Ownership Structure, Rent Seeking And Performance : Evidence From The Malaysian Manufacturing Sector (1994-2000) [HD1131. C559 2007 f rb].

Tesis ini mengkaji hubungkait antara struktur ekuiti dan nilai firma. Terdapat tiga objektif dalam kajian ini. This study addresses the relationship between ownership structure and firm value. There are three objectives in the study

A Conceptual Paper on Cross-Border Vertical Integration of Thailand Firms in Southeast Asia Countries: Financial Perspectives.

A considerable number of established and successful Thailand firms have increased their investments in domestic and regional markets. Their international expansions could be due to positive drivers such as financial strength. But the financial factors which contribute to their markets expansions have not been thoroughly explored. Thus, this study examines the effects of financial perspectives on cross-border vertical integration of Thailand firms in Southeast Asia countries, and applies the theory of coinsurance effects. Internationalization helps to reduce cost of capital and increases the availability of getting additional financing. The variables used in measuring finance perspectives include profitability, liquidity, firms’ leverage and foreign exchange rate. Moreover, the study seeks to investigate the impact of vertical integration on the performance of Thailand firms in ASEAN countries. In achieving these objectives, the study also accounts for firm size, firm age, cultural distance, geographic distance and Gross Domestic Products. The study plans to employ regression analysis on panel data for 2012-2016 period using secondary data from 48 Thailand firms with vertical integration and 50 firms with nonvertical integration. The study also assesses the effectiveness of vertical integration in South East Asian countries by comparing their impacts on short-term and long-term. This study has fundamental implications because it emphasizes the financial factors which affect higher valueadded and effective firms’ performance as firms expand through cross-border business. The finding would be useful to stakeholders in decision-making within the context of cross-border vertical integration. From the findings, the study makes some recommendations

Corporate Governance and Internationalization of Malaysia Public Listed Companies

The main purpose of this study is to examine the impact of the corporate governance on Internationalization for a sample 46 listed companies from 2008 to 2011 which have the reported international operations abroad. The study proposes that corporate governance mechanisms such as directors’ compensation and characteristics of the board could influence firms' decision to internationalization. The measurement for internationalization is foreign sales (FS) and foreign assets (FA). The empirical results indicate that Internationalization by measuring FS is negative and significant related to board size. While measuring by FA indicate the negative and insignificant result. On the other hand, FA and FS are positive and significant related to executive compensation. However, it also found insignificantly related to CEO duality and board independent. According to MCCG requirement, the role of CEO and chairman should remain as non-duality to avoid CEO overpower and board to consist of 1/3 of independent board directors. As result, corporate governance characteristics especially board size and director remuneration does influence firm internationalization

The Determinants Of Ownership Structure In Malaysia.

The paper examines the determinants of ownership structure characteristics of the 147 main board firms listed on the Kuala Lumpur Stock Exchange (KLSE). We apply nature of the firm theory :- asymmetric information, agency conflicts and risk as discussed in Putterman (1993). Ownership concentration is divided into dispersed, dominant minority, and majority controlled firms

Characteristics and strategies of a consistently profitable proprietary day trader at bursa Malaysia / Saw Imm Song, Ei Yet Chu and Tian So Lai

Proprietary day trading is relatively new in Malaysia. This study looks into the background characteristics, strategies, behaviour of an above average proprietary trader and factors that determined her success. Recent literature in the developed markets found that the majority of the day traders failed in the first year of trading. Few studies have looked into the winning characteristics and strategies of the traders. Contrary to the findings on failed traders, who traded actively, speculatively, and to their detriment, this case study found that a successful trader on the other hand is highly attentive and disciplined. On average the trader had executed approximately 20 counters per day for  about 100 transactions. More than 50% of the roundtrips transactions were completed within half an hour and 70% were completed within 2 hours.  The trader was most active in the morning for buy transactions and the majority of the roundtrips were completed in the afternoon. The trader usually holds large positions only for shorter periods to minimise huge losses and disposition effect.  It was evident that the trader employs scalping strategies that she profits from very short run and small movement of prices rather than employing fundamental analysis which requires longer term investment horizon. If the trader made profits in the morning, the likelihood is the trader will be more aggressive in the afternoon trades. The regression results reveal that factors that significantly explained the profitability of the trader were the transaction values and the time entering the trades. Market sentiment and duration of holding time do not significantly explain the profitability made by the trader. It shows that in a bullish market, the trader tended to trade more transactions; however that does not contribute significantly to the profits made

Characteristics and strategies of a consistently profitable proprietory day trader at bursa Malaysia

