Does Ownership Structure Matter to Strategic Change? Evidence of the Malaysian Firms Research Article

Abdullah, N. A. I. N., Ali, M. M., & Haron, N. H. (2017). Ownership structure, firm value and growth opportunities: Malaysian evidence. Journal of Computational and Theoretical Nanosicence, 23(8), 7378–7382.
Abu Qa’dan, M. B., & Suwaidan, M. S. (2019). Board composition, ownership structure and corporate social responsibility disclosure: the case of Jordan. Social Responsibility Journal, 15(1), 28–46. https://doi.org/10.1108/SRJ-11-2017-0225
Ade Putra, T., Andreas, A., & Savitri, E. (2022). The effect of institutional ownership, families’ ownership, ownership concentration and dividend policy towards firm performance. Indonesian Journal of Economics, Social, and Humanities, 4(2), 151–165. https://doi.org/10.31258/ijesh.4.2.151-165
Ahmad, N. B. J., Rashid, A., & Gow, J. (2018). Corporate board gender diversity and corporate social responsibility reporting in Malaysia. Gender, Technology and Development, 22(2), 87–108.
Ahmed, N., & Hadi, O. A. (2017). Impact of ownership structure on firm performance in the MENA Region: An empirical study. Accounting and Finance Research, 6(3), 105.
Al-Jaifi, H. A. (2017). Ownership concentration, earnings management and stock market liquidity: Evidence from Malaysia. Corporate Governance (Bingley), 17(3), 490–510.
Al-Jaifi, H. A., Al-Rassas, A. H., & Al-Qadasi, A. (2019). Institutional investor preferences: Do internal auditing function and audit committee effectiveness matter in Malaysia? Management Research Review, 42(5), 641–659. https://doi.org/10.1108/MRR-11-2016-0258
Allam, B. S. (2018). The impact of board characteristics and ownership identity on agency costs and firm performance: UK evidence. Corporate Governance (Bingley), 18(6), 1147–1176.
Al-Najjar, B., & Kilincarslan, E. (2016). The effect of ownership structure on dividend policy: evidence from Turkey. Corporate Governance (Bingley), 16(1), 135–161. https://doi.org/10.1108/CG-09-2015-0129
Alquist, R., Berman, N., Mukherjee, R., & Tesar, L. L. (2019). Financial constraints, institutions, and foreign ownership. Journal of International Economics, 118, 63–83. https://doi.org/10.1016/j.jinteco.2019.01.008
Ansoff, H. I. (1980). Strategic issue management. Strategic Management Journal, 1(2), 131–148. https://doi.org/10.1002/smj.4250010204
Back, P., Rosing, K., Dickler, T. A., Kraft, P. S., & Bausch, A. (2020). CEOs’ temporal focus, firm strategic change, and performance: Insights from a paradox perspective. European Management Journal, 38(6), 884–899.
Bao, S. R., & Lewellyn, K. B. (2017). Ownership structure and earnings management in emerging markets—An institutionalized agency perspective. International Business Review, 26(5), 828–838.
Belling, M., Pidun, U., & zu Knyphausen-Aufseß, D. (2021). Unbundling strategic change in family firms: the influence of familiness on the strategic change process. Schmalenbach Journal of Business Research, 73(3–4), 381–411.
Buertey, S., Sun, E. J., Lee, J. S., & Hwang, J. (2020). Corporate social responsibility and earnings management: The moderating effect of corporate governance mechanisms. Corporate Social Responsibility and Environmental Management, 27(1), 256–271. https://doi.org/10.1002/csr.1803
Choi, S. H., & Szewczyk, S. H. (2018). Corporate governance structure and strategic change: evidence from major acquisitions. Managerial Finance, 44(2), 222–240. https://doi.org/10.1108/MF-05-2017-0169
Chung, K. H., & Lee, C. (2020). Voting methods for director election, monitoring costs, and institutional ownership. Journal of Banking and Finance, 113, 105738. https://doi.org/10.1016/j.jbankfin.2020.105738
Cucari, N., Esposito De Falco, S., & Orlando, B. (2018). Diversity of board of directors and environmental social governance: Evidence from Italian listed companies. Corporate Social Responsibility and Environmental Management, 25(3), 250–266.
Díaz-Fernández, M. C., González-Rodríguez, M. R., & Simonetti, B. (2019). The moderating role of top management team diversity in strategic change in a multicultural context. European Management Review, 16(4), 957–973.
Domunguez-CC, M., & Barroso-Castro, C. (2017). Managerial change and strategic change: The temporal sequence. Journal of Management and Organization, 23(1), 46–73.
