Dominant Owners Research Articles

Модели сетевого адаптивного взаимодействия организаций в условиях принятия решения доминирующим собственником о реализации проекта

In modern business conditions, the network interaction of organizations is one of the most effective forms of cooperation within the framework of the project. The ability of the network to adapt to changing factors and conditions of the external and internal environment based on the reactive management of business processes of project interaction ensures not only the achievement of project goals, but also the satisfaction of the complementary interests of all counterparties. The process of developing the author's model includes an analysis of existing models of network interaction between organizations, the study of methods and approaches to evaluating the effectiveness of such interaction, as well as the identification of key factors influencing the success of the project. The results obtained will improve the understanding of the processes of networking between organizations in the implementation of projects, as well as develop recommendations to improve the effectiveness of such interaction. The results can also be useful both for the scientific community and for practitioners involved in project management and business processes in a network context. The methodological basis of the study was the methods of comparative and logical analysis, induction and deduction, analysis and synthesis. As a result of the work carried out, the author's model of network adaptive interaction of organizations was formed in the conditions of decision-making by the dominant owner on the implementation of the project.

Do non‐controlling blockholders with common ownership monitor controlling shareholders effectively? Evidence from China

AbstractUsing a sample of Chinese listed firms during 2007–2020, we find that non‐controlling blockholders (NCBs) with common ownership can exert effective monitoring on dominant owners' self‐dealing behaviors captured by financial misconducts related to controlling shareholders. This effect is concentrated among state‐owned enterprises (SOEs), especially for the common NCBs holding only SOEs. Finally, the monitoring effect is particularly evident when firms have more peer firms, when common NCBs hold more firms within the same industry, when common NCBs exert stronger exit threats, or when common NCBs hold long investment horizons, indicating that common ownership enhances NCBs' incentives and abilities to identify and curb controlling shareholders' misbehaviors.

Board gender diversity and corporate social irresponsibility in a dominant owner context

AbstractThe growing prominence of women directors has increased interest in their role in firms' social performance. However, knowledge of what impact female directors might have on corporate social irresponsibility (CSI) remains virtually non‐existent. This study aims to fill this gap. Using a sample of 107 Spanish listed non‐financial companies from the OSIRIS database (Bureau Van Dijk) for the period 2014–2022, together with alternative regression methods to account for endogeneity (2SLS, propensity scoring matching and generalised method of moments), our results show an inverted U‐shaped relationship between female directors and CSI. This supports arguments that dominant owners might appoint a small number of female directors symbolically to create a ‘halo effect’ or to enhance their public image and thus reinforce their entrenchment and divert attention away from CSI episodes. However, the appointment of a critical mass of female directors does evidence dominant owner commitment to move away from irresponsible corporate practices, since the presence of a larger number of female directors encourages the firm's ethical behaviour and increases the costs of penalising CSI episodes in the face of the firm's hypocritical behaviour. This study contributes to the emerging literature on CSI by complementing the knowledge gained from studies on ethical behaviour in a concentrated ownership setting. However, the study is not without limitations, especially in terms of the difficulty of measuring CSI episodes since, despite the work of the media, some socially irresponsible practices may remain hidden.

STRUKTUR KEPEMILIKAN DAN AGRESIVITAS PAJAK

Tax is a State taxpayer contribution that must be paid by an individual or entity that has a firm nature. Many taxpayers, especially large corporations, are trying to minimize their tax burden. One phenomenon that often occurs is companies that carry out tax avoidance and income distribution in order to pay a small tax burden in order to obtain high profits. This study aims to determine the effect of family ownership, foreign ownership, concentrated ownership, managerial ownership, and institutional ownership on tax aggressiveness in companies. Tax aggressiveness is tax planning either by way of avoidance or by tax evasion. Factors that make the ownership structure perform tax aggressiveness is dominant ownership in a company that can control the company's management for personal gain. In this study, tax aggressiveness is proxied by using the effectiveness tax rate (ETR). The sample selection in this study used a purposive sampling method. The results of this study are (1) family ownership has no evidence of tax aggressive, (2) foreign ownership is proven to influence tax aggressiveness, (3) concentrated ownership has no evidence of tax aggressive, (4) managerial ownership has no evidence of tax aggressive, (5) institutional ownershipis has no evidence of tax aggressiveness.

We are watching you: Are you ready to pay dividends?

