Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Qasem, Ameen; Aripin, Norhani; Wan‐Hussin, Wan Nordin; Al-Duais, Shaker Dahan

doi:10.1080/23311975.2021.1908005

Cited by 12 publications

(27 citation statements)

References 123 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Thus, we enrich the literature by identifying new determinants of ASR, namely POC and its interplay with IIO. In particular, the present study extends the work of Qasem et al. (2021) by examining whether POC moderate the IIO–ASR relationship.…”

Section: Introductionsupporting

confidence: 58%

“…, 2020; Yu, 2011), equity incentive plans (Liu, 2017), institutional investors ownership (Firth et al. , 2013; Qasem et al. , 2021; Gu et al.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…However, whether or not their role influences ASR, specifically in emerging markets where POC are pervasive, remains largely unexplored. Although Qasem et al. (2021) show that in Malaysia, analysts seem to consider the nature of IIO (private owned versus state owned), which has disparate effects on the monitoring intensity of the investee firms, and ASR, their study does not examine whether the IIO–ASR nexus is different for POC and their non-POC counterparts.…”

Section: Introductionmentioning

confidence: 98%

“…This allows researchers to examine analysts' behaviour in formulating the stock recommendations (Qasem et al. , 2020, 2021; Wan-Hussin et al. , 2021).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Institutional investors, political connections and stock recommendations from sell-side analysts: the case of Malaysia

Qasem

Wan‐Hussin

Ghaleb

et al. 2022

JAEE

View full text Add to dashboard Cite

PurposeThe purpose of this study is to investigate the interplay between institutional investors' ownership (IIO), politically connected firms (POC) and sell-side analysts' stock recommendations (ASR).Design/methodology/approachThis study employs ordinary least square (OLS) regression to test the hypotheses. The sample comprises 280 Malaysian public listed companies (PLC) and encompasses the 2008–2013 time frame (a total of 735 observations).FindingsThe results show a significant and positive link between IIO and ASR. In addition, a negative association is found between POC and ASR. Moreover, the POC weakens the positive relationship between the IIO and ASR.Research limitations/implicationsOne important implication of this study is that political involvement in corporate decisions is a prominent characteristic of the Malaysian market, which can significantly affect the information environment and analysts' reactions.Practical implicationsThe findings of this study provide useful empirical guidance to the regulators in evaluating the efficacy of recent regulatory initiatives. Investors may also gain useful insights from this study, specifically in recognising the crucial monitoring role played by institutional investors and how politically patronised firms are viewed unfavourably by equity analysts.Originality/valueThis study is one of the first to examine the joint influence of IIO and POC, on ASR.

show abstract

Section: Introductionsupporting

confidence: 58%

“…, 2020; Yu, 2011), equity incentive plans (Liu, 2017), institutional investors ownership (Firth et al. , 2013; Qasem et al. , 2021; Gu et al.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

“…This allows researchers to examine analysts' behaviour in formulating the stock recommendations (Qasem et al. , 2020, 2021; Wan-Hussin et al. , 2021).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Institutional investors, political connections and stock recommendations from sell-side analysts: the case of Malaysia

Qasem

Wan‐Hussin

Ghaleb

et al. 2022

JAEE

View full text Add to dashboard Cite

show abstract

“…We also controlled for institutional investors ownership (TO_IO), since TO_IO significantly affects CSR disclosure [93]. TO_IO is measured as shares owned by institutional investors divided by the outstanding number of shares [94,95]. We further controlled for several financial variables at the firm level.…”

Section: Control Variablesmentioning

confidence: 99%

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

et al. 2021

Self Cite

View full text Add to dashboard Cite

Only a few studies have investigated the association between the characteristics of the chief executive officer (CEO) (i.e., tenure and local or expatriate) and corporate social responsibility (CSR) reporting. Our study adds to the fledgling literature by providing new evidence from Saudi Arabia. Given the dominance of family control among Saudi Arabian listed firms, additionally, this study examined the moderating effect of family ownership on the CEO-CSR relationship. Using CSR scores from Bloomberg database from 2010 to 2019 and ordinary least squares (OLS) regression, the findings reveal that the association between CEO tenure and CSR reporting is positively significant; however, the association between CEO nationality and CSR is not significant. In addition, the findings indicate that family ownership is an important contingency factor that explains the association between CEO tenure and CEO nationality, and CSR reporting. Our study contributes to an emerging line of CSR research that investigates the effects of foreign CEOs on CSR transparency, and supports prior evidence on the benefits to investors of having long-serving CEO and the costs of family entrenchment.

show abstract

Exploring the role of institutional investors in voting, monitoring and dialogue engagement in mitigating agency conflict in Malaysia’s public listed companies

Maznorbalia

Awalluddin

Ayob

2023

Humanit Soc Sci Commun

View full text Add to dashboard Cite

Institutional investors are very important for keeping shareholder value high by reducing agency conflict and promoting good governance. Recent governance scandals have placed Malaysia on the global stage, jeopardising the publicly listed companies (PLCs) reputation and calling into question the effectiveness of the country’s corporate governance mechanism. The study aimed to examine the level of agency conflict in Malaysian PLCs and the roles of institutional investors in mitigating agency issues. At the same time, we are exploring unclear institutional investors level of activism in Malaysia and evaluating which roles are considered powerful among institutional investors. The findings demonstrated that institutional investors significantly mitigate agency conflict, with monitoring and dialogue engagement as the most influential roles. Conclusively, the discovery reinstated Type 1 agency conflict (principal-agent) among important issues for corporate governance in Malaysia. The study meets the gaps of prior research in the Malaysian context of agency conflict. It offers a novelty on agency conflict examination in Malaysia as well as exploring institutional investors’ roles and recommending an approach that can be taken to strengthen the governance mechanism among PLCs in Malaysia. The present study advises institutional investors to play aggressive roles in managing agency issues, and relevant bodies need to enhance awareness of agency issues.

show abstract

Institutional investor heterogeneity and analyst recommendation: Malaysian evidence

Cited by 12 publications

References 123 publications

Institutional investors, political connections and stock recommendations from sell-side analysts: the case of Malaysia

Institutional investors, political connections and stock recommendations from sell-side analysts: the case of Malaysia

CEO Characteristics, Family Ownership and Corporate Social Responsibility Reporting: The Case of Saudi Arabia

Exploring the role of institutional investors in voting, monitoring and dialogue engagement in mitigating agency conflict in Malaysia’s public listed companies

Contact Info

Product

Resources

About