The Value of Diversification, Managerial Ability and Corporate Governance: Evidence from Malaysian Firms

IF 0.8 Q4 BUSINESS, FINANCE

Asian Journal of Business and Accounting Pub Date : 2023-06-30 DOI:10.22452/ajba.vol16no1.2

Chyn-Hwa Lee, S. Foong

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引用次数: 0

Abstract

Manuscript type: Research paper Research aims: This paper examines the moderating effect of managerial ability on the relationship between diversification and firm value. Design/Methodology/Approach: The analysis is based on all KLSE-listed firms across nine sectors over the period of 2009 to 2017 using panel regression. Research findings: High-ability managers increase Tobin’s q. Managerial ability changes the diversification-firm value relationship from negative to significantly positive. Managerial ability, in terms of governance mechanism, CEO age, and education background, has a positive moderating effect on the value outcome of diversification. Theoretical contribution/Originality: This study is one of the first to link resource-based perspective and outcome of diversification, and find a moderating relationship between diversification and firm value. It contributes to resource-based theory, highlighting that accumulated human capital is a valuable strategic resource for a firm. The results also contribute to the corporate governance literature and provide support for upper echelons theory. Practitioner/Policy implication: The findings are valuable to diversified firms in understanding the effect of managerial ability on the outcome of diversification. Diversified firms that hire older CEOs with better education, practise separate leadership structures, and have a mostly independent board are more likely to benefit from diversification. Research limitation/Implications: This study uses only one proxy for managerial ability. Second, firms are grouped by industry to compare efficiency. However, firms in the same industry can have quite varied inputs and outputs depending on their asset and operation mix.

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多元化价值、管理能力与公司治理:来自马来西亚公司的证据

研究目的:研究管理能力对多元化与企业价值关系的调节作用。设计/方法/方法:该分析基于2009年至2017年期间klse九个行业的所有上市公司，使用面板回归。研究发现:高能力管理者增加了托宾q。管理能力使多元化与企业价值的关系由负向显著正向转变。管理层能力在治理机制、CEO年龄和学历方面对多元化的价值结果有正向调节作用。理论贡献/独创性:本研究首次将资源基础视角与多元化结果联系起来，并发现多元化与企业价值之间存在调节关系。它为资源基础理论做出了贡献，强调了积累的人力资本是企业宝贵的战略资源。研究结果对公司治理文献也有贡献，并为上层理论提供支持。从业者/政策启示:研究结果对多元化公司理解管理能力对多元化结果的影响有价值。多元化的公司聘用受过更好教育的年长ceo，实行独立的领导结构，并拥有一个基本独立的董事会，更有可能从多元化中受益。研究局限/启示:本研究仅使用了一个代理来衡量管理能力。其次，将公司按行业分组以比较效率。然而，同一行业的企业根据其资产和业务组合的不同，可能有不同的投入和产出。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Journal of Business and Accounting BUSINESS, FINANCE-

CiteScore

2.00

自引率

11.10%

发文量

期刊介绍： An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.