Corporate Ownership Structure Research Articles

Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, dan Kepemilikan Asing Pada Pengungkapan Corporate Social Responsibility

One of the factors of corporate governance that influence the implementation of CSR is the ownership structure. The emergence of corporate ownership structures results from a comparison of the number of shareholders in the company. The purpose of this study was to determine the effect of institutional ownership, managerial ownership, and foreign ownership on disclosure of corporate social responsibility (CSR). This research was conducted on the Indonesia Stock Exchange in the period 2013-2017. The sample of this research was 40 Infrastructure, Utilities and Transportation companies using purposive random sampling, where samples were taken based on certain criteria. Data collection of this study uses secondary data. The analysis technique used is the Analysis of Multiple Linear Regression. The results of this study indicate that institutional ownership and managerial ownership have a positive effect on CSR, while foreign ownership has no significant negative effect on disclosure of CSR.
 Keywords : Institutional Ownership; Managerial Ownership; Foreign Ownership; Disclosure Of Corporate Social Responsibility.

Analisis Faktor yang Mempengaruhi Kredibilitas Kinerja Perusahaan

The purpose of this study is to determine the effect of the application of Good Corporate Governance, Ownership Structure, and Company Size on Company Performance. Several factors This study aims to determine the effect of Good Corporate Governance (CGPI) on the Performance of Companies listed on the IDX for the period 2013-2017. The research population is a company that is listed on the Indonesian stock exchange and at the same time follows the ranking of the Corporate Governance Perception Index with sample selection through a purposive sampling method. There are 55 companies that meet the criteria as research samples. The results show that Good Corporate Governance has a significant positive effect on company performance, Managerial Ownership has a positive and significant effect on company performance, Institutional Ownership does not have a positive and significant effect on Company Performance, Company Size positive and significant effect on Financial Performance.
 Keywords : Good corporate governance, ownership structure, company size, company performance.

Impact of Corporate Governance on Effective Corporate Tax Rates Among Listed Firms in Kenya

Corporate tax is not only an important source of revenue to governments around the world but is also used to achieve a number of fiscal objectives. On the other hand, Corporation tax represents a significant expense to companies thereby impacting on major corporate decisions. Understanding factors that affect the effective corporate tax rates is therefore important not only to corporations but also to governments and other policy makers. Despite the well documented corporate tax leakages across the world, widening budget deficits and ballooning public debt in Kenya, limited studies have been conducted to investigate the impact of corporate governance on effective tax rates among the NSE listed firms. The purpose of this study was therefore to investigate the impact of board size, board independence, board gender diversity and corporate ownership structure on effective corporate tax rates among listed firms in Kenya between 2011 and 2017. The study employed longitudinal research design. A sample of 40 firms were purposively selected from the 67 listed firms in Kenya as at 31 st December, 2017.Data was extracted from the published financial statements of the sampled firms. Data was analyzed with the aid of STATA software. The findings of the study show that board size, board independence and board gender diversity has a positive and significant effect on effective tax rates. On the other hand, ownership structure has a negative and significant effect on effective tax rates. The study therefore concludes that corporate governance has a significant impact on effective tax rates among listed firms in Kenya and recommends that policy makers, investors and corporate executives consider this fact when making their tax policies and decisions. Keywords: Corporate governance, Effective tax rate, listed firms, Kenya. DOI : 10.7176/RJFA/10-18-04 Publication date :September 30 th 2019

The Effects of Corporate Financial Characteristics and Ownership Structure on Agency Problem between Shareholder and Creditor

일반적으로 대리인 문제는 주주와 경영자 간의 갈등을 의미하는 경우가 많으나, 대주주와 소액주주 간 갈등 또는 주주와 채권자 간 갈등의 양상으로 나타나기도 한다. 본 연구에서는 레버리지 증가에 따라 발생하는 주주와 채권자 간 갈등이 어떤 상황에서 증가 또는 완화되는지 확인하기 위해 여러 조건에서 레버리지가 기업가치에 미치는 영향에 대한 분석을 실시하였다. 분석결과는 다음과 같다. 위험수준과 성장기회가 높은 조건에서 레버리지 증가는 기업가치에 부정적인 영향을 미치는 것으로 나타났으며, 단기 부채 비중과 은행차입비중이 높은 조건에서는 레버리지가 증가할수록 기업가치가 증가하는 것으로 관찰됐다. 한편, 소유집중도가 높은 조건에서는 레버리지가 기업가치에 긍정적인 영향을 미친 반면, 외국인지분율이 높은 조건에서는 레버리지의 증가가 기업가치에 부정적인 영향을 미치는 것으로 관찰됐다. 연구 결과는 다음과 같이 해석될 수 있다. 레버리지가 증가함에 따라 주주는 과소투자행태를 보이거나, 위험수준이 매우 높은 투자안을 채택함으로써 채권자의 부를 이전시키는 결과를 초래할 수도 있다. 이러한 비효율적인 투자행태는 결국 기업가치에 부정적인 영향을 미치며, 이는 채권자의 모니터링에 의해 완화될 수 있다. 소유구조와 관련한 분석결과에서는 내부주주인 대주주와 외부주주인 외국인 투자자가 레버리지 증가에 대하여 각각 다른 반응을 보이는 것으로 확인됐다. 전자의 경우 의사결정에 대한 권한이 강화되는 조건에서 주주만의 이익을 추구하기 보다는 기업가치를 제고하는 방향으로 행동하는 것으로 나타났다. 반면, 후자의 경우 영향력이 증가하는 조건에서 전체의 이익보다는 주주만의 이익을 고려하여 기업가치에는 부정적인 영향을 미치는 것으로 확인됐다.

