Governance mechanisms and firm performance in family-owned companies in Malaysia / Azmi Abd. Hamid, Rozainun Abdul Aziz and Asyifa Laila Hosni

Abd. Hamid, Azmi and Abdul Aziz, Rozainun and Hosni, Asyifa Laila (2014) Governance mechanisms and firm performance in family-owned companies in Malaysia / Azmi Abd. Hamid, Rozainun Abdul Aziz and Asyifa Laila Hosni. Social and Management Research Journal, 11 (1). pp. 1-29. ISSN 1675-7017

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: Corporate Governance, family firms, firm performance, family-owned business enterprises, Malaysia
Subjects: H Social Sciences > HD Industries. Land use. Labor > Industry > Corporate organization. Corporate governance
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Family-owned business enterprises > Malaysia
Divisions: Research Management Institute (RMI)
Depositing User: Staf Pendigitan 1
Date Deposited: 27 Aug 2015 00:31
Last Modified: 03 Jun 2016 09:03
URI: http://ir.uitm.edu.my/id/eprint/12432

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