Profit Redistribution in Family-controlled, Group-affiliated Publicly-listed Corporations in Malaysia
This paper attempts to examine the potential occurrence of profit redistribution in family-controlled business groups in Malaysia. It is argued that there exists a tendency for business groups with extensive family ownership and control to redistribute resources from group affiliates that outperf...
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my-inti-eprints.2382016-10-06T07:55:47Z http://eprints.intimal.edu.my/238/ Profit Redistribution in Family-controlled, Group-affiliated Publicly-listed Corporations in Malaysia Ng, Sin Huei Shrives, Philip Yeoh, Ken Kyid HF Commerce This paper attempts to examine the potential occurrence of profit redistribution in family-controlled business groups in Malaysia. It is argued that there exists a tendency for business groups with extensive family ownership and control to redistribute resources from group affiliates that outperformed to affiliates that underperformed. This phenomenon is prevalent particularly in large business groups where the link between business groups and politics is most clearly displayed. Such ‘propping up’ activities are believed to adversely affect the shareholders of the outperforming affiliates as the performance of these affiliates diminishes due to the profit redistribution. They also result in inefficient allocation of resources within the business group, though it is found that higher board independence may reduce such inefficiency. Virtus interpress 2013 Article PeerReviewed Ng, Sin Huei and Shrives, Philip and Yeoh, Ken Kyid (2013) Profit Redistribution in Family-controlled, Group-affiliated Publicly-listed Corporations in Malaysia. Corporate Ownership and Control, 10 (3). pp. 142-163. ISSN 1810-3057 http://www.virtusinterpress.org/PROFIT-REDISTRIBUTION-IN-FAMILY,3055.html |
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HF Commerce Ng, Sin Huei Shrives, Philip Yeoh, Ken Kyid Profit Redistribution in Family-controlled, Group-affiliated Publicly-listed Corporations in Malaysia |
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This paper attempts to examine the potential occurrence of profit redistribution in family-controlled
business groups in Malaysia. It is argued that there exists a tendency for business groups with
extensive family ownership and control to redistribute resources from group affiliates that
outperformed to affiliates that underperformed. This phenomenon is prevalent particularly in large
business groups where the link between business groups and politics is most clearly displayed. Such
‘propping up’ activities are believed to adversely affect the shareholders of the outperforming affiliates
as the performance of these affiliates diminishes due to the profit redistribution. They also result in
inefficient allocation of resources within the business group, though it is found that higher board
independence may reduce such inefficiency. |
format |
Article |
author |
Ng, Sin Huei Shrives, Philip Yeoh, Ken Kyid |
author_facet |
Ng, Sin Huei Shrives, Philip Yeoh, Ken Kyid |
author_sort |
Ng, Sin Huei |
title |
Profit Redistribution in Family-controlled, Group-affiliated
Publicly-listed Corporations in Malaysia |
title_short |
Profit Redistribution in Family-controlled, Group-affiliated
Publicly-listed Corporations in Malaysia |
title_full |
Profit Redistribution in Family-controlled, Group-affiliated
Publicly-listed Corporations in Malaysia |
title_fullStr |
Profit Redistribution in Family-controlled, Group-affiliated
Publicly-listed Corporations in Malaysia |
title_full_unstemmed |
Profit Redistribution in Family-controlled, Group-affiliated
Publicly-listed Corporations in Malaysia |
title_sort |
profit redistribution in family-controlled, group-affiliated
publicly-listed corporations in malaysia |
publisher |
Virtus interpress |
publishDate |
2013 |
url |
http://eprints.intimal.edu.my/238/ http://www.virtusinterpress.org/PROFIT-REDISTRIBUTION-IN-FAMILY,3055.html |
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1644541156771495936 |
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13.211869 |