Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance

The focus of this study is to investigate the relationship between ownership structure, namely family ownership, institutional ownership, government ownership and diffused ownership, and the extent of forward looking information disclosure of public listed companies in Malaysia. The association betw...

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Main Author:	Noghondari, Ali Taebi
Format:	Thesis
Language:	English
Published:	2012
Subjects:	Disclosure of information - Malaysia Organizational effectiveness Stock ownership
Online Access:	http://psasir.upm.edu.my/id/eprint/32838/1/GSM%202012%2012R.pdf
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id	my-upm-ir.32838
record_format	uketd_dc
spelling	my-upm-ir.328382015-01-13T09:41:35Z Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance 2012-02 Noghondari, Ali Taebi The focus of this study is to investigate the relationship between ownership structure, namely family ownership, institutional ownership, government ownership and diffused ownership, and the extent of forward looking information disclosure of public listed companies in Malaysia. The association between the proprietary cost of the firms and the extent of forward looking information disclosure is also examined. This study then examines whether the extent of forward looking information disclosure impacts firm market performance. This study used profitability and industry type as control variables. Content analysis was applied to measure the extent of forward looking information disclosure. The type of ownership structure was determined by the percentage of shares held by the top five share-holders. Relative market share was used as a proxy for proprietary cost. Finally, corporate market performance was measured by three indicators volatility of stock return, market liquidity ratio and Tobin’s Q. The sample consisted of 80 companies drawn from the 100 largest public-listed companies based on market capitalization at the end of 2009. Multiple regression analyses were carried out to examine the relationships among ownership structure, proprietary cost and the extent of voluntary disclosure of forward looking information. Simple linear regression was used to determine the relationship between the extent of forward looking information disclosure and firm market performance. The results show that among the ownership structure types, only family ownership has a significant negative effect on the extent of forward looking information disclosure. Although the proprietary cost significantly influences the extent of forward looking information disclosure, the direction is positive which is not as hypothesized. In addition, the extent of voluntary disclosure of forward looking information is positively related to the firm’s market performance. Empirical evidence provided in this study may be useful to practising managers. Corporate management may improve their firm’s market performance by disclosing more forward looking information about their future prospects. The result of this study may be also helpful to regulators in Malaysian capital market in formulating information disclosure policy to promote transparency and to improve quality of information disclosure in annual reports to enhance market confidence. Disclosure of information - Malaysia Organizational effectiveness Stock ownership 2012-02 Thesis http://psasir.upm.edu.my/id/eprint/32838/ http://psasir.upm.edu.my/id/eprint/32838/1/GSM%202012%2012R.pdf application/pdf en public masters Universiti Putra Malaysia Disclosure of information - Malaysia Organizational effectiveness Stock ownership
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Disclosure of information - Malaysia Organizational effectiveness Stock ownership
spellingShingle	Disclosure of information - Malaysia Organizational effectiveness Stock ownership Noghondari, Ali Taebi Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
description	The focus of this study is to investigate the relationship between ownership structure, namely family ownership, institutional ownership, government ownership and diffused ownership, and the extent of forward looking information disclosure of public listed companies in Malaysia. The association between the proprietary cost of the firms and the extent of forward looking information disclosure is also examined. This study then examines whether the extent of forward looking information disclosure impacts firm market performance. This study used profitability and industry type as control variables. Content analysis was applied to measure the extent of forward looking information disclosure. The type of ownership structure was determined by the percentage of shares held by the top five share-holders. Relative market share was used as a proxy for proprietary cost. Finally, corporate market performance was measured by three indicators volatility of stock return, market liquidity ratio and Tobin’s Q. The sample consisted of 80 companies drawn from the 100 largest public-listed companies based on market capitalization at the end of 2009. Multiple regression analyses were carried out to examine the relationships among ownership structure, proprietary cost and the extent of voluntary disclosure of forward looking information. Simple linear regression was used to determine the relationship between the extent of forward looking information disclosure and firm market performance. The results show that among the ownership structure types, only family ownership has a significant negative effect on the extent of forward looking information disclosure. Although the proprietary cost significantly influences the extent of forward looking information disclosure, the direction is positive which is not as hypothesized. In addition, the extent of voluntary disclosure of forward looking information is positively related to the firm’s market performance. Empirical evidence provided in this study may be useful to practising managers. Corporate management may improve their firm’s market performance by disclosing more forward looking information about their future prospects. The result of this study may be also helpful to regulators in Malaysian capital market in formulating information disclosure policy to promote transparency and to improve quality of information disclosure in annual reports to enhance market confidence.
format	Thesis
qualification_level	Master's degree
author	Noghondari, Ali Taebi
author_facet	Noghondari, Ali Taebi
author_sort	Noghondari, Ali Taebi
title	Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
title_short	Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
title_full	Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
title_fullStr	Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
title_full_unstemmed	Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
title_sort	effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance
granting_institution	Universiti Putra Malaysia
publishDate	2012
url	http://psasir.upm.edu.my/id/eprint/32838/1/GSM%202012%2012R.pdf
_version_	1747811677855809536

Effects of ownership structure and proprietary cost on forward looking information disclosure and its impact on firm performance

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