Family firms, expropriation and firm value: Evidence of the role of independent directors’ tenure in Malaysia | Zendy

Chee Yoong Liew | Zendy; Ervina Alfan | Zendy; Susela Devi | Zendy

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Family firms, expropriation and firm value: Evidence of the role of independent directors’ tenure in Malaysia

Author(s) -

Chee Yoong Liew,

Ervina Alfan,

Susela Devi

Publication year - 2017

Publication title -

international journal of organizational leadership

Language(s) - English

Resource type - Journals

eISSN - 2383-1103

pISSN - 2345-6744

DOI - 10.33844/ijol.2017.60195

Subject(s) - expropriation , shareholder , business , enterprise value , positive relationship , value (mathematics) , demographic economics , accounting , corporate governance , monetary economics , economics , finance , market economy , psychology , social psychology , machine learning , computer science

This paper was conducted to examine whether there was a negative relationship between independent directors’ tenure and firm value which indicated the existence of expropriation due to long tenure of independent directors and whether controlling shareholders’ ownership moderated this relationship among Malaysian firms. The results revealed that there was a negative relationship between independent directors’ tenure and firm value. It also showed there was a significant positive moderating effect of controlling shareholders’ ownership on the relationship among Malaysian family firms in exclusive industries. However, there was inconclusive evidence that this negative relationship and positive moderating effect were stronger amongst the family firms compared with non-family firms.

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