This study investigates the relationship between media visibility and dividend policy. We argue that this media activity affects how dividend policy is determined, as it might impact agency conflicts, information asymmetry, and the firm's dependence on investors' preferences. Using a sample of 93 Spanish listed firms over the period 2004–2019, we show that media coverage has a positive effect on dividends and that the scrutiny from media coverage can encourage managers and dominant owners to pay dividends in an effort to boost their public image and reputation. Consequently, the results indicate that media exposure leads to dividend smoothing as a way to build a good reputation, which is conducive to attracting funds from external investors. Our results are robust to the use of alternative measures of media visibility and dividends as well as different procedures to address endogeneity issues.

Female corporate leadership, institutions and financing constraints around the world

PurposeThis study aims to analyze the effect of female top management and female dominant owner on whether firms experience obstacles to obtaining external finance in 136 medium- and low-income countries during 2006–2019. The analysis controls for the role of corporate governance and other firm-specific characteristics, as well as for the impact of national institutions.Design/methodology/approachThe analysis elucidates the economic and non-economic factors driving female corporate leadership. Further, in order to capture the causal effect, the analysis uses univariate tests, multivariate regression analysis, disaggregation testing, sensitivity and endogeneity analysis to confirm the quality of the estimates. The analysis controls for various additional country-level factors.FindingsThe results show that female top management and female ownership are broadly significant determinants of firms' access to external finance, especially in relatively larger and more developed countries. The role of controlling shareholders is significant and mediates the gender effect. The latter appears more pronounced in smaller and medium-size firms, operating in the manufacturing and services sectors as well as in the countries with higher levels of development. This also varies with the countries' macroeconomic conditions and institutions governing gender development and equality as well as institutional governance effectiveness.Practical implicationsThe results suggest that firms wishing to improve the firms' access to external finance should consider the role of gender in both top management and corporate ownership coupled with the effect of the specific characteristics of firms and the conditioning role of national institutions.Originality/valueThe study examines the gender effects of top management and dominant ownership for the external financing decisions of firms in low- and middle-income countries, which are underresearched. These gender effects are mitigated in various ways by the specific characteristics of firms and especially on national institutions.

Media visibility and corporate social responsibility investment evidence in Spain

AbstractDespite the extensive research in both the determinants and the results of corporate social responsibility (CSR), relatively few studies have considered extra‐legal institutions as potential determinants of CSR. Our work fills this gap by looking at how media attention affects CSR over a long‐term period in a continental European setting. Our results show that media coverage positively affects CSR. Additional scrutiny triggered by media coverage encourages dominant owners to signal their commitment to limiting self‐dealing transactions and their orientation toward stakeholders' needs through CSR investments. Additionally, our results reveal that this signaling device offers greater benefits and lower costs in firms where controlling owners show a voting‐cash flow wedge. Our results are relevant to different actors such as investors, auditors, and policy makers as they provide solid evidence that media coverage is an important driver of CSR orientation in a continental European setting.

PENERAPAN METODE PERSUASIF DALAM PENYULUHAN PERTANIAN TERHADAP PENINGKATAN PENDAPATAN USAHATANI KAKAO DI DESA ONANG UTARA KECAMATAN TUBO KABUPATEN MAJENE

Indonesia as one of the largest cocoa-producing countries in the world, with the vast ownership of cocoa is dominated by smallholder plantations, amounting to 92.7 percent of the total area of cocoa plantations in Indonesia. On the other hand the community as the dominant owner, needs to increase the ability to increase the adoption of technology that can be developed at any time. This condition demands an urgent role from agriculture instructors. So that the agricultural program can be optimized in the implementation it is needed in this application.This research has been carried out in North Onang Village, Tubo District, Majene Regency, West Sulawesi Province. This research will be conducted for two months, from March to April 2019. The population and sample of this research are in the North Onang Village, Tubo District, Majene Regency. The total population of cocoa farmers in North Onang Village, Tubo Subdistrict, Majene Regency was 275 people, and then a sample of 10% of the population was taken using the simple random sampling method or 27 random farmers, while the current extension agent in North Onang Village, Tubo District Majene as many as 2 people who are in the Agricultural counseling center.This study aims: 1) To find out the application of the method of extension with persuasive methods in agricultural extension to increase cocoa farming income in Tubo District, Majene Regency, and 2) To find out the dominant form of communication used in the extension system in Tubo District, Majene Regency. While the research uses are as follows; 1) Being input and reference material for the Government of Majene Regency and the Department of Agriculture and Forestry in the implementation of agricultural extension, and 2) As material for agricultural extension workers and other readers in applying extension methods.The results showed that the application of the persuasive method carried out by extension agents using extension methods, namely home / field visits, general meetings, discussion meetings, courses and demonstarsi. Where the five counseling methods have different levels of participation of extension workersKeywords: Methods, counseling, farming, income, and cocoa

