Unlocking the Influence of Family Ownership on Performance: Moderating Impact of Board Efficacy: Unlocking the Influence of Family Ownership on Performance

Znar Nahro Ahmed

doi:10.63841/iue3261149

Authors

Znar Nahro Ahmed Department of Accounting & Finance, College of Administration and Economics, Lebanese French University, Erbil, Kurdistan Region, IRAQ Author https://orcid.org/0000-0001-6774-2314

DOI:

https://doi.org/10.63841/iue3261149

Keywords:

Family ownership, Board of directors, Firm performance, Malaysia.

Abstract

This study aims to determine whether the board of directors can influence the associations among family ownership, and firm performance. This study employs panel data from 300 firms registered on Bursa Malaysia from 2020-2024. This study employs an aggregate measure of four main characteristics of the effectiveness of the board of directors (BODEFF) which are (Board independence, Board Size, Board Meetings Frequency and CEO duality) as a moderating variable. To address the issues of endogeneity and heteroscedasticity, researchers have employed a dynamic system generalized method of moments (GMM) approach. The results revealed that Family ownership positively and significantly influences ROE but negatively influences Market-to-book ratio. In addition, empirical findings have shown that BODEFF, along with family ownership is likely to increase firm performance. The study results would be useful to directors and managers in developing new policies that will improve corporate governance mechanisms, particularly the effectiveness of boards of directors.

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Author Biography

Znar Nahro Ahmed , Department of Accounting & Finance, College of Administration and Economics, Lebanese French University, Erbil, Kurdistan Region, IRAQ

Znar Nahro Ahmed is a Lecturer in accounting and finance, Administration, and economics from Lebanese French University. He achieved his BA in the accounting department, Administration & Economics from Salahddin University in 2013-2014. In 2019, he magnificently continued his education process and got a Master’s in Banking and Accounting in North Cyprus – Turkey. Recently, he obtained his PhD at the University Utara Malaysia (UUM). He published many research papers, primarily published in the international journals indexed by Scopus. Presently, he is a Quality Assurance Director at Lebanese French University. As well as, he has more than 10 years’ experience as Accountant with companies.

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Unlocking the Influence of Family Ownership on Performance: Moderating Impact of Board Efficacy