Proprietary day trading is relatively new in Malaysia. This study looks into the background characteristics, strategies, and behaviour of an above average proprietary trader and factors that determine her success. Recent literature in the developed markets found that a majority of day traders fail in the first year of trading. Few studies have looked into the winning characteristics and strategies of traders. Contrary to the findings on failed traders, who trade actively, speculatively, and to their detriment, this case study found that a successful trader on the other hand is highly attentive and disciplined. On average the trader had executed approximately 20 counters per day for about 100 transactions. More than 50% of the roundtrip transactions were completed within half an hour and 70% were completed within 2 hours. The trader was most active in the morning for buy transactions and the majority of the roundtrips were completed in the afternoon. The trader usually holds large positions only for shorter periods to minimise huge losses and the disposition effect. It is evident that the trader employs scalping strategies that she profits from in a very short run and small movement of prices rather than employing fundamental analysis which requires a longer-term investment horizon. If the trader made profits in the morning, the likelihood is the trader will be more aggressive in the afternoon trades. The regression results reveal that factors that significantly explain the profitability of the trader were the transaction values and the time of entering the trades. Market sentiment and duration of holding time do not significantly explain the profitability made by the trader. It shows that in a bullish market, the trader tends to trade more transactions; however, that does not contribute significantly to the profits made

Financial constraints and corporate governance in family controlled firms in Malaysia

The hypothesis of financial constraints suggest that firms be denied profitable investment due to inaccessible to external capital markers as debt and equity financing are no longer perfect substitution after firms utilise internal capital. In view of reducing investments during global financial crisis in 2008-2009, the study investigates 157 firms whether they face the issues of financial constraint in Malaysia. In general, non-family firms rely heavily on external debt market while family controlled firms utilising internal cash and reducing their dependence on debt market for their investments. However, the presence of CEO duality does not exaggerate the problem of financial constraints firms, but rather lead family firms to become stagnant in their investments. Independent directors appear to be ineffective in governance family firms for issuing financing for investment. Apparently, their presence in family firms reduce firms’ investment opportunities either through internal cash flow and external debt financing, which could reduce shareholders’ value in long-term

Corporate governance and financial constraints in family controlled firms: Evidence from Malaysia

The hypothesis of financial constraints suggests that firms will be denied profitable investment due to inaccessible to external capital markets as debt and equity financing are no longer perfect substitutions after firms utilize internal capital. In view of reduced investments during global financial crisis in 2008-2009, the study investigates 157 firms, whether they face the issues of financial constraints in Malaysia. In general, non-family firms rely heavily on the external debt market while family controlled firms utilizing internal cash and reducing their dependence on debt market for their investments, confirming financial constraints in family firms. However, the presence of CEO duality does not exaggerate the problem of financial constraints, but rather leads family firms to become stagnant in their investments. Independent directors appear to be ineffective in governing family firms in issuing finances for investment. Apparently, their presence in family firms reduces firms’ investment opportunities either through internal cash and external debt financing, which could reduce shareholders’ value in the long-term

Determinants Of Cross-Border Mergers and Acquisitions (Cbmas) Performance in Five East Asian Countries

This study aims to investigate the determinants that caused the variations in the post-CBMA performance of the target firms in the five East Asian countries, namely Malaysia, Thailand, Indonesia, the Philippines and South Korea. Using a sample from 1998 to 2004, the ownership and target firms' characteristics are examined. A four-step hierarchical analysis was used with EFCFS (Excess free cash flow per share) as a dependent variable for the post-CBMA performance and independent variables including characteristics of targets (pre-CBMA) and ownership characteristics of the acquired (post-CBMA). The results show that the average EFCFS improved after CBMAs. The target characteristics such as pre-CBMA performance, the size of the targets, and the business relatedness between targets and acquirers have a significant effect on EFCFS. The positive effect of foreign majority control on post-CBMA performance nevertheless is contingent on the target characteristics

Impacts of foreign currency exposure on Malaysia’s firm value: Firm value, hedging and corporate governance perspectives

Purpose: This study examines and assesses the relationship between foreign currency exposures in terms of account receivable and payable and firm value of Malaysia firms. Design/methodology/approach: The study takes the balance sheet approach where a total sample firm of 148 Malaysia public reported their foreign currencies exposure from 2006 to 2013. Foreign currencies exposures in USD and SGD are regressed on firm value as these are most reported foreign currencies exposures. The study examines the issues from the perspective of firms’ size, hedging strategy, and corporate governance perspective. Findings: The findings suggest that Malaysia firms do not manage their exposures to USD well, both account payable and receivable. Large firms are also not well equipped to improve firm value when it is highly exposed, especially to USD as compared to SGD. Hedging strategies are not effective in the country as it does not significantly improve firm value. However, the presence of independent directors and large shareholders assert some monitoring effects on USD payables exposures and SGD receivable exposures, which lead to a positive firm value. Research limitations/implications: Corporate governance could substitute the role of hedging strategy in managing foreign currencies exposures. The research is hindered by the limitation information on hedging reported in annual reports. Practical implications: The study suggests the role of corporate governance is essential in various perspective of financial management. Large shareholders and independent directors could assert an effective role in monitoring risk as their controlling stake increases. In terms of USD exposures, which is more volatile, Malaysia firms are not managing USD exposures well and lead to declining of firm value. Malaysia firms should be more prepared financially and strategically when dealing with USD exposure, which is more volatile. Originality/value: The study applies balance sheet approach based on account payable and receivable on currencies exposure. Various perspective, especially issues on corporate governance is new when approaching the issues of foreign currencies exposures, especially in the contexts of emerging economy