Institutional investors, political connections and stock recommendations from sell-side analysts: the case of Malaysia

IF 3.2 Q1 BUSINESS, FINANCE
Ameen Qasem, W. Wan-Hussin, Belal Ali Abdulraheem Ghaleb, Hasan Mohamad Bamahros
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引用次数: 3

Abstract

PurposeThe purpose of this study is to investigate the interplay between institutional investors' ownership (IIO), politically connected firms (POC) and sell-side analysts' stock recommendations (ASR).Design/methodology/approachThis study employs ordinary least square (OLS) regression to test the hypotheses. The sample comprises 280 Malaysian public listed companies (PLC) and encompasses the 2008–2013 time frame (a total of 735 observations).FindingsThe results show a significant and positive link between IIO and ASR. In addition, a negative association is found between POC and ASR. Moreover, the POC weakens the positive relationship between the IIO and ASR.Research limitations/implicationsOne important implication of this study is that political involvement in corporate decisions is a prominent characteristic of the Malaysian market, which can significantly affect the information environment and analysts' reactions.Practical implicationsThe findings of this study provide useful empirical guidance to the regulators in evaluating the efficacy of recent regulatory initiatives. Investors may also gain useful insights from this study, specifically in recognising the crucial monitoring role played by institutional investors and how politically patronised firms are viewed unfavourably by equity analysts.Originality/valueThis study is one of the first to examine the joint influence of IIO and POC, on ASR.
机构投资者、政治关系和卖方分析师的股票推荐:以马来西亚为例
目的本研究的目的是调查机构投资者所有权(IIO)、政治关联公司(POC)和卖方分析师股票推荐(ASR)之间的相互作用。设计/方法/方法本研究采用普通最小二乘(OLS)回归来检验假设。样本包括280家马来西亚上市公司(PLC),涵盖2008-2013年的时间框架(共735个观察结果)。结果显示,IIO和ASR之间存在显著且积极的联系。此外,POC和ASR之间存在负相关。此外,POC削弱了IIO和ASR之间的积极关系。研究局限性/含义本研究的一个重要含义是,政治参与企业决策是马来西亚市场的一个突出特征,这会显著影响信息环境和分析师的反应。实际含义本研究的结果为监管机构评估最近监管举措的有效性提供了有用的经验指导。投资者也可能从这项研究中获得有用的见解,特别是认识到机构投资者发挥的关键监控作用,以及股票分析师如何不看好政治庇护的公司。独创性/价值这项研究是第一批研究IIO和POC对ASR的联合影响的研究之一。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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