Capital Structure and Investment Behaviour of Malaysian Firms in the 1990s: A Study of Corporate Governance before the Crisis

This is an empirical study analyzing the corporate finance and governance structure in Malaysia before and after the financial crisis of 1997, utilizing the agency cost approach. The contribution of this paper is to link the corporate governance mechanism with the role of banks and corporate ownership structure taking into account the institutional framework and historical background of the Malaysian financial system. Based on data for 375 non-financial KLSE (Kuala Lumpur Stock Exchange) listed companies during fiscal years 1995-99, our analysis is organized into three parts. Section 2 outlines characteristics of corporate finance in Malaysia in the 1990s using aggregated time-series data. Section 3 examines determinants of capital structure via cross-sectional regressions in terms of dependency on banks, availability of internal funds, ownership concentration, ethnic ownership structure, industry effects, etc. And in section 4, we estimate simple investment functions with panel data in order to examine the effects of debt financing on corporate investments before the crisis. Empirical results show that the commitment of banks to finance corporate debt as well as lending obviously increased debt ratios. Ownership concentration mitigates conflict between managers and owners. Foreign ownership also contributed to a reduction in the agency costs of equity financing. However, increasing ownership by native Malays (Bumiputera), both the direct and indirect holding of corporate shares, played no significant role in disciplining corporate management. Finally, high dependency on debt led to excessive corporate investment before the crisis. These results imply that the concentration of risks on the banking sector and social policy advocating the dispersion of corporate ownership weakened the corporate governance mechanism, thereby exacerbating the distress of Malaysia's corporate sector during the financial crisis.

Capital Structure and Investment Behaviour of Malaysian Firms in the 1990s: A Study of Corporate Governance before the Crisis

This is an empirical study analyzing the corporate finance and governance structure in Malaysia before and after the financial crisis of 1997, utilizing the agency cost approach. The contribution of this paper is to link the corporate governance mechanism with the role of banks and corporate ownership structure taking into account the institutional framework and historical background of the Malaysian financial system. Based on data for 375 non-financial KLSE (Kuala Lumpur Stock Exchange) listed companies during fiscal years 1995-99, our analysis is organized into three parts. Section 2 outlines characteristics of corporate finance in Malaysia in the 1990s using aggregated time-series data. Section 3 examines determinants of capital structure via cross-sectional regressions in terms of dependency on banks, availability of internal funds, ownership concentration, ethnic ownership structure, industry effects, etc. And in section 4, we estimate simple investment functions with panel data in order to examine the effects of debt financing on corporate investments before the crisis. Empirical results show that the commitment of banks to finance corporate debt as well as lending obviously increased debt ratios. Ownership concentration mitigates conflict between managers and owners. Foreign ownership also contributed to a reduction in the agency costs of equity financing. However, increasing ownership by native Malays (Bumiputera), both the direct and indirect holding of corporate shares, played no significant role in disciplining corporate management. Finally, high dependency on debt led to excessive corporate investment before the crisis. These results imply that the concentration of risks on the banking sector and social policy advocating the dispersion of corporate ownership weakened the corporate governance mechanism, thereby exacerbating the distress of Malaysia's corporate sector during the financial crisis.

The Politics of Public Ownership: Preservation Advocacy for Modern Municipal Resources

Advocacy is central to the work of preservationists, yet the particular set of issues that must be addressed when advocating for the preservation of Modern municipal buildings is a topic that has not been previously explored. In addition to the challenges commonly confronted when advocating for the preservation of postwar resources, monumental Modern municipal buildings face substantive obstacles that emanate exclusively from their municipal ownership. Challenges encountered firsthand in advocating for the preservation of the Philadelphia Police Administration Building (the Roundhouse) serve as the primary motivation for this study which investigates the determining factors that lead to the successful preservation of Modern municipally owned buildings. Through case studies on the advocacy efforts for Boston City Hall, the Los Angeles Police Facilities Building (Parker Center), and the Philadelphia Police Administration Building, this thesis presents a series of best practices for both grassroots and organizational preservation advocates. The established recommendations are the result of empirical evidence obtained through interviews with individuals presently advocating for the preservation of Modern municipal buildings, those involved with local and national preservation organizations, municipal staff, and scholars in the field of Modern architectural preservation. While theoretical in nature, the presented strategies serve as sound maneuvers for shaping strategic plans for future efforts

Rethinking the Law Firm Organizational Form and Capitalization Structure

The goal of this Article is to examine the partnership model and advocate for a change in the Model Rules that would allow for public ownership of law firms, and to make disclosure of firm financials a mandatory requirement for all firms with over 100 lawyers. Part II explores the history and evolution of limited liability and law firm structures in the United States. Part III discusses incorporated law firms and MDPs and how they might benefit U.S. law firms. Part IV looks at the developments in the United Kingdom and Australia and the forces of globalization that have an effect on U.S. policy choices, concluding that global competition for legal services may force our hand. Part V advocates for similar changes in the U.S. public ownership because allowing public ownership in law firms will benefit both law firms and their clients and make firms more competitive globally. This Part concludes by advocating for mandatory disclosure requirements to benefit firms, prospective attorneys, and their clients

The Three Great Errors of Most Libertarians: a Concise Philosophical Analysis

Libertarians are mistaken to seek foundations, to take sides over moral approaches, and to have no proper theory of liberty

FAQ: Illegal, Unreported, and Unregulated Fishing

Pressure on the world's fish stocks is at an all-time high, and although most industrial fishing operations are within the law, some take to the seas fully intending to steal fish. But how is illegal fishing defined? Learn more with our answers to some frequently asked questions

Quick Guide to What and How: increasing women's access to land

This document presents a guide which gives a brief overview of the challenges regarding women's access to land, outlines what needs to be done to increase women's access to land and provides Sida with some entry points for supportingprocesses where women gain access to land

Critical interests in broadcasting policy : fashioning the public interest in the 1932 Broadcasting act

Examines the policy-formation process which shaped Canadian broadcasting policy between 1929 and 1932. Explores reasons why interest groups advocating public-ownership prevailed in shaping broadcasting legislation

The Legal Needs of Local Media Reform Organizations: Report of a National Survey

This report summarizes a nationwide survey of media reform groups to gauge their needs for pro bono legal assistance. Conclusions are that local media democracy groups need legal help on multiple issues, ranging from municipal broadband to cable franchising to low-power radio