Shareholder Activism, Institutional Shareholders and Agency Problems in Malaysia

Journal Title: GATR Global Journal of Business & Social Science Review - Year 2016, Vol 4, Issue 3

Abstract

Objective - The aim of this paper is to study the effectiveness of institutional shareholder activism in controlling corporate behaviours in Malaysia. Methodology/Technique - this study is investigated by critical reviewing previously published articles. Findings - Earlier researchers have viewed poor corporate governance as one of the main contributing factors to a major corporate disaster. The best practice of corporate governance suggests that shareholders should actively be engaged and involved with the investee companies to provide check and balance to the governance mechanism. This is particularly crucial for companies with suspicions of poor internal governance. The engagements from shareholders, especially the institutional shareholders in critical areas will give impacts to the governance structures and practices of the companies involved. Institutional shareholders usually have the capability to perform interventions throughout the year, not only limited to annual general meetings. Novelty - This study proved that corporate governance provides a structure to facilitate performance and also to enhance corporate sustainability.

Authors and Affiliations

Maizatul Akmal Musa, Shahril Eashak Ismail

Keywords

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  • EP ID EP185044
  • DOI -
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How To Cite

Maizatul Akmal Musa, Shahril Eashak Ismail (2016). Shareholder Activism, Institutional Shareholders and Agency Problems in Malaysia. GATR Global Journal of Business & Social Science Review, 4(3), 30-36. https://europub.co.uk/articles/-A-185044