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https://ptsldigital.ukm.my/jspui/handle/123456789/513690| Title: | Institutional ownership and firm performance :the role of board capital |
| Authors: | Hamidon Katan (P34049) |
| Supervisor: | Fauzias Mat Nor,Professor Dr |
| Keywords: | Universiti Kebangsaan Malaysia -- Dissertations Dissertations, Academic -- Malaysia Stock ownership Capital investments |
| Issue Date: | 13-Sep-2012 |
| Description: | The roles of institutional owners and boards of directors in alleviating agency problem and its effect on firms have been studied extensively in corporate finance. However, these researches have mixed results because most have treated institutional owners as a homogenous group. To fill the gap in this stream of research, this study is carried out by treating institutional owners as a heterogeneous group. Drawing on previous research, this study differentiates institutional owners as transient or dedicated owners. These two groups of institutional owners differ significantly in terms of size of holdings, purposes, goals as well as monitoring efforts. The objectives of this study are to determine how the institutional ownership structure i.e. transient or dedicated ownership affect firm performance; and to examine the moderating effects of board capital which consists of human capital and relational capital on institutional ownership and firm’s performance relationship, within the context of agency and resource dependence theories. To determine whether treating the sample homogenously or heterogeneously has different effects on firm performance, this study also examines the effect of total ownership, whereby the sample is treated homogeneously on firm performance. Using panel data that span from 2002 to 2006, several hypotheses are tested based on data of firms listed on Bursa Malaysia’s Kuala Lumpur Composite Index. The empirical results indicate that total institutional ownership and dedicated ownership have no significant effect towards firm performance. Transient ownership, however, has statistically significant effect on firm performance. These results show that institutional ownership is heterogeneous. Furthermore, it is observed that firms with dedicated ownership structure have independent directors to monitor management on their behalf, while firms with transient ownership structure monitor the management themselves. The findings on the moderating role of board capital towards institutional ownership structure-firm performance relation show that only the human capital aspect of the board capital moderates the ownership-firm performance relation. The establishment of the differing effect of institutional ownership due to the heterogeneous nature of ownership suggests that future research in this area must take into account the heterogeneity,Certification of Master's/Doctoral Thesis" is not available |
| Pages: | 185 |
| Call Number: | HG4028.S7H339 |
| Publisher: | UKM, Bangi |
| Appears in Collections: | Graduate School of Business / Pusat Pengajian Siswazah Perniagaan |
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| ukmvital_120091+SOURCE1+SOURCE1.0.PDF Restricted Access | 1.28 MB | Adobe PDF |  View/Open |
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