Corporate Governance and Ownership Structure in Sub-Saharan Africa Countries

ABSTRACT This study examines the relationship between corporate governance and ownership structure for the firms listed in the stock exchanges of 12 Sub-Saharan Africa countries, using data for the years 2006–2009. The findings indicate both managerial ownership and concentrated ownership are negatively related with corporate governance index. The results suggest managerial ownership and concentrated ownership are either the substitute of other good governance practices in reducing agency problems or cause of entrenchment. Furthermore, the results suggest that among the ownership structures variables the concentrated ownership and managerial ownership are key determinants of the adoption of other good corporate governance in the firms listed primarily in Sub-Saharan Africa countries.

PENGARUH CORPORATE GOVERNANCE DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA KEUANGAN PERUSAHAAN

This study examines the effect of corporate governance and ownership structure on the company's financial performance. Good corporate governance is proxyed by the proportion of independent commissioners, while the ownership structure is proxyed by the proportion of institutional and managerial ownership. Financial performance indicators are measured by Return on Equity (ROE) and Return on Assets (ROA). The sample used was 22 companies from a population of 54 property companies and public real estate that were publicly traded on the Indonesia Stock Exchange and obtained a total of 110 observations for the period 2011-2015. The sample is determined using the purposive sampling method. This study uses multiple regression analysis and is processed using SPSS. The results showed that there was a significant negative effect between the proportion of independent commissioners and institutional ownership of financial performance as measured by ROE. However, managerial ownership was found not to have a significant effect on financial performance as measured by ROE. Other results indicate that the proportion of independent commissioners, institutional ownership, and managerial ownership has a positive and significant effect on financial performance measured using ROA.

Board of Commissioners in Corporate Governance, Firm Performance, and Ownership Structure

The purpose of this study is to investigate: firstly, the two-way causality between firms performance and the size of BOC; secondly, the nonlinear effect of board size on the firms’ performance; thirdly, the direct and moderating effects of the ownership structure on the influence of firm performance on board size. Using the ROA as a measure of firm performance, we find that there is a simultaneous relationship between firm performance and the size of BOC: the size of the board has an inverted U-shaped effect on firm performance while firms performance has a negative influence on board size. We find that the size of the board of commissioners increases firm performance up to a certain level, but a very large board reduces firm performance. We find marginal evidence that ownership structure has a moderating effect on the impact of firm performance on board size. We document that the negative effect of performance on board size dissipates as ownership right increases. The negative effect of performance on board size marginally strengthens. Thus, our study contributes to the literature by finding that the negative influence of firm performance and board primarily occurs on firms that are subject to high incentive expropriation by controlling shareholders. Keywords : board size, board of commissioners, corporate governance, firm performance, ownership structure, cash-flow rights, control rights. * Department of Management, Faculty of Economics and Business, Universitas Indonesia, Kampus UI Depok 16424, Indonesia ** Department of Accounting, Faculty of Economic and Business, Universitas Indonesia, Kampus UI Depok 16424, Indonesia https://doi.org/10.21632/irjbs.12.2.111-136

Religion and Ownership

This study examines if geographical variation in the dominant religion of a firm’s location is associated with corporate ownership structures as a governance mechanism to address agency conflicts within firms. We contrast two Christian faiths, Protestantism and Catholicism, which—despite theological similarities—have been associated with contrasting preferences for autonomy and reliance on trust. We address identification challenges by combining evidence from panel regressions, geographical regression discontinuity design, and instrumental variable estimation. We find that the local strength of Protestantism reduces ownership concentration. A subsequent analysis suggests that the local strength of Protestantism directly affects blockholder ownership, whereas the effect on shareholding size and insider ownership is indirect through trust.

