Institutional investors, political connections and analyst following in Malaysia

Janice How, Peter Verhoeven and Effiezal Aswadi Abdul Wahab

Economic Modelling, 2014, vol. 43, issue C, 158-167

Abstract: We examine the association between institutional ownership, political connections, and analyst following in Malaysia from 1999 to 2009. Based on 940 firm-year observations, we document a positive relation between institutional ownership, particularly by Employees Provident Fund (EPF), and analyst following, thus supporting the governance role that institutional investors play in promoting corporate transparency. However, there is no evidence that political connections matter to analyst following. The monitoring role of institutional investors, including EPF, does not appear to be any different between politically connected and non-connected firms.

Keywords: Institutional investors; Analyst following; Corporate governance; Political connections; Malaysia (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:43:y:2014:i:c:p:158-167

DOI: 10.1016/j.econmod.2014.07.043

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