Changes In Ownership Structure Research Articles

Enterprise value and risk taking in the banking industry: Cooperatives vs. corporations

This study leverages on a quasi-natural experiment to shed light on the relative merit of the cooperative versus the corporate form. In Italy, a new law forced some cooperative banks to turn into joint stocks banks. This change of ownership structure proves to be Pareto improving for all financial claimholders since it either increases or leaves the value of equity and debt of any seniority unchanged, while reducing the market-based metrics of risks. This evidence challenges the view that the demutualization increases the asset substitution risk, transferring wealth from bondholders to shareholders and heightening the firm risk profile. Therefore, a transition from a cooperative to a corporate form should not cause stability concerns in the banking industry.

Uncovering rebound effects of sufficiency-oriented product-service systems: a systematic review

AbstractThe discourse surrounding sustainable consumption and production has evolved to encompass sufficiency strategies in addition to efficiency and effectiveness. Product-service systems (PSSs) can promote sufficiency by replacing traditional product-intensive systems with dematerialized services and changes in ownership structures. Sufficiency-oriented PSS may, however, generate rebound effects which offset potential sufficiency benefits or even result in backfire. This paper examines the connection between sufficiency-oriented PSS and rebound reviewing 12 empirical studies addressing rebound.

The Patterns of Ownership and the Registration of Customary Land in Manggarai Regency, Indonesia

This research analyzes ownership patterns and the process of legalizing customary land in Manggarai Regency. The research method used is qualitative with a descriptive approach and uses secondary data. Normative socio-juridical methods are also used to view and analyze the research data that has been collected. Data was collected through observations and interviews with traditional elders and members of traditional communities. The results showed that the legalization of Ulayat land greatly affected the pattern of land ownership in Manggarai and the change of entities from indigenous land to non-indigenous land that was initially jointly controlled or communal into individual rights due to the legalization or registration of land. Legalization of Ulayat land with a public dimension can only be done by measuring, mapping, and recording it in the land register. Meanwhile, Ulayat land with private dimensions can be issued a land certificate for individuals with a release mechanism from the customary leader to be used as state land. This legalization resulted in the depreciation of Ulayat land and the fading of customary bonds in Manggarai. This research provides insight into land legalization's legal and social impacts on Manggarai, highlighting significant changes in ownership structures and the loss of customary values.

Mitigating overinvestment in Japanese zombie firms: the role of foreign ownership and earnings quality

PurposeThis study investigates the relationship between foreign ownership, earnings quality and overinvestment in Japanese zombie firms.Design/methodology/approachThe study makes use of data from Japanese firms listed on the first section of the Tokyo Stock Exchange from 2009 to 2019. The study employs logistic and multinomial logistic models to test whether the overinvestment behavior of zombie firms is mitigated by foreign shareholdings and earnings quality.FindingsThe results show that (1) zombie firms tend to overinvest; (2) an increase in foreign ownership mitigates the overinvestment of zombie firms and (3) the mitigation of zombie firms' overinvestment by foreign ownership is stronger with higher earnings quality.Originality/valueThis study extends the discussion of earnings quality and investment efficiency to the zombie firm setting. Previous studies in accounting suggest that high earnings quality enhances firms' investment efficiency. The findings suggest that both a change in ownership structure and high-quality accounting information are necessary to mitigate the inefficiency of zombie firms.

The Relationship between Managerial Ownership and Firm Performance Mediated by Real Earnings Management of Thai IPO Firms

This study aims to examine the effect of managerial ownership on firm performance, both directly and through real earnings management as a mediating variable, during the pre- and post-initial public offering (IPO) years. Thai quoted companies on the Market for Alternative Investment (MAI) between 2012 and 2017 are analyzed. The findings reveal that before the IPO year, higher managerial ownership exhibits a positive association with firm performance, and this relationship is fully mediated by real earnings management. However, after the IPO, managerial ownership no longer significantly affects firm performance, and real earnings management acts as a mediating variable. These findings highlight the changes in ownership structure during the transition from private to public companies. The decline in managerial ownership post-IPO strongly suggests a potential loss of control and influence, which could impact strategic decisions, financial reporting practices, and operational efficiency. This research adds valuable and important insights to the previous studies on managerial ownership, earnings management practices, and firm performance, offering policymakers, investors, and market participants a better understanding of these dynamics. Nonetheless, it is critical to note that the study’s focus on the MAI in Thailand may limit the generalizability of the findings, so further research is strongly advised to be undertaken in diverse markets and contexts.

