Changes In Ownership Structure Research Articles

Top executives' perceptions of the inclusion of corporate social responsibility in quality management

AbstractExercise of global responsibility is critical to the future of quality practices in business, and corporate social responsibility (CSR) is relevant to the quality movement. However, not much is known about management perceptions of CSR in the specific context of quality management. This paper examines top executives' views on CSR and quality management implemented through the European Foundation for Quality Management (EFQM) framework. We report the results of a survey of executives in a multinational corporation operating in the outsourcing and technology services industry. The main factors influencing managerial perceptions were value generation, industry forces, institutional and stakeholder pressures, and organizational values and beliefs. In contrast to previous studies, we found limited evidence supporting the influence of shareholder pressures, competition, or the business case for CSR. We concluded that company lifecycle, changes in ownership structure, and owners' orientation toward CSR influenced its potential for adoption through implementation of the EFQM quality framework.

A Spirit of Generosity: Philanthropy in the Scotch Whisky Industry

Recent literature on philanthropy and business has focused on the returns to businesses and entrepreneurs from giving. In this article, we show how historical context impacts the motivations and organizational forms created over time in philanthropic giving that effect and affect such returns. We do this through the prism of the changing ownership structures in the Scotch whisky industry in the twentieth century using an institutional theory lens. In doing so, we capture the story of three sisters who inherited a Scotch whisky business in the 1940s and transformed it into a hybrid philanthropic-commercial vehicle that remains in operation today. We present an extended theoretical model illustrating the interplay of context, motivation, and organizational structure over time on exchanges of capital in entrepreneurial philanthropy.

An Analysis of Industrial Change in Turkey. II: Sectoral Development and Value Adding

The success of companies in each sector is related not only with the performance of the company but also with the sectoral development. The value adding level in each sector also creates extra gains that make companies successful. In this paper, regional distribution of the largest companies in Turkey is analyzed. The annual data of the largest companies in the country based on the company performances, sectoral changes, ownership structure and value adding levels are examined below. Trend analysis for sectoral development is made and sectors are classified as rising and falling based on their performances. The data illustrates that the country replaces high value adding sectors with the low value adding ones. The value adding analysis confirms these results. It is also interesting to see that the share of the state rapidly decreases over time while the share of the private ownerships and foreign companies rise rapidly. A trend analysis is also employed for the changes in ownership structure and the results are presented. The overall results depict that the country is becoming a more industrialized; however, new policies and incentives are needed to increase the value adding in each sector.

How ownership structure affects bank deposits and loan efficiencies: an empirical analysis of Chinese commercial banks

This study explored how dramatic changes in ownership structure and operational technologies have influenced Chinese bank efficiency over the past decade. The study included an empirical analysis using 5 years (2011–2015) of operational data for 71 Chinese commercial banks. Two two-stage meta-frontier data envelopment analysis network models and multiple regression models were used to estimate and analyze impacts of variations in bank ownership structure. The main empirical results show that irrespective of deposits or loans efficiency, State-owned Banks (SOBs) have the highest technology and management levels. In contrast, City Commercial Banks should improve both technology and management levels, narrowing the gap with SOBs and Joint-stock Banks. The deposit efficiency of a bank was found to be mainly influenced by the nature of ownership (national shareholding ratio and the shareholding ratio of the domestic legal entities) and ownership concentration. The loan efficiency of a bank was mainly affected by the nature of ownership (the shareholding ratio of the foreign legal entities) and ownership liquidity.

Alitalia, or the inability to align regulation with industrial policies

ABSTRACTThis article aims to frame Alitalia’s crisis in the processes that have characterized the regulatory and industrial policies of the aviation industry over the last twenty years. The reasons that led to Alitalia’s state of insolvency, which have been widely documented, will only be surveyed here. Instead, this work highlights the ‘public policy’ dimension of Alitalia’s failure, that is to say the key strategic decisions, their coherence over time, and the choices made in other countries for similar cases. If the Alitalia crisis is essentially a business crisis that not concern the national airline industry, this does not necessarily mean that the public and regulatory choices that have been made in Italy over the last twenty years have not influenced discernible managerial choices and cases of poor management. The interpretive hypothesis followed in this article concerns the ability to coordinate and integrate regulatory policies and industrial policies. The first section of the article introduces the main theoretical and empirical works on the theme of market-building policies and their implications for civil aviation policy. The second section deals with the story of Alitalia from 1997 to date, focusing on strategic decisions and key policy actors. The last two sections reconstruct European regulatory choices and their implementation in five European countries with a focus on changing ownership structures and the strategies of key market players.

