Corporate Governance and Institutional Investors: Evidence from Malaysia

In 2001, Malaysia undertook important corporate governance reforms, which saw theintegration of the Malaysian Code on Corporate Governance (MCCG) into KualaLumpur Stock Exchange (KLSE) Listing Rules and the establishment of the MinorityShareholder Watchdog Group (MSWG), which aims to enhance institu...

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Main Authors: Abdul Wahab, Effiezal Aswadi, How, J., Verhoeven, P.
Format: Journal Article
Published: Asian Academy of Manaagement and Penerbit Universiti Sains Malaysia 2008
Online Access:http://hdl.handle.net/20.500.11937/39335
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author Abdul Wahab, Effiezal Aswadi
How, J.
Verhoeven, P.
author_facet Abdul Wahab, Effiezal Aswadi
How, J.
Verhoeven, P.
author_sort Abdul Wahab, Effiezal Aswadi
building Curtin Institutional Repository
collection Online Access
description In 2001, Malaysia undertook important corporate governance reforms, which saw theintegration of the Malaysian Code on Corporate Governance (MCCG) into KualaLumpur Stock Exchange (KLSE) Listing Rules and the establishment of the MinorityShareholder Watchdog Group (MSWG), which aims to enhance institutional investoractivism. Following this development, this study investigates the relationship betweencorporate governance and institutional ownership in Malaysia. Our panel analysis of 434firms listed on Bursa Malaysia during 1999–2002 finds that institutional ownership ispositively and significantly related to corporate governance. However, we find that therelationship becomes less positive after 2001, suggesting that the monitoring effects ofinstitutional ownership and corporate governance arise simultaneously andendogenously.
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institution Curtin University Malaysia
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last_indexed 2025-11-14T08:58:18Z
publishDate 2008
publisher Asian Academy of Manaagement and Penerbit Universiti Sains Malaysia
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spelling curtin-20.500.11937-393352017-02-28T01:42:10Z Corporate Governance and Institutional Investors: Evidence from Malaysia Abdul Wahab, Effiezal Aswadi How, J. Verhoeven, P. In 2001, Malaysia undertook important corporate governance reforms, which saw theintegration of the Malaysian Code on Corporate Governance (MCCG) into KualaLumpur Stock Exchange (KLSE) Listing Rules and the establishment of the MinorityShareholder Watchdog Group (MSWG), which aims to enhance institutional investoractivism. Following this development, this study investigates the relationship betweencorporate governance and institutional ownership in Malaysia. Our panel analysis of 434firms listed on Bursa Malaysia during 1999–2002 finds that institutional ownership ispositively and significantly related to corporate governance. However, we find that therelationship becomes less positive after 2001, suggesting that the monitoring effects ofinstitutional ownership and corporate governance arise simultaneously andendogenously. 2008 Journal Article http://hdl.handle.net/20.500.11937/39335 Asian Academy of Manaagement and Penerbit Universiti Sains Malaysia restricted
spellingShingle Abdul Wahab, Effiezal Aswadi
How, J.
Verhoeven, P.
Corporate Governance and Institutional Investors: Evidence from Malaysia
title Corporate Governance and Institutional Investors: Evidence from Malaysia
title_full Corporate Governance and Institutional Investors: Evidence from Malaysia
title_fullStr Corporate Governance and Institutional Investors: Evidence from Malaysia
title_full_unstemmed Corporate Governance and Institutional Investors: Evidence from Malaysia
title_short Corporate Governance and Institutional Investors: Evidence from Malaysia
title_sort corporate governance and institutional investors: evidence from malaysia
url http://hdl.handle.net/20.500.11937/39335