This study aims to examine the association between institutional investors’ ownership (IOW), politically connected firms (POCF) and audit report lag (AUDRL).
Abstract
Purpose
This study aims to examine the association between institutional investors’ ownership (IOW), politically connected firms (POCF) and audit report lag (AUDRL).
Design/methodology/approach
This study employs a feasible generalised least squares (FGLS) model for panel data to examine the association between IOW, POCF and AUDRL for Malaysian publicly listed companies.
Findings
The findings reveal a statistically significant negative relationship between IOW and AUDRL, with this negative relationship being more pronounced amongst POCF. Additionally, the results demonstrate that the relationship between IOW and AUDRL varies depending on the domicile of IIs (local vs. foreign). Specifically, local institutional investors exhibit a negative and statistically significant relationship with AUDRL, whilst foreign institutional investors show a positive and statistically significant relationship with AUDRL.
Originality/value
The results of this study provide a new understanding of auditor responses to institutional investor monitoring and political connections (PCs) in an emerging economy.
Details
Keywords
Ameen Qasem, Abdulalem Mohammed, Enrico Battisti and Alberto Ferraris
The aim of this study is to examine the ownership impact on firm sustainable investments (FSIs). In particular, this research examines the link between institutional investor…
Abstract
Purpose
The aim of this study is to examine the ownership impact on firm sustainable investments (FSIs). In particular, this research examines the link between institutional investor ownership (IIO), managerial ownership (MOWN) and FSIs in the tourism industry in Malaysia.
Design/methodology/approach
This study uses a data set of 346 firm-year observations from 2008 to 2020 and applies feasible generalized least squares (FGLS) regression analysis. The study sample is based on tourism firms listed on Bursa Malaysia (the Malaysian Stock Exchange).
Findings
There is a significant positive association between IIO and FSIs. When IIO is classified into foreign (FIIO) and local (LIIO), this significant association is mainly driven by FIIO. In addition, there is a significant, positive association between managerial ownership (MOWN) and firm sustainable investments (FSIs). These findings imply that firm ownership has an influence on FSIs in the tourism industry.
Originality/value
This is the first attempt to consider IIO and MOWN simultaneously in a single model estimation. The findings contribute to emerging capital markets where the involvement of ownership concentration in the governance of publicly listed firms is a common practice.