Shareholder activism in family-controlled firms in Malaysia
Purpose - The purpose of this paper is to investigate the impact of shareholder activism led by the Minority Shareholder Watchdog Group (MSWG) on the performance of family-controlled firms in Malaysia from 2005 to 2009. Design/methodology/approach - The paper uses event study methodology to calculate abnormal returns for the sample and control firms. Findings - The paper finds significant positive cumulative abnormal returns of at least 0.5 percent for the targeted family firms, during the event window of [-1, 0] and [0, +1], as a result of MSWG engagement. There is a significant positive cumulative abnormal return of 1 percent for the firms where family control is less than the threshold level of 33 percent. It is interesting to note that MSWG engagements do not have consistent positive impact on the abnormal returns over the years. There are significant differences between the performance of MSWG targeted family-controlled firms and non-targeted family-controlled firms after one year of MSWG intervention. Research limitations/implications - The results show that MSWG-led shareholder activism does have an effect on the share returns of the family-controlled firms. These results imply that family-controlled firms agree with the MSWG on those matters that improve the bottom-line results. Originality/value - The authors argue that this is the first study to examine MSWG engagements with family-controlled firms in Malaysia.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 27 (2012)
Issue (Month): 8 (August)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://emeraldgrouppublishing.com/products/journals/journals.htm?id=maj Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Kay & Aubrey Silberston, 1995. "Corporate Governance," National Institute Economic Review, National Institute of Economic and Social Research, vol. 153(1), pages 84-107, August.
- Karpoff, Jonathan M. & Malatesta, Paul H. & Walkling, Ralph A., 1996. "Corporate governance and shareholder initiatives: Empirical evidence," Journal of Financial Economics, Elsevier, vol. 42(3), pages 365-395, November.
- Kose John & April Klein, 1995. "Shareholder Proposals and Corporate Governance," New York University, Leonard N. Stern School Finance Department Working Paper Seires 98-046, New York University, Leonard N. Stern School of Business-.
- Shleifer, Andrei & Vishny, Robert W, 1997.
" A Survey of Corporate Governance,"
Journal of Finance,
American Finance Association, vol. 52(2), pages 737-783, June.
- Andrei Shleifer & Robert W. Vishny, 1995. "A Survey of Corporate Governance," Harvard Institute of Economic Research Working Papers 1741, Harvard - Institute of Economic Research.
- Andrei Shleifer & Robert W. Vishny, 1996. "A Survey of Corporate Governance," NBER Working Papers 5554, National Bureau of Economic Research, Inc.
- Lex Donaldson & James H. Davis, 1991. "Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns," Australian Journal of Management, Australian School of Business, vol. 16(1), pages 49-64, June.
- April Klein & Emanuel Zur, 2009. "Entrepreneurial Shareholder Activism: Hedge Funds and Other Private Investors," Journal of Finance, American Finance Association, vol. 64(1), pages 187-229, 02.
- repec:hrv:faseco:30747162 is not listed on IDEAS
- repec:hrv:faseco:30728046 is not listed on IDEAS
- Rashid Ameer & Rashidah Abdul Rahman, 2009. "The Impact of Minority Shareholder Watchdog Group Activism on the Targeted Firms' Performance in Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 5(1), pages 67-92.
- Gillan, Stuart L. & Starks, Laura T., 2000. "Corporate governance proposals and shareholder activism: the role of institutional investors," Journal of Financial Economics, Elsevier, vol. 57(2), pages 275-305, August.
- Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 1998.
"Corporate Ownership Around the World,"
NBER Working Papers
6625, National Bureau of Economic Research, Inc.
- Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 1998. "Corporate Ownership Around the World," Harvard Institute of Economic Research Working Papers 1840, Harvard - Institute of Economic Research.
- Stuart L. Gillan & Laura T. Starks, 2007. "The Evolution of Shareholder Activism in the United States," Journal of Applied Corporate Finance, Morgan Stanley, vol. 19(1), pages 55-73.
- Kohlbeck, Mark & Mayhew, Brian W., 2010. "Valuation of firms that disclose related party transactions," Journal of Accounting and Public Policy, Elsevier, vol. 29(2), pages 115-137, March.
- Beni Lauterbach & Alexander Vaninsky, 1999. "Ownership Structure and Firm Performance: Evidence from Israel," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 3(2), pages 189-201, June.
- J. Dahya & A.A. Lonie & D.M. Power, 1996. "The Case for Separating the Roles of Chairman and CEO: An Analysis of Stock Market and Accounting Data," Corporate Governance: An International Review, Wiley Blackwell, vol. 4(2), pages 71-77, 04.
- Mohd Hassan Che Haat, 2008. "Corporate governance, transparency and performance of Malaysian companies," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(8), pages 744-778, September.
- Emma Sjöström, 2008. "Shareholder activism for corporate social responsibility: what do we know?," Sustainable Development, John Wiley & Sons, Ltd., vol. 16(3), pages 141-154.
- Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
- Timothy A. Kruse, 2007. "Minority Expropriation and Shareholder Activism Following Olivetti's Hostile Takeover of Telecom Italia," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 133-143, 03.
- repec:eme:sefpps:v:23:y:2006:i:2:p:94-118 is not listed on IDEAS
- Zingales, Luigi, 1994. "The Value of the Voting Right: A Study of the Milan Stock Exchange Experience," Review of Financial Studies, Society for Financial Studies, vol. 7(1), pages 125-148.
When requesting a correction, please mention this item's handle: RePEc:eme:majpps:v:27:y:2012:i:8:p:774-794. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.