중국 상장기업의 소유구조와 이익조정 행태의 관련성

중국 상장기업의 소유구조와 이익조정 행태의 관련성

Board characteristics, ownership concentration and firms’ performance

PurposeThe purpose of this paper is to extend the understanding and application of interactive ties creating value through board characteristics, ownership concentration and firms’ performance by using a contingent theoretical-based framework based on the amalgamation of resource dependence theory, stakeholder theory, agency theory, stewardship theory and institutional theory in a country with weak political environment.Design/methodology/approachThis study includes a sample of an unbalanced panel of 309 non-financial sector firms listed on Pakistan Stock Exchange (PSX) from 2005 to 2016. In order to address the issue of unobserved heterogeneity, simultaneous and dynamic endogeneity, the current study employed the technique Arellano–Bond dynamic panel data estimation under assumptions of GMM (Arellano–Bond, 1991).FindingsThe empirical results suggest that the presence of concentrated ownership moderates and helps to overcome the agency problems through different governance mechanisms (such as board size, independent directors and CEO duality). The larger boards are found to be beneficial whereas the higher representation of independent directors in the board is found to be detrimental for Pakistani firms.Research limitations/implicationsLimitations of the study are, first the current study has analyzed public-listed firms from the non-financial sector, and second the study has only focused on the financial aspect of the performance. The future research could include other proxies of corporate governance and ownership structure such as board diversity and meetings, audit committee and managerial ownership, etc.Practical implicationsThe research also helps Pakistani policy makers in numerous ways. First, the current study confirms the monitoring and expropriation effect of ownership concentration in corporate governance and performance mechanism. Thus, the Security and Exchange Commission of Pakistan (SECP) should make such policies which protect the corporate board against the influence of concentrated ownership so that the interests of the minority shareholders are protected. Second, SECP should ensure that all the listed firms declare a comprehensive profile of their directors (such as academic qualification, age and experience) in their annual reports for the better understanding of the governance−performance mechanism.Originality/valueThe current study augments the emerging body of literature on corporate governance and firm performance mechanism through the amalgamation and testing of existing theories in an emerging economy like Pakistan by using wider and newer data set.

The Effects of Corporate Ownership and Governance Structures on Cash Holdings and Performance of Chinese Firms

The Effects of Corporate Ownership and Governance Structures on Cash Holdings and Performance of Chinese Firms

Does Corporate Social Responsibility Reduce Earnings Management? The Moderating Role of Corporate Governance and Ownership

The purpose of this paper is to investigate the relationship between corporate social responsibility and earnings management and the moderating effect of corporate governance and ownership structure on this relationship. Using panel data for a sample of French listed companies between 2010 and 2013, we find that CSR engagementconstrain earnings management practices suggesting that managers would comply with the ethical requirements and satisfy stakeholders’ interests. The results also show that the effect of CSR on earnings management is particularly stronger in more independent boards and with high institutional ownership structure. These corporate governance devices help mitigating managerial opportunistic behavior.

PERAN GCG DAN STRUKTUR KEPEMILIKAN DALAM MENDETEKSI MANAJEMEN LABA MELALUI DISCRETIONARY REVENUE

This study aims to examine the role of good corporate governance (GCG) and the ownership structure in the control of management incentives to perform earnings management. GCG in this study measured using indices issued by GCG agencies in Indonesia, Indonesian Institute for Corporate Directorship (IICD). Ownership structure under test consists of managerial ownership, institutional ownership, and foreign ownership. Earnings management measured by discretionary revenue models of Stuben (2010). Samples were analyzed are a manufacturing company study period of 2009 to 2012. Testing the hypothesis is done by using multiple linear regression method. The test results showed that the GCG proven to reduce earnings management. However, all of the ownership structure in this study is not proven negative effect on earnings management. Implications of this research are expected to contribute as additional information for practitioners, academics and policy makers related to the implementation of good corporate governance and ownership structure and its impact on earnings management incentive measures

PENGARUH CORPORATE GOVERNANCE, STRUKTUR KEPEMILIKAN DAN LEVERAGE TERHADAP MANAJEMEN LABA (Studi pada Perusahaan Go Public Sektor Pertambangan yang terdaftar di Bursa Efek Indonesia tahun 2015-2018)

His study discusses to analyze corporate governance, ownership structure and leverage to earning management. The research was conducted at mining companies in Indonesia Stock Exchange 2015-2018. The samples used as many as 29 companies from the population of 83 companies, through a purposive sampling method. The data collection is done by using the method of observation nonparticipant through the financial statemens. The analysis technique aapplied is a technique of multiple linier regression analysis. The results show that audit committee negative effect on earning management, the proportion of commissioners no effect on earning management, managerial ownership no effect on earning management, institutional ownership no effect on earning management and leverage negative effect on earning management.Keyword : audit committee, proportion of commissioners, managerial ownership, institutional ownership, leverage, earning management

Ultimate Ownership, Control Mechanism, and Firm Performance: Evidence from Malaysian Firms

ABSTRACT This study analyses the effects of corporate ownership on Malaysian firm performance addressing issues on multiple control chains mechanism. In the context of Malaysian listed firms, ultimate ownership should be more appropriately reflecting the corporate ownership structure in Malaysia. Based on sample data 2001–2012, we found evidence of a nonlinear ownership–performance relationship following is inverse U shaped. Further test based on ownership identity showed that firms controlled by a foreign ultimate owner perform significantly better than other local firms. In terms of the control mechanism, we found that the use of multiple control chains by an ultimate owner has a negative impact on firm performance. Additionally, we found an interaction effect between ownership identity and control mechanism on firm performance. It appears that the adverse effect of multiple control chains is more pronounced for foreign firms.

