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...

Full description

Saved in:
Bibliographic Details
Main Authors: Ng, Sin Huei, Shrives, Philip, Yeoh, Ken Kyid
Format: Article
Published: Virtus interpress 2013
Subjects:
Online Access:http://eprints.intimal.edu.my/238/
http://www.virtusinterpress.org/PROFIT-REDISTRIBUTION-IN-FAMILY,3055.html
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-inti-eprints.238
record_format eprints
spelling 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
institution INTI International University
building INTI Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider INTI International University
content_source INTI Institutional Repository
url_provider http://eprints.intimal.edu.my
topic HF Commerce
spellingShingle HF Commerce
Ng, Sin Huei
Shrives, Philip
Yeoh, Ken Kyid
Profit Redistribution in Family-controlled, Group-affiliated Publicly-listed Corporations in Malaysia
description 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
_version_ 1644541156771495936
score 13.211869