Institutional investors’ investment preference and monitoring: evidence from Malaysia

Tee, Chwee Ming

doi:10.1108/mf-07-2018-0314

“…This study believes that the benefit played by the institutional ownership outweigh the negative effects of those association on firm value. Effective monitoring roles of institutional investors can increase corporate governance quality and firm value (Abdul Jalil & Abdul Rahman, 2010;Sakawa & Watanabel, 2020;Tee, 2019;Wang, 2019). Moreover, institutional investors in Malaysia are governed by regulations stipulated under the Malaysian Code of Institutional Investors (MCII 2014).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Institutional Investors Ownership and Firm Value: Evidence from Malaysia

Azmi¹,

Sata²,

Abdullah³

et al. 2021

APMAJ

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Institutional investors play a significant role as an external watchdog to promote good governance to uphold firm value. The existence of institutional investors as shareholders is able to reduce the agency problem and the costs that arise from shareholder-manager relationship. This study aimed to examine the influence of institutional investors’ shareholdings and firm value among public listed firms in Malaysia. Specifically, it is argued that only pressure-insensitive institutional investors play an active monitoring role to increase a firm’s value, while pressure-sensitive investors, do not. This study employed 595 public listed firms from the main market in Bursa Malaysia for the period 2013 to 2017 (2795 firm-year observations). The results show that the pressure-sensitive and pressure-insensitive investors are positively significant to a firm’s value. These findings revealed that institutional investors in Malaysia play a significant role in increasing a firm’s value. This study will have a significant contribution to firms and the academic literature which states that all types of institutional investors in Malaysia are effectively monitoring their roles as an external corporate governance watchdog. The existence of these investors will be able to promote better governance and increase a firm’s value. Keywords: institutional ownership, pressure-insensitive and pressure sensitive institutional investors, firm’s value

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“…It is the company sales ability to make a profit (Smart et al, 2019;Tee, 2019). The formula used to calculate Net profit margin is as follows:…”

Section: Price To Book Value (X 1 )mentioning

confidence: 99%

Impact Financial Performance to Stock Prices: Evidence From Indonesia

Prasetyo¹,

Aliyyah²,

Rusdiyanto³

et al. 2021

Preprint

2

0

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The authors propose in this study to evaluate financial performance applications for stock prices of the Indonesian Stock Exchange in manufacturing companies. The method of research used here is a quantitative descriptive method. In that statement, Indonesian Stock Exchange manufacturing companies between 2016 and 2018 are the population use in this research, using the sampling technique Purpose Sampling. This research uses secondary data from 2016 to 2018, the financial reports of Indonesian Stock Exchange manufacturing companies. The Indonesian stock exchange web site has been provided with all data sources at https://www.idx.co.id, and searching for www.google.id. Our analysis shows that book value prices and the net profit margin affect stock prices. The value of financial performance at the Indonesian Stock Bourses manufacturing companies' cost amounts to 64.5 percent, while other factors not listed in this study account for 35.4 percent.

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“…It is the company sales ability to make a profit (Smart et al, 2019;Tee, 2019). The formula used to calculate Net profit margin is as follows: NPM =…”

Section: Net Profit Margin (X 2 )mentioning

confidence: 99%

Impact Financial Performance to Stock Prices: Evidence From Indonesia

Rusdiyanto¹

2021

Preprint

0

View full text Add to dashboard Cite

The authors propose in this study to evaluate financial performance applications for stock prices of the Indonesian Stock Exchange in manufacturing companies. The method of research used here is a quantitative descriptive method. In that statement, Indonesian Stock Exchange manufacturing companies between 2016 and 2018 are the population use in this research, using the sampling technique Purpose Sampling. This research uses secondary data from 2016 to 2018, the financial reports of Indonesian Stock Exchange manufacturing companies. The Indonesian stock exchange web site has been provided with all data sources at https://www.idx.co.id, and searching for www.google.id. Our analysis shows that book value prices and the net profit margin affect stock prices. The value of financial performance at the Indonesian Stock Bourses manufacturing companies' cost amounts to 64.5 percent, while other factors not listed in this study account for 35.4 percent.

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Institutional investors’ investment preference and monitoring: evidence from Malaysia

Cited by 16 publications

References 48 publications

Institutional Investors Ownership and Firm Value: Evidence from Malaysia

Institutional Investors Ownership and Firm Value: Evidence from Malaysia

Impact Financial Performance to Stock Prices: Evidence From Indonesia

Impact Financial Performance to Stock Prices: Evidence From Indonesia

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