The purpose of this study was to extend our understanding of how corporate social responsibility (CSR) disclosures impact capital market participants, specifically sell-side analysts. The sample of this study was based on a dataset from a panel of 285 Malaysian firms for the period of 2008–2013 (738 firm-year observations). This study employed ordinary least square regression. This study found that firms with better CSR disclosures are more likely to receive optimistic investment recommendations. Subsample analyses revealed that the CSR-recommendation nexus is more pronounced under a transparent information environment (i) when there is less family control and (ii) when a firm is audited by a prominent Big Four auditor. The results implied that analysts tend to give favorable stock recommendations to high CSR companies operating in a more transparent information environment. To gain analysts’ confidence and make them more appreciative of the CSR disclosures, family firms with proactive CSR engagement are encouraged to switch to Big Four auditors or to seek assurance on their CSR reports. This study broadens our understanding of the factors influencing analysts’ recommendations and the preferences of analysts towards CSR engagement in an emerging market. This paper expands the literature on how corporate responsibility disclosures impact analysts’ final output, as reflected in the recommendation opinion, an area that has so far received little attention, particularly in emerging markets. Furthermore, this study also provides fresh evidence that analyst behavior towards CSR disclosures varies based on the strength of the firm’s information environment.

This study examines the impact of ESG practices and its three pillars on the stock price, and the moderating role of CSR award, and having an ex-CEO as a chairman on the ESG-value nexus in Japan and Malaysia. Based on a large sample of 538 observations from 2015–2019, we find a positive valuation effect of ESG practices in both countries, which are in line with stakeholder theory. We observe that the value relevance of ESG practice is significantly higher in Malaysia than in Japan. However, the market does not significantly value all three ESG pillars equally in Japan and Malaysia. Our study reveals that the social pillar is more dominant in Japan; whereas, in Malaysia, it is the environmental pillar that strongly influences market value. According to signaling theory, we find CSR award only moderates the market valuation of ESG in Malaysia. Based on positive synergy theory, we further suggest that when an ex-CEO sits as a chairman, it moderates the value relevance of ESG in Japan. Our study has practical implications for stakeholders including investors, policymakers, and managers. Our results suggest investors and regulators in the Indo-Pacific region need to distinguish between the three pillars of ESG practices and their consequences on the market price, before making an investment decision.

This study primarily examined the role of Minority Shareholder Watch Group (MSWG), regarded as an advocate for shareholder activism in Malaysia, in encouraging management to take actions in shareholders’ interests by making minutes of annual general meeting (AGM) available electronically. Shareholder activism was assessed through companies monitored by the MSWG and through shareholder participation based on percentage of issued shares that voted at the AGM. The paper utilised secondary and proprietary data. Based on a sample of 261 firms that conducted their AGM in 2017, we found that 43% firms disclosed comprehensive AGM minutes, 24% firms only disclosed summary of key matters discussed and for the rest, no AGM minutes were uploaded on their corporate websites. From the sample, 34% of firms were under the radar of the MSWG. We found that firms targeted by MSWG were significantly associated with detailed disclosure of AGM minutes. However, shareholder participation through ownership voted at the AGM did not yield a significant association. The prevalence of controlling blocks in Malaysian firms may contribute to this result. Overall, the result supports the notion that institutionalised shareholder activism is an effective way to reduce agency problems and information asymmetry between controlling shareholders, management and minority shareholders. Finally, the study limitations and direction for future research are briefly discussed.

Pursuant to Section 343(1) of the CA2016, ownership has the right to inspect without charge the ownership meeting report and request a copy of the report, which is evidence of the proceedings during the ownership meeting. The aim of this study is to investigates the factors influencing the online disclosure of ownership meeting reports among Malaysian listed companies. Utilizing a comprehensive dataset comprising hand-collected information from company websites, annual reports, and financial databases, including Bloomberg and Thomson Reuters Eikon/DataStream, the analysis focuses on 261 Malaysian listed companies for the financial year ending 31 December 2016. The results reveal that the online disclosure of ownership meeting reports is significantly higher when a Muslim Managing Director earns a mandate and holds a prominent position on the board of directors, indicating the potential influence of leadership characteristics on transparency and accountability. The study has important implications for policymakers, particularly in light of recent regulatory emphasis in Malaysia and Singapore on enhancing the timeliness and accessibility of meeting reports. The value of the study may also look at the timeliness of online disclosure of ownership meeting report, as the regulators in Malaysia and Singapore have given more emphasis on this important matter recently.