Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value

Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value

Keeping in view the important role of Malaysian corporate sector in the country’s growth and development, and proliferation of diversified companies, this study was conducted on Public Listed Companies (PLCs) on Bursa Malaysia’s Main Market. This study examines the relationship between corporate boa...

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Main Author: Salisu, Umar
Format: Thesis
Language:eng
eng
eng
Published: 2020
Subjects:
HD2709-2930.7 Corporations
Online Access:https://etd.uum.edu.my/9489/1/depositpermission_s901392.pdf
https://etd.uum.edu.my/9489/2/s901392_01.pdf
https://etd.uum.edu.my/9489/3/s901392_references.docx
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spelling my-uum-etd.94892022-06-12T06:59:19Z Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value 2020 Salisu, Umar Ishak, Zuaini Sawandi, Norfaiezah Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD2709-2930.7 Corporations Keeping in view the important role of Malaysian corporate sector in the country’s growth and development, and proliferation of diversified companies, this study was conducted on Public Listed Companies (PLCs) on Bursa Malaysia’s Main Market. This study examines the relationship between corporate board, diversification, the value of diversified listed companies in Malaysia, with the moderating effect of managers’ wealth maximization on diversification strategies and value. Secondary data was obtained mainly from the companies’ annual reports published. This study utilised sample of 490 PLCs, and employed multiple regression techniques to analyse data and draw conclusions. Findings of the study reveals that board independence and risk management committee have positive impact on diversification value. Meanwhile board size, audit independence, audit committee size and tenure of independent directors have negative impact on the diversification value. Furthermore, the findings show that related diversification strategy positively affects diversification value, whereas unrelated diversification strategy has a negative impact on diversification value. Managers’ wealth maximization positively moderates the relationship between related diversification strategy and diversification value. However, managers’ wealth maximization shows a negative moderation relationship between unrelated diversification strategy and diversification value. Related diversifiers seem to outperform unrelated diversifiers on all the three diversification value dimensions (sales, ebit & asset). The findings supports the agency and resource dependency theories on the view that enhanced corporate governance practices could contribute towards increasing diversification value. In addition, the findings may also assist corporate managers to get rid of the dilemma on their choice of the best and most profitable diversification strategies. Generally, this study provides additional insights to policy makers and regulators towards improving corporate governance policies in the future. It may also help to increase understanding the relationship between corporate governance practices, diversification strategies and firm value. 2020 Thesis https://etd.uum.edu.my/9489/ https://etd.uum.edu.my/9489/1/depositpermission_s901392.pdf text eng staffonly https://etd.uum.edu.my/9489/2/s901392_01.pdf text eng public https://etd.uum.edu.my/9489/3/s901392_references.docx text eng public other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Ishak, Zuaini
Sawandi, Norfaiezah
topic HD2709-2930.7 Corporations
spellingShingle HD2709-2930.7 Corporations
Salisu, Umar
Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
description Keeping in view the important role of Malaysian corporate sector in the country’s growth and development, and proliferation of diversified companies, this study was conducted on Public Listed Companies (PLCs) on Bursa Malaysia’s Main Market. This study examines the relationship between corporate board, diversification, the value of diversified listed companies in Malaysia, with the moderating effect of managers’ wealth maximization on diversification strategies and value. Secondary data was obtained mainly from the companies’ annual reports published. This study utilised sample of 490 PLCs, and employed multiple regression techniques to analyse data and draw conclusions. Findings of the study reveals that board independence and risk management committee have positive impact on diversification value. Meanwhile board size, audit independence, audit committee size and tenure of independent directors have negative impact on the diversification value. Furthermore, the findings show that related diversification strategy positively affects diversification value, whereas unrelated diversification strategy has a negative impact on diversification value. Managers’ wealth maximization positively moderates the relationship between related diversification strategy and diversification value. However, managers’ wealth maximization shows a negative moderation relationship between unrelated diversification strategy and diversification value. Related diversifiers seem to outperform unrelated diversifiers on all the three diversification value dimensions (sales, ebit & asset). The findings supports the agency and resource dependency theories on the view that enhanced corporate governance practices could contribute towards increasing diversification value. In addition, the findings may also assist corporate managers to get rid of the dilemma on their choice of the best and most profitable diversification strategies. Generally, this study provides additional insights to policy makers and regulators towards improving corporate governance policies in the future. It may also help to increase understanding the relationship between corporate governance practices, diversification strategies and firm value.
format Thesis
qualification_name other
qualification_level Doctorate
author Salisu, Umar
author_facet Salisu, Umar
author_sort Salisu, Umar
title Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
title_short Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
title_full Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
title_fullStr Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
title_full_unstemmed Corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
title_sort corporate board, diversification strategies, and the value of diversified listed companies: the moderating effect of managers' wealth maximization on diversification value
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2020
url https://etd.uum.edu.my/9489/1/depositpermission_s901392.pdf
https://etd.uum.edu.my/9489/2/s901392_01.pdf
https://etd.uum.edu.my/9489/3/s901392_references.docx
_version_ 1747828606675976192

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