Title: Ownership structures and productivity in Indonesia and Malaysia

Authors: Citra Sukmadilaga; M. Shamsher; Taufiq Hassan

Addresses: Faculty of Economics and Business, University of Padjadjaran, Jl. Dipati Ukur No. 35, Bandung, West Java, 40132, Indonesia ' International Centre for Education in Islamic Finance (INCEIF), Kuala Lumpur, 59100, Malaysia ' Palli Karma-Sahayak Foundation (PKSF), E-4/B, Agargaon Administrative Area, Sher-e-Bangla Nagar, Dhaka 1207, Bangladesh

Abstract: The relationship between ownership structures and company performance has been issue of interest among academics, investors and policy-makers. So far, there are still inconclusive findings that family and state ownership giving positive or negative impact on firm performance. This study employed technical efficiency and Malmquist productivity index to measure firm performance. Period of this study will be conduct from 1992 to 2007. Result of this study revealed that Technical efficiency study in Indonesia showed that state owned enterprises (SOEs) had better performance than family owned enterprises (FOEs) since SOEs' performance increased more stably during research period. Meanwhile Malaysia-based technical efficiency study demonstrated that FOEs samples had lower efficiency level than SOEs, which performed a little enhancement. In term of productivity, Indonesian FOEs had become more productive compare with SOEs during three sub-periods. On the other hand, Malaysian FOEs and SOEs had improved from time to time within the three sub-periods.

Keywords: ownership structures; technical efficiency and Malmquist productivity index; FOEs; family owned enterprises; SOEs; state owned enterprises.

DOI: 10.1504/IJMEF.2017.087481

International Journal of Monetary Economics and Finance, 2017 Vol.10 No.3/4, pp.322 - 340

Received: 14 Jan 2016
Accepted: 22 Mar 2016
Published online: 16 Oct 2017 *

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