareholders. This study analyses the role played by concentrated ownerships through the top ten shareholders of the non-financial firms that are listed on the KLSE in determining their performances. A total of 2608 companies are used in this study and various measures of performance and categories of ownerships are used to study the different effect of different ownerships on performance. Ownership roles are observed from two perspectives namely their ownership concentration and the components of this ownership concentration as proxy for corporate governance mechanisms. The finding from this empirical study provides information on the importance of large institutional shareholders in corporate governance. This study also providing evidence that, typically equity owned by the corporations, government, nominees and individuals are directly influencing the financial structures of the firms. This will eventually affect the overall performance of the firms. This indicates that to encourage firm performance, it very much dependent upon the supply of suitable management and directors as well as other stakeholder’s information.

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Citation

Mat Nor, F., Mohd Shariff, F., & Ibahim, I. I. (2010). The Effects of Concentrated Ownership on The Performance of The Firm: Do External Shareholdings and Board Structure Matter?. Jurnal Pengurusan, 30, 93–102.

@article{matnor2010effects,
  title={The Effects of Concentrated Ownership on The Performance of The Firm: Do External Shareholdings and Board Structure Matter?},
  author={Mat Nor, Fauzias and Mohd Shariff, Faizah and Ibahim, Izani},
  journal={Jurnal Pengurusan},
 

volume={30},
  number={},
  pages={93—102},
  year={2010},
  doi={},
  publisher={Penerbit UKM},
}

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30 (2010) 93 – 102

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