Exploring the role of institutional investors in voting, monitoring and dialogue engagement in mitigating agency conflict in Malaysia’s public listed companies

Abstract Institutional investors are very important for keeping shareholder value high by reducing agency conflict and promoting good governance. Recent governance scandals have placed Malaysia on the global stage, jeopardising publicly listed companies (PLCs) reputation calling into question effectiveness of country’s corporate mechanism. The study aimed to examine level in Malaysian PLCs roles institutional mitigating issues. At same time, we exploring unclear activism evaluating which considered powerful among investors. findings demonstrated that significantly mitigate conflict, with monitoring dialogue engagement as most influential roles. Conclusively, discovery reinstated Type 1 (principal-agent) issues Malaysia. meets gaps prior research context conflict. It offers a novelty examination well investors’ recommending an approach can be taken strengthen mechanism present advises play aggressive managing issues, relevant bodies need enhance awareness