Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia

We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and exp...

Full description

Bibliographic Details
Main Authors: H. Ibrahim, F. A. Samad
Format: Article
Language:English
Published: AOSIS 2011-09-01
Series:South African Journal of Business Management
Online Access:https://sajbm.org/index.php/sajbm/article/view/496
id doaj-f92e2ff65eab4e7886998dfc9427252a
record_format Article
spelling doaj-f92e2ff65eab4e7886998dfc9427252a2021-02-02T04:53:41ZengAOSISSouth African Journal of Business Management2078-55852078-59762011-09-01423172610.4102/sajbm.v42i3.496221Agency costs, corporate governance mechanisms and performance of public listed family firms in MalaysiaH. Ibrahim0F. A. Samad1School of Management, Universiti Sains MalaysiaFaculty of Business and Accountancy, University of MalayaWe compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms.https://sajbm.org/index.php/sajbm/article/view/496
collection DOAJ
language English
format Article
sources DOAJ
author H. Ibrahim
F. A. Samad
spellingShingle H. Ibrahim
F. A. Samad
Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
South African Journal of Business Management
author_facet H. Ibrahim
F. A. Samad
author_sort H. Ibrahim
title Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
title_short Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
title_full Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
title_fullStr Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
title_full_unstemmed Agency costs, corporate governance mechanisms and performance of public listed family firms in Malaysia
title_sort agency costs, corporate governance mechanisms and performance of public listed family firms in malaysia
publisher AOSIS
series South African Journal of Business Management
issn 2078-5585
2078-5976
publishDate 2011-09-01
description We compare corporate governance and performance between family and non-family ownership of public listed companies in Malaysia from 1999 through 2005 measured by Tobin’s Q and ROA. We also examine the governance mechanisms as a tool in monitoring agency costs based on asset utilization ratio and expense ratio as proxy for agency costs. We find that on average firm value is lower in family firms than non-family firms, while board size, independent director and duality have a significant impact on firm performance in family firms as compared to non-family firms. We also find that these governance mechanisms have significant impact on agency costs for both family and non-family firms.
url https://sajbm.org/index.php/sajbm/article/view/496
work_keys_str_mv AT hibrahim agencycostscorporategovernancemechanismsandperformanceofpubliclistedfamilyfirmsinmalaysia
AT fasamad agencycostscorporategovernancemechanismsandperformanceofpubliclistedfamilyfirmsinmalaysia
_version_ 1724304827885813760

Similar Items