Stability and change in the field of residential care for children. On ownership structure, treatment ideas and institutional logics

ABSTRACTThe field of residential care for children and youth in Sweden is often termed unstable and turbulent. During recent decades the field has been subject to many changes. In this study, the development and changes in the field of residential care for children and youth in terms of ownership structure and treatment ideas will be analysed. The study is particularly focused on the changes in ownership structure that have taken place during the 2010s. It also analyses changes in treatment ideas, and discusses how these may relate to transformations of ownership structures as well as to dimensions of institutional logics, such as legislation and other types of normative pressure from the environment.The result reveals that of the approximately 450 treatment oriented residential care units (excluding homes for refugee children), close to 80 % are today run by private companies and to a growing extent by large for-profit corporations. Parallel – and possibly related – to the changes in ownership structure, the dominant treatment ideas have changed over time. The changes in the field can be summarised as a transformation from small-scale establishments with a family logic, to large-scale establishments with a professional logic, or more specifically from a domination of small family run units with milieu therapy to big business and a focus on evidence based interventions.

Institutional Ownership and R&D Investment: A Meta-Analysis

We study the relationship between institutional investor ownership and R&D expenditure at the firm level. Our study of the relationship between the changing ownership structure and firm’s R&D expen...

The Cost of Immediacy for Corporate Bonds

Liquidity provision for corporate bonds has become significantly more expensive after the 2008 crisis. Using index exclusions as a natural experiment during which uninformed index trackers request immediacy, we find that the cost of immediacy has more than doubled. In addition, the supply of immediacy has become more elastic with respect to its price. Consistent with a stringent regulatory environment incentivizing smaller dealer inventories, we also find that dealers revert deviations from their target inventory more quickly after the crisis. Finally, we investigate the pricing impact of information, changes in ownership structure, and differences between bank and nonbank dealers. Received February 22, 2017; editorial decision May 29, 2018 by Editor Itay Goldstein. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Management in the corporate governance system

The article points out that the process of introducing market relations in Ukraine and the growing role and importance of joint-stock companies in the economic development of the country and well-being of its citizens have created the need of corporate governance that emerged due to changing ownership structures and transition to market relations.The study shows that the corporate form of business organization is a new and complex phenomenon in Ukraine. Corporations (joint-stock companies) are the most widespread and significant form of business organization in the current conditions. It is emphasized that the defining feature of a corporation is that it is owned by shareholders who bought stock. This requires a completely different approach to management and control. The nature, role and principles of corporate governance framework are described. It is reasoned that since management and ownership are separated, there is a need to balance interests of shareholders and management.It is stressed that corporate governance is an important factor in the company’s activity and development, the primary purpose of which is to provide owners with the opportunity to organize and exercise effective control over management. The essence of corporate governance is to achieve a balance of interests for participants of corporate governance, namely: shareholders, managers, supervisory board and other groups and individuals (suppliers, consumers, creditors, government authorities, etc). The role and place of management in corporate governance, their interests and powers are highlighted.The following responsibilities are associated with executive bodies, or management: solving currents problems related to the corporation’s activities, ensuring decision-making by general meeting of shareholders and supervisory board, planning, organizing, motivating, coordinating, and monitoring.It is substantiated that management and corporate governance are different concepts. The key difference is that corporate governance is a wider concept, and management is an integral part of it. The effectiveness of corporate governance rests on the organization of the work of management.

Governance of the forest restitution process in Romania: An application of the DPSIR model

Over the last 25years, the post-communist countries have encompassed important changes in ownership because of the transition from a centralised regime to an open market economy. Following the implementation of three different land restitution laws, almost 51% of the Romanian forestlands are currently in non-state ownership. The paper uses the DPSIR (Driving Forces-Pressures-State-Impacts-Responses) framework to analyse the forest restitution governance process and its impact on resource management outcomes. We have analysed the social and political environment of the forest restitution (Driving forces), the current and the past structure of the private forests (State), the ecological, economic and social effects of restitution (Impacts) and the institutional tools used in private forests (Responses). Data collection techniques combined the scrutiny of literature on forest privatisation with a case study analysis based on remote sensing, field work inventory and questionnaires. The study analyses the situation of small scale forest tenures (less than 1ha) given back to the former owners per the first law of land restitution (Law 18/1991). The results show that the forest restitution has been used as a trade-off between politicians' interest in winning political capital and owner's interest in getting short-term benefits from the forest. Despite the highly regulatory setting aiming to preserve the traditional rules of forest management, anthropic disturbances have affected on a large scale the private managed forests, while the policy responses were not able to encompass the new challenges brought by the changing ownership structure. The analysis concludes that the current policy responses are strengthening even more the regulatory framework but as reaction to a new policy goal: to limit the law infringements and the corruption created by the failure of enforcing the command and control instruments.

