Affiliated Companies Research Articles

The adoption of blockchain and financing constraints: Evidence from China

Despite the recognized significance of blockchain in supply chain management literature, there has been a scarcity of studies empirically exploring the link between blockchain adoption and financing constraints. This paper delves into how blockchain adoption influences financing constraints, considering the moderating effects of environmental and firm-specific factors. Utilizing panel data from A-share listed firms in China over the period 2016–2021, our analysis reveals that blockchain adoption notably eases financing constraints. Additionally, we observe a spillover effect: the adoption of blockchain technology by a central enterprise can alleviate financing constraints for affiliated companies within their supply chain, including upstream and downstream firms. Our heterogeneity analysis indicates that the effectiveness of blockchain in reducing financing constraints is more pronounced in environments with robust internal and external governance and higher levels of marketization. Moreover, blockchain adoption can mitigate traditional finance's ownership bias against non-state-owned enterprises and the bargaining power disparities faced by central firms in the supply chain. In addition, in non-high-tech, non-heavy pollution, and non-manufacturing industries, firms can better alleviate financing constraints after adopting blockchain. These findings offer valuable insights for businesses looking to navigate the challenges and opportunities of mitigating financing constraints through blockchain adoption.

Investigation of Corporate Governance in Business Group Affiliated and Independent Firms

This paper investigates whether there is a difference between business group affiliated and independent firms in terms of complying with the corporate governance principles. Based on data drawn from the corporate governance principles compliance reports of Borsa Istanbul (BIST) companies, the results of the study show that group affiliated firms have higher compliance with the corporate governance than the independent ones in general. The difference of the mean scores in compliance with the corporate governance, stakeholders, board of directors principles between group affiliated companies and independent ones is significant. However, the mean values in shareholders and public disclosure and transparency principles do not differ between these groups of firms. This study aims to advance the research on corporate governance and business groups by considering the corporate governance differences between business group companies and unaffiliated ones in an emerging economy.

Earnings management in the family business groups of Pakistan: the role of corporate governance

Purpose This paper aims to examine the role of corporate governance (CG) in the earnings management (EM) of affiliated companies in family business groups (FBGs) listed on the Pakistan Stock Exchange (PSX), using principal–principal agency theory. Design/methodology/approach The sample of 327 nonfinancial firms of the PSX, consisting of 187 group-affiliated firms and 140 nonaffiliated firms has been used in this study for the period of 2010 to 2019. The study uses different regression models for analysis, with robustness tests of various alternative measures of EM and FBG affiliation. In addition, endogeneity is controlled with the propensity score matching method. Findings The findings show that EM is less prevalent in affiliated firms compared to nonaffiliated companies. The results show a negative and significant relationship between FBGs affiliated firms and EM. Moreover, the results also show a positive relationship between EM and the interaction term of the CG index and group affiliation. It refers to the fact that effective governance cannot reduce EM in affiliated companies of FBGs as well as in the nonfinancial companies of the PSX. In addition, the quality of CG is higher in affiliated companies compared to its counterpart in nonaffiliated firms. The findings support the principal–principal agency theory that CG cannot mitigate the expropriating behavior of controlling shareholders against minority shareholders by reducing EM in emerging markets due to the ownership concentration phenomenon. Research limitations/implications This research study has implications for small investors, government agencies and regulators. The findings of the study show that CG code should make it mandatory for companies to reveal information about their complex ownership structure and ownership information about affiliated companies and directors. Furthermore, it is suggested to revisit the code of CG in the Pakistani context of principal–principal conflict instead of the agent–principal explanation of agency theory based on Anglo–Saxon countries. Originality/value This research study has contributed to the CG and FBG literature in relation to EM in idiosyncratic settings of Pakistan. One of the prime contributions of the paper is the development of a comprehensive CG index. This research study used detailed, manually collected novel data on affiliated firms of FBGs in Pakistan.

The Impact of Transfer Pricing, Capital Intensity, Thin Capitalization on Tax Avoidance with Sales Growth as Moderating Variabel in Pharmaceutical and Health Companies Listed on Indonesia Stock Exchange 2017-2022

