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Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013

This study examines the association between directors' remuneration, corporate governance structures and firm performance of 140 Malaysian listed firms which 70 firms are family firm and 70 firms are non-family. Data has been collected through annual reports in Bursa Malaysia's database fr...

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Main Authors: Ab Razak, Nazrul Hisyam, Palahuddin, Salmi Huwaina
Format: Article
Language:English
Published: Corporate Ownership & Control 2017
Online Access:http://psasir.upm.edu.my/id/eprint/61491/1/Director%20remuneration%2C%20family%20ownership%20and%20firm%20performance%20an%20analysis%20from%20Malaysian%20listed%20firm%20for%20period%20of%202005%20till%202013.pdf
http://psasir.upm.edu.my/id/eprint/61491/
https://virtusinterpress.org/DIRECTOR-REMUNERATION-FAMILY.html
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spelling my.upm.eprints.614912022-04-05T02:13:23Z http://psasir.upm.edu.my/id/eprint/61491/ Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013 Ab Razak, Nazrul Hisyam Palahuddin, Salmi Huwaina This study examines the association between directors' remuneration, corporate governance structures and firm performance of 140 Malaysian listed firms which 70 firms are family firm and 70 firms are non-family. Data has been collected through annual reports in Bursa Malaysia's database from 2005 till 2013. The results show that firm performance is positively and significantly related to directors' remuneration, firm's growth and size measured by ROA, ROE and Tobin's Q. However, firms' performance in this study is not responsive to anticipated future market valuations in Stock returns. The study also finds that family ownership leads to lower performance than non-family owned firms on accounting measurement (ROA and ROE) and market measurement (Tobin's Q) after controlling company specific characteristics. The findings also reveal that role duality has no significant effect on accounting and market performance. Meanwhile the study explores that firm performance is negatively and significantly related to leverage. The findings can be useful to regulators to limit director's influence over remuneration packages especially in family firm. The study also contributes to the growing literature on executive and directors' remuneration and it provides international evidence on the effects of corporate governance reforms in recent years in influencing boardroom remuneration and ownership structure on a firm's efficiency and performance. Corporate Ownership & Control 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61491/1/Director%20remuneration%2C%20family%20ownership%20and%20firm%20performance%20an%20analysis%20from%20Malaysian%20listed%20firm%20for%20period%20of%202005%20till%202013.pdf Ab Razak, Nazrul Hisyam and Palahuddin, Salmi Huwaina (2017) Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013. Corporate Ownership & Control, 14 (2). pp. 98-113. ISSN 1727-9232; ESSN: 1810-3057 https://virtusinterpress.org/DIRECTOR-REMUNERATION-FAMILY.html 10.22495/cocv14i2art10
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This study examines the association between directors' remuneration, corporate governance structures and firm performance of 140 Malaysian listed firms which 70 firms are family firm and 70 firms are non-family. Data has been collected through annual reports in Bursa Malaysia's database from 2005 till 2013. The results show that firm performance is positively and significantly related to directors' remuneration, firm's growth and size measured by ROA, ROE and Tobin's Q. However, firms' performance in this study is not responsive to anticipated future market valuations in Stock returns. The study also finds that family ownership leads to lower performance than non-family owned firms on accounting measurement (ROA and ROE) and market measurement (Tobin's Q) after controlling company specific characteristics. The findings also reveal that role duality has no significant effect on accounting and market performance. Meanwhile the study explores that firm performance is negatively and significantly related to leverage. The findings can be useful to regulators to limit director's influence over remuneration packages especially in family firm. The study also contributes to the growing literature on executive and directors' remuneration and it provides international evidence on the effects of corporate governance reforms in recent years in influencing boardroom remuneration and ownership structure on a firm's efficiency and performance.
format Article
author Ab Razak, Nazrul Hisyam
Palahuddin, Salmi Huwaina
spellingShingle Ab Razak, Nazrul Hisyam
Palahuddin, Salmi Huwaina
Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
author_facet Ab Razak, Nazrul Hisyam
Palahuddin, Salmi Huwaina
author_sort Ab Razak, Nazrul Hisyam
title Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
title_short Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
title_full Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
title_fullStr Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
title_full_unstemmed Director remuneration, family ownership and firm performance: an analysis from Malaysian listed firm for period of 2005 till 2013
title_sort director remuneration, family ownership and firm performance: an analysis from malaysian listed firm for period of 2005 till 2013
publisher Corporate Ownership & Control
publishDate 2017
url http://psasir.upm.edu.my/id/eprint/61491/1/Director%20remuneration%2C%20family%20ownership%20and%20firm%20performance%20an%20analysis%20from%20Malaysian%20listed%20firm%20for%20period%20of%202005%20till%202013.pdf
http://psasir.upm.edu.my/id/eprint/61491/
https://virtusinterpress.org/DIRECTOR-REMUNERATION-FAMILY.html
_version_ 1729704991512330240
score 13.211869

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