ACGB213 - Institutional investors

In the context of corporate governance, what is a primary role of institutional investors?

• To provide loans to companies for their operations

• To serve as external auditors for companies' financial statements

• To actively engage with companies to influence their strategic decisions and governance practices

• To conduct market research and provide investment recommendations to individual investors

•An institutional investor (II) is an organization that (a)   on behalf of its members.

How can institutional investors influence companies to improve their corporate governance practices?

• By investing only in companies with the highest stock prices

• By selling their shares in companies that do not maximize short-term profits

• By engaging in shareholder activism, proposing resolutions, and demanding transparency

• By avoiding companies with diverse boards of directors

All large institutional investors in Malaysia have a (a)   board that is appointed by the government that acts as investment panel advisors.

Which is NOT the roles of institutional investors

• Exercise closer oversight and control management and corporate decision-making

• Monitor the performance of companies

• Concern about the company’s relationship with other stakeholder

• Intervene on several government issues

To provide the avenues to discuss and monitor any governance non-compliance by listed firms which might be detrimental to the rights & interest of the (a)