In Indonesia, current tax regulations aim to address these practices through rules like transfer pricing, restrictions on interest deductions on loans from affiliated companies (thin capitalization rules), and asset depreciation rules. However, companies often seek loopholes or new strategies to reduce their tax obligations. This study aims to evaluate the impact of transfer pricing, capital intensity, and thin capitalization on tax avoidance practices in the health and pharmaceutical sector in Indonesia. This is particularly relevant as health sector companies listed on the Indonesia Stock Exchange saw an average revenue increase of 6% during the overall economic downturn caused by the Covid-19 pandemic, reflecting the growing public awareness of health importance and efforts to maintain health during the pandemic. The data for this study is obtained from the financial statements of health and pharmaceutical sector companies listed on the Indonesia Stock Exchange from 2017 to 2022, selected through purposive sampling, with a total of 132 observations sourced from www.idx.co.id. The analysis method used was panel data regression analysis, with Gross Profit Margin (TA_GM) used as a proxy. The results show that transfer pricing, capital intensity, and thin capitalization have a positive impact on tax avoidance. However, sales growth does not enhance the influence of these independent variables on tax avoidance. These findings are expected to assist the Tax and Financial Services Authority in enhancing regulations related to tax avoidance in Indonesia, aligning with the reduction of tax avoidance practices in the health and pharmaceutical sector, and increasing state tax revenues.

Corneal tissue engineering: From research to industry, quality of life impact, and Latin American ophthalmologists' perspectives

Background Tissue engineering research aims to address the global shortage of donated corneal tissue, yet challenges persist in clinical translation. This study assesses the pathway from basic research to clinical adoption in corneal tissue engineering. Methods Bibliometric and patent analyses were conducted using the Web of Science-Core Collection and Lens databases to identify top authors, countries, journals, publication trends, inventors, patent statuses, and affiliated companies. A quality-adjusted life year (QALY) analysis compared engineered corneal endothelium to full keratoplasty. A pilot study surveyed thirty ophthalmologist surgeons from eight Latin American countries. Results A strong upward publication trend (R2 = 0.89, p = 1.53x10^-9) in corneal endothelium engineering was observed over the past decade, led by the USA, China, and Japan. Among 614 research papers, 26 patents and 10 companies were identified. Engineered corneal endothelium showed a QALY gain of 0.74 versus 0.07 of corneal transplants. Most survey respondents (97%) expressed interest in adopting engineered corneal endothelium for transplantation if affordability, biocompatibility, and functionality were assured. Conclusions While tissue engineering offers promise in alleviating corneal scarcity, a significant gap remains between scientific advancements and clinical adoption, presenting “death valleys.” Addressing this requires more efficient navigation of the interplay between scientific progress, technology adoption, and clinical practice.

Pengaruh Transfer Pricing, Pajak Tangguhan Dan Pinjaman Antar Perusahaan Afiliasi Terhadap Tax Avoidance

Tax is a mandatory contribution to society, both individual taxpayers and corporate taxpayers to the state. However, taxpayers and business entities often look for ways to reduce the tax burden they have to pay. This is because Indonesia uses a self-assessment system which allows people to cheat in calculating their tax burden. This act of fraud is called tax avoidance. In the practice of tax avoidance there are several types of tricks, some of which are transfer pricing, deferred tax, and loans between affiliated companies. This research aims to determine the extent to which variables namely transfer pricing, deferred tax and loans between affiliated companies influence tax avoidance practices in Indonesia. From the results of several tests carried out in this research, it is stated that transfer pricing and loans between affiliated companies do not have a significant effect on tax avoidance. On the other hand, deferred tax has a significant positive effect on tax avoidance.

Relative strength of business groups and the value-relevance of earnings for group-affiliated companies

This paper investigates the value-relevance of group-affiliated companies using a sample of Chinese private listed companies. We find that the value-relevance of earnings for the affiliated companies is negatively related to the relative strength of the business groups, and a higher operating risk of the affiliated companies may weaken the negative relationship. Moreover, a stronger relative strength of the business groups may reduce the likelihood of the affiliated companies’ future stock price crashes. Overall, our results suggest that low value-relevance of earnings for group-affiliated companies may not be indicative of low accounting information quality.

Pengaruh Karakteristik Direktur Utama dan Komite Audit terhadap Manajemen Laba pada Perusahaan Terafiliasi

This study aims to determine the effect of the age of the president director, the gender of the president director, the tenure of the president director, and the number of audit committees on profit management. The population of this study is affiliated companies in the manufacturing sector listed on the Indonesia Stock Exchange 2019-2021. The retrieval technique used was purposive sampling and obtained 48 companies. The data analysis method used is multiple linear regression analysis of panel data processed with the Eviews program. Based on the results of data analysis, it shows that the number of audit committees affects profit management, the characteristics of the president director which include age, gender, and tenure of the president director do not affect the profit management of affiliated companies in the manufacturing sector listed on the IDX 2019-2021.

