Firm efficiency and corporate performance: the moderating role of controlling shareholders

IF 4.5 Q1 MANAGEMENT Benchmarking-An International Journal Pub Date : 2023-07-28 DOI:10.1108/bij-04-2022-0253

Thien Huu Nguyen, Jawad Asif, Qian Long Kweh, Irene Wei Kiong Ting

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Abstract

PurposeThis study analyses the effects of firm efficiency on firm performance and how controlling shareholders moderate the link between the two variables.Design/methodology/approachThis study employs data envelopment analysis to estimate firm efficiency and the panel regression method to assess the hypothesised relationships among 1,295 firm-year observations of publicly listed firms in Malaysia from 2015 to 2019.FindingsThe results indicate that firm efficiency (technical efficiency, pure technical efficiency and scale efficiency) has mixed relationships with firm performance (return on assets, market-to-book ratio and operating cash flows), all of which are being moderated by controlling shareholdings.Practical implicationsThis study highlights the importance of assessing firm efficiency as the key success factor for improving firm performance. Industrial managers should manage efficiently their resources or operating costs in achieving their corporate financial goals. Moreover, this study notes the presence of controlling shareholders, who can be either self-interested or company goal aligned.Originality/valueThis study suggests becoming efficient in transforming inputs into outputs is a prerequisite before investigating accrual-based and cash-based firm performance measures, and the presence of controlling shareholders matters in these regards.

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企业效率与公司绩效:控股股东的调节作用

目的分析企业效率对企业绩效的影响，以及控股股东如何调节这两个变量之间的关系。设计/方法/方法本研究采用数据包络分析来估计企业效率，并采用面板回归方法来评估2015年至2019年马来西亚上市公司1295家公司年度观察的假设关系。研究结果表明，企业效率(技术效率、纯技术效率和规模效率)与企业绩效(资产收益率、市净率和经营性现金流)之间存在混合关系，所有这些关系都受到控股股份的调节。实践启示本研究强调了评估企业效率作为提高企业绩效的关键成功因素的重要性。工业管理者应该有效地管理他们的资源或运营成本，以实现他们的公司财务目标。此外，该研究还注意到控股股东的存在，他们可能是自私自利的，也可能是与公司目标一致的。原创性/价值这项研究表明，在调查基于权责发生制和基于现金的公司绩效衡量标准之前，有效地将投入转化为产出是一个先决条件，在这些方面，控股股东的存在很重要。

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来源期刊

Benchmarking-An International Journal MANAGEMENT-

CiteScore

10.40

自引率

16.10%

发文量

154

期刊介绍： Benchmarking is big news for companies committed to total quality programmes. Its enthusiastic reception by many prominent business figures has created high levels of interest in a technique which promises big rewards for co-operating partners. Yet, like total quality itself, it must be understood in its proper context, and implemented single mindedly if it is to be effective - this journal helps companies to decide if benchmarking is right for them, and shows them how to go about it successfully.