Ekadjaja, M., Siswanto, H. P., Nuringsih, K., & Amelinda, R. (2019). Parabolic effect between managerial ownership and firm value to control agency onflict. Jurnal Manajemen, 23(3), 355. https://doi.org/10.24912/jm.v23i3.569
Eulaiwi, B., Al-Hadi, A., Taylor, G., Al-Yahyaee, K. H., & Evans, J. (2016). Multiple directorships, family ownership and the board nomination committee: International evidence from the GCC. Emerging Markets Review, 28, 61–88.
Fidrmuc, J., & Kapounek, S. (2020). The risks and financial vulnerability of foreign bank ownership in CEECs: Evidence from exchange rate depreciation after the financial crisis. Eastern European Economics, 58(1), 34–48.
Finkelstein, S., & Hambrick, D. C. (1990). Top management team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly, 35(3), 484.
Ghazali, N. A. M. (2010). Ownership structure, corporate governance and corporate performance in Malaysia. International Journal of Commerce and Management, 20(2), 109–119.
Gonzalez, M., Molina, C. A., Pablo, E., & Rosso, J. W. (2017). The effect of ownership concentration and composition on dividends: Evidence from Latin America. Emerging Markets Review, 30, 1–18. https://doi.org/10.1016/j.ememar.2016.08.018
Harjoto, M. A., Laksmana, I., & Yang, Y. wen. (2018). Board diversity and corporate investment oversight. Journal of Business Research, 90, 40–47.
Hatane, S. E., Wiyono, F., & Tarigan, J. (2020). Capital structure and board characteristics in firm performances of Indonesian LQ45 companies. The Indonesian Journal of Accounting Research, 23(02), 213–240. https://doi.org/10.33312/ijar.477
Hoskisson, R. E., & Hitt, M. A. (1988). Strategic control systems and relative R&D investment in large multiproduct firms. Strategic Management Journal, 9(6), 605–621. https://doi.org/10.1002/smj.4250090607
Idris, M., Siam, Y. A., Qabajeh, M., & Eitah, R. A. (2022). Managerial ownership and accruals earnings management. Central European Management Journal, 30, 2076–2081. https://doi.org/10.57030/23364890.cemj.30.4.214
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm managerial behaviour, agency cost and ownership structure. Journal of Financial Economics, 3, 305–360.
Kalasin, K. (2021). Strategic change: The impact of senior foreign managers, firm size and uncertainty avoidance. Review of International Business and Strategy, 31(1), 38–61. https://doi.org/10.1108/RIBS-03-2020-0023
Kao, M. F., Hodgkinson, L., & Jaafar, A. (2019). Ownership structure, board of directors and firm performance: evidence from Taiwan. Corporate Governance (Bingley), 19(1), 189–216. https://doi.org/10.1108/CG-04-2018-0144
Kok, C. (2020). Malaysia rank no 27 competitive nation. The Star. https://www.thestar.com.my/business/business-news/2020/06/18/malaysia-is-27th-most-competitive-nation#:~:text=The country is now ranked,and ability to generate prosperity.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th Globa). Pearson.
Le, S., & Kroll, M. (2017). CEO international experience?: Effects on strategic change and firm performance. Journal of International Business Studies, 48(5), 573–595.
Liedong, T. A., Aghanya, D., Jimenez, A., & Rajwani, T. (2023). Corporate political activity and bribery in Africa: Do internet penetration and foreign ownership matter? Journal of Business Research, 154(September 2022), 113326. https://doi.org/10.1016/j.jbusres.2022.113326
Lindskov, A. (2022). Hypercompetition: a review and agenda for future research. Competitiveness Review, 32(3), 391–427. https://doi.org/10.1108/CR-06-2021-0097
Makhlouf, M. H., Laili, N. H., Ramli, N. A., Al-Sufy, F., & Basah, M. Y. (2018). Board of directors, firm performance and the moderating role of family control in Jordan. Academy of Accounting and Financial Studies Journal, 22(5).
Manzaneue, M., Merino, E., & Priego, A. M. (2016). The role of institutional shareholders as owners and directors and the financial distress likelihood. Evidence from a concentrated ownership context. European Management Journal, 34(4), 439–451.
Maznorbalia, A. S., Awalluddin, M. A., & Ayob, A. H. Y. (2023). Exploring the role of institutional investors in voting, monitoring and dialogue engagement in mitigating agency conflict in Malaysia’s public listed companies. Humanities and Social Sciences Communications, 10(1), 1–9. https://doi.org/10.1057/s41599-023-01631-z
Md Zaini, S., Sharma, U., Samkin, G., & Davey, H. (2020). Impact of ownership structure on the level of voluntary disclosure: a study of listed family-controlled companies in Malaysia. Accounting Forum, 44(1), 1–34. https://doi.org/10.1080/01559982.2019.1605874
Mintzberg, H. (1978). Patterns in strategy formation. Management Science, 24(9), 934–948.
