Degree Of Ownership Concentration Research Articles

Revealing agricultural land ownership concentration with cadastral and company network data

AbstractIn many high-income countries, agricultural land is highly concentrated in a few hands, but detailed knowledge of ownership structures is limited. We examined land ownership structures and agricultural land concentration for the entire state of Brandenburg, Germany (1.3 million ha), using cadastral and company network data. Our aim was to characterise all landowners, analyse the degree of ownership concentration, and examine the role of the largest landowners in more detail. We found a high fragmentation of ownership among 185,000 different owners. Most of the land was owned by individuals not active in agriculture and only a third of the land was owned by farmers and other agricultural actors. Absentee ownership covered a quarter of the land. Ownership concentration was low to moderate in most regions and reached high levels in only a few areas. The largest owners were public institutions, private investors and nature protection institutions. Areas where public institutions owned a lot of land showed high concentrations, but also some areas where private landowners owned a lot of land. In summary, our analysis provides rare information on the concentration of agricultural land ownership in a large region. Such analysis facilitates better justification and design of policies that regulate agricultural land markets.

Promoter’s Shareholding, Financial Distress and Capital Structure Decisions: An Empirical Study of Indian Firms

This paper examines the effect of promoter’s shareholding and the level of financial distress on capital structure of Indian firms. Using the annual financial data of 1,102 non-financial firms listed on the Bombay Stock Exchange (BSE) from 2007 to 2019 in a panel structure, our study employs dynamic panel data techniques for analysis. The main objective of this paper is to find out how the financially distressed Indian firms choose debt in their capital structure and the role of promoter’s shareholding in such choices. For this purpose, four groups of companies have been formed by combining various degrees of promoter’s shareholding and the level of financial distress measured through Altman’s Z-Score. Dummy variables were introduced to represent each group in the model. This paper uses industry leverage, net working capital to total assets ratio, growth opportunities (Market to book ratio), profitability, tangibility and size as the control variables in the final empirical model.
 The findings provide that financially distressed Indian firms maintain higher leverage ratio than a financially non-distressed firm irrespective of the degree of ownership concentration in the hands of promoters. Since majority of Indian firms are owned by business families, this finding is completely opposite to the risk aversion behaviour of family- owned firms as advocated in literature.

Wealth taxation in the Austrian Press from 2005 to 2020: a critical political economy analysis

Abstract This study focuses on the Austrian media coverage of wealth taxes by conducting a content analysis of all commentary pieces published in 2005–2020 by five Austrian daily newspapers. We find (i) that the majority of commentaries take a negative position towards wealth taxation, (ii) that journalists write more negative comments than guest authors do and (iii) 50 argumentative patterns in five main categories. In light of these findings, we discuss several potential drivers of the predominantly negative wealth taxation coverage: the high degree of ownership concentration by wealthy families and institutions in the Austrian newspaper market, the importance of advertising to fund newspapers and the influence of elite institutions as providers of information. Finally, we embed our findings in recent literature and illustrate similarities and differences of the German and Austrian media coverage of wealth taxation.

THE SPEED OF ADJUSTMENT TOWARDS OPTIMAL CAPITAL STRUCTURE: DO OWNERSHIP CONCENTRATION AND BOARD DIVERSITY MATTER?

Using a partial adjustment model of capital structure, this study examines the role of ownership concentration and board diversity on the speed of adjustment towards optimal leverage. While a degree of ownership concentration can create value, board diversity on the other hand, is vital for companies to endure shifting market conditions. Both components are necessary for leveraging the outcomes of recent Malaysian Corporate Governance Strategic Priorities (2017-2023). As such, recognizing factors that could hinder the adjustment process is important as firms may deviate from their optimal leverage. The analysis of this study includes the top 100 non-financial Malaysian listed companies from 2012 to 2017. Evidence from this study indicates large Malaysian firms have optimal leverage and adjust at a modest rate towards their target in the long-term. The results are robust when using two alternative measures of ownership concentration, which are the single largest shareholder (OC1) and five largest shareholders (OC5). This study reveals both proxies have negative impact on adjustment speed. In other words, large firms with high level of concentrated ownership adjust their leverage slower towards the optimal level. Likewise, a negative significant relationship is found between board diversity and adjustment speed with the presence of OC5. Firm size is also found to have a significant impact on adjustment speed. These results potentially have long-term ramifications for corporate governance, as specific prerogatives for minority shareholders and directors representing them are required to reduce the negative externalities brought by concentrated ownership. Firms should outweigh the cost and benefits of board diversity, as more diverse boards may hinder the adjustment process.