Reverse Logistics: A Case Study About the Disposal of Electro-Electronic Waste in São João Do Polêsine – RS

Purpose: The research aims to identify the destination of electronic waste in the municipality of São João do Polêsine – Rio Grande do Sul. Methods: A closed questionnaire was applied using the Likert scale – multiple choice questions, with the aim of analyzing and identifying the needs in dealing with electronic waste in private organizations in the municipality. Regarding the method, the research was characterized as an exploratory-descriptive study with a quantitative approach with companies associated with ACISAT – (Association of Commerce, Industry, Services, Agriculture and Tourism), which has 35 (thirty-five) affiliated companies. Results and discussion: The main results show that there is already a great diversity of electrical and electronic waste used in the municipality, since they are involved in everything from administrative to hospital activities and that the municipal Plan for Integrated Solid Waste Management will collaborate with the construction of the reality of policies on WEEE. Implications of the research: The limitations of the study are based on the superficiality of the quantitative data related to companies associated with ACISAT, which do not allow for a more meaningful analysis in order to identify the challenges faced daily in waste management. Originality/value: the knowledge acquired in this research offers important information about environmental management and sustainability in the region, in addition to providing insights into possible improvements to existing reverse logistics systems. It is also possible to identify challenges and opportunities related to the correct disposal of electronic waste, contributing to the development of more efficient and environmentally responsible public policies and practices. Furthermore, the research can serve as a basis for future research and studies in other regions, promoting the dissemination of knowledge and the search for more sustainable solutions.

PLANNING OF CORPORATION’S ACTIVITIES AND SUPPLY OF RESOURCES

The article highlights the role of transnational companies (TNCs) in the global economy and international relations, discussing their structure and impact on international production. Emphasis is placed on the shift in priorities in the competitiveness of TNCs, where it now depends on the coordination of activities among subsidiaries and affiliated companies worldwide. The problems accompanying the transnationalization of Ukrainian TNCs are described, such as low competitiveness in the global market and the inability to integrate with investors, innovative firms, and scientific organizations. The need to choose a strategy for TNCs in the context of entering new markets is considered, with global integration and rapid responsiveness identified as key aspects in this process.Keywords: globalization, transnational company, transnationalization, integration, global production, international relations, technological exchange, impact of TNCs, resource management.

Gaining future competitive advantage through corporate foresight value creation: A case study on local affiliate companies in ASEAN’s automotive industry

Gaining future competitive advantage through corporate foresight value creation: A case study on local affiliate companies in ASEAN’s automotive industry

Analisis Perusahaan Jasa Konstruksi Terafiliasi dalam UU Jasa Konstruksi dan UU Larangan Praktek Monopoli dan Persaingan Usaha Tidak Sehat

The economy of a country is closely related to economic transactions carried out by actors, namely producers, sellers and buyers. Such conditions increase the value of efficiency and reduce government costs due to community participation. This is in accordance with the objectives of Law number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition and Law number 2 of 2017 concerning Construction Services. Therefore, it is necessary to examine the compatibility between Article 44 of the Construction Services Law and Article 22 of the Antimonopoly and Unfair Business Competition Law and the position of affiliated construction companies in tenders for government procurement of goods and services using the rule of reason and per se illegal approach. The research method in this journal is normative juridical, library research and comparative study. So it can be concluded that article 44 of the Construction Services Law prohibits affiliation between service users and service providers (collutive vertical) with an illegal per se approach while article 22 of the Antimonopoly and Unfair Business Competition Law prohibits affiliation with a rule of reason approach. The method of inviting or directly appointing a service provider can create an affiliation relationship between the user and the service provider which can be interpreted as a form of nepotism. All parties involved in the process of procuring goods and/or services by the government must follow the principles of fair business competition.

Gaining competitive advantage through corporate foresight value creation—The evidence from ASEAN automotive local affiliate companies

Previous studies of corporate foresight in the automotive industry mainly focused on principal companies (PCs), while studies focusing on local affiliate companies (LACs) are limited, even though LACs play an essential role in dealing with local environmental dynamism. Therefore, this study aims to investigate corporate foresight in automotive LACs by analyzing the effect of corporate foresight on the creation of organizational value. The authors employed a quantitative method to analyze the theoretical hypotheses by involving nine LACs in ASEAN. The findings of this study indicate that corporate foresight activities in LACs have a significant positive effect on organizational learning capability, where they have an essential mediating role in enhancing the creation of organizational value in terms of ambidexterity and agility capability, which is a foundation for organizations to achieve a competitive advantage. The novelty of this study is the use of corporate foresight value creation framework in automotive LACs. The results of this study could assist managers and practitioners in automotive industry to better understand the benefit derived from the practice of implementing corporate foresight in LACs, and it is expected that this value creation could motivate these people further to enhance the practice of corporate foresight in LACs.

