/jurnalpengurusan Sun, 31 Mar 2024 16:18:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/ownership-structures-and-sustainability-reporting-of-malaysian-listed-companies/?utm_source=rss&utm_medium=rss&utm_campaign=ownership-structures-and-sustainability-reporting-of-malaysian-listed-companies Sun, 31 Mar 2024 16:18:40 +0000 /jurnalpengurusan/?post_type=article&p=7264 The study examines the quality of sustainability reporting (SR), the relationship between ownership structures (namely institutional ownership (IO), managerial ownership (MO), and family ownership (FO)) and SR, and the existence of a non-linear relationship between ownership structures and SR based on the inconsistent results of previous studies. The study collected secondary data from the annual and sustainability reports of 261 Malaysian public listed companies (PLCs) in 2018 and 2019 and analysed the data using content analysis. The results report a slight increment in the quality of SR in 2019, and using Ordinary Least Squares (OLS) regression, it is found that only IO has a positive and significant association with SR, which indicates that companies with major institutional shareholdings attain superior SR quality. Further exploration reveals a curvilinear relationship (inverse U-shape) between IO and SR quality, whereby the effect declines when IO reaches a certain threshold. As such, these findings shed light on the changes in investors’ motivation towards their Corporate Social Responsibility (CSR) commitment based on their company holdings, showing the delicate balance needed between oversight and the aligning of interests. This means that large institutional investors in a company should collaborate with management to advocate for policies and practices that support social and environmental objectives that are aligned with the company’s long-term view of value creation.

 

]]> /jurnalpengurusan/article/the-encumbrance-of-institutional-investor-and-board-of-directors-in-reducing-risk-of-default-for-conventional-bonds-and-sukuk-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=the-encumbrance-of-institutional-investor-and-board-of-directors-in-reducing-risk-of-default-for-conventional-bonds-and-sukuk-in-malaysia Sat, 08 Oct 2022 15:41:39 +0000 /jurnalpengurusan/?post_type=article&p=3032 Sukuk yields mimic those of conventional bonds due to having similar features. Sukuk are shariah-compliant securities that offer different structures to those of conventional bonds. Therefore, it is believed that the spreading of yields should also be different. The presence of key institutional investors/owners and certain Board of Directors (BOD) characteristics as highlighted by the Malaysian Code on Corporate Governance (MCCG) may influence the yield to maturity (YTM) of conventional bonds and sukuk. Thus, the main objective of this study is to investigate the relationship between these two yield spreads instruments with corporate governance mechanisms. The data is obtained from firm issuers’ annual reports, the Bondinfo Hub of the Malaysian Central Bank, the Rating Agency Malaysia (RAM), the Malaysian Department of Statistics and Bloomberg databases for the period beginning 2000 to 2014 for 256 and 405 tranches of long-term and medium-term issuances of conventional bonds and sukuk respectively. The most significant findings show that the presence of top-six and other institutional ownerships as corporate governance mechanism proxy insignificantly and significantly reduce yield spreads within the firm revealed by Ordinary Least Square (OLS) and random effects models in long-term and medium-term issuances.

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