An effective interest alignment mechanism or a tool to expropriate: A review of Malaysian ESOS adoption

Employee Shares Option Scheme (ESOS) is theorised as a solution to bridge the interest of managers with owners of the firms particularly in setting where ownership is widely held.Modern corporations in developing countries are characterised by controlling shareholders who are also actively involved in the management of firms.The resultant conflict of interests between the majority and the minority shareholders questions the suitability of ESOS in aligning their interests towards the firm’s common goal.Findings from the study suggest that the usual determinants of ESOS adoption in the West do not hold in the environment of high ownership concentration.The post-adoption performance has not improved and there is no significant difference between the adopting and the non-adopting firms after controlling for size and industry.Nonetheless, there is evidence of better performance for adopting firms in terms of profitability albeit very weak in magnitude

The use of ESOS as interest alignment mechanism in Malaysia : a mismatched of a problem and solutions [HG4028.S7 Z19 2008 f rb].

Skim Opsyen Saham Eksekutif (ESOS) sering digunakan sebagai instrumen penyatuan kepentingan pengurus dengan pemilik (masalah agensi jenis I) terutama sekali kerana keserakan saham pemilikan. Executive’ Share Option Scheme (ESOS) has always been used as an instrument to converge the interests of managers with that of the owners (type I agency problem) particularly when the share ownership is dispersed

Corporate Governance Mechanisms: The Determinants of Listed Firm Performance in Nigeria

We investigate therelationship between the corporate governance mechanisms and listed firms Performanceusing dynamic panel data for 101 firms listed on Nigeria Stock Exchange exceptfinance Sector over, through a period 2005 to 2015. We found the resultmaintain a positive and significant relationship  with board size and changing board memberwith market performance. It imply that board size should  be increase, change board member should alsoincrease to advantage of market performance. However, woman board member, auditindepent, board independent, ownership concentration, and gross domesticproduct have negative and significant relationship with market performance.Also, change board member, ownership concentration, and firm size showsignificant and positive relationship with accounting performance. These implythat they can be used to enhanced account performance in time of economic downturn. On other hand, woman board member, board size, audit committee independent,board independent, firm age and gross domestic product show negativesignificant accounting performance. Which imply that regulator and professionalcan reduced to achieve accounting performance. Moreover, foreign ownershipshows no significant with either market or financial health performance.Keywords: corperate governace, change board member, firmperformance, list fir

The Moderating Role of Dividend Policy in Aligning the Accounting and Market based performance Measures with CEO Compensation

This study aims to report the results of an investigation into the effect of accounting and market based performance measures on CEO compensation along with the moderating role of dividend policy. The study has utilized hierarchical multiple regression on a sample of 66 financial companies/banks listed on Karachi Stock Exchange (KSE), for a 5-year period (2010-2014). The results indicate that there is positive and significant impact of accounting based measures (operating performance and firm size) on CEO compensation. In case of market-based measures only growth opportunities have significant and positive impact on CEO compensation. Significant negative impact of market share and insignificant effect of market performance on CEO compensation has been revealed. Contrary to agency theory, this study finds that dividend policy is not utilized as a substitute control device. Additionally, dividend policy cannot mitigate agency conflicts in financial sector of Pakistan due to its ineffective role as aligning mechanism. Overall, the results imply that inefficient dividend policy can further distort the pay-performance link

Does Risk-taking Moderates Relationship between CEO Compensation and Firm’ Performance?

Trend of pay for performance has increased since last few years but still it is a controversial argument if CEO compensation actually increases the firm performance. Prior studies argue that performance based CEO compensation increase the potential risk of the firm, which could further affect the long-term firm negatively.This study attempts to illustrate the impact of CEO compensation on firm performance along with the moderating role of risk-taking among these variables.Using hierarchical linear regression, the results shows the significant negative impact of CEO compensation on operating performance which could be due to the high managerial power, cronyism, rent extraction or weak corporate governance.Nevertheless, the study revealed significant positive impact of CEO compensation on market performance but solely this determinant cannot be relied as a strong predictor of market performance due to lesser effect size of the model. Additionally, this study does not find any moderating role of risk-taking between CEO compensation and firm performance

Nurse engagement: Examining the role of resilience

Work engagement within nursing workforce has become an increasingly significant factor and a prerequisite for high-quality health care performance, thus influencing the success of the organization.As the nursing profession is regarded as an emotionally demanding work environment, nurses as boundary-spanners of healthcare institutions need to have greater resilience.This study aimed to explore the relationship between resilience and work engagement.The sample comprised of 305 staff nurses working in two public hospitals in Peninsular Malaysia. Statistical results using regression analysis indicated that resilience was positively related to work engagement. Nursing management should develop resilience among nurses to enhance their work engagement