Theorizing and mapping media ownership networks in authoritarian-populist contexts: a comparative analysis of Austria, Hungary, Slovenia, and Turkey

This paper aims to contribute to the ongoing discussions on authoritarian populism and the media, from the lens of the political economy of ownership. In contrast to studies that consider the link between media and authoritarian populism by focusing on the discursive structures of populist communication, this study analyses changes in the structure of news media ownership in four European countries that have been subject to authoritarian populism. By employing social network analysis, a methodology rarely used in media ownership research, we reveal how news media ownership concentration as well as changes in ownership structures have provided favorable conditions for the rise and endurance of authoritarian populism. Our study covers ownership developments during the period 2000 to 2020, in Austria, Hungary, Slovenia, and Turkey where authoritarian populist tendencies have been evident, albeit to varying degrees. Conclusions are drawn to illustrate how authoritarian populist actors in the sample countries not only capitalize on prevailing news media ownership structures, but also proactively intervene in ownership relations in order to increase influence over the diffusion of information.

IMPACT OF LEVERAGE BUYOUT (LBO) AND MANAGEMENT BUY OUT (MBO) ON COMPANIES

Based on previous research, researchers analyzed the impact of LBO and MBO on company performance. The research method used is qualitative research with descriptive analysis techniques through a literature review. This research focuses on collecting empirical data and information related to the impact of LBO and MBO. The results showed that LBO can significantly affect company performance by increasing profitability, sales growth, and operational efficiency. External factors such as economic conditions and industry competition, as well as internal factors such as management quality, changes in ownership structure, and incentive systems, influence the long-term success of LBOs. However, risks such as reduced profitability and operational efficiency also need attention. on the other hand, MBO positively impacts a company's operational performance, including increasing profits, profit margins, and efficiency. MBO often occurs when economic policy uncertainty increases and can result in favorable purchase prices and significant operational improvements. However, MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention. MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention. MBO is not consistent in increasing the performance of companies that fail through MBO, and tax factors also affect the value and performance of companies in the context of MBO. Overall, MBO has the potential to increase company performance, value, and productivity, but structural changes need attention.

Departure of giants: ownership transition in lone-founder owned firms

PurposeThe characteristics of businesses change with the change in ownership structure of the business. This study examines the change in ownership structure of the firm after the departure of lone founders, and its influence on dividend payout decisions of the firm.Design/methodology/approachThe authors employed 4,302 firm-year observations of non-financial firms listed on Pakistan Stock Exchange over the period 2007–2021. To test the hypotheses, the authors employed ordinary least squares regression, and additionally, generalized method of moments estimation and fixed effect analysis were applied to check for the robustness of results.FindingsUsing the lens of agency theory and social identity theory, the authors report that the presence of lone founder (family owners) is negatively (positively) associated with dividend payout, however, transition of lone-founder ownership to family-owned and family-managed firm leads to more dividend payout, whereas its transition to family-owned and non-family-managed firm results in lesser dividend payments.Originality/valueThis study provides novel insight into the strategic behavior of lone founders and extend the limited family business heterogeneity literature by examining the effects of ownership transition and its influence on firm's dividend payout decisions.

The Impact of Ownership Structure on Technological Innovation and Energy Intensity: Evidence from China

Environmental pollution and climate warming have become global issues affecting human life, and the burning of fossil fuels is a major source of greenhouse gases. Ownership structure is related to energy efficiency and a change in ownership structure has a significant potential for energy saving. However, few papers have studied the impact of ownership structure on energy intensity from the perspective of technological innovation in the past. Based on panel data from 29 Chinese provinces from 2005 to 2020, we systematically investigate the impact of industrial department ownership structure on energy intensity and study the function of technological innovation in this relationship from the perspective of ownership heterogeneity by using empirical models including ordinary least squares, two-way fixed effects and random effects. The empirical results of this study reveal three findings. First, as the proportion of state-owned industrial enterprises increases by one unit, energy intensity increases by 0.803 units. However, as the proportion of Hong Kong, Macao and Taiwan-invested industrial enterprises, private industrial enterprises and foreign-invested industrial enterprises increases by one unit, energy intensity decreases by 0.847 units and 0.549 units. Second, R&D activities, FDI, capital intensity and exports can significantly reduce energy intensity, but imports can increase energy intensity. Third, the ownership structure can affect energy intensity by influencing R&D expenditure. The increase in the proportion of state-owned industrial enterprises can reduce R&D expenditure, but results in the opposite situation in private firms. Foreign-invested enterprises can reduce energy intensity by making more use of the parent company’s technology. Based on the above empirical results, we propose suggestions to reduce energy intensity, which can provide reference for government to formulate more effective energy policies and realize sustainable development.