Related party transactions and audit fees in a dominant owner context

ABSTRACT By adopting an integrated theoretical approach, which combines supply and demand forces, the current work examines the effect of related party transactions (RPTs) on audit fees in a sample of non-financial Spanish listed firms during the period 2005–2017. Our results show a negative effect of the amount involved in RPTs and external audit fees. Thus, in a context where both investor protection and litigation risk are low and where ownership concentration is prevalent, audit fees are less likely to incorporate agency conflicts associated to RPTs and, in contrast, are mainly affected by auditee needs.

Family owners and the appointment of family and non-family women directors. Where is the ownership point where preferences change?

ABSTRACT We analyse the impact of voting rights in the hands of the dominant family owner on the presence of women directors in a sample of listed family firms in Spain during 2007–2020. As distinctive features of this paper, we examine whether women directors have or do not have family ties with the dominant family owner, use the control-chain methodology to identify the ultimate or dominant owner of Spanish listed firms and analyse a curvilinear association between family ownership and the appointment of family and non-family female directors in family firms. Drawing on socioemotional, agency and stewardship theories, our results show that when the voting rights of the dominant families are low, they appoint more female directors with family associations. The results also indicate that when family voting rights are high, family founders appoint more non-family women directors to benefit from their industry-specific expertise and objective advice. Overall, our findings suggest that when a certain level of family ownership is reached there is a need to reduce the appointment of women directors with family ties in order to move towards a more balanced and diversified board with a wider representation of skills, knowledge, diverse experiences and talent.

Media visibility and board gender diversity

AbstractDespite the efforts of governments and market regulators, the under‐representation of women on corporate boards continues to be a global concern. In this context, this study extends prior literature by investigating the relationship between media visibility and gender diversity on boards of directors. We examine a sample of 101 Spanish nonfinancial listed firms over the period 2003–2016. We find that media visibility positively affects board gender diversity. This finding is robust to alternative measures of media visibility and different econometric specifications. This research contributes to the existing literature on the relationship between media and board composition by suggesting the role of the media as a driver of board gender diversity. Results support the notion that the media are able to discipline managers and dominant owners by inflicting reputational costs.

Easement spatialization with two cases based on LADM and BIM

An easement is an important usufructuary right, and its main purpose is that one party wants to use the property of others to improve the benefits and interests of his own real estate. Because of the increasing population and accelerating urbanization urban planners have focused on the development and utilization of three-dimensional urban space, namely, underground, near ground and aboveground space, to use the spatial resources fully. Therefore, jurisprudence-confined planar easement must be combined with spatial information from two dimensions (2D) to three dimensions (3D), as well as 2D property boundaries to be extended to 3D to adapt to urban development. This paper focuses on the easement of access, which is the right to cross the property to go to and from another, under the context of 3D cadastres. The model of easement spatialization based on BIM (Building Information Model) specified by IFC (Industry Foundation Class) standards is constructed and analysed. The servient owner and the dominant owner of the easement can be linked because they are both attached to the same physical space. This paper takes a multistory building having individually owned condominium units as an example to demonstrate how to access the semantic information associated with the geometric information of 3D property objects in the BIM/IFC. The research results show that BIM/IFC can optimize the complex presentation of 3D property attributes and is an effective carrier of easement spatialization. The combination of legal information and spatial information of 3D properties not only optimizes the operation and maintenance of buildings but also improves land management and accelerates the development of 3D cities.

Impairment or amortization of goodwill? An analysis of CFO perceptions of goodwill accounting

Given the ongoing controversy around the accounting treatment of goodwill and the search by the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) for improvements to goodwill accounting, this study surveys a global sample of 352 chief financial officers (CFOs) to understand their perceptions of adopting a goodwill impairment-only approach compared to an amortization model. More than half of the respondents agree that alternative accounting treatments of impairment testing might provide more useful information. However, almost two thirds still prefer goodwill impairment testing to the amortization process. Theoretically, the study shows that the impairment-only model preference is associated with characteristics on an individual, firm and country level. The results indicate that more expert CFOs and overall CFO perceptions of firms’ economic conditions and the role of external auditors affect preference for the goodwill accounting model. Further, there is evidence that dominant ownership structures and accounting culture affect CFO preferences. The study investigates several areas in which regulators and standard setters can intervene, thereby contributing to the debate on whether to reintroduce the amortization of goodwill.