Stakeholder interest to mitigate the agency problem in enterprise innovation and the moderating effect of ownership concentration and financial constraints

This paper first studies the impact of stakeholder interest on the agency problem by selecting different proxies for key measurements from companies listed on second‐board markets from 2013 to 2019 to investigate the effect of the equity incentive on companies' innovation levels. In addition, this paper adds two moderating variables, ownership concentration and financing constraints, to analyse their moderating effects on the relationships between equity incentives and enterprise innovation. The empirical results show a significant positive correlation between equity incentives and the level of corporate innovation output. In addition, a high degree of ownership concentration can strengthen the positive promoting effect of equity incentives on a company's innovation output. However, when a company faces financing constraints, the promotion effect of equity incentives on the company's innovation will be restrained.

Ownership Concentration, Regional Differences and Corporate Financialization

Does the increase in the shareholding ratio of shareholders promote or inhibit the degree of corporate financialization, or does it have other relationships? This paper selects the data of listed companies of non-financial enterprises in Shanghai and Shenzhen from 2008 to 2020, and uses the least squares method to test whether the ownership concentration has an impact on the degree of financialization of enterprises. whether there is a regional effect. The study found that, regardless of the region where the company is located, there is a positive U-shaped relationship between ownership concentration and corporate financialization. The concentration of ownership has an inhibitory effect on the degree of corporate financialization. Therefore, although a moderate degree of ownership concentration will inhibit the degree of financialization of enterprises, differences between regions should be considered when conducting corporate financialization governance. The eastern region should abandon the oppression of the real economy caused by the accumulation of financial resources, and the western region strengthens the institutional environment. Construction and optimization of financial asset allocation.

The Influence of Auditor Reputation and Degree of Ownership Concentration on the Quality of Financial Reporting

The Influence of Auditor Reputation and Degree of Ownership Concentration on the Quality of Financial Reporting

Can technology-driven cross-border mergers and acquisitions promote green innovation in emerging market firms? Evidence from China.

Emerging markets face severe ecological and environmental problems in periods of economic and political transition. The existing literature analyses the impact of technology on environmental benefits and the role of technology on the green innovation of enterprises, mostly from the perspective of technology spillover in enterprises in mature markets. Based on a sample of 229 Chinese cross-border mergers and acquisitions (M&As), this paper explores the role of technology-driven cross-border M&As (TDC M&As) in green innovation, finding that TDC M&As have a significant promoting effect on green innovation. A higher degree of ownership concentration positively promotes the relationship between TDC M&As and green innovation in the enterprise. This paper divides enterprises into state-owned enterprises (SOEs) and political connection enterprises, with the nature of SOEs negatively affecting the relationship between TDC M&As and green innovation, the nature of political connections significantly promoting the relationship. Similarly, formal institutional distance negatively interacts with TDC M&As to affect the green innovation of enterprises, while informal distance interacts positively with TDC M&As. This paper has important implications for emerging market enterprises in realising the transformation of the mode of economic growth and achieving harmonious development between enterprises and the environment.

Moderating Role of Managerial Ownership on the Effect of Cash Conversion Cycle and Receivable to Payable ratio on Firm Performance in Listed Industrial and Consumer Goods Companies in Nigeria

Cash management is an essential requirement for an organization to stay afloat. The liquidity position of such business entity can determine how it is being treated in the marketplace. Therefore, ensuring a shorter time lag between when credits are given and when they are converted back to cash is very important in working capital management. Receivable to payable ratio addresses the number of days a company will allow its money with customers in relation to what is allowed by the supplier. The purpose of this research was to investigate the relevance of accounts receivable and accounts payable management in publicly traded Nigerian firms engaged in manufacturing and retailing consumer and industrial goods. The sample of 26 listed Nigerian industrial and consumer goods businesses is from the Nigerian Exchange Group (NGX), and the data spans the years 2011 to 2021. The study utilized a correlation review and a multiple regression model to analyze the study’s variables and their relationships post hoc. Researchers found that the correlation between the accounts receivable to accounts payable ratio and ROA was significantly tempered by the degree of ownership concentration. This suggests that the beneficial effect of the receivables-to-payments ratio on financial performance is mitigated by the degree to which ownership is concentrated. Instead, a slowed cash conversion cycle due to high ownership concentration has a favourable and negligible impact on financial results. The report suggests, among other things, that the management of listed consumer and industrial products firms in Nigeria cultivate a long-term connection with their suppliers to gain access to trade finance in a more convenient, swift manner, which would improve the companies’ performance. The management should further put in place a very vibrant credit policy to help avoid any occurrence of poor account receivables.

