The Roles of Investor Sentiment in Malaysian Stock Market

Tuyon, Jasman; Ahmad, Zamri; Matahir, Hylmee

doi:10.21315/aamjaf2016.11.s1.3

Cited by 2 publications

(4 citation statements)

References 33 publications

(59 reference statements)

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“…Recent evidence on the presence of various behavioural biases among instutional investors in Malaysia have been documented by many studies (see: Lai, Low, & Lai, 2001;Lai, Tan, & Chong, 2013;Mohamad & Perry, 2015;Khan, Tan, & Chong, 2016;2017b;Khan, Naz, Qureshi, & Ghafoor, 2017;Khan, Tan, & Chong, 2017;Jaiyeoba, Adewale, Haron, & Che Ismail, 2018). In addition, some studies provide evidence on the presence of behavioural biases on general market perspective (Brahmana, Hooy, & Ahmad, 2012;Tuyon, Ahmad, & Matahir, 2016;Anusakumar, Ali, & Hooy, 2017). This research extends the above enquiries by investigating how behavioural biases could be governed by reference to Malaysia case.…”

Section: Introductionmentioning

confidence: 54%

Governance of Behavioural Biases in Asset Management Industry: Insights from Fund Managers in Malaysia

Ahmad¹,

Ibrahim²,

Tuyon³

2018

AAMJAF

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Institutional investors' behavioural biases have been growingly observed in global financial markets but the governance policy initiatives to mitigate these biases have been long overdue. Taking Malaysia as the case, this paper examines the possibility of behavioural biases among professional investors and discusses the importance of behavioural biases governance in asset management industry. Combination of survey and Delphi methods are used for data collection (survey) and validation of opinions (Delphi). The survey shows the possibility of behavioural biases impacting the thought, decision, and investing strategies of the fund manager. Of great concern, the need to govern behavioural biases in the fund management governance framework has been neglected. This brings challenges to the performance and sustainability of fund management industry. This paper provides behavioural finance insights to inform researchers, practitioners and regulators on the needs and ways to govern behavioural biases through behavioural governance.

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Section: Introductionmentioning

confidence: 54%

Governance of Behavioural Biases in Asset Management Industry: Insights from Fund Managers in Malaysia

Ahmad¹,

Ibrahim²,

Tuyon³

2018

AAMJAF

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“…Malaysia is classified by World Bank as one of the top emerging economies in Asia and provides a good reference for study of the relationship between investor confidence and firm value in the status of Asia country (World Bank 2015). This is strengthened by findings of Jasman Tuyon et al (2016) and Toh and Ahmad (2010) that show Malaysian investors are influenced by sentiment in their investment decisions. The mediating role of investors' confidence is therefore depicted in Figure 1 1, the final total sample of this study is 120 and this consists of representative from each industry that is proportionate to the total companies in that specific industry.…”

Section: Mediating Effect Of Investor Confidence Between Board Characteristics and Firm Valuementioning

confidence: 83%

“…This implies that these investors make decision based on their sentiment, perception and confidence. Study by Tuyon et al (2016) also shows that the effect of investors' sentiment or confidence is not temporary. The change of Malaysian government in 2018 inevitably creates market instability, and hence one of the key objectives of the new government is to boost investors' confidence.…”

Section: Introductionmentioning

confidence: 93%

“…This study tested the mediating effect of investors' confidence. Conventionally, there are two major approaches to measure investor sentiment, which are survey-based and market-based measures (Jasman Tuyon et al 2016). Survey-based usually only available at the aggregate market while market-based can be constructed at the firm level.…”

Section: Measure Of Constructsmentioning

confidence: 99%

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Board Characteristics, Investors’ Confidence and Firm Value: Malaysian Evidence

Lim

Hashim

Embong

2019

AJAG

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This study aims to investigate the association between board characteristics and firm value taking into consideration the role of investors' confidence. The subject of corporate governance is still of interest to researchers and practitioners due to its importance and the complexities surrounding it. This is because there are many elements that may interplay with corporate governance in influencing the value of firms. Despite abundance of research on the effect of board characteristics on firm's value, the empirical evidences are still inconclusive. One of the consequences of having good governance as evidenced by many empirical research is the higher firm value. The agency theory explains this relationship such that good governance reduces agency cost, increasing investors' confidence on the firm, hence its value. This explanation indicates that the influence of good governance on the firm's value could be due to its effect on investors' confidence. This study extends the understanding on the relationship between corporate governance and firm value by investigating the role of investors' confidence on this relationship. Companies listed on Main Board of Bursa Malaysia are selected as sample using proportionate stratified random sampling method. The results demonstrate that CEO duality and board independence significantly related to firm value consistent with prior studies. The analysis on the role of investors' confidence in the relationship between board characteristics and firm value indicates that investors' confidence plays significant role in the relationship between CEO duality and firm value. The results provide input to firms on factors that contribute to firm value and to relevant authority on the important aspect of corporate governance.

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The Roles of Investor Sentiment in Malaysian Stock Market

Abstract: ABSTRACT

Cited by 2 publications

References 33 publications

Governance of Behavioural Biases in Asset Management Industry: Insights from Fund Managers in Malaysia

Governance of Behavioural Biases in Asset Management Industry: Insights from Fund Managers in Malaysia

Board Characteristics, Investors’ Confidence and Firm Value: Malaysian Evidence

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