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Volume 21 No. 1, April 2022

 

ARTICLE INFO
Article History:
Received: 14 September 2021
Accepted: 06 February 2022
Available online: 01 April 2022

MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 21 NO 1, APRIL 2022

https://doi.org/10.24191/MAR.V21i01-05


Corporate Governance and Ownership Structure on Illegal Insider Trading Activities in Malaysian Public Listed Companies

Suhaily Hasnan1,2♣, Nor Azlina A. Rahman3, Alfiatul Rohmah Mohamed Hussain1 and Mazurina Mohd Ali1
1Faculty of Accountancy, Universiti Teknologi MARA, Selangor Branch,
Puncak Alam Campus, Malaysia
2International School, Vietnam National University, Hanoi, Vietnam
3Jabatan Akauntan Negara Malaysia Negeri Melaka, Melaka, Malaysia

ABSTRACT
This study examined the effect of corporate governance and ownership structure on illegal insider trading activities in public listed companies in Malaysia. Specifically, this study examined the effect of board independence, audit quality, family ownership, managerial ownership and institutional ownership on illegal insider trading activities in public listed companies in Malaysia. This study used content analysis on the annual reports over a 16-year period from 2000 to 2015 of 112 Malaysian public listed companies. Out of the 112 public listed companies, 22 public listed companies were involved in illegal insider trading activities, whilst the remaining 90 were not. This study showed that audit quality and managerial ownership significantly influence illegal insider trading activities, whilst board independence, family ownership and institutional ownership do not have a significant influence on illegal insider trading activities in public listed companies in Malaysia. These findings may assist the relevant authorities in strengthening enforcement to minimise illegal trading activities in the Malaysian securities market.

Keywords: Corporate Governance, Ownership Structure, Illegal Insider Trading.
Corresponding Author: Suhaily Hasnan, Faculty of Accountancy, Aras 1 & 2 Bangunan FPN Puncak Alam Campus, Universiti Teknologi MARA, Selangor Branch, 40450 Shah Alam Selangor, Malaysia; Email: This email address is being protected from spambots. You need JavaScript enabled to view it. ; No. Tel: 6012-5217037

 

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