Creating or Destroying Shareholders Values? A Conceptual Study on Malaysian Conglomerate Firms

This research aims to examine the impact of shareholders value on the performance of conglomerate firms of Malaysia Agency theory addresses the issue between the agency and principal, a connection between the organizations officer and the investors in the business.Successful conglomerates rely on efficient management as an agency utilises corporate resources effectively to in solve issues such as fund tunnelling and conglomerate discounts to ensure conglomerate firms delivered values to shareholders. To address the agency conflicts in conglomerate firms, this study proposes a research framework that consists of conglomerate discounts, business strategic priorities and fund tunneling the sample was 52 conglomerate firms listed on Malaysia Bursa. The data gained from the annual report from 2010 to 2016. 3 Hypotheses are postulated to address the issues. This study portraits that investment in conglomerates of Malaysia is value added or not. It provides a better understanding for the current and future investors. This paper contributes to both the literature on conglomerate firms and shareholders values in Malaysia context as the existing studies on conglomerate firms were conducted in the US,Europe and East Asia such as Japan, Korea and China