Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia

Private information-based trading (PIBT) or insider trading still remained as one of the crucial issues in Malaysia today despite the presence of insider trading law. Indeed, regulation on insider trading alone is not sufficient to address the PIBT issue. Among the other aspect that would help to mi...

Full description

Saved in:

Bibliographic Details
Main Author:	Khong, Jiunn Shyan
Format:	Thesis
Language:	English
Published:	2020
Subjects:	HD28-70 Management Industrial Management
Online Access:	http://eprints.usm.my/53268/1/KHONG%20JIUNN%20SHYAN.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-usm-ep.53268
record_format	uketd_dc
spelling	my-usm-ep.532682022-07-05T02:20:40Z Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia 2020-03 Khong, Jiunn Shyan HD28-70 Management. Industrial Management Private information-based trading (PIBT) or insider trading still remained as one of the crucial issues in Malaysia today despite the presence of insider trading law. Indeed, regulation on insider trading alone is not sufficient to address the PIBT issue. Among the other aspect that would help to mitigate the PIBT issue, number of independent director can be one important factor. Based on the agency theory, tradings on private information will causes agency conflict. In this regard, independent directors can actually contribute to reduce this conflict. However, there is a need to study through which channel independent directors can reinforce their monitoring over the PIBT activities. Using a sample of 811 public listed companies from the Main Board of Bursa Malaysia from year 2009 to 2017, this study investigated the effect of board independence, as well as whether statutory role of independent directors (independent audit committee) and demographic characteristics of directors (women directors) could contribute in strengthening the role of board independence in mitigating the PIBT issue. In addition to the static panel data analyses, this study also utilizes dynamic generalized method of moment estimators to resolve the endogeneity problem and persistent PIBT issue. The findings indicated that independent directors are statistically significant in mitigating PIBT. Besides, independent audit committee and women directors also having negative and significant interaction effects. This suggests that both factors could strengthen the effect of board independence in mitigating PIBT. 2020-03 Thesis http://eprints.usm.my/53268/ http://eprints.usm.my/53268/1/KHONG%20JIUNN%20SHYAN.pdf application/pdf en public masters Perpustakaan Hamzah Sendut Pusat Pengajian Pengurusan
institution	Universiti Sains Malaysia
collection	USM Institutional Repository
language	English
topic	HD28-70 Management Industrial Management
spellingShingle	HD28-70 Management Industrial Management Khong, Jiunn Shyan Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
description	Private information-based trading (PIBT) or insider trading still remained as one of the crucial issues in Malaysia today despite the presence of insider trading law. Indeed, regulation on insider trading alone is not sufficient to address the PIBT issue. Among the other aspect that would help to mitigate the PIBT issue, number of independent director can be one important factor. Based on the agency theory, tradings on private information will causes agency conflict. In this regard, independent directors can actually contribute to reduce this conflict. However, there is a need to study through which channel independent directors can reinforce their monitoring over the PIBT activities. Using a sample of 811 public listed companies from the Main Board of Bursa Malaysia from year 2009 to 2017, this study investigated the effect of board independence, as well as whether statutory role of independent directors (independent audit committee) and demographic characteristics of directors (women directors) could contribute in strengthening the role of board independence in mitigating the PIBT issue. In addition to the static panel data analyses, this study also utilizes dynamic generalized method of moment estimators to resolve the endogeneity problem and persistent PIBT issue. The findings indicated that independent directors are statistically significant in mitigating PIBT. Besides, independent audit committee and women directors also having negative and significant interaction effects. This suggests that both factors could strengthen the effect of board independence in mitigating PIBT.
format	Thesis
qualification_level	Master's degree
author	Khong, Jiunn Shyan
author_facet	Khong, Jiunn Shyan
author_sort	Khong, Jiunn Shyan
title	Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
title_short	Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
title_full	Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
title_fullStr	Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
title_full_unstemmed	Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia
title_sort	interaction role of independent audit committee and women directors on board independence and private information-based trading in malaysia
granting_institution	Perpustakaan Hamzah Sendut
granting_department	Pusat Pengajian Pengurusan
publishDate	2020
url	http://eprints.usm.my/53268/1/KHONG%20JIUNN%20SHYAN.pdf
_version_	1747822233445728256

Interaction Role Of Independent Audit Committee And Women Directors On Board Independence And Private Information-Based Trading In Malaysia

Similar Items