Ownership identity and mitigation of diversification discount: Evidence from Malaysia
This paper examines the mitigation effect of the ultimate ownership identity on the diversification discount under the emerging market’s institutional setting. Using a sample of non-financial listed firms in Malaysia from 2002 to 2013, the study reveals that government ultimate ownership is able to...
| Main Authors: | , |
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| Format: | Article |
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Malaysian Economic Association
2018
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| Online Access: | http://eprints.sunway.edu.my/1404/ |
| _version_ | 1848802050580676608 |
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| author | Lee, Kian Tek * Hooy, C. W. |
| author_facet | Lee, Kian Tek * Hooy, C. W. |
| author_sort | Lee, Kian Tek * |
| building | SU Institutional Repository |
| collection | Online Access |
| description | This paper examines the mitigation effect of the ultimate ownership identity on the diversification discount under the emerging market’s institutional setting. Using a sample of non-financial listed firms in Malaysia from 2002 to 2013, the study reveals that government ultimate ownership is able to mitigate the diversification discount better than family ultimate ownership by 5 to 43 percent, whereas family ultimate ownership is better than foreign ultimate ownership in mitigating the diversification discount by 30 to 118 percent. Our study also finds that a high degree of ownership concentration gives rise to the diversification discount. |
| first_indexed | 2025-11-14T21:17:11Z |
| format | Article |
| id | sunway-1404 |
| institution | Sunway University |
| institution_category | Local University |
| last_indexed | 2025-11-14T21:17:11Z |
| publishDate | 2018 |
| publisher | Malaysian Economic Association |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | sunway-14042020-10-01T07:10:21Z http://eprints.sunway.edu.my/1404/ Ownership identity and mitigation of diversification discount: Evidence from Malaysia Lee, Kian Tek * Hooy, C. W. HF Commerce This paper examines the mitigation effect of the ultimate ownership identity on the diversification discount under the emerging market’s institutional setting. Using a sample of non-financial listed firms in Malaysia from 2002 to 2013, the study reveals that government ultimate ownership is able to mitigate the diversification discount better than family ultimate ownership by 5 to 43 percent, whereas family ultimate ownership is better than foreign ultimate ownership in mitigating the diversification discount by 30 to 118 percent. Our study also finds that a high degree of ownership concentration gives rise to the diversification discount. Malaysian Economic Association 2018-06 Article PeerReviewed Lee, Kian Tek * and Hooy, C. W. (2018) Ownership identity and mitigation of diversification discount: Evidence from Malaysia. Malaysian Journal of Economic Studies, 55 (1). pp. 97-113. ISSN 1511-4554 https://mjes.um.edu.my/article/view/11767/7846 https://doi.org/10.22452/MJES.vol55no1.6 |
| spellingShingle | HF Commerce Lee, Kian Tek * Hooy, C. W. Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title | Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title_full | Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title_fullStr | Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title_full_unstemmed | Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title_short | Ownership identity and mitigation of diversification discount: Evidence from Malaysia |
| title_sort | ownership identity and mitigation of diversification discount: evidence from malaysia |
| topic | HF Commerce |
| url | http://eprints.sunway.edu.my/1404/ http://eprints.sunway.edu.my/1404/ http://eprints.sunway.edu.my/1404/ |