МЕТОДИЧНИЙ ПІДХІД ДО ОЦІНЮВАННЯ ВПЛИВУ СУБ’ЄКТІВ КОРПОРАТИВНОГО КОНТРОЛЮ НА ДІЯЛЬНІСТЬ АКЦІОНЕРНИХ ТОВАРИСТВ

The article raises the issue of effective interaction of corporate control entities and the establishment of partnerships in modern business conditions. The study aims to determine the effective dominant owner and the degree of its influence on the activities of the enterprise in order to establish a balance in the interaction between groups of stakeholders. The first stage of the work was to determine the theoretical and methodical foundations of the study, in which the content of corporate control of the enterprise was considered and the dominant owners were identified, namely: insiders, financial outsiders, non-financial outsiders, and the state. The economic factors influencing the activity of joint-stock companies and corporations controlled by certain groups of dominant owners are outlined. The specifics of the impact of transaction costs, owner motivation, profit management and dividend policy as key factors influencing the functioning of enterprises are analyzed. A methodical approach to assessing the impact of corporate control entities on the financial and economic activities of joint stock companies based on the method of analysis of hierarchies is worked out. As an initial task, the goals of the owners of a controlling stake as part of a holistic mechanism of internal relations of the enterprise are formulated. The most important factors of the external environment that have the greatest impact on the activities of the joint-stock company are identified and the scheme of internal and external relations of the joint-stock company controlled by the dominant owners is built and described. A multi-layered valuation model has been developed with a description of the ranking process and pairwise comparison of the factors of internal and external environments in the hierarchy that influence the determination of the effective owner of a controlling stake in a joint-stock company. The procedure for calculating the global criterion for determining the most effective subject of corporate control based on the Saaty’s method is shown. Recommendations for the practical application of the proposed approach by experts are provided.

Media Attention and Innovation

Research exploring how extra-legal institutional aspects might impact corporate investment policy in innovation is currently still in its early stages. This lack of research is even greater when it comes to studying the role of media attention in corporate innovation. Thus, this study extends prior literature by investigating the relationship between media visibility and corporate innovation. We examine a sample of Spanish firms over a wide period: 2004-2019. The results obtained indicate that media attention has a positive effect on the level of corporate innovation. This finding is robust to alternative measures of media visibility and innovation, and different econometric specifications. The result to emerge is consistent with the arguments that state that the media curb the opportunistic practices of directors and dominant owners, reduce information asymmetry, and thereby foster the use of external funding, as well as increase the pressure on firms to meet stakeholders’ demands for innovation.

Značaj vrednovanja rizika u poslovanju preduzeća sa aspekta odlučivanja top menadžmenta

The economy of a country, regardless of the dominant ownership structure that prevails in it, should have developed market institutions through which economic development can be built in accordance with the basic objective function of the company, i.e. the target category of "profit maximization". The economy observed in this way is connected to the observation of the financial position of a large number of heterogeneous companies, because in that way the most important indicators can be presented, such as those that reflect the financial health of a large number of companies at the time of observation. A realistic view of the created value of a company implies the simultaneous creation of a competitive advantage and the evaluation of economic effects in the real observation of the economy of a country, such as, for example, the observation of the economy of the Republic of Serbia. Top management in the process of overall assessment of the investment of necessary resources for the organization of business in the company tries to see as many factors that affect the projection of cash flows, and then assess the possible chances of making possible modifications to maximize profits. In this study, the authors analyzed the impact of stochastic risk in creating the real value of a company. In this regard, there is a key issue related to the management of the company, i.e. there is the issue of managing possible risks, especially when it comes to risk comparisons and new investments that arise in the real business of the company.