Unintended change of ownership structure and acquisition of IJVs: the effect of initial structural conditions

PurposeThe purpose of this study is to demonstrate the effect of initial international joint ventures (IJV) structural conditions on two main equity-based instability facets: change of IJV ownership structure and acquisition of the IJV by one of the IJV partners. Drawing on the transaction cost theory, the authors examine three key initial structural conditions: IJV formation mode, number of partners and IJV’s ownership structure.Design/methodology/approachThe authors apply the “Event history analysis” technique to test the hypotheses using a data set of 140 French-foreign JVs.FindingsThe findings show that the mode of an acquisitive IJV and unequal equity positions held by partners increase the likelihood of a change of IJV’s ownership structure and its eventual acquisition by one of the partners. In addition, the findings show that while an increase in the number of IJV partners is directly related to the change of IJV ownership structure, it has a statistically insignificant effect on IJV acquisition.Originality/valueDrawing on “transaction costs” arguments, this study advances the literature by offering fine-grained results related to the effects of initial structural conditions on aspects of unintended instability in French-foreign JVs.

BEBAN KEBIJAKAN DI BUMN DAN REFORMASI BUMN

Polemics over the management of State Owned Enterprises in various parts of the world, which are full of inefficiency and expropriation by politicians, have prompted major reforms, both in terms of ownership structure and the implementation of good corporate governance. It is hoped that with these reforms, the governance of State Owned Enterprises will become more efficient and transparent. However, the reform of State Owned Enterprises through changes in ownership structure without removing the burden of policy actually makes the privatized State Owned Enterprises perform worse due to being trapped in the soft budget syndrome. Thus, the reform of State Owned Enterprises actually invites a lot of skepticism in several countries. Therefore, this study examines the previous literature that presents empirical and theoretical facts regarding the management of State Owned Enterprises around the world. Based on the previous literature review, State Owned Enterprise reform will be nil if it is not followed by removing the burden of policy. The burden of the policy will be a hindrance for State Owned Enterprises in carrying out efficiency so that State Owned Enterprises will find it difficult to compete with private companies in the market and tend to rely on subsidies or capital assistance from the government to survive.
 Keywords :State Owned Enterprise, Policy, reformation

COMPARISON OF THE ECONOMIC RESULTS AND OWNERSHIP STRUCTURES OF REGIONAL AIRPORTS IN CENTRAL EUROPEAN COUNTRIES (V4)

Airports were originally built as publicly owned organizations, and their main role was to provide services in the public interest. Over the years, the traditional ownership structure began to change and new models of ownership began to emerge. The main aim of the present work is to compare the relationship between the economic results of the regional airports in selected central European countries focused on the Visegrad Group (V4) and their ownership structure to determine whether changes in ownership structures have significantly benefited some airports. The issue of changes in ownership structures has also affected regional airports in recent years because their economic situation is complex due to ineffectiveness. Recently state governments have begun changing their state politics; development strategies and the results of this research can help them to prepare a new approach for this purpose.

Building world-class enterprises though mixed-ownership reform: explaining performance differences in minority and majority state-owned enterprises

PurposeIn the context of China’s efforts to build world-class enterprises through mixed-ownership reform, this study aims to build an agency theory framework to analyze the differential relation between ownership structure and firm performance in majority versus minority state-owned enterprises (SOEs). It also evaluates the differential influence that political connectedness has on firm performance in the two types of SOEs.Design/methodology/approachUsing a panel data set of Chinese state-controlled mixed-ownership enterprises covering the period 2010–2019, this paper uses ordinary least squares, random-effects, fixed-effects and three stage least squares regression analysis to study the differential impact of ownership structure and political connectedness on firm performance in majority versus minority SOEs.FindingsIn minority SOEs, firm performance is positively related to the ownership share of the largest private shareholder and state ownership positively moderates this relation. Furthermore, minority SOEs with a politically connected chairman perform worse than those with a politically connected chairman. In majority SOEs, there is no relation between the ownership share of the largest private shareholder and firm performance. In addition, majority SOEs with a politically connected chairman perform similar to those without a politically connected chairman.Originality/valueThe theoretical framework demonstrates that agency problems are substantially different in minority versus majority SOEs and that this influences how changes in ownership structure and in the type of chairman that is assigned affect firm performance. The empirical analysis confirms these predictions.

What does sustainability demand? An institutionalist analysis with applications to China

In this paper we discuss if existing political and economic institutions can ensure sustainable futures. We do so by combining a global outlook with more specifically examining the situation in China. Present institutions foster growth, they are however weak at motivating actions that keep economies within an environmentally safe and socially just space. We especially note the challenges that strong focus on growth combined with ex post environmental regulations create for natural systems with tipping-points. In this situation, there is a need to change institutions to ensure strong emphasis on long-term sustainability as opposed to short term economic surplus. Regarding political decision-making, we discuss ways to break short-termism through strengthening public deliberation as well as formalizing political responsibility for the future. Regarding economic institutions, we emphasize the need to widen the goals of firms including responsibilities for environmental qualities. The latter may demand changes in ownership structures.