Evolution of Spaces between Buildings in Polish Mass Housing Estates in the Eyes of the Inhabitants

The author investigates into the state of public and semi-public spaces in the Polish housing estates erected in the times of mass housing projects (1960 - 1980). The character of these estates is special. On the one hand, the buildings were accompanied by lavishly designed open spaces with elaborate material infrastructure: urban design followed the ideas that time – and strict regulations – that, in theory, prevented creation of substandard spaces. Provision of affordable housing was given a priority in the centrally controlled economy, so vast greenfield areas were devoted to housing. Moreover, the estates often stay under one management of housing cooperatives for years. The assets are relatively modern and usually conveniently located within the city/town infrastructure. This gives the areas advantage over contemporary housing schemes affected by constraints imposed by prior development and commercial approach to the provision of housing. On the other hand, technical wear and tear, functional obsolescence, years of underinvestment, natural demographic changes in local communities, changing ownership structure, and weakening social bonds make the large housing estates with their too lavishly designed public areas an ungrateful object of management.Recent availability of the European Union funds for modernization of public spaces increases the numbers of municipal projects and individual initiatives to activate communities by improving public and semi-public spaces. A question arises whether the money and effort is spent reasonably. Do people actually use the new facilities? Are they encouraged to affect the form and function of their surrounding? Does the public space change according to some passing fancies, or according to the changing needs?To juxtapose the development of technical condition of infrastructure and functions offered by the space between buildings with the expectations of users, the author repeatedly views the scene and conducts structured interviews with the inhabitants of the estates. The paper presents the results of two interdisciplinary surveys, held five years apart in the same estate, and based on the same questionnaire. Its results confirm that user expectations evolve. The interest in the development of green areas, and availability of recreational facilities in the proximity of home is growing as people observe that changes are possible. Some people declare some form of active participation in improvements. Preferences towards functions and accessibility of the areas reflect changes in the demographic structure. Surveys of this kind may be regularly used in defining guidelines for further improvement measures, and raising user awareness of the personal responsibility for the condition of the neighbourhood.

Mixed Ownership Structures and Firm Performance in China Listed Firms

China has achieved impressive economic growth since market reforms. The design of appropriate compensation structures is imperative so as to incentivize top managers, but little research has been done to examine the top management compensation structure in China. This study investigates how listed firms in China relate executive compensation to their firm performance and how such relationships are influenced by firm ownership structure. The results provide evidence showing strong link between compensation and performance varies across firms with different ownership structure. Private ownership enhances the link between firm performance and top CEOs compensation, while government ownership weakens executive pay-performance relation and thus makes the firms less effective in solving the agency problem between shareholders and management. It suggests enterprise reform in China will need to be supplemented by change in ownership structure in order to ensure fully success by transforming its State Owned Enterprises (SOEs) to corporations in the direction of converting state shares to public shares.

ニュージーランドにおける育成的林業の拡大と人工林保有構造の変化（原著論文）（特集 海外林業の最新動向） 1990年以降の林業展開を中心にして

ニュージーランドにおける育成的林業の拡大と人工林保有構造の変化（原著論文）（特集 海外林業の最新動向） 1990年以降の林業展開を中心にして

Ownership structure changes, reforms and corporate restructuring: Evidence from Japan

This study explores the implications of control transfer and ownership structure on firm value and restructuring activities in Japan. We find that conventional banks and business group affiliations negatively impact firm value and organizational restructuring, but foreign and private individual shareholding have a positive impact on firm performance and its ability to restructure internally. Furthermore, the transfer of ownership control to market-oriented investors consistently results in greater firm value and restructuring activities that enhance economic efficiency of listed companies in Japan.

Does Ownership Structure Matter?

AbstractCapital assets are held in a variety of ownership structures that can be characterised by how they are taxed, whether or not their equity is publicly traded, and by the relationship between the ownership of the assets and the management of the assets. When taxes and regulations change, the popularity of the different ownership structures change. These changes in ownership structure can affect how the assets are managed, which can in turn influence innovation.

