The Sustainability of Business Corporate Governance: Evidence from the Malaysia Public-Listed Companies

Low, Kevin Lock Teng; Seetharaman, A.

doi:10.2139/ssrn.294577

Cited by 8 publications

(11 citation statements)

References 7 publications

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“…Some Malaysian studies and their findings include Osman (1988), Low et al (1999), Rahman and Haniffa (2003) and Wahab et al (2007), which provide evidence that the majority of investors in Malaysia, including institutional investors, depend upon financial analysis to evaluate stock performance. A study by Low and Seetharaman (2001) indicates that Malaysian institutional investors may also be interested in company strategy. They contend that these interests in the strategic arena are due to a perceived relationship between a successful company strategy and higher company performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Difficulties in being responsible institutional investors: evidencefrom Malaysia

Annuar

2019

SRJ

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Purpose The purpose of this paper is to ascertain whether institutional investors in Malaysia faced limitations when they are involved in the corporate governance of their investee companies. Design/methodology/approach A qualitative approach, consisting of a series of interviews with senior investment managers of different type of institutional investors, was chosen. In total, 18 interviews were conducted over a period of two months, which is thought to sufficiently provide the answers to the research purpose. Findings The interviews revealed there are difficulties in monitoring all investee companies due to lack of time and resources. Traditional measures such as company financial performance and dividend policy, continued to be favored and rigorously monitored. The overdependence on hard criteria may be a result of a culture of overly rewarding beneficiaries and a lack of expertise in being involved in specialized company areas such as strategy. Strict regulations hamper effort to be more involved in governing investee companies. Research limitations/implications The research used interviews and generalization may become an issue. In addition, access to many managers depended on recommendations, and the respondents are selected to represent the different types of institutional investors. Originality/value Investigation into factors that may limit institutional investors’ involvement in corporate governance in Malaysian public listed companies, especially from a more qualitative viewpoint, is lacking. In addition, this paper advances the understanding of shareholder activism by adding to the literature by exploring the issue in a specific emerging markets context.

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Section: Literature Reviewmentioning

confidence: 99%

Difficulties in being responsible institutional investors: evidencefrom Malaysia

Annuar

2019

SRJ

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“…For instance, negative publicity can damage trust and loyalty among customers (Vogel, 2010) and financial investors (Low & Arumugam, 2001) and may affect firm revenues and access to financial resources. The mere threat of negative publicity may already be sufficient for CEP to improve as firms want to prevent the negative consequences from public disclosure of non-sustainable practices (Dyck & Zingales, 2002).…”

Section: Social Institutions and Corporate Environmental Performancementioning

confidence: 99%

National institutional antecedents to corporate environmental performance

Hartmann

Uhlenbruck

2015

Journal of World Business

125

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“…Holland (1998) noted that the area discussed in such meetings pertains to the company's strategy, quality of management and the effectiveness of corporate governance mechanisms. Similarly, Graves (1988); Zahra (1996); Zahra et al (2000) and Low and Seetharaman (2001) have found that the strategic initiative of the companies is an important precursor to the future performance and dividend policy of the companies, and such strategic evaluations are conducted on an ongoing basis rather than at the point of entry.…”

Section: Literature Reviewmentioning

confidence: 99%

Changes in ownership forms and role of institutional investors in governing public companies in Malaysia

Annuar

2015

Journal of Accounting &Amp; Organizational Change

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Purpose – The purpose of this paper is to ascertain whether different types of institutional investor in Malaysia are involved in the corporate governance of their investee companies, and, if yes, to what extent is the level of the involvement. Design/methodology/approach – A qualitative approach, consisting of a series of interviews with 18 senior investment managers of different types of institutional investor, was chosen. Findings – The findings suggest that lessons learnt from the fallout of the Asian crisis has made Malaysian institutional investors not only to be more prudent in managing their total funds and in making equities investment decisions, but has resulted in a more active participation in their “core” investee companies apart from merely discharging their voting rights. Interview analysis revealed that government-linked investment companies are championing the cause and could possibly affect the overall level of institutional investors’ involvement, which bode well for the future of the corporate governance system of the country. Research limitations/implications – Generalisations may be an issue when interviews are used as the method of inquiry. Also, the sample is not random, as access to many managers depended on recommendations. In addition, respondents were consciously selected to obtain different types of institutional investors that included government and non-government linked. Originality/value – There is a lack of work on studying the involvement of institutional investors in developing countries, whereby previous work and literature review were predominantly based upon the experience of Western economies.

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The Sustainability of Business Corporate Governance: Evidence from the Malaysia Public-Listed Companies

Cited by 8 publications

References 7 publications

Difficulties in being responsible institutional investors: evidencefrom Malaysia

Difficulties in being responsible institutional investors: evidencefrom Malaysia

National institutional antecedents to corporate environmental performance

Changes in ownership forms and role of institutional investors in governing public companies in Malaysia

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