Cover Image

Board structure and ownership in Malaysia: The case of distressed listed companies

Purpose– This study seeks to examine the influence of board independence, CEO duality and ownership structure on the firm financial distressed status using a sample of distressed companies and a matched-pair sample of non-distressed companies listed on the Bursa Malaysia.Design/methodology/approach...

Full description

Saved in:
Bibliographic Details
Main Author: Abdullah, Shamsul Nahar
Format: Article
Language:English
Published: Emerald Group Publishing Limited 2006
Subjects:
HF5601 Accounting
Online Access:http://repo.uum.edu.my/12426/1/1472.pdf
http://repo.uum.edu.my/12426/
http://dx.doi.org/10.1108/14720700610706072
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.12426
record_format eprints
spelling my.uum.repo.124262014-10-26T01:31:10Z http://repo.uum.edu.my/12426/ Board structure and ownership in Malaysia: The case of distressed listed companies Abdullah, Shamsul Nahar HF5601 Accounting Purpose– This study seeks to examine the influence of board independence, CEO duality and ownership structure on the firm financial distressed status using a sample of distressed companies and a matched-pair sample of non-distressed companies listed on the Bursa Malaysia.Design/methodology/approach – This study utilized publicly available data from annual reports of a sample of 86 non-finance distressed firms listed on the Bursa Malaysia and a sample of matched 86 non-distressed firms for a period covering the 1999-2001 financial years.Findings – Board independence and CEO duality are not associated with financial distressed status. Management and non-executive directors’ interests are associated negatively with financial distress.A negative association is also documented for outside blockholders. The evidence also supports the contention that ownership by non-executive directors and outside blockholders effectively increases their incentives to monitor management in ensuring their wealth in the firms is intact. Research limitations/implications– One limitation of this research is that it relies on publicly available data and agency theory. Future research could apply other theories, such as resource dependency and stewardship. Use of process-oriented data could also improve the findings.Practical implications – Independent directors need to undergo training to help them improve and be aware of their responsibilities.Originality/value– This paper offers evidence on the extent to which distress is associated with corporate governance from a developing country.The paper should be of interest to the regulatory bodies and practitioners. Emerald Group Publishing Limited 2006 Article PeerReviewed application/pdf en http://repo.uum.edu.my/12426/1/1472.pdf Abdullah, Shamsul Nahar (2006) Board structure and ownership in Malaysia: The case of distressed listed companies. Corporate Governance, 6 (5). pp. 582-594. ISSN 1472-0701 http://dx.doi.org/10.1108/14720700610706072 doi:10.1108/14720700610706072
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Abdullah, Shamsul Nahar
Board structure and ownership in Malaysia: The case of distressed listed companies
description Purpose– This study seeks to examine the influence of board independence, CEO duality and ownership structure on the firm financial distressed status using a sample of distressed companies and a matched-pair sample of non-distressed companies listed on the Bursa Malaysia.Design/methodology/approach – This study utilized publicly available data from annual reports of a sample of 86 non-finance distressed firms listed on the Bursa Malaysia and a sample of matched 86 non-distressed firms for a period covering the 1999-2001 financial years.Findings – Board independence and CEO duality are not associated with financial distressed status. Management and non-executive directors’ interests are associated negatively with financial distress.A negative association is also documented for outside blockholders. The evidence also supports the contention that ownership by non-executive directors and outside blockholders effectively increases their incentives to monitor management in ensuring their wealth in the firms is intact. Research limitations/implications– One limitation of this research is that it relies on publicly available data and agency theory. Future research could apply other theories, such as resource dependency and stewardship. Use of process-oriented data could also improve the findings.Practical implications – Independent directors need to undergo training to help them improve and be aware of their responsibilities.Originality/value– This paper offers evidence on the extent to which distress is associated with corporate governance from a developing country.The paper should be of interest to the regulatory bodies and practitioners.
format Article
author Abdullah, Shamsul Nahar
author_facet Abdullah, Shamsul Nahar
author_sort Abdullah, Shamsul Nahar
title Board structure and ownership in Malaysia: The case of distressed listed companies
title_short Board structure and ownership in Malaysia: The case of distressed listed companies
title_full Board structure and ownership in Malaysia: The case of distressed listed companies
title_fullStr Board structure and ownership in Malaysia: The case of distressed listed companies
title_full_unstemmed Board structure and ownership in Malaysia: The case of distressed listed companies
title_sort board structure and ownership in malaysia: the case of distressed listed companies
publisher Emerald Group Publishing Limited
publishDate 2006
url http://repo.uum.edu.my/12426/1/1472.pdf
http://repo.uum.edu.my/12426/
http://dx.doi.org/10.1108/14720700610706072
_version_ 1644280908918816768
score 13.211869

Similar Items