Institutions and Economies <div align="justify"> <p>Institutions and Economies is a peer reviewed journal published by the Faculty of Business and Economics (formerly Faculty of Economics and Administration), University of Malaya. The journal is published four times a year, in January, April, July and October. The journal publishes research articles and book reviews. Only original articles that are not under consideration by other publishers are welcome. Special issues are also welcome but interested special issue editors must submit a proposal to the Editor-In-Chief for consideration. The journal is indexed in SCOPUS, IDEAS, MYCite, ECONPapers, ASEAN Citation Index (ACI), EBSCO and Asian Digital Library. Institutions and Economies is a recipient of the CREAM Award 2016 by the Ministry of Higher Education Malaysia.</p> <p>Print ISSN: 2232 - 1640<br />E - ISSN: 2232 - 1349 </p> <p> </p> <p><strong>Peer Review Statement </strong></p> <p><strong><em>All research articles in the journal have undergone rigorous peer review. The process consists of an initial screening by the</em> <em>Editor-In-Chief, Deputy Editor and</em><em> Associate Editors, followed by double-blind refereeing: two reviewers for articles. Articles in special issues go through double-blind refereeing and one internal review by the Editorial Board. </em></strong></p> <p><strong><br />IMPORTANT ANNOUNCEMENT</strong></p> <p>Beginning <strong>1st March 2021</strong>, <strong>there will be no submission fee for this journal. </strong> There will be a <strong>publication fee of USD100/- per article</strong> to partially cover the expenses of copy editing of accepted manuscripts. <strong>Payment of the publication fee should only be made after acceptance of a manuscript.</strong> The detailed information of the payment process can be seen <a href="">here</a>. Payment of the publication fee can be done at this <a href="">website</a>.</p> <p> </p> </div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> <div class="SL_SelectionLabel" style="right: 2px; bottom: 2px;">0 Links</div> </div> <!-- Used for easily cloning the properly namespaced rect --></div> <div class="SnapLinksContainer" style="margin-left: 0px; margin-top: 0px; display: none;"> <div class="SL_SelectionRect"> </div> <!-- Used for easily cloning the properly namespaced rect --></div> en-US <p>Submission of a manuscript implies: that the work described is original, has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); that is not under consideration for publication elsewhere; that its publication has been approved by all co-authors, if any, as well as tacitly or explicitly by the responsible authorities at the institution where the work was carried out. Transfer of copyright to the University of Malaya becomes effective if and when the article is accepted for publication. The copyright covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline and online) or other reproductions of similar nature.<br />An author may self-archive the English language version of his/her article on his/her own website and his/her institutions repository; however he/she may not use the publishers PDF version which is posted on Furthermore, the author may only post his/her version, provided acknowledgement is given to the original source of publication and a link must be accompanied by the following text: The original publication is available at</p> <p>All articles published in this journal are protected by copyright, which covers the exclusive rights to reproduce and redistribute the article (e.g. as offprint), as well as all translation rights. No material published in this journal may be reproduced photographically or stored on microfilm, in electronic database, video disks, etc., without first obtaining written permission from the publishers. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.</p> <p>The copyright owners consent does not include copying for general distribution, promotion, new works, or resale. In these cases, specific written permission must first be obtained from the publishers.</p> (Institutions and Economies) (Institutions and Economies) Sat, 01 Jul 2023 08:32:21 +0800 OJS 60 Capital Market Opportunities: In an Age of Transformation Andrew Sheng, Gopi Krishnan Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800 Do Environmental, Social and Corporate Governance Practices Enhance Malaysian Public-Listed Companies Performance? <p>This study examines whether there is a positive relationship between Environmental, Social and Governance (ESG) disclosure and financial performance, as measured by Tobin’s Q. Using a sample of 59 listed firms under the FTSE4Good Bursa Malaysia (F4GBM) Index from 2014 to 2021, our panel regression analyses show: First, ESG has a significant positive impact on company performance. Second, Social Disclosure (SOC) positively impacts financial performance. As a policy suggestion, the government must have a complete mechanism to monitor and promote the ESG blueprint. In addition, the government should develop programmes that are pro-ESG by giving tax exemption to firms that implement ESG strategies, for example, increasing the publicity of the Green Investment Tax Credit (GITA) to promote the development of green technology in Malaysia.