The Theoretical Foundations of Corporate Ownership Structure and the Ongoing Debate over Global Convergence of Corporate Law and Governance

The Theoretical Foundations of Corporate Ownership Structure and the Ongoing Debate over Global Convergence of Corporate Law and Governance

Korean Corporate Ownership Structures, Agency Costs, and Social Responsibility Practices

This study principally entails an examination of the relationship between ownership structure and CSR practices. First, our results demonstrate that family firms tend to be passive in their CSR activities, which is the first to address this topic. Second, our findings imply that a national pension as a blockholder exerts pressure on management to exercise CSR in an effort to enhance the value of firm. Third, the results indicate that in case involving foreign ownership as a blockholder, greater pressure is exerted on management to exercise CSR. The results of our additional test demonstrate that firms with a higher proportion of a controlling shareholder in family firms tend to have less robust CSR practices. This results also indicate that firms with a higher proportion of a national pension blockholder tend to engage in CSR practices. Our findings also suggest that firms with a higher proportion of a foreign blockholder tend to exhibit more robust CSR practices. In Korea, these findings regarding the effect of ownership on CSR practices may prove useful to firms’ CSR policymakers and to regulators. In future studies, it will be necessary to extend this study’s protocol to the dimensions of comparative analysis among countries.

Governança Corporativa (GC) nas Instituições de Ensino Superior: um Mapeamento Sistemático da Produção Científica Nacional

The aim of this paper was to identify and discuss the profile of national scientific production and the evolution of the theme Corporate Governance (GC) in Higher Education Institutions (HEIs) in the articles published in the SPELL, in the Google Scholar and in the national magazines with Qualis A2 to B5, in the period 2005-2013, as well as delineate and characterize the main themes and methodological approaches that predominate in this production. For this, we carried out a bibliometric study with 51 articles, using a quantitative approach. The results show that the descriptive research, qualitative and case studies are prevalent in articles and those with two or three authors occur more frequently. They also show that the two most prolific authors published 4 articles each one and that the area showed an increase from 2005 to 2009, but became erratic in 2010-2013 in the number of articles published and is characterized to be based on emerging and diverse themes as perception of stakeholders, corporate social responsibility (CSR), ownership structure and control structure, CG in HEIs family, disclosure and accountability, CG versus performance and IT governance.

Shareholder activism impact on efficiency in Brazil

Purpose This paper aims to investigate the long-term impact of shareholder activism on Brazilian listed companies. Design/methodology/approach This study uses a sample of 194 companies in 2010, 2012 and 2014 and a two-stage data envelopment analysis to generate an efficiency score based on corporate governance, ownership structure and financial characteristics of companies. In the second stage, the study applies a bootstrap truncated regression to identify whether there is a relationship between the efficiency scores and a company-level activism index. Findings The results show a negative correlation between the efficiency scores and the activism index, suggesting that activist shareholders tend to target less efficient companies. A time analysis over the period 2010-2014 does not offer evidence of impacts of activism on changes of the efficiency scores. Practical implications Activist shareholders target less efficient companies. Shareholder activism increased after regulation that facilitated shareholder voting and required greater company transparency was introduced. Originality/value The two-stage nature of the procedure used in the analysis ascertains that this result is not spurious, assuring data separability between productive resources and contextual variables. This study contributes to the scarce literature on activism in emerging markets.

Enforcement of directors’ duties in Malaysia and Australia: the implications of context

ABSTRACTIn recent years, the misappropriation of corporate assets by 1MDB, a high-profile Malaysian company, has precipitated international investigations by regulatory authorities. Although the scandal resulted in the imprisonment of Singaporean bankers, for many years no enforcement proceedings were taken against the directors of 1MDB in Malaysia despite the existence of corporate law modelled substantially on Anglo-Australian law. The article investigates the enforcement of directors’ duties in Malaysia and seeks to explain the manner and extent to which regulatory safeguards against the expropriation of corporate property are enforced. The analysis draws from the Australian experience to illuminate the differences across jurisdictions. Features of the Malaysian context are examined to explain differences in the enforcement of directors’ duties across countries. The findings reveal the significance of the politics-business nexus, corporate ownership structures and cultural norms for the enforcement of corporate law. The implications of the Malaysian experience are considered within a broader regional context.