Nguyen, Thien Huu and Asif, Jawad and Kweh, Qian Long and Ting, Irene Wei Kiong (2023) Firm efficiency and corporate performance : The moderating role of controlling shareholders. Benchmarking: An International Journal. pp. 1-22. ISSN 1463-5771. (Published)
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Abstract
This study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables. Design/methodology/approach: This study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hypothesised relationships among 1,295 firm-year observations of publicly listed firms in Malaysia from 2015 to 2019. Findings: The results indicate that firm efficiency (technical efficiency, pure technical efficiency and scale efficiency) has mixed relationships with firm performance (return on assets, market-to-book ratio and operating cash flows), all of which are being moderated by controlling shareholdings. Practical implications: This study highlights the importance of assessing firm efficiency as the key success factor for improving firm performance. Industrial managers should manage efficiently their resources or operating costs in achieving their corporate financial goals. Moreover, this study notes the presence of controlling shareholders, who can be either self-interested or company goal aligned. Originality/value: This study suggests becoming efficient in transforming inputs into outputs is a prerequisite before investigating accrual-based and cash-based firm performance measures, and the presence of controlling shareholders matters in these regards.
| Item Type: | Article |
|---|---|
| Additional Information: | Indexed by Scopus |
| Uncontrolled Keywords: | Controlling shareholders; Data envelopment analysis; Firm efficiency; Firm performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management |
| Faculty/Division: | Faculty of Industrial Management |
| Depositing User: | Mr Muhamad Firdaus Janih@Jaini |
| Date Deposited: | 30 Apr 2024 06:28 |
| Last Modified: | 30 Apr 2024 06:28 |
| URI: | http://umpir.ump.edu.my/id/eprint/40519 |
| Download Statistic: | View Download Statistics |
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