Mohd Ghazali, N. A. (2020). Governance and ownership in Malaysia: their impacts on corporate performance. Asian Journal of Accounting Research, 5(2), 285–298. https://doi.org/10.1108/AJAR-03-2020-0017
Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation. An empirical analysis. Journal of Financial Economics, 20(C), 293–315. https://doi.org/10.1016/0304-405X(88)90048-7
Mukhopadhyay, J., & Chakraborty, I. (2017). Foreign institutional investment, business groups and firm performance: Evidence from India. Research in International Business and Finance, 39, 454–465. https://doi.org/10.1016/j.ribaf.2016.09.015
Müller, J., & Kunisch, S. (2018). Central perspectives and debates in strategic change research. International Journal of Management Reviews, 20(2), 457–482. https://doi.org/10.1111/ijmr.12141
NST Business. (2019). PE and M&A evolving in Malaysia. New Straits Times. https://www.nst.com.my/business/2019/08/516684/pe-and-ma-evolving-malaysia
Nuringsih, K., & Susanto, W. (2020). The parabolic effect of managerial ownership and the impact toward firm’s performance. Jurnal Ekonomi, 25(2), 233. https://doi.org/10.24912/je.v25i2.663
Oehmichen, J., Schrapp, S., & Wolff, M. (2016). Who needs experts most?Board industry expertise and strategic change- A contingency perspective. Strategic Management Journal, 1–43.
Oh, W. Y., Cha, J., & Chang, Y. K. (2017). Does ownership structure matter? The effects of insider and institutional ownership on corporate social responsibility. Journal of Business Ethics, 146(1), 111–124. https://doi.org/10.1007/s10551-015-2914-8
Omer, W. K. H., & Al-Qadasi, A. A. (2020). Board of directors’ effectiveness and monitoring costs: The role of family control. Malaysian evidence. Managerial Auditing Journal, 35(4), 477–497. https://doi.org/10.1108/MAJ-01-2019-2153
Owusu, A., & Weir, C. (2018). Agency costs, ownership structure and corporate governance mechanisms in Ghana. International Journal of Accounting, Auditing and Performance Evaluation, 14(1), 63–84. https://doi.org/10.1504/IJAAPE.2018.089414
Phung, D. N., & Mishra, A. V. (2016). Ownership structure and firm performance: Evidence from Vietnamese listed firms. Australian Economic Papers, 55(1), 63–98.
Putri, N. M. D., & Nurfauziah, N. (2022). The effect of ownership structure on the level of agency conflict. International Journal of Research in Business and Social Science (2147- 4478), 11(5), 314–323. https://doi.org/10.20525/ijrbs.v11i5.1886
Rahman, A. N. A. A., & Reja, B. A. F. M. (2015). Ownership structure and bank performance. Journal of Economics, Business and Management, 3(5), 483–488. https://doi.org/10.7763/joebm.2015.v3.232
Rajagopalan, N., & Spreitzer, G. M. (1997). Toward a theory of strategic change?: A multi-lens perspective and integrative framework. Academy of Management Review, 22(1), 48–79.
Rodriguez-Garcia, P., & Menéndez-Requejo, S. (2023). Family constitution to manage family firms’ agency conflicts. BRQ Business Research Quarterly, 26(2), 150–166. https://doi.org/10.1177/2340944420980444
Saghi-Zedek, N. (2016). Product diversification and bank performance: Does ownership structure matter? Journal of Banking and Finance, 71(May), 154–167. https://doi.org/10.1016/j.jbankfin.2016.05.003
Sanders, W. G., & Carpenter, M. A. (1998). Internationalization and firm governance: The roles of CEO compensation, top team composition, and board structure. Academy of Management Journal, 41(2), 158–178. https://doi.org/10.2307/257100
Shubita, R., & Shubita, M. F. (2019). The impact of foreign ownership on corporate governance: Evidence from an emerging market. Investment Management and Financial Innovations, 16(2), 101–115. https://doi.org/10.21511/imfi.16(2).2019.09
Singh, S., Tabassum, N., Darwish, T. K., & Batsakis, G. (2018). Corporate governance and Tobin’s Q as a measure of organizational performance. British Journal of Management, 29(1), 171–190.
