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Founder Management, Government Ownership and Firm Performance: Evidence from Malaysia


  • Irene Wei Kiong Ting

    () (Universiti Malaysia Pahang)

  • Qian Long Kweh

    () (Faculty of Management, Canadian University Dubai, 117781 Dubai, United Arab Emirates)

  • Hooi Hooi Lean

    () (Economics Program, School of Social Sciences, Universiti Sains Malaysia, 11800 Georgetown, Pulau Pinang, Malaysia.)

  • Sui Hai Juan

    () (Faculty of Industrial Management, Universiti Malaysia Pahang,)


This paper examines first, how founder CEOs affect firm performance and second, whether government ownership moderates the relationship between founder CEOs and firm performance of companies listed in Malaysia between 2002 and 2011. Firms led by founder CEOs perform better than those led by non-founder CEOs. Although a direct-effect test indicates that government ownership may be detrimental to firm performance, there exists a positive relationship between founder CEOs and firm performance in the presence of government ownership from the perspective of growth opportunities. In terms of profitability, however, government ownership may not increase return on assets. These findings suggest that the government may play a crucial role to protect investor’s wealth, especially with respect to long-term survival of a company.

Suggested Citation

  • Irene Wei Kiong Ting & Qian Long Kweh & Hooi Hooi Lean & Sui Hai Juan, 2018. "Founder Management, Government Ownership and Firm Performance: Evidence from Malaysia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 10(1), pages 1-17, January.
  • Handle: RePEc:umk:journl:v:10:y:2018:i:1:p:1-17

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm


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