</p> Li-Chen Lee, Wee-Yeap Lau, Tien-Ming Yip Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800 The Road to Sustainable Investing: Corporate Governance, Sustainable Development Goals, and the Financial Market <p>This study investigates the impact of corporate governance (CG) and sustainable development goals (SDGs) practices on financial markets and company performance in Malaysia compared to developed countries like the United States, United Kingdom, Canada, and Singapore. The study uses panel data regression models to analyse the impact of CG and SDG adoption on stock return, volatility, investor sentiment, profitability, liquidity, and solvency from 2017 to 2021. The findings show that CG and SDG practices have a positive impact on financial market and company performance in both developed and developing countries. However, the strength and specific variables of the relationship differ depending on the country context. In developed countries, board responsibilities, remuneration, engagement with stakeholders, SDG4 (Quality Education), and SDG10 (Reduce Inequalities) are positively associated with stock return. In contrast, audit committee effectiveness and SDG8 (Decent Work and Economic Growth), SDG11 (Sustainable Cities and Communities), and SDG13 (Climate Action) are significant in Malaysia and Singapore. The study emphasizes the significance of context-specific factors in determining the effect of CG and SDG practices on financial market and company performance. It recommends Malaysia learn from developed countries’ best practices and adopt a tailored approach to implementation based on its country context.</p> Ooi Kok Loang Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800 A Five-Factor Asset Pricing Model of Shariah Compliant Firms in the United States <p>Shariah compliant firms operating in an environment with little to no access to a robust Islamic capital market (such as in the United States (US) stock market) will exhibit a consistent bias towards certain corporate financial behaviour. Does this bias subsequently lead to a skewed asset pricing behaviour? To answer this question, this paper investigates the asset pricing behaviour of multiple samples of Shariah compliant firms listed in the US as compared to an overall conventional sample by employing the Fama &amp; French Five-Factor Model. By applying contemporary Shariah stock screening methodology on a sample of all stocks listed in the NYSE, NASDAQ and the IEX from January 2000 to December 2019, this paper shows that asset pricing behaviour differs not only between Shariah compliant and conventional samples, but also amongst Shariah compliant samples themselves. Ultimately, this paper shows that when deriving the appropriate expected return for Shariah compliant portfolios in the US, there are evidence to suggest that the Fama &amp; French Five-Factor model is more suitable compared to the traditional Capital Asset Pricing Model (CAPM) since the additional risk premiums show consistent significance across groups of Shariah compliant firms.</p> Asyraf Abdul Halim Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800 Behavioural Biases and Investment Decisions during COVID-19: An Empirical Study of Chinese Investors <p>Due the outbreak of the COVID-19 pandemic, China’s economy and securities market were significantly impacted, prompting the need to understand investor behaviour during this emergency. This study investigates the investment behaviour of Chinese investors during the COVID-19 pandemic, focusing on four types of investor biases: representativeness, overconfidence, disposition effect, and herding effect. The study utilized a quantitative research design, collecting data through an online questionnaire and a convenience sampling method from investors who traded in the Shanghai Stock Exchange and the Shenzhen Stock Exchange. Multiple linear regression analysis was employed to examine the impact of behavioural biases on investment decisions during the pandemic. Results showed that representativeness, disposition effect and herding effect significantly influenced investors’ investment decisions. This study contributes to the literature on behavioural finance by providing empirical evidence of the impact of behavioural biases on Chinese investors’ investment decisions during a crisis. The findings have practical implications for financial institutions to better understand the behaviour of Chinese investors during times of crisis and suggest the need for financial institutions to incorporate behavioural finance principles in their risk management practices.</p> Ivy S.H. Hii, Xu Li, Haifeng Zhu Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800 Digitalisation: The Effectiveness of e-Learning in Capital Market Education <p>In today’s digital economic landscape, financial literacy has become increasingly important in making informed financial decisions. To meet this growing need, Securities Industry Development Corporation (SIDC) has been entrusted to develop a targeted e-Learning capacity building initiative where everyone could participate without the limitations of cost, time and location. However, there has been no study to date exploring the effectiveness of the e-Learning programme in the field of the capital market education. Hence, this preliminary study aims to gain insight into the effectiveness of capital market e-Learning programme by adopting a convergent parallel mixed-method approach, collecting both quantitative and qualitative data based on Kirkpatrick's model (Level 2) to measure the level of knowledge transfer and satisfaction of learning among participants. The finding showed a positive knowledge transfer, with a mean score of 25.5% and the survey questionnaire submitted by 1,423 respondents revealed that the average course rating was 4.4 out of 5.0. Hence, this indicates the effectiveness of the programme. It is hoped that the findings can be used as a benchmark, reference or guidance for capital market training providers to develop a successful e-Learning programme.</p> Shahkila Mohd Arif, Mohd Firdaus Ahmad Tarmizi Copyright (c) 2023 Sat, 01 Jul 2023 00:00:00 +0800