Abstract
Malaysian private higher education institutions are currently operating in a competitive education market. Their profitability and viability are being compromised by uncertain levels of student loyalty. Therefore, it is imperative for managers of private higher education institutions to be aware of the drivers of their students’ loyalty. This study aims to investigate the significant effects of reputation (university management, academic and media reputation) and relationship benefits on student loyalty in private higher education institutions in Malaysia and to determine the mediating effects of satisfaction on the aforementioned relationships. The methodology utilises primary data obtained from questionnaire administered to a sample of 400 students from several private higher education institutions using stratified random probability sampling. Multiple regression technique and mediation analyses were employed to analyse the data via SPSS statistical package. The results revealed that reputation and relationship benefits had significant effects on student loyalty. Empirical evidence concludes that university management and relationship benefits have significant effects on students’ loyalty, whilst academic and media reputation did not. Satisfaction was found to mediate the relationship between the independent variables and student loyalty. The study concludes with the discussion and implications, as well as limitations and suggestions for future research.
Highlights
The proliferation of fictitious profits in the lead-up to the financial crisis, since the onset of the financial crisis of 2007-2018 and the resulting Great Recession, radical political economists have debated the role of profitability in what has been the most severe systemic crisis of global capitalism since the 1930s (Smith and Butovsky, 2012)
The research findings are in line with the agency theory, audit committee financial expertise is found to have a significant positive influence on profitability
COE and foreign ownership have a positive influence on profitability
Summary
The proliferation of fictitious profits in the lead-up to the financial crisis, since the onset of the financial crisis of 2007-2018 and the resulting Great Recession, radical political economists have debated the role of profitability in what has been the most severe systemic crisis of global capitalism since the 1930s (Smith and Butovsky, 2012). If companies do not worry about agency conflicts, they might face the problem of profitability or insolvency at large These agency conflicts predominantly occur in modern companies as a result of the separation concerning ownership and management (Berle and Means, 1932); (Jensen and Meckling, 1976). The incentive alignment theory advocates that more equity ownership by the manager may increase corporate performance because it means better alignment of the monetary incentives between the management and other equity owners (Jensen and Meckling, 1976). This paper examines the interactive role of audit committee financial expertise on the relation concerning ownership structure and profitability for Nigerian listed financial institutions
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