-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
RELATIONSHIP BETWEEN FIRM OWNERSHIP AND PERFORMANCE: THE MEDIATING ROLE OF INTERNAL GOVERNANCE MECHANISMS
Download This Article
Kwang Sing Ngui 
, Mung Ling Voon, Ee Yaw Seng, Ai Ling Lim (Edith)
Abstract
This paper explores the role of selected internal governance mechanisms as mediators of the relationship between ownership and firm performance. Data from 2004 and 2005 was gathered from 177 firms listed on Bursa Malaysia. Structural equation modelling was used as the primary statistical analysis approach. Insiders and blockholders were found to compete for board dominance. Selected internal governance mechanisms mediate the effect of ownership on performance, suggesting that these were used to advance the investment interests of insiders/ blockholders. The paper provides empirical support for the interest-alignment hypothesis, arguing that the use of governance mechanisms that align the interest of managers and shareholders are more effective than monitoring mechanisms.
Keywords: Corporate Governance, Internal Control, Shareholders
How to cite this paper: Ngui, K. S., Voon, M. L., Seng, E. Y., Lim, A. L. (2008). Relationship between firm ownership and performance: the mediating role of internal governance mechanisms [Special issue]. Corporate Ownership & Control, 5(4-5), 461-470. https://doi.org/10.22495/cocv5i4c5p6
