Does retrenchment strategy induce family firm's value? A study from Malaysia

Lik Jing Ung, Rayenda Brahmana, Chin Hong Puah

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


This paper investigated the performance of retrenchment strategy of Malaysian family firms. It followed prior research in value of diversification strategy such Lins and Servaes (2002), Fauver et al. (2004), or Lee et al. (2012), but with different strategy perspective which was retrenchment strategy. We also followed Reebs (2003) research on the performance family firms but taking Malaysia as the background of study. In short, we investigated the relationship between retrenchment and performance works in Malaysia family firms. We considered a sample of 443 Malaysia listed family companies between 2004 and 2013. Our background of study was Malaysian market, which was dominated by family firms. We documented the resulting strategy of retrenchment in family-controlled firm, which led to positive effect on financial performance and negative effect on accounting performance.

Original languageEnglish
Pages (from-to)394-411
Number of pages18
JournalInternational Journal of Management Practice
Issue number4
Publication statusPublished - 12 Oct 2016
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2016 Inderscience Enterprises Ltd.


  • retrenchment strategy
  • ownership structure
  • firm value
  • corporate governance
  • family firms
  • family businesses
  • Malaysia
  • firm performance
  • financial performance
  • accounting performance

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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