State Ownership and Firm Performance in Vietnam: The Role of State-Owned Holding Company

Manuscript type: Research paper Research aims: Ownership structure is crucial to corporate governance as it explains sources of the agency conflicts. Despite the studies performed on the roles and impacts of diverse corporate ownership on corporate performance and corporate governance, the role of state-owned holding company (SOH), as a particular type of state ownership, has not been duly explored. This study addresses the gap by examining the relationship between SOH ownership in listed companies, and how they perform. Design/Methodology/Approach: This quantitative study applies empirical models which test the impact of the different ownerships of firms on firm performance by controlling board characteristics. Regression models are used to test the explanatory power of the variables of interest. Data are collected from all the non-financial firms listed on the Ho Chi Minh Stock Exchange (HOSE), and the Hanoi Stock Exchange (HNX), prior to 31 December, 2009. The selected period equals to a balanced panel dataset of 242 firms for a period of 9 years, ranging from 2009 to 2017. Research findings: The results show that firms with SOH ownership, or SOH-linked companies (SLCs), tend to deliver superior returns. They also enjoy higher valuations than government-linked companies(GLCs), and non-GLCs. There is evidence to show that when the SOH holds a dominant ownership, it exercises positive control over firms, thereby resulting in better market performance. Theoretical contribution/Originality: The evidence of this study focusses on Vietnam. It is also consistent with the findings of other countries. This study confirms that the SOH model mitigates the agency problems that exist in companies with state capital. This study also provides empirical evidence which support that SOH is a mechanism that resolves the various problems noted in state-linked companies caused by conflicting objectives, political influences, and poor management and governance. Practitioner/Policy implications: This study offers regulators a reference which can be used when making policies that would suit the environment of Vietnam. In that regard, it offers an indepth look into the SOH model which is further encouraged for replication. The outcome derived from this study can help managers to make adjustments and improvements in company’s corporate governance so as to achieve better firm performance. This study also helps investors and other stakeholders to better understand the problems arising from corporate governance in Vietnam. In that regard, the outcome can be used to help them make better decisions such as investments, choosing board directors, or making corporate governance policies. Research limitation/Implications: This study faces some limitations, among which is that it focusses solely on firm performance.

The Network of Dominant Owners of Wind Development in Galicia (Spain) (1995–2017): An Approach Using Power Structure Analysis

This article identifies and characterizes the network of dominant businesses which owned wind farms in Galicia (Spain) from 1995 to 2017. This research contributes to reduce the research gap about identifying the investment groups involved and to appreciate the real size of the wind sector. The novelty of the research lies in identifying the network of real owners of wind farms through the application of Domhoff’s power structure analysis, normally used in the analysis of the power structure of corporations and political institutions. With this method, it is possible to observe how the individual wind farm companies are assessed as well as the matrix company, and/or the principal shareholders to which the farm belongs are identified. The article shows that the installed wind power in Galicia is owned by large energy firms with the participation of international investment funds as well, even though the smaller number of local companies in the sector were given favored status under the existing regulations. This study concludes that although there is no single worldwide model for wind promotion, a network of dominant owners has been formed, and that this network consists of energy companies, investment funds, financial institutions, and construction firms. It can be surmised that if the capital were of mostly Galician origin, this would facilitate a bigger reinvestment of the profits in the region.

Ownership structures and firm performance in Nigeria: A canonical correlation analysis

This study examined the relationship between ownership structure and performance of listed non-financial firms in Nigeria. Secondary data on managerial ownership, ownership concentration, foreign ownership, institutional ownership, Tobin q, return on assets, return on equities, and earnings per shares were collected from forty (40) sampled firms. The data were analyzed using canonical correlation and the findings showed that managerial and foreign ownerships are the dominant ownership structures while Tobin q, EPS, and ROA are the dominant performance measures. The study also found that ownership concentration, foreign ownership, and institutional ownership are positively correlated with firm performance, while managerial ownership is negatively correlated with firm performance. The study recommended that listed non-financial firms should encourage foreign investments in their firms and rewards performing managers with shares in the firm.

Capitalized money, austerity and the math of capitalism

This article seeks to contribute to the existing critical debates on money and debt by advancing three main arguments. First, largely due to such debates’ tendency for description, the article argues that in in the heterodox literature on money and debt there is no convincing critical theory of money creation. For this reason the authors introduce the theory of capital as power and how it can help us theorize the consequences of present money creation. Second, the authors demonstrate how the capitalization of money creation by a minority of investors not only leads to the political chase for unsustainable economic growth, but also how there is a differential distribution of interest upwards that helps generate greater economic inequality in the United States. Third, they argue that in an era of declining growth, dominant owners of capital seek to recapture their expected return on investments by extracting a greater share of the national income from the vast majority of citizens through a fiscal politics of austerity.