The Influence of BTS on the Expansion of Its Affiliated Company

There are many articles related to the Korean entertainment industry, but there are very few descriptions and analyses of individual groups or artists. Therefore, the research topic of this paper is the influence of BTS on the expansion of its affiliated company. This paper examines the impact of BTS on the company from three perspectives: the impact of BTS on the company's profitability, the company's popularity, and the company's strategic direction. Bighit has gone from being on the brink of bankruptcy to being one of the top four entertainment companies, and it's a credit to BTS. In 2016 BTS released the album The Most Beautiful Moment in Life which made Bighit's first turnaround, and the company's name gradually began to be known to the public and received its first investment, which Bighit also relied on to get out of trouble, and in 2018 BTS released the album Love Yourself, which once again caused a sensation and started its concert tour. BTSs high popularity could lead to good popularity for new groups to be launched in the future; the success of BTS in the US and Korea also led HYBE (Original Bighit Entertainment) to focus on these markets and to launch groups such as TXT for the Korean market. Therefore, it is found that BTS has a significant impact on the expansion of the company in terms of company size, market share, company popularity, acquisition, and strategic markets.

The Form and Pattern of Business Actors Requirements in Exclusive Dealing: A Rule of Reason Approach

<div class="WordSection1"><p><em><span lang="EN-ID">Tying is usually defined as the dominant company selling one product since the buyer must also purchase a different product or agree not to purchase the bonded product from other suppliers. This paper analyzes requirements imposed by the reported business actor on other parties deemed to have violated the tying and bundling under competition law in Indonesia, the U.S., and the European Union. Also, it discusses the application of the Rule of Reason by the competition commission in these three region. This study uses a comparative law approach. The results of the analysis show that a tying agreement is an agreement that requires the recipient of the supply to buy other products that are not necessarily needed. Usually, these agreements are entered into by two affiliated companies or at least cooperating partners, one of which occupies a dominant position to prevent competitors from entering the relevant market. Not all tying agreements have a negative impact. Therefore, an impact analysis is needed through a rule of reason approach, especially in digital-based industries.</span></em></p></div>

Group-affiliations and corporate cash holdings: moderating role of political connectedness

PurposeThis study examines the effect of business group affiliations on corporate cash holdings and how political connectedness modifies the relationship between business group affiliations and corporate cash holdings.Design/methodology/approachThe multiple ordinary least square regression with year dummies is used to estimate the effect of business groups on cash holdings. For moderating, the multiplicative term is used. The data from 252 non-financial firms listed on Pakistan Stock Exchange were collected for the analysis from 2010 to 2018.FindingsThe findings show that business group affiliations negatively affect corporate cash holdings, and political connection positively moderates this relationship. Business group firms that are politically connected hold less cash. The firm-specific factors such as leverage, size, cash flow, and dividend dummy also significantly affect corporate cash holdings.Practical implicationsThe results imply that affiliated companies have lessened financing frictions and improved stability in their expected future cash flows. Moreover, the results indicate that political connection minimizes the opportunity and agency costs linked to cash holdings.Originality/valueThis study contributes to the existing literature by examining the moderating role of political affiliations on the relationship between business groups and cash holdings in the emerging market.

경비원의 비경비업무 수행에 대한 법적 규제의 문제점과 입법적 대안

The 「Security Act」 stipulates that if a security guard performs non-security work, both the security guard and the security company are subject to criminal punishment, while the affiliated security company is obliged to cancel the security business license. This was originally legislated to prevent security guards from being illegally mobilized at the site of collective complaints and interfering with the legitimate exercise of citizens’ rights. It has become a social problem as it has been expanded and applied by canceling security business permits of security companies. Recently, the Constitutional Court ruled that the provisions of the 「Security Act」 were unconstitutional on the grounds that they violated the freedom of work. In this study, the places where security guards perform security tasks are divided into general security sites and collective civil complaint sites. It is proposed to prepare an amendment to improve the rights and interests of security guards and contribute to the development of the security industry.

