OWNERSHIP STRUCTURES AND FINANCIAL PERFORMANCE OF MALAYSIAN PUBLIC LISTED COMPANIES

Abstract

Through a comprehensive analysis, this study seeks to identify the recurring
themes in research on the ownership structures and financial performance of
Malaysian Public Listed Companies (MPLCs). Government ownership
(GOV), family ownership (FAM), and foreign ownership are the common
research areas into ownership structure (FOR). It has been found that
ownership structures significantly affect MPLCs' financial performance.
Government ownership has a negative connection with financial
performance, but family ownership and director ownership have good
connections. Foreign possession and cross-ownership did not exhibit any
notable effects. The study suggests that family-controlled firms have a
competitive advantage, while government-owned firms need to improve their
corporate governance practices to enhance their financial performance. The
study concludes that ownership structures play a vital role in determining the
financial performance of MPLCs. Family-controlled firms perform better
than government-owned firms in Malaysia, and the government needs to
enhance corporate governance practices to improve the financial
performance of government-linked companies. Future research can improve
by considering various ownership structures as independent variables such
as group ownership, cross-ownership, director ownership, institutional
ownership, and state ownership. Other factors, such as corporate governance
components, can also be investigated, including board composition, board
practices, director qualifications, professionalism, transparency, and
disclosure, among others. Exploring these factors could lead to a more
comprehensive understanding of how ownership structures and corporate
governance affect firm performance.