The Influence of Ownership Structure on Firms’ R&D Investments: An Empirical Investigation

By using listed companies of Shanghai Stock Exchange in the coal-mining industry as samples, this paper empirically tests the influence of ownership structure on firms’ R&D investments. Firstly, the influence mechanism of ownership structure on R&D investments is analyzed based on the principal-agent theory, and hypotheses are developed accordingly. Then, the empirical analyses are conducted based on data from China Stock Market & Accounting Research Database. The empirical results show that the degree of ownership concentration has a negative impact on firms’ R&D investments, and the improvement of equity counterbalance has a positive effect on firms’ R&D investments. The state-owned enterprises' firms’ R&D investments is higher than that of privately-owned enterprises. The highly concentrated ownership mode of state-owned shares may hinder their investment in firms’ R&D investments to some extent.

The Impact of Ownership Structure on Earnings Management: The Case of Vietnam

This study is conducted to investigate the impact of ownership structure on earnings management in emerging countries and Vietnam as the case study. In this research, we explore how three components of ownership structure, including ownership concentration of managers, foreign ownership ratio, and state ownership ratio, influence earnings management. In addition, we also consider whether ownership structure influences profit management during financial constraints. REM, FEM, GLS, and GMM regression methods are employed for processing data. The results show that ownership structure with foreign ownership has a positive effect on earnings management, whereas one with a proportion of state ownership has a contradicting effect. While the degree of ownership concentration does not affect the profit management, in the context of financial restrictions, the ownership ratio has an impact on the management of earnings. Control variables in the model such as firm size, financial leverage, growth rate, profitability, and audit quality, all have an impact on earnings management. The results could, potentially, be the basis to help firms in restricting earnings management behavior.

Research on the impact of green bond issuance on the stock price of listed companies

PurposeConsidering that listed companies are the main body of natural resource consumption and pollutant emission, this study aims to explore the stock price effect and source channels of green bond issuance of listed companies. This is extremely necessary to promote listed companies to actively fulfill their environmental responsibilities so as to achieve sustainable economic and social development.Design/methodology/approachIn this paper, the companies that issued green bonds in Shanghai and Shenzhen stock markets in China from 2016 to 2018 are used as samples. First of all, the authors adopt the event study method and match the two models to prove that there is a stock price effect in green bond issuance. Then, the authors introduce the general regression model to analyze the sources of the stock price effect of green bond issuance in detail through three channels: “financing cost,” “investor attention” and “fundamental.”FindingsIn the above three channels, the “investor attention” channel can well explain the stock price effect of green bond issuance. Meanwhile, the authors also find that the stock price effect of the subsequent issuance of green bonds is more significant than that of the first time, non-financial companies are more pronounced than financial companies, public issuance are more obvious than private issuance, state-owned companies are more notable than non-state-owned companies, small-scale companies are more evident than large-scale companies and companies with high equity concentration are clearer than those with low equity concentration.Originality/valueTaking China as the research object for the first time, this paper comprehensively employs the capital asset pricing model and Fama–French five-factor model to discuss the stock price effect of green bond issuance of listed companies. Secondly, this paper also studies whether the way of green bond issuance, the type and size of the company, as well as the degree of ownership concentration will have different effects on the stock prices of listed companies. The research results provide new ideas and methods for the stock price effect of green bond issuance.

