Ting, Irene Wei Kiong and Asif, Jawad and Kweh, Qian Long and Phuong, Tran Thi Kim (2024) Mediating effect of firm efficiency on the controlling shareholdings–firm performance nexus: Evidence from public listed firms in Malaysia. Financial Innovation, 10 (47). pp. 1-20. ISSN 2199-4730. (Published)
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Abstract
This study examines how controlling shareholders influence firm performance through the mediating role of firm efficiency in transforming inputs into outputs. To achieve this objective, it conducts a mediation analysis with 5,000 bootstraps on a dataset of 2,849 firm-year observations of publicly listed firms in Malaysia from 2009 to 2019. The findings reveal a positive relationship between controlling shareholdings and firm performance, with both total and indirect effects having this positive relationship. Moreover, while controlling shareholdings improve firm performance, firm efficiency partially mediates this relationship. Thus, improved firm efficiency plays a critical role in understanding the relationship between governance by controlling shareholders and enhanced firm performance. In summary, this study contributes to the existing literature by expanding our understanding of the complex relationship between controlling shareholdings, firm efficiency, and firm performance. In addition, the findings shed light on the importance of indirect channels in shaping organizational outcomes. As such, this study provides a valuable direction for future research in this area.
| Item Type: | Article |
|---|---|
| Additional Information: | Indexed by Scopus |
| Uncontrolled Keywords: | Controlling shareholdings; Firm efficiency; Firm performance; Mediation analysis |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management T Technology > T Technology (General) |
| Faculty/Division: | Faculty of Industrial Management |
| Depositing User: | Mr Muhamad Firdaus Janih@Jaini |
| Date Deposited: | 21 May 2024 07:22 |
| Last Modified: | 21 May 2024 07:22 |
| URI: | http://umpir.ump.edu.my/id/eprint/40955 |
| Download Statistic: | View Download Statistics |
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