institutional investors – Jurnal Pengurusan

Corporate Sustainability Commitment, Institutional Investors and Financial Performance: Evidence from Malaysia

asriwn — Fri, 23 May 2025 03:33:08 +0000

This study examines whether corporate commitment towards sustainability contributes to financial performance and the moderating role of institutional investors toward relationship between sustainability commitment and financial performance. The monitoring role by institutional investors is also expected to be able to align sustainability practices with the company’s financial objectives. The sample includes Malaysian companies listed on the main board of Bursa Malaysia from 2015 to 2021, with a total observation of 256 companies. Data were collected from Refinitiv-Eikon Thomson Reuters. Findings indicated that higher corporate sustainability commitment (CSC) does associate with higher financial performance. In addition, the presence of institutional investors positively affects the financial performance of companies, however, weakens the effect of CSC on financial performance. This study provides insights for Malaysian regulators on the importance of sustainable practices toward value creation and achieving the 2030 Agenda for Sustainable Development. Additionally, it provides insights from the perspectives of agency theory, by which companies can create better values when their commitment towards sustainability practices is monitored by the presence of institutional investors.

Institutional Investors, Risk Management and Audit Committees Influence on Non-Financial Risk Disclosure

asriwn — Tue, 31 Jan 2023 02:09:34 +0000

This study examines the complementary or substitution role of audit committee independence (ACInd), risk management committee (RMC) and institutional investors on non-financial risk disclosure (NFRD). While the existing literature provides inconclusive evidence on the individual influences of various monitoring mechanisms on NFRD, it is necessary to examine whether their combined monitoring roles are present as many monitoring mechanisms coexist within an organisation. This study examined a sample of 864 Bursa Malaysia companies from 2016 to 2018. The Delphi technique is used to finalise NFRD items. This study performed regression and simple slope tests to examine the complementary and substitutive role of ACInd, RMC and institutional investors. The findings show that RMC is substitutive to AcInd towards NFRD. This demonstrates that RMC has the expertise and potential to lessen any information asymmetry, making it the most reliable monitoring mechanism. These findings indicate the significance of establishing a standalone RMC among Malaysian companies to supervise the NFRD reporting.

The Lead-lag Relationships of Equity Fund Flows: Evidence of an Emerging Market

SITI HASLINA TON ZAINAL ABIDIN — Sat, 08 Oct 2022 11:35:52 +0000

This study examines the lead-lag relationships among four arrays of equity fund flows into Malaysian equity market. The equity fund flows are of (1) local institutional and retail investors and (2) foreign institutional and retail investors. Using a daily aggregate data, the findings of this study reveal that foreign institutional equity fund flows have an impact on both local institutional and retail equities’ fund flows. However, local institutional equity fund flows do not have relationships with either foreign institutional or retail equity fund flows. This research also shows that there is a bi-directional causality between local retail and foreign institutional equities’ fund flows. However, there is a uni-directional causality running from local retail to foreign retail equity fund flows. The finding also discloses that there is no lead-lag relationship between foreign institutional and retail equities’ fund flows. Even though both local institutional and retail equities’ fund flows influence each other, the impact of local institutional on local retail equity fund flows is stronger. Fund flows own innovations explain more on the variability in both foreign institutional and retail equities’ fund flows, as well as local retail equity fund flows. However, innovations in other types of equity fund flows on aggregate basis explain more on the variability in local institutional equity fund flows as opposed to its own innovations. Finally, among the four categories of equity traders, foreign institutions and local retailers seem to drive Malaysian equity market.