Author Identifier (ORCID)

Zubaidah Ismail: https://orcid.org/0000-0002-9237-6122

Abstract

An investor relations function fosters continuous and direct communication between executives and stakeholders (Chapman et al., 2022). However, this function does not attract sufficient attention from the researchers, and not much literature documenting and evidence of the importance of developing strong relationships between firms with both shareholders and other stakeholders, which can lead to long-term partnership, increased loyalty, and hence, better operations carried out by the business entities. In light of this, the objective of this study is to investigate the connection between the level of engagement of shareholders and the profitability of corporations. This study uses content analysis on the financial statements of the 442 largest publicly listed companies in Malaysia by market value to examine the investor relations practices. This study finds that the proactive engagement with shareholders had a significant positive relationship with corporate performance. No significant relationship was found between general meetings with corporate performance. This study provides further evidence on the importance of a good governance process via the inclusivity of shareholders and stakeholders in certain corporate exercises and activities (Lu et al., 2023). Specifically, this study emphasises the advantages of ongoing shareholder engagement for the company’s performance. Consequently, the corporation must enhance its initiatives to foster an active discussion with various groups of shareholders and stakeholders.

Document Type

Journal Article

Date of Publication

1-1-2025

Volume

3

Issue

1

Publication Title

Business Performance Review

Publisher

Virtus Interpress

School

School of Business and Law

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Comments

Salin, A. S. a. P., Ismail, Z., & Smith, M. (2025). Shareholders’ engagement and corporate performance. Business Performance Review, 3(1), 70–79. https://doi.org/10.22495/bprv3i1p7

First Page

70

Last Page

79

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Link to publisher version (DOI)

10.22495/bprv3i1p7