340 Int. J. Accounting and Finance, Vol. 8, No. 4, 2018
Copyright © 2018 Inderscience Enterprises Ltd.
Does ownership structure matter to public listed
firms? Review on the corporate governance and
involuntary delisting practices
Kimiya Akbarpoursokeh*, Azizah Abdullah
and Fadzlina Mohd Fahmi
Faculty of Accountancy,
Universiti Teknologi MARA Shah Alam, Malaysia
Email: kimiyaakbarpour58@gmail.com
Email: aziza588@salam.uitm.edu.my
Email: fadzli686@salam.uitm.edu.my
*Corresponding author
Abstract: This paper proposes a conceptual framework and investigates the
ownership structure on involuntary delisting. To build the conceptual
framework as a guide to reduce involuntary delisting through decreasing
agency costs, protecting shareholders’ rights, the background of governance
practices and agency theory to be utilised. By developing a deeper
understanding of the relationship between ownership structures on involuntary
delisting, evidence from preceding studies suggested that this structure is of
main importance in corporate governance because it determines the motivations
of managers to control the agency problem. Since the impact of corporate
governance mechanisms in each country depends on especial conditions;
therefore, the mixed results for each of its factors are seen in literature; but
majority of research is consistent with higher institutional ownership,
ownership concentration, managerial ownership, CEO ownership, foreign
ownership, free float ratio, and family ownership and lower state ownership
having a significant negative impact on the probability of involuntary delisting.
Keywords: corporate governance mechanisms; ownership structure;
institutional ownership; ownership concentration; managerial ownership; CEO
ownership; foreign ownership; free float ratio; state ownership; involuntary
delisting.
Reference to this paper should be made as follows: Akbarpoursokeh, K.,
Abdullah, A. and Fahmi, F.M. (2018) ‘Does ownership structure matter to
public listed firms? Review on the corporate governance and involuntary
delisting practices’, Int. J. Accounting and Finance, Vol. 8, No. 4,
pp.340–363.
Biographical notes: Kimiya Akbarpoursokeh is a PhD candidate of
Accountancy in Faculty of Accountancy, Universiti Teknologi MARA. Her
research interests are corporate governance and delisting concept.
Azizah Abdullah has been with UiTM for 30 years. Her current position is
Director for Internal Quality Assurance. Her research interest is governance
risk fraud and management accounting and public sector. She has been teaching
masters program undergraduate and also professional programs.