Authors : Norashikin Ismail, Noor Hasniza Haron, Nik Anis Idayu and Zuraidah Mohd Zam
Abstract: Using a sample of 634 listed companies on the main board of Bursa Malaysia in 2013, this study investigates whether CEO family control in a substantial, influence the performance of the company. Consistent with alignment hypothesis, it is postulated that CEO family ownership has a significant positive impact on the performance of the firm. The results do not support our hypothesis, leading to the conclusion that alignment hypothesis which applies in the developed market with widely dispersed ownership firms may not apply to a highly concentrated ownership type of companies in Malaysia. Other variables of growth in capital expenditure and leverage have a significant association with a performance as expected.
Norashikin Ismail, Noor Hasniza Haron, Nik Anis Idayu and Zuraidah Mohd Zam, 2016. CEO’s Family Control and Firm Performance: Malaysian Evidence. The Social Sciences, 11: 4907-4911.