The study examines the association between the different types of blockholdings, the levels of corporate social responsibility (CSR) disclosure, and liquidity of shares traded in Malaysian public listed companies (PLCs) on Bursa Malaysia. The sample consists of 194 most actively traded PLCs for the year 2009. A CSR index was constructed using the criteria used by a leading newspaper that provides an annual CSR award. We suggest that such CSR awards help legitimize the business activities of PLCs in the eyes of a government promoting sustainable business practices. The study finds that while insider blockholdings increases the trading friction and reduces liquidity, the nongovernmental institutional blockholdings improve the liquidity of shares traded on Bursa Malaysia. Moreover, the government institutional blockholdings interacts with the CSR disclosure levels to affect the liquidity of the shares traded. These findings make important contributions to emerging capital markets where government regulations incentivize CSR disclosures and the involvement of institutional investors in the governance of PLCs are the norm.
Data Availability: The authors are willing to share the data for use by others in extending or replicating results reported in their articles (send request to Ms. Dhoraisingham at: shymala.dhoraisingam@monash.edu).
PurposeThis study aims to investigate the implication of top executives’ number of years of experience (tenure) on corporate risk-taking behaviour and corporate performance in Malaysian corporations.Design/methodology/approachTo test the hypothesis efficiently, the authors have extracted the data from Bloomberg for 788 listed companies of the Malaysian Stock Exchange. The methodology entails ordinary least squares regressions, quantile regression and dynamic system generalized method of moments model.FindingsFirst, the authors show that executive management tenure has a significant negative relationship with corporate risk-taking. It means that the long-tenured executives tend to undertake less risky strategies and decisions. Second, this study reveals that the longer executive management tenure has a positive relationship with corporate performance. Third, the moderating effect of corporate risk-taking with executive tenure (Tenure dummy*Risk) has a negative relationship with the corporate performance by 1%.Practical implicationsIt implies that the appointment of experienced executive management contributes towards corporate performance directly. However, experienced management trends take less risk, which eventually results in mitigating the corporate performance. On that basis, the findings are significant in highlighting the usefulness of executive leadership term and offers insights to academics, practitioners and policymakers.Originality/valueThis paper is novel since it is unique in evaluating the executive tenure and the preferences to handle risk strategies and how that impact the firm performance.
This paper examines the association between growth opportunities and dividend payouts and moderates the relationship between growth opportunities and dividend payouts. Our sample consisted of the Malaysian top 300 public listed companies (in terms of market capitalization) for a period from 2004 to 2011. Based on a specified selection process, the sample contained 1330 firm-year observations, after excluding firms with missing data. This paper finds that growth opportunities is associated with less dividends payouts and that this relationship is weaker for Bumiputera ethnic controlled firms. Furthermore, the results show that this negative association exists only for non-Government Linked Controlled firms
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