Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies

The combination of corporate governance mechanisms and family succession play an important role in enhancing companies' performance, and in ensuring that family companies are sustained for the next generation. This study investigates the effect of corporate governance mechanisms (board and own...

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Main Author:	Noor Afza, Amran
Format:	Thesis
Language:	eng eng
Published:	2010
Subjects:	HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/2428/1/Noor_Afza_Amran.pdf https://etd.uum.edu.my/2428/2/1.Noor_Afza_Amran.pdf
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id	my-uum-etd.2428
record_format	uketd_dc
spelling	my-uum-etd.24282022-10-27T02:04:22Z Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies 2010 Noor Afza, Amran Che Ahmad, Ayoib College of Business (COB) College of Business HD2709-2930.7 Corporations The combination of corporate governance mechanisms and family succession play an important role in enhancing companies' performance, and in ensuring that family companies are sustained for the next generation. This study investigates the effect of corporate governance mechanisms (board and ownership structure) and succession attributes with company performance among Malaysian listed companies. This study used the panel data approach, and 420 companies on Bursa Malaysia were included as the sample. The results explain that family-controlled companies have higher firm value than non-family controlled companies. However, not all elements of governance mechanisms are significant, and the effects differ between family-businesses and non-family businesses. The results indicate that larger board size and inclusion of professional directors (experts) enhance firm value, both for family and non-family controlled companies. Further analysis shows that family and non-family companies that practise dual leadership show higher company performance. In terms of ownership structure, managerial and family ownership were found to show a non-linear pattern (entrenchment-alignment-entrenchment) with firm performance. Findings also signify that family CEO, CEO with higher education background, young CEO's and second generation CEO's enhance greater company performance. Thus, regulators need to note the different corporate governance practices between family and non-family businesses, and to create a pool of independent directors with-experience and skills in enhancing better corporate governance in Malaysia. 2010 Thesis https://etd.uum.edu.my/2428/ https://etd.uum.edu.my/2428/1/Noor_Afza_Amran.pdf text eng public https://etd.uum.edu.my/2428/2/1.Noor_Afza_Amran.pdf text eng public http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000766983 Ph.D. doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Che Ahmad, Ayoib
topic	HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations Noor Afza, Amran Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
description	The combination of corporate governance mechanisms and family succession play an important role in enhancing companies' performance, and in ensuring that family companies are sustained for the next generation. This study investigates the effect of corporate governance mechanisms (board and ownership structure) and succession attributes with company performance among Malaysian listed companies. This study used the panel data approach, and 420 companies on Bursa Malaysia were included as the sample. The results explain that family-controlled companies have higher firm value than non-family controlled companies. However, not all elements of governance mechanisms are significant, and the effects differ between family-businesses and non-family businesses. The results indicate that larger board size and inclusion of professional directors (experts) enhance firm value, both for family and non-family controlled companies. Further analysis shows that family and non-family companies that practise dual leadership show higher company performance. In terms of ownership structure, managerial and family ownership were found to show a non-linear pattern (entrenchment-alignment-entrenchment) with firm performance. Findings also signify that family CEO, CEO with higher education background, young CEO's and second generation CEO's enhance greater company performance. Thus, regulators need to note the different corporate governance practices between family and non-family businesses, and to create a pool of independent directors with-experience and skills in enhancing better corporate governance in Malaysia.
format	Thesis
qualification_name	Ph.D.
qualification_level	Doctorate
author	Noor Afza, Amran
author_facet	Noor Afza, Amran
author_sort	Noor Afza, Amran
title	Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
title_short	Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
title_full	Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
title_fullStr	Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
title_full_unstemmed	Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies
title_sort	corporate governance mechanisms, succession planning and firm performance: evidence from malaysian family and non-family controlled companies
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2010
url	https://etd.uum.edu.my/2428/1/Noor_Afza_Amran.pdf https://etd.uum.edu.my/2428/2/1.Noor_Afza_Amran.pdf
_version_	1776103598474657792

Corporate Governance Mechanisms, Succession Planning and Firm Performance: Evidence from Malaysian Family and Non-Family Controlled Companies

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