SHAREHOLDER ACTIVISM AND PUBLICATION OF ANNUAL GENERAL MEETING MINUTES ONLINE: EVIDENCE FROM MALAYSIAN LISTED COMPANIES

Authors

  • Mohd Shazwan Mohd Ariffin Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia
  • Siti Seri Delima Abdul Malak Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia Institute for Management & Business Research, Universiti Utara Malaysia
  • Wan Nordin Wan-Hussin Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia Institute for Management & Business Research, Universiti Utara Malaysia

DOI:

https://doi.org/10.33736/ijbs.5630.2023

Keywords:

Annual general meeting, disclosure choice, internet reporting, MSWG, shareholder activism, shareholder participation, voluntary disclosure

Abstract

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.

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Published

2023-04-07

How to Cite

Mohd Shazwan Mohd Ariffin, Siti Seri Delima Abdul Malak, & Wan Nordin Wan-Hussin. (2023). SHAREHOLDER ACTIVISM AND PUBLICATION OF ANNUAL GENERAL MEETING MINUTES ONLINE: EVIDENCE FROM MALAYSIAN LISTED COMPANIES. International Journal of Business and Society, 24(1), 488–505. https://doi.org/10.33736/ijbs.5630.2023