Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai
The political economy shaped the ownership structure of corporations in Malaysia. The rapid growth of the economy has not diluted the concentrated ownership structure in the Malaysian firms. Malaysia has its own unique feature of ownership structured firms which can be divided into politically c...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit UiTM
2019
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/27560/ |
| _version_ | 1848806806768320512 |
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| author | Ismail Khan, Norziaton Selvaraj Devi, Susela Wai, Meng Chan |
| author_facet | Ismail Khan, Norziaton Selvaraj Devi, Susela Wai, Meng Chan |
| author_sort | Ismail Khan, Norziaton |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The political economy shaped the ownership structure of corporations in
Malaysia. The rapid growth of the economy has not diluted the concentrated
ownership structure in the Malaysian firms. Malaysia has its own unique
feature of ownership structured firms which can be divided into politically
connected (PCON) firms, institutional ownership and managerial ownership
(INST&MGRL) firms, and family ownership (FAMILY) firms. The purpose
of this paper is to investigate whether PCON, INST&MGR and FAMILY
firms are associated with higher audit fees. This study also examines the
association between audit committee characteristicsIND, DIL and EXP and
audit fees based on the revamped Bursa Listing Requirementsin 2008, which
focus on audit committee characteristics. Using data from 567 firm-year
observations from years 2008 to 2010, we find that PCON firms pay higher
audit fees than INST&MGRL and FAMILY firms. Further, the association
between audit committee IND, DIL and EXP and audit fees is positive and
significant for PCON firms, suggesting that the government intervention is expected to produce better governance and improve the firm’s business
performance. Thisis because the government has given much attention and
initiatives to ensure that these firms perform in an effective way and assist
the government to improve the economic growth. |
| first_indexed | 2025-11-14T22:32:47Z |
| format | Article |
| id | uitm-27560 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T22:32:47Z |
| publishDate | 2019 |
| publisher | Penerbit UiTM |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-275602020-01-22T02:38:47Z https://ir.uitm.edu.my/id/eprint/27560/ Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai smrj Ismail Khan, Norziaton Selvaraj Devi, Susela Wai, Meng Chan Corporate organization. Corporate governance Industrial policy. The state and industrial organization Organization The political economy shaped the ownership structure of corporations in Malaysia. The rapid growth of the economy has not diluted the concentrated ownership structure in the Malaysian firms. Malaysia has its own unique feature of ownership structured firms which can be divided into politically connected (PCON) firms, institutional ownership and managerial ownership (INST&MGRL) firms, and family ownership (FAMILY) firms. The purpose of this paper is to investigate whether PCON, INST&MGR and FAMILY firms are associated with higher audit fees. This study also examines the association between audit committee characteristicsIND, DIL and EXP and audit fees based on the revamped Bursa Listing Requirementsin 2008, which focus on audit committee characteristics. Using data from 567 firm-year observations from years 2008 to 2010, we find that PCON firms pay higher audit fees than INST&MGRL and FAMILY firms. Further, the association between audit committee IND, DIL and EXP and audit fees is positive and significant for PCON firms, suggesting that the government intervention is expected to produce better governance and improve the firm’s business performance. Thisis because the government has given much attention and initiatives to ensure that these firms perform in an effective way and assist the government to improve the economic growth. Penerbit UiTM 2019 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/27560/1/AJ_I.K.%20NORZIATON%20SMRJ%2019.pdf Ismail Khan, Norziaton and Selvaraj Devi, Susela and Wai, Meng Chan (2019) Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai. (2019) Social and Management Research Journal (SMRJ) <https://ir.uitm.edu.my/view/publication/Social_and_Management_Research_Journal_=28SMRJ=29.html>, 16 (2). pp. 79-106. ISSN 1675-7017 https://smrj.uitm.edu.my/ |
| spellingShingle | Corporate organization. Corporate governance Industrial policy. The state and industrial organization Organization Ismail Khan, Norziaton Selvaraj Devi, Susela Wai, Meng Chan Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title | Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title_full | Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title_fullStr | Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title_full_unstemmed | Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title_short | Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai |
| title_sort | ownership structured firms in malaysia: audit committee characteristics and audit fees / norziaton ismail khan, susela selvaraj devi and meng chan wai |
| topic | Corporate organization. Corporate governance Industrial policy. The state and industrial organization Organization |
| url | https://ir.uitm.edu.my/id/eprint/27560/ https://ir.uitm.edu.my/id/eprint/27560/ |