Ownership identity and mitigation of diversification discount: Evidence from Malaysia

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

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Official URL: https://mjes.um.edu.my/article/view/11767/7846


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.

Item Type: Article
Uncontrolled Keywords: Diversification; firm value; GMM; ownership identity
Subjects: H Social Sciences > HF Commerce
Divisions: Others > Non Sunway Academics
Sunway University > Sunway University Business School > Dept. Economics & Finance
Depositing User: Dr Janaki Sinnasamy
Related URLs:
Date Deposited: 01 Oct 2020 01:31
Last Modified: 01 Oct 2020 07:10
URI: http://eprints.sunway.edu.my/id/eprint/1404

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