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 _____ 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 _____ 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 ____