Metodi i stilovi rada menadžmenta preduzeća

Privatization and change of ownership structure in organizations dealing with production and services, intense competition and accelerated technological development have emphasized the importance of holders of management functions in business systems. Consequently, managers have become the subject of great interest of both private owners and the state. The work of managers is essentially a reciprocal, psychodynamic and two-way process that affects the attitudes, beliefs, behavior and motivation of employees, as well as business success. What distinguishes successful managers from unsuccessful ones is the method and style of work and life of managers, attitude towards subordinates and other influential factors in the work process.

Heterogeneous effects of hotel ownership structure changes on localized market competition using multilevel mixed‐effect analyses

Ownership structure, a source of firm heterogeneity, can change competitive environments and market structures; the impact on the hospitality industry is unknown. This study investigates the impact of hotel ownership structure changes on the magnitude of localized competition of different quality segment hotels. Two‐level mixed‐effect analyses reveal that hotel ownership structure change from chain‐affiliated to independent increases the number of neighboring economy hotels, whereas the change from independent to chain‐affiliated increases the number of neighboring upper‐upscale hotels. Ownership structure changes in the same market can be a key driver of market dynamics, suggesting that hotels should colocate with caution.

Corporate Governance Reforms under the Abenomics : the Economic Consequences of Two Codes

Corporate governance reform has been one of the central issues in the third arrow of the Abe administration's economic revival program. The Japanese Stewardship Code was introduced in 2014, followed by the Corporate Governance Code in 2015. This study quantifies how the reform changed the corporate governance of Japanese firms. First, we examine the changes in institutional ownership, cross-holdings and board structure following the reforms. Then, we study whether changes in ownership structure and board structure affect firm behavior and performance. We find that the introduction of the Stewardship Code is associated with more institutional ownership especially in mid-sized firms. Firms with few outside directors increased the number of outside directors to follow the Corporate Governance Code. However, the increase in institutional ownership and outside directors did not promote risk taking behavior or improve firm performance.

Ownership structure, information asymmetry and growth of the firm: Implications from nonfinancial firms listed in S&P500

This paper investigates the association between growth of the firm and ownership structure under conditions of information asymmetry. The objective is to show the effects of information asymmetry (favorable vs. adverse selection) on the choice of the ownership structure that helps firms grow. Our sample includes nonfinancial firms listed in the S&P500 over the period 2000 to 2016. The dependent variable is growth of the firm measured by growth in sales. The independent variables are proxies for changes in ownership structure, individual investors, investment managers, and brokerage firms. Observations are grouped according to level of information asymmetry (high or low) using three proxies for information asymmetry: beta of return on equity (ROE), probability of default of ROE, and q ratio. The results conclude that (a) changes in ownership structure affect growth of the firm positively and (b) the effect of ownership structure is more significant and consistent at low level of information asymmetry. The contribution of the paper is threefold. First, it extends the arguments of corporate governance by showing the impact of ownership structure on growth of the firm. Second, the paper offers robust evidence that growth of the firm is associated with low level of information asymmetry. Third, the paper shows that fundamental financial information can help lessen the level of information asymmetry and thus help firms grow.

La caída de las cajas de ahorros españolas. Cuestión de rentabilidad, tamaño y estructura de propiedad

In Spain between 2010 and 2011 there has been a major financial restructuring, which has led to the virtual disappearance of savings banks through mergers and subsequent change in ownership structure becoming banks. This major restructuring has been promoted by the Bank of Spain, as an outlet for that financial institutions subsisted to the crisis that affected them.This paper analyzes the banks and savings banks the Spanish financial system during the four years prior to the beginning given the financial restructuring of 2010. The aim is to check whether there are differences in profitability for reasons of size and form of ownership of the entity (savings banks, banks). The results show that the increase in size and bankarization under the auspices by the Bank of Spain is an appropriate strategy for resolving the current financial crisis.

Research on the Factors Influencing the Income Level of Urban Residents in Guangzhou

High-quality development is a new requirement for China’s economic development in the new era. This paper selects the ownership structure, urbanization level and openness as the influencing factors of urban residents’ income level in Guangzhou, and uses vector autoregressive model (VAR) to empirically analyze the mutual values between Guangzhou City’s 1998-2017 variables and urban residents’ income levels. The results show that the two-way causal relationship between urban residents’ income level and urbanization is the most significant. The change of ownership structure has the highest contribution to the fluctuation of urban residents’ income level, and on this basis, relevant policy recommendations are put forward.