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Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies

The construction industry plays an important role in the Malaysian economy development. However, there are reports that have disclosed the main predicament confronting this industry – a prevailing weak corporate internal control. As a result, the interests of shareholder are not protected by the man...

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Main Author: Zui, Boon Chiang
Format: Thesis
Language:English
English
Published: 2016
Subjects:
HD28 Management. Industrial Management
Online Access:http://ur.aeu.edu.my/148/1/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction%20companies.pdf
http://ur.aeu.edu.my/148/2/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction.pdf
http://ur.aeu.edu.my/148/
https://online.fliphtml5.com/sppgg/mfqy/?1596528806129
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spelling my-aeu-eprints.1482020-08-04T08:13:24Z http://ur.aeu.edu.my/148/ Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies Zui, Boon Chiang HD28 Management. Industrial Management The construction industry plays an important role in the Malaysian economy development. However, there are reports that have disclosed the main predicament confronting this industry – a prevailing weak corporate internal control. As a result, the interests of shareholder are not protected by the management but expropriated. The main objective of this research therefore is to examine the relationship between the corporate governance (CG) elements and shareholder expropriation in Malaysian construction listed companies. As a longitudinal study of 37 public listed construction companies in the Main Board of the Bursa Malaysia over the period 2007 to 2011, this study discusses the influence of the CG elements: CEO duality, shareholder activism by institutional, independent director with tertiary education, corporate diversification, and family-ownership structure on monitoring the shareholder expropriation. The control variables such as firm size, firm age, and profit leverage are included in the model to reduce the likely effects that can invalidate the results. Firm performance as the proxy of shareholder expropriation is measured by using the Net Profit Margin and Dividend Payout Ratio. Using Ordinary Least Square and Fixed Effects Model analysis methodology, the findings suggested that there is linear relationship between family-ownership structure and shareholder expropriation. However, the Pearson correlation analysis has suggested that the correlation of family-ownership structure to shareholder expropriation is weak. As a conclusion, the findings in this study contradict the predictions of the theories and concepts examined here except for the family ownership structure. Therefore, it is recommended that the period of study could be extended and also to include other related industries such as the property sector. In addition, a longer period of study will probably show the likely influences of changes in the CG system of a company, with different results. 2016 Thesis NonPeerReviewed text en http://ur.aeu.edu.my/148/1/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction%20companies.pdf text en http://ur.aeu.edu.my/148/2/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction.pdf Zui, Boon Chiang (2016) Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies. Doctoral thesis, Asia e University. https://online.fliphtml5.com/sppgg/mfqy/?1596528806129
institution Asia e University
building AEU Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Asia e University
content_source AEU University Repository
url_provider http://ur.aeu.edu.my/
language English
English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Zui, Boon Chiang
Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
description The construction industry plays an important role in the Malaysian economy development. However, there are reports that have disclosed the main predicament confronting this industry – a prevailing weak corporate internal control. As a result, the interests of shareholder are not protected by the management but expropriated. The main objective of this research therefore is to examine the relationship between the corporate governance (CG) elements and shareholder expropriation in Malaysian construction listed companies. As a longitudinal study of 37 public listed construction companies in the Main Board of the Bursa Malaysia over the period 2007 to 2011, this study discusses the influence of the CG elements: CEO duality, shareholder activism by institutional, independent director with tertiary education, corporate diversification, and family-ownership structure on monitoring the shareholder expropriation. The control variables such as firm size, firm age, and profit leverage are included in the model to reduce the likely effects that can invalidate the results. Firm performance as the proxy of shareholder expropriation is measured by using the Net Profit Margin and Dividend Payout Ratio. Using Ordinary Least Square and Fixed Effects Model analysis methodology, the findings suggested that there is linear relationship between family-ownership structure and shareholder expropriation. However, the Pearson correlation analysis has suggested that the correlation of family-ownership structure to shareholder expropriation is weak. As a conclusion, the findings in this study contradict the predictions of the theories and concepts examined here except for the family ownership structure. Therefore, it is recommended that the period of study could be extended and also to include other related industries such as the property sector. In addition, a longer period of study will probably show the likely influences of changes in the CG system of a company, with different results.
format Thesis
author Zui, Boon Chiang
author_facet Zui, Boon Chiang
author_sort Zui, Boon Chiang
title Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
title_short Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
title_full Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
title_fullStr Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
title_full_unstemmed Corporate Governance Mechanisms and Shareholder Expropriation of the Malaysian Listed construction Companies
title_sort corporate governance mechanisms and shareholder expropriation of the malaysian listed construction companies
publishDate 2016
url http://ur.aeu.edu.my/148/1/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction%20companies.pdf
http://ur.aeu.edu.my/148/2/Corporate%20governance%20mechanisms%20and%20shareholder%20expropriation%20of%20the%20Malaysian%20listed%20construction.pdf
http://ur.aeu.edu.my/148/
https://online.fliphtml5.com/sppgg/mfqy/?1596528806129
_version_ 1675331432251129856
score 13.211869

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