Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms

Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms

This study investigates the effects of institutional ownership and growth opportunity on corporate risk taking. The relationships are examines using a sample of 522 nonfinancial firms from Bursa Malaysia with a 15 years timespan covering from the year 2000 until 2014. There is limited attention in...

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Main Author: Hanis Hazwani, Ahmad
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HD61 Risk Management
Online Access:https://etd.uum.edu.my/6105/1/s817801_01.pdf
https://etd.uum.edu.my/6105/2/s817801_02.pdf
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record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Khaw, Lee Hwei
topic HD61 Risk Management
spellingShingle HD61 Risk Management
Hanis Hazwani, Ahmad
Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
description This study investigates the effects of institutional ownership and growth opportunity on corporate risk taking. The relationships are examines using a sample of 522 nonfinancial firms from Bursa Malaysia with a 15 years timespan covering from the year 2000 until 2014. There is limited attention in the literature in regards to corporate risk taking. Volatility of corporate earnings is used to proxy for corporate risk taking. The main independent variables are institutional ownership and growth opportunity, while firm age, firm size, tangibility, leverage and profitability are included control variables. This study reports robust evidence that institutional ownership is negatively associated to corporate risk taking. This findings indicates that institutional shareholders that act as a monitoring mechanism have the capabilities to monitor and control the managerial activities to safeguard and to mitigate the excessive risk taking behaviour. However, the evidence on growth opportunity is not consistently significant, suggesting the need to further explore this relationship. Moreover, this study finds that firm age, firm size, leverage, tangibility and profitability are associated to corporate risk taking
format Thesis
qualification_name masters
qualification_level Master's degree
author Hanis Hazwani, Ahmad
author_facet Hanis Hazwani, Ahmad
author_sort Hanis Hazwani, Ahmad
title Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
title_short Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
title_full Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
title_fullStr Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
title_full_unstemmed Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms
title_sort institutional ownership, growth opportunity and corporate risk taking: evidence from malaysia public listed firms
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2016
url https://etd.uum.edu.my/6105/1/s817801_01.pdf
https://etd.uum.edu.my/6105/2/s817801_02.pdf
_version_ 1747828022284648448
spelling my-uum-etd.61052021-04-05T02:31:11Z Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms 2016 Hanis Hazwani, Ahmad Khaw, Lee Hwei Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD61 Risk Management This study investigates the effects of institutional ownership and growth opportunity on corporate risk taking. The relationships are examines using a sample of 522 nonfinancial firms from Bursa Malaysia with a 15 years timespan covering from the year 2000 until 2014. There is limited attention in the literature in regards to corporate risk taking. Volatility of corporate earnings is used to proxy for corporate risk taking. The main independent variables are institutional ownership and growth opportunity, while firm age, firm size, tangibility, leverage and profitability are included control variables. This study reports robust evidence that institutional ownership is negatively associated to corporate risk taking. This findings indicates that institutional shareholders that act as a monitoring mechanism have the capabilities to monitor and control the managerial activities to safeguard and to mitigate the excessive risk taking behaviour. However, the evidence on growth opportunity is not consistently significant, suggesting the need to further explore this relationship. Moreover, this study finds that firm age, firm size, leverage, tangibility and profitability are associated to corporate risk taking 2016 Thesis https://etd.uum.edu.my/6105/ https://etd.uum.edu.my/6105/1/s817801_01.pdf text eng public https://etd.uum.edu.my/6105/2/s817801_02.pdf text eng public masters masters Universiti Utara Malaysia Abd-Mutalib, H., Muhammad-Jamil, C. Z., & Wan-Hussin, W. N. (2014). 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