Institutional Ownerships and Market Performance

Abstract

This study examines the effects of institutional ownerships on market performance using a panel data from companies that are listed on Bursa Malaysia during the period of 2000 to 2009, this study uses Generalized Least Square (GLS) method. Results of GLS show that among seven Government-Linked Investment Companies (GLICs), only Permodalan Nasional Berhad (PNB) and Lembaga Tabung Angkatan Tentera (LTAT) have positive and significant impact on market performance. In addition, foreign and family ownerships also give positive impact on market performance. In contrast, the impacts of other five GLICs, state, domestic, board ownerships are not related to market performance. This study is one of first effort to examine each GLIC in Malaysian market. So far the previous studies have been done focusing GLICs as whole. The implications of this study will be for the policy maker and investors to make better decisions.

DOI: 10.5901/mjss.2015.v6n4s3p570