Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note

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,...

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Main Author:	Annuar, Hairul Azlan
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Limited 2015
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/45728/ http://irep.iium.edu.my/45728/ http://irep.iium.edu.my/45728/1/45728.pdf http://irep.iium.edu.my/45728/4/45728_changes_in_ownership_scopus.pdf

id	iium-45728
recordtype	eprints
spelling	iium-457282017-11-29T08:33:31Z http://irep.iium.edu.my/45728/ Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping 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 in order 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. Emerald Group Publishing Limited 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/45728/1/45728.pdf application/pdf en http://irep.iium.edu.my/45728/4/45728_changes_in_ownership_scopus.pdf Annuar, Hairul Azlan (2015) Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note. Journal of Accounting & Organizational Change, 11 (4). pp. 455-475. ISSN 1832-5912 http://www.emeraldinsight.com/doi/full/10.1108/JAOC-08-2012-0068
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Annuar, Hairul Azlan Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
description	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 in order 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.
format	Article
author	Annuar, Hairul Azlan
author_facet	Annuar, Hairul Azlan
author_sort	Annuar, Hairul Azlan
title	Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
title_short	Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
title_full	Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
title_fullStr	Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
title_full_unstemmed	Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note
title_sort	changes in ownership forms and role of institutional investors in governing public companies in malaysia: a research note
publisher	Emerald Group Publishing Limited
publishDate	2015
url	http://irep.iium.edu.my/45728/ http://irep.iium.edu.my/45728/ http://irep.iium.edu.my/45728/1/45728.pdf http://irep.iium.edu.my/45728/4/45728_changes_in_ownership_scopus.pdf
first_indexed	2023-09-18T21:05:04Z
last_indexed	2023-09-18T21:05:04Z
_version_	1777410878944051200

Changes in ownership forms and role of institutional investors in governing public companies in Malaysia: a research note

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