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- Title
Corporate Expropriation from the Perspective of Non-contestability of Ownership Structure and Corporate Governance.
- Authors
Ahmad Husni Hamzah; Abdul Hadi Zulkafli; Afiruddin Tapa
- Abstract
Purpose: The study is directed towards identifying the effect of ownership structure of only controlling shareholder and board governance on corporate expropriation; and the effect of ownership of only large shareholders and board governance on corporate expropriation. Design/methodology/approach: The panel data analysis of regression model is used to test all hypotheses in full sample period, from year 2008 to 2012. Findings: The results of this study show that firms with the presence of only controlling shareholder are strongly influenced corporate expropriation. In regards to the role of corporate governance, it can be concluded that large board size positively influenced expropriation only in firms with large shareholders. Moreover, foreign board members have a significant influence on expropriation. Furthermore, the board remuneration has significant influence on expropriation in firm with the presence of only large shareholders. Research limitations/implications: The findings of the study infer that the existent of controlling shareholder in a firm has led to firm's vulnerability towards corporate expropriation. This finding shows that in Malaysian context, the presence of controlling shareholder is more likely to expropriate when they have a significant control over the firm. Originality/value: This study is motivated by the issue of ownership structure focusing on large shareholder and board governance that could have significant impact on expropriation. Although numerous studies have been conducted to examine the various issues of ownership structure, hardly any of them focused on impact of different structure of ownership and board governance on corporate expropriation.
- Subjects
EMINENT domain (International law); CORPORATE governance; INDUSTRIAL management; STOCK ownership; DIVIDEND policy
- Publication
Global Business & Management Research, 2018, Vol 10, Issue 3, p403
- ISSN
1947-5667
- Publication type
Article