Difficulties in being responsible institutional investors: evidence from Malaysia
Purpose – The purpose of this paper is to ascertain whether institutional investors in Malaysia faced limitations when they are involved i n the corporate governance of their investee companies. Design/methodology/approach – A qualitative approach, consisting of a series of interviews with...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Group Publishing Ltd.
2020
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/81954/ http://irep.iium.edu.my/81954/1/81954_Difficulties%20in%20being%20responsible.pdf |
| _version_ | 1848789212853174272 |
|---|---|
| author | Annuar, Hairul Azlan |
| author_facet | Annuar, Hairul Azlan |
| author_sort | Annuar, Hairul Azlan |
| building | IIUM Repository |
| collection | Online Access |
| description | Purpose
–
The purpose of this paper is to ascertain whether institutional investors in Malaysia
faced limitations when they are involved i
n the corporate governance of their investee
companies.
Design/methodology/approach
–
A qualitative approach, consisting of a series of interviews with
senior investment managers of different type of institutional investors, was chosen. In total, 18 interviews
were conducted over a period of two months, which is thought to sufficiently provide the answers to the
research purpose.
Findings
–
The interviews revealed there are difficulties in monitoring all investee companies due to lack
of time and resources. Traditional measures such as company financial performance and dividend
policy, continued to be favored and rigorously monitored. The overdependence on hard criteria may be a
result of a culture of overly rewarding beneficiaries and a lack of expertise in being involved in specialized
company areas such as strategy. Strict regulations hamper effort to be more involved in governing
investee companies.
Research limitations/implications
–
The research used interviews and generalization may become an
issue. In addition, access to many managers depended on recommendations, and the respondents are
selected to represent the different types of institutional investors.
Originality/value
–
Investigation into factors that may limit institutional investors’ involvement in
corporate governance in Malaysian public listed companies, especially from a more qualitative
viewpoint, is lacking. In addition, this paper advances the understanding of shareholder activism by
adding to the literature by exploring the issue in a specific emerging markets context. |
| first_indexed | 2025-11-14T17:53:08Z |
| format | Article |
| id | iium-81954 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T17:53:08Z |
| publishDate | 2020 |
| publisher | Emerald Group Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-819542020-08-10T03:27:00Z http://irep.iium.edu.my/81954/ Difficulties in being responsible institutional investors: evidence from Malaysia Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping Purpose – The purpose of this paper is to ascertain whether institutional investors in Malaysia faced limitations when they are involved i n the corporate governance of their investee companies. Design/methodology/approach – A qualitative approach, consisting of a series of interviews with senior investment managers of different type of institutional investors, was chosen. In total, 18 interviews were conducted over a period of two months, which is thought to sufficiently provide the answers to the research purpose. Findings – The interviews revealed there are difficulties in monitoring all investee companies due to lack of time and resources. Traditional measures such as company financial performance and dividend policy, continued to be favored and rigorously monitored. The overdependence on hard criteria may be a result of a culture of overly rewarding beneficiaries and a lack of expertise in being involved in specialized company areas such as strategy. Strict regulations hamper effort to be more involved in governing investee companies. Research limitations/implications – The research used interviews and generalization may become an issue. In addition, access to many managers depended on recommendations, and the respondents are selected to represent the different types of institutional investors. Originality/value – Investigation into factors that may limit institutional investors’ involvement in corporate governance in Malaysian public listed companies, especially from a more qualitative viewpoint, is lacking. In addition, this paper advances the understanding of shareholder activism by adding to the literature by exploring the issue in a specific emerging markets context. Emerald Group Publishing Ltd. 2020 Article PeerReviewed application/pdf en http://irep.iium.edu.my/81954/1/81954_Difficulties%20in%20being%20responsible.pdf Annuar, Hairul Azlan (2020) Difficulties in being responsible institutional investors: evidence from Malaysia. Social Responsibility Journal, 16 (4). pp. 507-520. ISSN 1747-1117 https://www.emerald.com/insight/content/doi/10.1108/SRJ-12-2017-0264/full/pdf?title=difficulties-in-being-responsible-institutional-investors-evidencefrom-malaysia 10.1108/SRJ-12-2017-0264 |
| spellingShingle | HF5601 Accounting. Bookkeeping Annuar, Hairul Azlan Difficulties in being responsible institutional investors: evidence from Malaysia |
| title | Difficulties in being responsible institutional investors: evidence from Malaysia |
| title_full | Difficulties in being responsible institutional investors: evidence from Malaysia |
| title_fullStr | Difficulties in being responsible institutional investors: evidence from Malaysia |
| title_full_unstemmed | Difficulties in being responsible institutional investors: evidence from Malaysia |
| title_short | Difficulties in being responsible institutional investors: evidence from Malaysia |
| title_sort | difficulties in being responsible institutional investors: evidence from malaysia |
| topic | HF5601 Accounting. Bookkeeping |
| url | http://irep.iium.edu.my/81954/ http://irep.iium.edu.my/81954/ http://irep.iium.edu.my/81954/ http://irep.iium.edu.my/81954/1/81954_Difficulties%20in%20being%20responsible.pdf |