The moderating role of risk-taking between CEO compensation and firm performance: evidence from financial sector of Pakistan

Although the trend of pay for performance has been increased since last few years but still it is a controversial argument if CEO compensation actually increase the firm performance. It is also argued by prior studies that performance based CEO compensation increase the potential risk of the firm which could further effect the long-term firm negatively. This study attempts to illustrate the impact of CEO compensation on firm performance (operating and market performance) along with the moderating role of risk-taking among these variables. The total 66 financial firms and banks listed on Karachi Stock Exchange has been included under the investigation from the year 2010 to 2014. In addition, Hierarchical linear regression has been employed to analyze the results though the assumption were precisely fulfilled. The results shows the significant negative impact of CEO compensation on operating performance which could be due to the high managerial power, cronyism, rent extraction or weak corporate governance. Nevertheless, the study revealed significant positive impact of CEO compensation on market performance but solely this determinant can be relied as a strong predictor of market performance due to lesser effect size of the model. Therefore, it is suggested that futuristic studies in this context should include different other control variables (corporate governance mechanisms, economic variables etc.) to improve the model’s goodness of fit. Additionally, this study does not find any moderating role of risk-taking between CEO compensation and firm performance (both operating and market

The moderating role of country-specific characteristics on pay-performance relationship in Asian markets: a meta-analysis approach

The purpose of this study is to integrate the findings of the studies related to the relationship between CEO compensation and firm performance in Asian countries. The second concern of the paper is to explore the moderating role of country-specific characteristics on the pay-performance relationship in Asian markets. In order to achieve the study’s objective, meta-analysis technique is utilized through CMA. Basically, the results are analyzed with both the fixed effect and random effect models. however, the assumption of the fixed effect model regarding same true effect size was not fulfilled. Moreover, a higher level of heterogeneity was detected. Therefore, this study ignores the results denoted by the fixed effect model and follows the results prescribed by the random effect model. After eliminating outliers, the findings from 22 studies revealed that CEO compensation in Asian markets is aligned with firm performance but with the small magnitude. Furthermore, the results from the method of moments suggested that there is a positive effect of country’s development and literacy on the pay-performance link, however, the negative effect of gender inequality and Islamic practices are evaluated. Conversely, no significant effect of corruption on the pay performance relationship is purported in the study. As the authors find the influence of country-specific characteristics on the pay-performance relationship in Asian markets, this study confirms the need for enhancing pay-performance sensitivity in Asian markets to mitigate potential agency conflicts

Validation of the Quality of Life Scale (QLS) Malay Version among Patients with Schizophrenia

Objectives: The Quality Of Life Scale (QLS) is an English version of semi-structured interview that assesses quality of life (QOL) among patients with schizophrenia. The aim of this study was to translate and validate the QLS into Malay version for more widespread use in clinical practice. Methods: This study was conducted on 30 schizophrenia patients attending Hospital Raja Perempuan Zainab II (HRPZ II) and Hospital Universiti Sains Malaysia (HUSM). The QLS was translated into Malay language using forward and backward translation method. The final Malay version of the QLS was tested for the content validity by two experienced psychiatrists. Its face validity was tested on 10 Malay patients with schizophrenia. The internal consistency analysis was performed by measuring Cronbach's alpha in all four domains of QLS Results: The Malay version QLS was found to have good content and face validity. It also displayed good internal consistency with Cronbach's alpha of between 0.87 and 0.93. Conclusion: The Malay version QLS is a good tool to be used in future research to assess quality of life of patients with schizophrenia

The development of global education in Malaysia: Strategies for internationalization

The globalization of society and the economy has had an impact on research and education and been influenced by them.In the case of Malaysia, a liberalized democratic education policy brought a sudden upsurge of foreign students to Malaysia in 1966, when the government introduced the Higher Education Act. Terms such as international education and global education were an expression of this development. To become a major player, however, Malaysia essentially needs to acquire global competencies, in curriculum, administrative ease or pricing, in order to make its location a strategic choice for post-secondary education. The globalization of markets and competition, rapid technological changes and changing relationships between states and firms require different approaches from those traditionally assumed.This chapter proposes the development of a coherent global education model of higher education, based on an eclectic-locational rather than a multidisciplinary approach