Authors: Norazlan Alias, Fauzias Mat Nor, Mohd Hasimi Yaacob
Addresses: School of Business Management, Universiti Kebangsaan Malaysia, Bangi, Selangor 43600, Malaysia. ' Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi, Selangor 43600, Malaysia. ' School of Business Management, Universiti Kebangsaan Malaysia, Bangi, Selangor 43600, Malaysia
Abstract: This study examined the relationship between firm characteristics such as board of directors| ownership (BODOWN), institutional ownership (INSOWN), concentrated ownership (CONOWN), debt ratio and levels of diversification which had been identified in the literature as the determinants of corporate restructuring and corporate performance before and after restructuring. Ninety six asset restructuring (AR) firms listed on the Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchanges) between 1990 and 2002 were selected as the final samples. Prior to AR, BODOWN had significant negative relationship while INSOWN had significant positive relationship with performance. The findings also revealed that the ownership structure had significant relationship with performance following AR. However, only BODOWN had significant positive relationship with performance in post restructuring period. In conclusion, in Malaysia, the firm|s ownership structure played a role in determining performance following AR.
Keywords: asset restructuring; ownership structure; corporate performance; director ownership; institutional ownership; concentrated ownership; debt ratio; diversification levels; corporate restructuring; Malaysia.
American Journal of Finance and Accounting, 2010 Vol.2 No.1, pp.75 - 93
Published online: 07 Aug 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article