PENGARUH KEPEMILIKAN MANAJERIAL DAN PROPORSI KOMISARIS INDEPENDEN TERHADAP KUALITAS LABA DENGAN KEPEMILIKAN PENGENDALI SEBAGAI VARIABEL MODERASI

Ownership structure is very important because it is closely related to the operational control of the company. From the point of view of the theory of accounting, earnings management is determined by the motivation of the company manager. Different motivations will result in a different amount of earning management, such as the manager who also shareholders of the company with a manager who is not a shareholder and board composition also plays an important role in control of what is done by the executive or the board of directors as well as monitoring the effectiveness of the board of commissioners are affected by some degree of ownership concentration, and the relationship between managerial ownership with earnings quality is interaction by ownership concentration. This study aimed to determine the effect of managerial ownership on earnings quality, the proportion of independent directors on the quality of earnings, the interaction between managerial stock ownership by the controlling stake of the quality of earnings and the interaction between the proportion of independent directors with a controlling stake of the quality of earnings. The research sample using companies listed in Indonesia Stock Exchangein 2009-2011. “The technique of purposive sampling method. “These result indicate that managerial ownership has a negative effect on the quality of earnings, proportion of independent directors has a positive effect on the quality of earnings, the interaction between managerial stock ownership with no controlling shareholding positive effect on earnings and the quality of interaction between the proportion of independent directors with a controlling shareholding positive effect on earnings quality .

PYRAMIDAL OWNERSHIP STRUCTURE AND CASH FLOW WEDGE: EVIDENCE FROM FAMILY BUSINESS GROUPS OF PAKISTAN

This study examines the ownership structure and cash flow wedge of ultimate controlling owners in firms affiliated with family business groups of Pakistan. The study uses unique handpicked data comprising a sample of 181 group affiliated, 112 stand-alone, 21 foreign, and 12 state owned non-financial firms listed on Pakistan Stock Exchange for a period of 2008-17. The study finds high degree of ownership concentration particularly in 53 family business groups. The study also finds that controlling shareholders own over 20 percent shareholdings in 60 percent of all sample firms and families own 50 percent or more shareholdings in 44 percent of group affiliated firms. The novel contribution of this study is to systematically identifying the ownership affiliation of all family business groups, developing the pyramidal ownership structure of prominent family businesses and finding the difference in voting and cash flow rights which creates significant wedge for controlling family owners. This has strong implications for regulators to ensure effective implementation of regulations as well as minority shareholders and dispersed investors for cognizant investment decision making.

The Impact of Ownership Structure on Listed Firms’ Performance in Vietnam

The aim of this study is to estimate the impact of ownership structure on the performance of listed firms in transition economy. Buiding upon agency theory, hypotheses on such relationship are proposed. A detailed panel data of 502 non-financial companies listed on Ho Chi Minh Stock Exchange and Hanoi Stock Exchange over the period from 2013 to 2018, and the system generalized method of moment estimation are employed to test the proposed hypotheses. To ensure the reliability of data, this study excludes companies that violate information disclosure regulations or that are subject to special supervision by the State Securities Commission of Vietnam. Some firms with inadequate information, firms that lack the financial data required for creating variable or firms that have inconsistent construction are also re-screened. We only collect the data of enterprises that have ownership structure of two or more components. Estimation results reveal that state ownership has an U-shaped relationship with the performance of Vietnamese listed firms, while foreign ownership and the degree of ownership concentration have an inverted U-shaped relationship with listed firms' performance. The article provides governance implications that Vietnamese listed firms should decrease state ownership and foreign ownership to improve firm performance in order to boost investors' confidence.

Does ownership structure affect performance? Evidence from Chinese mutual funds

This paper examines the impact of ownership structure on Chinese mutual fund performance and market share. We focus on two dimensions of ownership structure, namely the background of the owners and the degree of ownership concentration. Using a hand-collected dataset comprising 731 observations for 94 fund management companies over the period from 2005 to 2015, we provide evidence with panel estimation shows that the government ownership ratio and government-controlled companies have a positive effect on funds’ performance. On the other hand, foreign ownership has a negative impact on performance and market share. Having a higher ownership concentration is more likely to increase the company’s market share, whereas government-controlled companies experience a negative impact on their market share.