Singla, C., George, R., & Veliyath, R. (2017). Ownership structure and internationalization of Indian firms. Journal of Business Research, 81(August), 130–143. https://doi.org/10.1016/j.jbusres.2017.08.016
Sousa, C. M. P., Yan, J., Gomes, E., & Lengler, J. (2021). Export activity, R&D investment, and foreign ownership: does it matter for productivity? International Marketing Review, 38(3), 613–639. https://doi.org/10.1108/IMR-03-2020-0045
Subastian, L. U., & Setiawan, D. (2022). Does foreign ownership structure increase Indonesian firms’ risk-taking? Jurnal Ekonomi Dan Bisnis, 25(1), 59–70. https://doi.org/10.24914/jeb.v25i1.4952
Sun, J., Ding, L., Guo, J. M., & Li, Y. (2016). Ownership, capital structure and financing decision: Evidence from the UK. British Accounting Review, 48(4), 448–463. https://doi.org/10.1016/j.bar.2015.04.001
Tangke, P. (2021). Managerial capability and foreign ownership: Mechanisms for increasing company value. ATESTASI?: Jurnal Ilmiah Akuntansi, 4(2), 175–189. https://doi.org/10.33096/atestasi.v4i2.812
Tarus, D. K. (2014). Board demographic diversity, firm performance and strategic change A test of moderation. Management Research Review, 37(12), 1110–1136.
Ting, I. W. K., Kweh, Q. L., Lean, H. H., & Ng, J. H. (2016). Ownership structure and firm performance: The role of R&D. Institutions and Economies, 8(4), 1–21.
Uddin, M. N., Shamim, M., Khan, U., & Hosen, M. (2019). Does corporate governance influence leverage structure in Bangladesh? International Journal of Financial Studies, 7, 1–16.
Ukil, M. I., & Akkas, M. A. (2017). Determining success factors for effective strategic change: Role of middle managers’ strategic involvement. Serbian Journal of Management, 12(1), 29–40.
Vo, X. V., & Chu, T. K. H. (2019). Do foreign shareholders improve corporate earnings quality in emerging markets? Evidence from Vietnam. Cogent Economics and Finance, 7(1), 1–22. https://doi.org/10.1080/23322039.2019.1698940
Wang, H., Wu, J., Yang, Y., Li, R., & Liu, Y. (2019). Ownership concentration, identity and firm performance: Evidence from China’s listed firms. Emerging Markets Finance and Trade, 55(15), 3653–3666. https://doi.org/10.1080/1540496X.2019.1672042
Wang, K., Pellegrini, M. M., Xue, J., & Wang, C. (2020). Environment uncertainty and a firm’s strategic change the moderating role of political connection and family ownership. Journal of Family Business Management, 10(4), 313–327.
Wang, K., Xue, K. K., Xu, J. H., Chu, C. C., Tsai, S. B., Fan, H. J., Wang, Z. Y., & Wang, J. (2018). How does a staggered board provision affect corporate strategic change? Evidence from China’s listed companies. Sustainability (Switzerland), 10(5), 1–13.
Wang, S., Wang, H., Wang, J., & Yang, F. (2020). Does environmental information disclosure contribute to improve firm financial performance? An examination of the underlying mechanism. Science of the Total Environment, 714(96), 136855. https://doi.org/10.1016/j.scitotenv.2020.136855
Wiersema, M. F., & Bantel, K. A. (1992). Top management team demography and corporate strategic change. Academy of Management Journal, 35(1), 91–121.
Wong, Y., Chang, H., & Lee, C. (2020). When do family CEO successors perform strategic change heterogeneously?? Management Review, 39(1), 103–121.
Ying, T., Wright, B., & Huang, W. (2017). Ownership structure and tax aggressiveness of Chinese listed companies. International Journal of Accounting and Information Management.
Zaitul, Ridwan, M., & Pratiwi, H. (2019). Dividend policy in indonesian companies: Does corporate governance matter? International Journal of Recent Technology and Engineering, 8(2 Special Issue 9), 825–830.
Zhao, J., Carney, M., Zhang, S., & Zhu, L. (2020). How does an intra-family succession effect strategic change and performance in China’s family firms? Asia Pacific Journal of Management, 37(2), 363–389.
Zhou, J., Zhai, M., Yu, Y., & Zhou, F. (2014). The effect of board characteristics on a firm’s strategic change. Frontiers of Business Research in China, 8(3), 299–326.
Zhu, Q., Hu, S., & Shen, W. (2020). Why do some insider CEOs make more strategic changes than others? The impact of prior board experience on new CEO insiderness. Strategic Management Journal, 41(10), 1933–1951. https://doi.org/10.1002/smj.3183

N/A

Copyright: © 2023 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode