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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id	my-uum-etd.6105
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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Institutional ownership, growth opportunity and corporate risk taking: Evidence from Malaysia public listed firms

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