Managerial Ownership and Operating Performance: Malaysian Listed Company

This study investigates the relationship between managerial ownership and operating performance of Malaysia listed companies. A linear regression analysis of 90 sample firms listed on the main board of Bursa Malaysia from the year 2006 to 2009 is utilized. The result from model 1 and model 2 shows t...

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Bibliographic Details
Main Author: Muhamad Ridhwan, Ghazi Ahmad
Format: Dissertation
Language:English
English
Published: 2010
Subjects:
Online Access:https://etd.uum.edu.my/2515/1/Muhamad_Ridhwan_Ghazi_Ahmad.pdf
https://etd.uum.edu.my/2515/2/1.Muhamad_Ridhwan_Ghazi_Ahmad.pdf
https://etd.uum.edu.my/2515/
http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000769053
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Summary:This study investigates the relationship between managerial ownership and operating performance of Malaysia listed companies. A linear regression analysis of 90 sample firms listed on the main board of Bursa Malaysia from the year 2006 to 2009 is utilized. The result from model 1 and model 2 shows that managerial ownership is positively related to firm performance. This implies that the higher the shares owned by the CEO of the firm, the better will be the performance of the firm, especially if it is measured by the profit margin. Operating performance is measured by operating income to operating asset (OI/OA) and operating profit margin (OI/sales) while managerial ownership is measured by CEO ownership in the company. Considering that the CEO is the most important executive in the organization, whose decisions are likely to have a big impact on performance. Then, this study examined the relationship between managerial ownership and operating performance.