The differentiation of economic efficiency within employee-owned companies

Background: The empirical research on the differentiation of economic efficiency within em­ployee-owned companies as measured in terms of sales revenue while minimizing the degree of ownership concentration thematically applies toward evaluating the effectiveness of the direct privatisation method implemented by giving a state-owned enterprise for use against payment.
 Research purpose: The main goal of this article is to empirically verify the research hypothesis, stating that the degree of ownership concentration significantly differentiates the economic effi­ciency of employee-owned companies in terms of sales revenue.
 Methods: The empirical verification of this hypothesis was carried out using the method of Data Envelopment Analysis (DEA), which measures the relative technical efficiency of a given deci­sion-making unit (DMU). Empirical studies were conducted on a group of 13 employee-owned companies from the Mazowieckie Province, which concluded agreements with the State Treasury between the years 2000–2005 and covered a 10-year research period. The analysis of sales reve­nue and the degree of ownership concentration was made on the basis of hand-collected data from documents submitted by surveyed employee-owned companies in the National Court Register in the years between 2002–2017.
 Conclusions: Presented results of the empirical research do not allow for full confirmation of the research hypothesis because employee-owned companies, in which DEA efficiency measures were lower than the average measure for all surveyed companies were characterized by the differ­ent average annual degree of ownership concentration.

Diversified Ownership Structure and Dividend Pay‑outs of Publicly Traded Companies

The aim of this article is to identify and characterise the relationship between the ownership structure and dividend pay‑out of listed companies. The research hypothesis states that along with an increase in a degree of ownership concentration both the propensity to pay a dividend and its amount increase. The research has been conducted on a group of 354 non‑financial companies listed on the Warsaw Stock Exchange. The basic research method is the analysis of logistic and tobit regression. The research shows that along with an increase in the complexity of the ownership structure, the share of the State Treasury, institutional investors and board members, decisions on dividend pay‑out are made more often, and the amount of dividend is higher. Examining the degree of ownership concentration expressed by the Herfindahl‑Hirschman index, diversified results have been obtained. An estimation of some regression models shows that stronger ownership concentration favours the decision to pay a dividend (dividends are paid out more frequently), however, as a degree of ownership concentration increases, a decrease in the amount of dividend is observed.
 The research results presented in this article are a supplement to the existing analyses carried out on the global markets and an extension of the existing research conducted on the companies listed on the Warsaw Stock Exchange.

Ownership Concentration and Corporate Governance

This paper provides a snapshot for the impact of concentrated ownership on corporate governance, focusing on the study of concentrated ownership structures. The study found that interaction between the corporate feature and the prevailing pattern of concentrated ownership affect the effectiveness of corporate governance and the level of voluntary disclosure. The role of owners in determining the level of voluntary disclosure depends on the efficiency of the owners' supervisory role on the activities of the company. In addition, the degree of ownership concentration affects both the supervisory role of the owners and the level of governance applied in the company. Citation: Abu Musa et.al., Requirements of Electronic Management in the Management of Kindergarten Institutions. SVU-Journal of abstract 2019, Vol.1: pp25 (retrieved from the Journal of Educational Sciences; 2018, No.35; pp …..) Copyright: The SVU- Scientific research Centre (SVU-SRC). This is an open-access article distributed under the terms of the creative commons attribution license, which permits unrestricted use, distribution and reproduction in any medium provided the original author and source are created.

Capital regulation and ownership structure on bank risk

Purpose This paper aims to examine the impact of capital regulation, ownership structure and the degree of ownership concentration on the risk of commercial banks. Design/methodology/approach This study uses a sample of 565 commercial banks from 52 countries over the period of 2011-2015. A dynamic panel data model estimation using the maximum likelihood with structural equation modelling (SEM) was followed considering the panel nature of this study. Findings The study found that the increase of capital ratio decreases bank risk and the regulatory pressure increases the risk-taking of the bank. No statistically significant relationship between banks’ ownership structure and risk-taking was found. The concentration of ownership was found negatively associated with bank risk. Finally, the study found that in the long term, bank increases the capital level that decreases the default risk. Originality/value This study presents an empirical analysis on the global banking system focusing on the Basel Committee member and non-member countries that reflect the implementation of Basel II and Basel III. Therefore, it helps fill the gap in the banking literature on the effect of recent changes in the capital regulation on bank risk. Maximum likelihood with SEM addresses the issue of endogeneity, efficiency and time-invariant variables. Moreover, this study measures the risk by different proxy variables that address total, default and liquidity risks of the banks. Examining from a different perspective of risk makes the study more robust.