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- W4306408009 abstract "This study investigates whether institutional investors moderate the relationship between ethical commitment and financial performance amongst Malaysian companies. Through the role of institutional investors, the external monitoring mechanism is expected to reduce the cost associated with the agency problem amongst Malaysian companies, as shown by the lack of ethical practises. Using data from 429 publicly listed companies on the Main Board of Bursa Malaysia from 2012 to 2021, the results show that companies with higher ETHICS have better financial performance than companies with lower ETHICS. However, the findings on the moderating effect of institutional investors cannot be proven. By separating the sample based on pre-MCCG 2017, institutional investors were found to have an association between ETHICS and performance, but no evidence was found during the period post-MCCG 2017. This study adds to the perspective of agency theory in the academic literature, of which companies can create values by being committed to higher ethical practises. Results on the moderating effect of institutional investors provide perspective on external monitoring mechanisms in the Malaysian market because they are found to have a monitoring role in enhancing corporate performance. However, such a role decreases after the introduction of MCCG 2017. This study provides insights for Malaysian regulators on the necessity to keep promoting ethical practises and transparency amongst companies to achieve the goals of the National Anti-Corruption Plan 2019–2023. The ethical practises, however, are not limited to listed companies, and regulators should also consider monitoring the institutions within the capital market." @default.
- W4306408009 created "2022-10-17" @default.
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- W4306408009 date "2022-10-17" @default.
- W4306408009 modified "2023-09-25" @default.
- W4306408009 title "Ethical commitment, institutional investors and financial performance: Malaysian evidence" @default.
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- W4306408009 doi "https://doi.org/10.1002/ijfe.2720" @default.
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