/jurnalpengurusan Wed, 21 May 2025 04:05:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/corporate-governance-leverage-and-stock-returns-of-non-financial-listed-firms-in-the-asean-region-the-moderating-role-of-firm-growth/?utm_source=rss&utm_medium=rss&utm_campaign=corporate-governance-leverage-and-stock-returns-of-non-financial-listed-firms-in-the-asean-region-the-moderating-role-of-firm-growth Tue, 20 May 2025 04:13:08 +0000 /jurnalpengurusan/?post_type=article&p=7636 A well-structured board, with diversity, independence, and strong audit committee supervision, can enhance shareholder value by improving monitoring, decision-making, and investor trust, ultimately leading to higher returns However, empirical research has revealed a more subtle perspective, with various relationships that can be positive, inconclusive, or negative. highlighted the importance of further studies on the moderating factors that help explain these diverse findings. This study examines the moderating role of firm growth on the effects of corporate governance mechanisms and leverage on the stock returns of non-financial listed firms in the ASEAN region. Data were obtained from six countries in the ASEAN region comprising 412 firms covering to 2012-2022 from the LSGE-Eikon database. This study reveals a positive relationship between board independence, gender diversity, and robust audit committees and returns, emphasising the importance of strong governance in aligning interests and reducing agency costs. It also highlights the role of firm growth in influencing governance elements, and emphasizes the link between strategic leverage and growth expectations. Establishing robust independent audit committees and sharing financial information consistently is recommended to promote openness and confidence. This study implies that businesses with strong corporate governance, particularly those with higher price-to-book ratios, experience better supervision and decision making.

]]> /jurnalpengurusan/article/the-influence-of-ultimate-ownership-concentration-on-leverage/?utm_source=rss&utm_medium=rss&utm_campaign=the-influence-of-ultimate-ownership-concentration-on-leverage Tue, 11 Oct 2022 07:37:38 +0000 /jurnalpengurusan/?post_type=article&p=5391 This paper investigates the relationship between ultimate ownership concentration and the extent of leverage in the context of Malaysia. The data of this study include 478 publicly listed firms from2001 to 2012. The results show that ultimate ownership concentration has U-shaped relationship with leverage, with the turning point being at the ownership concentration of 42%. Based on signalling theory, the results show that a moderate extent of ultimate ownership concentration tends to adopt lower leverage for they have higher incentives to self-monitor managerial opportunistic decision making; by contrast, an ultimate owner who holds excessively high concentration of shareholdings shows self- benefitting behaviour, with the owner tending to adopt higher leverage to sustain the loss of firm value from expropriation. However, higher institutional ownership concentration plays a significant monitoring role over the owner’s opportunistic behaviour through the signalling of lower leverage even when the shareholding of ultimate owner is excessively large.

]]> /jurnalpengurusan/article/the-effect-of-firm-specific-and-macroeconomic-uncertainty-on-firm-leverage-short-term-and-long-term-debt-in-the-philippines/?utm_source=rss&utm_medium=rss&utm_campaign=the-effect-of-firm-specific-and-macroeconomic-uncertainty-on-firm-leverage-short-term-and-long-term-debt-in-the-philippines Mon, 10 Oct 2022 14:30:24 +0000 /jurnalpengurusan/?post_type=article&p=5087 Firms often face uncertainties which may affect corporate financing decisions. As uncertainty has potential adverse and destabilizing effects on firms, this study is carried out to examine the influence of firm-specific and macroeconomic uncertainty on firm leverage, short-term and long-term debt. Based on a panel of Philippine listed firms from 2004- 2014, we adopt a dynamic panel data estimation technique, namely the Generalized Method of Moments to conduct our analyses. The results provide strong evidence of the adverse influence of firm-specific and macroeconomic uncertainty on leverage. Furthermore, the results indicate that while short-term debt is adversely impacted by firm-specific and macroeconomic uncertainty, long-term debt is merely influenced by macroeconomic uncertainty. This implies that although Philippine firms consider firm-specific and macroeconomic uncertainty in their short-run financing decisions, they are primarily concerned about macroeconomic uncertainty in the long-run. This paper addresses the paucity of research that has been conducted in this area, particularly in the context of developing countries. The findings provide important insights into the way firms derive their short- and long-run corporate financing decisions when encountering uncertainties. The insights can guide policymakers to formulate suitable policies to ensure stability in the business and macroeconomic environment.

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