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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Insider Ownership and Firm Performance: Comparative Analysis based on Emerging Economy of Malaysia and Bangladesh

Nabila Wahid, M. H. Yahya, Mohammad Noor Hisham Osman

http://dx.doi.org/10.6007/IJARAFMS/v13-i4/19717

Open access

This study explores the correlation between insider ownership and firm performance, specifically examining senior management and non-executive director ownership, assessed through Return on Assets (ROA). Utilizing data from publicly listed firms in Malaysia and Bangladesh spanning 2010 to 2019, the research employs Generalized Method of Moments (GMM) regression using both linear and cubic models. The central aim is to evaluate the impact of insider ownership on firm performance. Findings indicate a predominantly positive association between insider ownership and firm performance, with a more pronounced effect observed in the Malaysian economy compared to Bangladesh. This disparity underscores the diversified influence of insider ownership on firm performance in the distinctive economic contexts of these emerging economies. These results contribute to the literature on ownership structure and firm performance, providing valuable insights for practitioners, policymakers, and academics. The comparative analysis between Malaysia and Bangladesh offers nuanced perspectives, forming a basis for further research and strategic decision-making in corporate governance.

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(Wahid et al., 2023)
Wahid, N., Yahya, M. H., & Osman, M. N. H. (2023). Insider Ownership and Firm Performance: Comparative analysis based on emerging economy of Malaysia and Bangladesh. International Journal of Academic Research in Accounting, Finance and Management Sciences, 13(4), 313-330.