Volume 13 / Issue 1 / Pages 42-57 - Papers in the same Issue

Firm performance, retrenchment strategy and different ownership structure: Evidence from public listed companies in Malaysia

Lik-Jing Ung, L., Brahmana, R., & Puah, C.

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Abstract: This research aims to investigate the relationship between retrenchment strategy and firm performance for a sample of 119 listed firms in Malaysia over the period 2008-2015. Using robust panel regression, we find that retrenchment strategy contributes positively to firm performance. Our research further indicates that controlling shareholders plays a significant role in the association between retrenchment strategy and firm performance, in which retrenchment strategy decreases the performance of family and government-linked firms. Our findings contribute to Malaysian firms, government, and policymakers by showing that retrenchment strategy may harm the performance of firm if the firms are family firms or government-linked firms.

Keywords: retrenchment, controlling shareholder, firm performance, corporate governance

Type: Research Paper // Published: 2018-12-09

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