Ownership and Control Divergence on Firm Value

Irfah Najihah Basir Malan, Norhana Salamudin and Noryati Ahmad
Additional contact information
Irfah Najihah Basir Malan: Institute of Business Excellence, Arshad Ayub Graduate Business School, Faculty of Business Management, Universiti Teknologi MARA, Malaysia
Norhana Salamudin: Institute of Business Excellence, Arshad Ayub Graduate Business School, Faculty of Business Management, Universiti Teknologi MARA, Malaysia
Noryati Ahmad: Institute of Business Excellence, Arshad Ayub Graduate Business School, Faculty of Business Management, Universiti Teknologi MARA, Malaysia

Indian Journal of Commerce and Management Studies, 2013, vol. 4, issue 1, 78-85

Abstract: The aim of this study is to provide an empirical evidence of the implication of pyramid firm towards firm value. Previous research have documented that in many East Asian firms, the ultimate owners showed a dispersion in actual ownership and control due to ownership concentration in pyramid firm leading to expropriation of minority shareholders’ interest. The study adapts the model by Attig using Malaysian pyramidal firms for the period 1990 to 2010. The results reveal that pyramid structure may have detrimental influence on firm value particularly for low cash flow right (CFR) ratio firms. Future research needs to focus on identifying the heterogeneous factors that improve the generalizability of the research.

Keywords: Pyramid structure; firm value; cash flow right; control right; Attig Model; Malaysia (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://scholarshub.net/index.php/ijcms/article/view/300/292 (application/pdf)
http://scholarshub.net/index.php/ijcms/article/view/300 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aii:ijcmss:v:4:y:2013:i:1:p:78-85

Access Statistics for this article

Indian Journal of Commerce and Management Studies is currently edited by Dr. Arif Anjum

More articles in Indian Journal of Commerce and Management Studies from Educational Research Multimedia & Publications,India
Bibliographic data for series maintained by Mr. Asif Anjum ().