/jurnalpengurusan Sun, 31 Mar 2024 16:18:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/ownership-structures-and-sustainability-reporting-of-malaysian-listed-companies/?utm_source=rss&utm_medium=rss&utm_campaign=ownership-structures-and-sustainability-reporting-of-malaysian-listed-companies Sun, 31 Mar 2024 16:18:40 +0000 /jurnalpengurusan/?post_type=article&p=7264 The study examines the quality of sustainability reporting (SR), the relationship between ownership structures (namely institutional ownership (IO), managerial ownership (MO), and family ownership (FO)) and SR, and the existence of a non-linear relationship between ownership structures and SR based on the inconsistent results of previous studies. The study collected secondary data from the annual and sustainability reports of 261 Malaysian public listed companies (PLCs) in 2018 and 2019 and analysed the data using content analysis. The results report a slight increment in the quality of SR in 2019, and using Ordinary Least Squares (OLS) regression, it is found that only IO has a positive and significant association with SR, which indicates that companies with major institutional shareholdings attain superior SR quality. Further exploration reveals a curvilinear relationship (inverse U-shape) between IO and SR quality, whereby the effect declines when IO reaches a certain threshold. As such, these findings shed light on the changes in investors’ motivation towards their Corporate Social Responsibility (CSR) commitment based on their company holdings, showing the delicate balance needed between oversight and the aligning of interests. This means that large institutional investors in a company should collaborate with management to advocate for policies and practices that support social and environmental objectives that are aligned with the company’s long-term view of value creation.

 

]]> /jurnalpengurusan/article/board-of-directors-and-ownership-structure-a-study-on-small-and-medium-enterprises-smes-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=board-of-directors-and-ownership-structure-a-study-on-small-and-medium-enterprises-smes-in-malaysia Sat, 08 Oct 2022 17:21:39 +0000 /jurnalpengurusan/?post_type=article&p=3247 Small- and medium-sized enterprises (SMEs) do not gain sufficient economic returns despite their significant economic contributions. A possible cause of poor SME performance is weak corporate governance. However, the corporate governance of SMEs is rarely investigated. Ownership structure provides SMEs with a monitoring mechanism that enhances performance. This study examines the relationships between board characteristics (including size, composition boards, CEO duality, expertise, and ethnicity) and SME performance in Malaysia. This study also explores how such relationships can be moderated by monitoring ownership structure. Survey results on SMEs in Klang Valley and Selangor areas show that non-executive boards and CEO duality are significantly and positively related to firm performance. In comparison, management ownership is significantly and negatively related to performance. Board size, expertise, ethnicity, and family ownership are not significantly related to SME performance. Findings indicate that good corporate governance improves decision making and firm performance. Furthermore, agency theory can explain conflict of interest in SMEs and the importance of corporate governance in enhancing their performance.

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