FMA Roundtable on New Developments in European Corporate Governance

In this discussion that took place in Helsinki last June, three European financial economists and a leading authority on U.S. corporate governance consider the relative strengths and weaknesses of the world's two main corporate financing and governance systems: the Anglo‐American market‐based system, with its dispersed share ownership, lots of takeovers, and an otherwise vigorous market for corporate control; and the relationship‐based, or “main bank,” system associated with Japan, Germany, and continental Europe generally. The distinguishing features of the relationship‐based system are large controlling shareholders, including the main banks themselves, and few takeovers or other signs of a well‐functioning corporate control market. Given the steady increase in the globalization of business and international diversification by large institutional investors, the panelists were asked to address the question: can we expect one of these two systems to prevail over time, or will both systems continue to coexist, while seeking to adopt some of the most valuable aspects of the other?The consensus was that, in Germany as well as continental Europe, corporate financing and governance practices have already begun to look much like those in the U.S. and U.K., with much less reliance on bank loans and greater use of bonds and public equity. And these financing changes have resulted in major changes in ownership structures that have seen local main banks largely supplanted by foreign institutional investors—some of whom have demanded a greater voice in how companies are run. Moreover, Finnish economist Tom Berglund may well have provided a blueprint for the dominant European governance system of the future in describing the “Nordic model” asa compromise between the Anglo‐American and German models—one that maintains a strict hierarchy of interests putting the shareholders at the top, with strong minority shareholder protection, and gives shareholders the right to convene meetings with the board and executive management.But even with this movement toward the market‐based system, the remarkable persistence of family‐controlled publicly traded companies in Germany and much of continental Europe appears to reflect deep‐seated cultural attitudes and practices that are expected to continue to resist the incursion of Anglo‐American principles and methods. The widespread use of dual‐class stock, the pervasiveness of stateowned enterprises, and even the German practice of labor representation on boards (known as “codetermination”) are all seen as likely to persist—even though one member of the panel views each of these three practices as having played a major role in the Volkswagen emissions scandal. And given the surprising resurgence of one of these features in the U.S.—that is, the dual‐class ownership structures created by the IPOs of companies like Google and Facebook—no one was confident in predicting their disappearance. Like many of today's listed German companies that have been owned and operated by the same family for centuries, some of America's most promising and successful companies also appear to feel the need for at least some protection against the “vagaries” of the market.

Financial distress and ownership structure: The case of Serbia

The main objective of our research is to examine the effects of financial distress on ownership structure and to elaborate on the factors that influence change of ownership in companies that have adopted a reorganisation plan in the Republic of Serbia. Of the 63 sample companies reorganised in bankruptcy proceedings between 2009 and 2015, the ownership structure remained unchanged in 49 companies, while in 35, the existing owners or their family members remained in charge of key management positions. Using binary logistic regression, we observed that two factors influenced the change in ownership structure: the length of time it takes to resolve the insolvency process and whether the owners were involved in the running of the distressed company before it filed for bankruptcy. The obtained results indicate that corporate governance mechanisms in distressed Serbian companies are not efficient.

Economic and financial crises and changes in corporate governance in Russia (Part 1)

Motivation: Favorable conditions for the development of corporate governance in Russia emerged at the beginning of the 90s, together with the commencement of economic and political transformation. At the beginning, one of the main factors connected with building and developing a corporate governance system was the process of privatization of state-owned enterprises and main market reforms. In the subsequent years, more factors emerged, such as: further economic reforms, political transformations, adequate corporate legislation as well as financial and economic crises. Aim: The article’s main thrust is to evaluate the impact of financial crisis of 1998 on the evolution of selected internally and externally mechanisms of corporate governance in Russia. Results: The article uses theoretical analysis method based on a survey of literature and statistical data (especially from Russian Federal Statistics Service). The authors assume that the financial crisis of 1998 was a turning-point in the process of the evolution of corporate governance system in Russia. The crisis gave rise to new process of redistribution and consolidation of the ownership, caused significant changes in ownership structure and the process of building the new type of business groups (holdings). It caused the significant development of the corporate control market (mergers and acquisitions) as well as changes in the bankruptcy law.

The bank–firm relationship during economic transition: The impacts on bank performance in emerging economies

We analyze the lending relationships between 1011 banks and 17,284 client borrowers across 11 emerging economies. We first demonstrate that a state-owned bank's risk appetite increases as its number of family business group-owned borrowing partners increases. Second, we show that a non-financial firm-owned bank's risk appetite also increases as its number of family business group-owned borrowing partners increases. Finally, we show that a bank is more likely to reduce its risk appetite and improve its operational cost efficiency as its foreign ownership ratio increases, regardless of the bank's lending partner. These findings suggest that, in the post-privatization period, the ownership structure changes of banks and/or borrowers affect the lending relationship and the bank's risk appetite and cost efficiency.

Does firm ownership structure matter? Evidence from sugar mills in India

This paper examines the effect of firm ownership structure on firm behavior and the economic outcomes of upstream suppliers by comparing privately owned sugar mills to cooperatives and public mills in India. In this setting, government support for cooperative and public mills allows meaningful variation in ownership structure to be observed, while the “command area” zoning system – whereby mills are given monopsony power to operate within an assigned area – helps tackle the identification challenge. The borders of command areas allow for a geographic regression discontinuity design, where underlying soil, weather, and institutional characteristics are exactly the same but ownership structure changes across boundaries. Using satellite images overlaid on digital maps to measure sugarcane grown along the borders, as well as a survey to determine the effects of crop choices on farmer welfare, I find that private mills encourage sugarcane production. Greater cane cultivation is tied to better credit provided by private mills, and it results in higher income and consumption for farmers.