Accounting vs. Politics: Effects of China-US Audit Cooperation on China Concept Stocks

Abstract Since 1993, Chinese companies have entered the US capital market, becoming a crucial platform for their public listing and fundraising. However, inconsistent accounting policies between China and the US have resulted in the delisting of certain China Concepts Stocks (CCS) in the US. Nonetheless, the recent accounting review cooperation agreement between the China Securities Regulatory Commission and the US PCAOB has altered the future prospects of CCS in the US. This study aims to quantify the economic value of this bilateral collaboration using the Audit Supervision Cooperation Agreement, signed by China and the US on August 26, 2022, as a natural experiment. Our findings reveal that in the three months following the agreement, CCS with political connections and accounting issues related to the Chinese government exhibited returns of 4.63% and 1.13% respectively. We conducted robustness tests including parallel trend tests, experimental and control groups based on VIE architecture interference, and sub analysis samples and placebo tests. Additionally, trading volume and price volatility of politically affiliated companies also experienced positive effects. In conclusion, our study underscores the significant impact of the political friendship between China and the US on the economic development of both nations and the global economy. JEL classification numbers: F42, G14, G15. Keywords: Political connections, Chinese concept stock, Accounting collaboration.

Evaluation of gold (au) particle distribution in Grasberg mine material of Freeport Indonesia: fire assay approach

Freeport Indonesia is one of Freeport-McMoRan Copper & Gold Inc. affiliate companies. Freeport Indonesia conducted a series of mining and exploration processes for ore containing gold, silver, and copper. Grasberg is the mining location in PT Freeport, Indonesia. This research aimed to determine the distribution of gold (Au) particles in Grasberg rock samples with relatively high gold content. The method used for analyzing the gold content was Fire Assay. The research results indicated that the sample size affected the gold distribution in Grasberg Mine samples. An uneven distribution tendency of gold was observed in the distribution comparison of Splitter and Screen variations with normal Au content.

(068) Low Drug-Drug interaction risk of Estetrol (E4), a Promising New Estrogen for the Treatment of Menopausal Symptoms

Abstract Introduction Polypharmacy is common among postmenopausal women and exposes them to the risks of inappropriate drug use and drug-drug interactions (DDI). Most estrogens are influenced metabolically by drugs which affect key metabolic enzymes. Objective To investigate the DDI potential of E4, several in vitro studies with metabolizing enzymes were performed. A clinical study was also conducted to evaluate the consequence of inhibiting the main enzyme responsible for E4 metabolism. Methods In vitro studies on human hepatocytes or human liver microsomes and recombinant enzymes were conducted to evaluate the role of drug metabolizing enzymes on E4 metabolism [cytochrome P450 enzymes (CYP), UDP-glucuronosyltransferases (UGT) and sulfotransferases (SULT)]. We also assessed the potential of E4 to inhibit or induce these enzymes. Finally, we performed a clinical study to determine the effect of UGT inhibition on the pharmacokinetics (PK) of E4. In this open-label two period, two-way cross-over study, 24 healthy female volunteers received two single doses of a product containing E4 15 mg once alone and once in combination with valproic acid 500 mg twice daily, a strong UGT inhibitor. The consequence of UGT inhibition was quantified by serial plasma measurements of E4 up to 168h after drug administration. Results Effects of other drugs on E4 (E4 as a substrate) CYP enzymes, a superfamily of enzymes that functions as monooxygenases did not play a significant role in the metabolism of E4. Consequently, E4 does not interact with drugs that inhibit or induce CYP enzymes. In vitro and in vivo studies showed that UGT2B7 was the main enzyme involved in E4 glucuronidation and that SULT1 was the dominant enzyme for sulfation of E4. The clinical phase 1 study confirmed the role of UGT in the metabolism of E4. UGT inhibition by valproic acid increased total E4 exposure and maximum concentration only by 1.13 and 1.36-fold, respectively. Because the effect of UGT inhibition on E4 pharmacokinetics is minimal, no clinically relevant effects are expected during coadministration of drugs that inhibit UGT activity. Effect of E4 on other drugs (interference by E4) Studies on the effect of E4 on other drugs showed that E4 neither induces nor inhibits CYP or UGT enzymes, except for a very minimal inhibition of CYP3A4, UGT1A9 and UGT2B7 isoforms. The half maximal inhibitory concentration (IC50) of these in vitro effects were several hundred times above the anticipated clinical maximum concentrations, indicating a low potential for clinically relevant DDIs. Also, there was no evidence of time-dependent inhibition of CYP enzymes. Conclusions Based on these in vitro and in vivo drug interaction studies on metabolizing enzymes, E4 is not expected to have a potential risk for DDI. Unlike other estrogens, CYP enzymes do not play a major role in the metabolism of E4 and can therefore be combined with drugs that inhibit or induce CYP or UGT enzymes without compromising its safety or efficacy. Disclosure Yes, this is sponsored by industry/sponsor: Estetra an affiliate company of Mithra Pharmaceuticals Clarification: Industry initiated, executed and funded study Any of the authors act as a consultant, employee or shareholder of an industry for: Estetra an affiliate company of Mithra Pharmaceuticals.