Institutional investors ownership and firm value: evidence from Malaysia / Nurul Azlin Azmi … [et al.]

Azmi, Nurul Azlin and Abd Sata, Fazrul Hanim and Abdullah, Norhidayah and Ab Aziz, Noor Hidayah and Ismail, Ida Suriya (2021) Institutional investors ownership and firm value: evidence from Malaysia / Nurul Azlin Azmi … [et al.]. Asia-Pasific Management Accounting Journal, 16 (1). pp. 1-20. ISSN 1675-3194

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Abstract

Institutional investors play a significant role as an external watchdog to promote good governance to uphold firm value. The existence of institutional investors as shareholders is able to reduce the agency problem and the costs that arise from shareholder-manager relationship. This study aimed to examine the influence of institutional investors’ shareholdings and firm value among public listed firms in Malaysia. Specifically, it is argued that only pressure-insensitive institutional investors play an active monitoring role to increase a firm’s value, while pressure-sensitive investors, do not. This study employed 595 public listed firms from the main market in Bursa Malaysia for the period 2013 to 2017 (2795 firm-year observations). The results show that the pressure-sensitive and pressure-insensitive investors are positively significant to a firm’s value. These findings revealed that institutional investors in Malaysia play a significant role in increasing a firm’s value. This study will have a significant contribution to firms and the academic literature which states that all types of institutional investors in Malaysia are effectively monitoring their roles as an external corporate governance watchdog. The existence of these investors will be able to promote better governance and increase a firm’s value.

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Item Type: Article
Creators:
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Azmi, Nurul Azlin
UNSPECIFIED
Abd Sata, Fazrul Hanim
UNSPECIFIED
Abdullah, Norhidayah
UNSPECIFIED
Ab Aziz, Noor Hidayah
UNSPECIFIED
Ismail, Ida Suriya
UNSPECIFIED
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > Investment, capital formation, speculation
Journal or Publication Title: Asia-Pasific Management Accounting Journal
UiTM Journal Collections: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 1675-3194
Volume: 16
Number: 1
Page Range: pp. 1-20
Item ID: 47435
Uncontrolled Keywords: Institutional ownership, pressure-insensitive and pressure sensitive institutional investors, firm’s value
URI: https://ir.uitm.edu.my/id/eprint/47435

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47435

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