Ownership and efficiency in Malaysian banking

Ownership and efficiency in Malaysian banking

Changes in the ownership structure have been an important feature of the evolution of the Malaysian banking sector. In 1986, the Banking Act of 1973 was amended to limit equity ownership by individual companies in a bank to 20 percent, and by a family-owned company or an individual person to 10 perc...

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Bibliographic Details
Published in:The Philippine Review of Economics Vol. XL, No. 2 (December 2003), p. [91]-101.
Main Author: Karim, Mohd Zaini Abd (Author)
Resource Type: Analytics
Language:English
Published: 2003.
Subjects:
Banks and banking > Malaysia.
Online Access:https://forms.gle/KZjBv7aRtY6jiL5E9
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100 1 |a Karim, Mohd Zaini Abd  |e author. 
245 1 0 |a Ownership and efficiency in Malaysian banking  |c Mohd Zaini Abd Karim. 
264 1 |c 2003. 
300 |a pages [91]-101  |c 25 cm 
336 |a text  |2 rdacontent 
337 |a unmediated  |2 rdamedia 
338 |a volume  |2 rdacarrier 
500 |a Title was 'Philippine Review of Business and Economics' until 1979. Title changed to 'Philippine Review of Economics and Business' from 1980-2000, and again changed to 'Philippine Review of Economics' since 2001. 
504 |a Includes bibliographical references (page 101) 
520 |a Changes in the ownership structure have been an important feature of the evolution of the Malaysian banking sector. In 1986, the Banking Act of 1973 was amended to limit equity ownership by individual companies in a bank to 20 percent, and by a family-owned company or an individual person to 10 percent. This paper analyzes whether ownership structure has any effect on bank efficiency in Malaysia. Cost efficiency is estimated using the Stochastic cost frontier approach. Tobit regression analysis is then employed to determine the effect of ownership variables on bank efficiency. The results indicate that first, state-owned banks and local banks are less efficient than privately owned banks and foreign banks, respectively. Second, we find a positive correlation between ownership concentration and firm's performance suggesting that large investors, to some extent, have the incentive as well as the power to monitor and control the behavior of management, and thus assume a significant role in corporate governance. 
650 0 |a Banks and banking  |z Malaysia. 
773 0 |t The Philippine Review of Economics  |g Vol. XL, No. 2 (December 2003), p. [91]-101. 
856 4 0 |a Request full-text access via UPB University Library through  |u https://forms.gle/KZjBv7aRtY6jiL5E9 
856 |z (viewed 25 March 2021) 
852 1 |a UPBAG  |b UPBAG-MAIN  |h ARTICLE-2911 
942 |a Analytics