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Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk

Previous studies documented that type of investor significantly affects the performance of bonds and sukuk. These studies showed that the yield to maturity (YTM) of bonds and sukuk are significantly associated with institutional investors. This association is because institutional investors actively...

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Main Authors: Noriza M.S., Haniff M.N., Ali N.
Other Authors: 56070007300
Format: Article
Published: Kolej University Islam Sultan Azlan Shah 2023
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spelling my.uniten.dspace-241672023-05-29T14:56:20Z Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk Noriza M.S. Haniff M.N. Ali N. 56070007300 36491433500 35224598000 Previous studies documented that type of investor significantly affects the performance of bonds and sukuk. These studies showed that the yield to maturity (YTM) of bonds and sukuk are significantly associated with institutional investors. This association is because institutional investors actively monitor the performance of bonds and sukuk. Apart from the type of investor, the roles played by the board of directors (BOD) in decision making significantly influence the performance of bonds and sukuk, especially the YTM. This study aims to investigate the relationship between institutional ownerships and the BOD and yield spreads of long- and medium-term corporate bonds and sukuk. Data are obtained from firm issuers' annual reports, Bond Info Hub of Malaysia Central Bank, Department of Malaysia Statistics and Bloomberg from 2000 to 2014. The study employed unbalanced panel data approach for multivariate robust regression, OLS, fixed-effect, and random-effect models. Results revealed that the presence of top-six institutional investors and characteristics of the BOD exert a significant negative effect on the yield spreads. The findings are also consistent with the agency cost of debt theory, which suggests that long-term bonds carry a lower cost of defaults than medium-term bonds. � 2018 Kolej University Islam Sultan Azlan Shah. Final 2023-05-29T06:56:20Z 2023-05-29T06:56:20Z 2018 Article 2-s2.0-85054962503 https://www.scopus.com/inward/record.uri?eid=2-s2.0-85054962503&partnerID=40&md5=5374e9f6ccd06ad1aad3c655816bee45 https://irepository.uniten.edu.my/handle/123456789/24167 2018 Special Issue 219 230 Kolej University Islam Sultan Azlan Shah Scopus
institution Universiti Tenaga Nasional
building UNITEN Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tenaga Nasional
content_source UNITEN Institutional Repository
url_provider http://dspace.uniten.edu.my/
description Previous studies documented that type of investor significantly affects the performance of bonds and sukuk. These studies showed that the yield to maturity (YTM) of bonds and sukuk are significantly associated with institutional investors. This association is because institutional investors actively monitor the performance of bonds and sukuk. Apart from the type of investor, the roles played by the board of directors (BOD) in decision making significantly influence the performance of bonds and sukuk, especially the YTM. This study aims to investigate the relationship between institutional ownerships and the BOD and yield spreads of long- and medium-term corporate bonds and sukuk. Data are obtained from firm issuers' annual reports, Bond Info Hub of Malaysia Central Bank, Department of Malaysia Statistics and Bloomberg from 2000 to 2014. The study employed unbalanced panel data approach for multivariate robust regression, OLS, fixed-effect, and random-effect models. Results revealed that the presence of top-six institutional investors and characteristics of the BOD exert a significant negative effect on the yield spreads. The findings are also consistent with the agency cost of debt theory, which suggests that long-term bonds carry a lower cost of defaults than medium-term bonds. � 2018 Kolej University Islam Sultan Azlan Shah.
author2 56070007300
author_facet 56070007300
Noriza M.S.
Haniff M.N.
Ali N.
format Article
author Noriza M.S.
Haniff M.N.
Ali N.
spellingShingle Noriza M.S.
Haniff M.N.
Ali N.
Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
author_sort Noriza M.S.
title Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
title_short Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
title_full Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
title_fullStr Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
title_full_unstemmed Institutional ownership, board of directors and yield spreads in Long- and medium-term corporate bonds and sukuk
title_sort institutional ownership, board of directors and yield spreads in long- and medium-term corporate bonds and sukuk
publisher Kolej University Islam Sultan Azlan Shah
publishDate 2023
_version_ 1806426299564032000
score 13.222552

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