Effect Of Family Ownership Research Articles

The Moderating Role of Independent Commissioners on the Effect of Family Ownership on Social Disclosures

The Moderating Role of Independent Commissioners on the Effect of Family Ownership on Social Disclosures

Digitalisation and environmental management activities: The effects of family ownership`

AbstractWhile digitalisation has significant implications for environmental management activities, this nexus has received minimal attention in research. Given this backdrop, this study uses a unique survey dataset of 386 micro and small enterprises (MSEs) and conducts an OLS regression analysis to examine the impact of digitalisation on environmental management activities. The study also investigates how family ownership moderates this relationship. The study finds that digitalisation supports environmental management activities as an important strategic mechanism, and that family ownership has a negative moderating effect on the relationship between digitalisation and environmental management activities. This study contributes to ‘institutional theory’ by highlighting its applicability to the new context of MSEs in emerging markets. Further, the study provides managerial insights into how to ensure environmental management practices in the digital age.

Effect Of Family Ownership In The Relationship Between Corporate Governance Mechanism And Earning Management

Financial statements are the basis for many parties' decision-making in describing the condition of a company, so companies must present the quality of the information therein. This study examines the relationship between corporate governance mechanisms and earning management and how family ownership influences this relationship. This empirical study uses companies on the Kompas 100 index from 2015 to 2019 to be tested using Generalized Least Squares(GLS). This study finds that the board of commissioners affects earnings management, and family ownership strengthens the role of the board of commissioners in suppressing earnings management. This study strengthens the literature on family ownership in companies. Internal auditors can consider the implication of increasing the effectiveness of internal audits to produce more accurate quality financial reports. In addition, the implications of this study also recommend restructuring the internal audit function, especially its role in management and governance, to be more objective and also impartial.

ANALYSIS OF THE CAUSES OF COMPANY PERFORMANCE IN FAMILY COMPANIES IN THE MANUFACTURING INDUSTRY

The purpose of this study was to obtain empirical evidence on the effect of family ownership, firm size, firm age, family involvement on the board of commissioners, and family involvement on the board of directors on firm performance. In this study, secondary data was used tested using SPSS version 21. This study used data on manufacturing companies listed on the Indonesia Stock Exchange from the period 2017-2019, as many as 28 family companies engaged in the manufacturing sector that has been selected using the purposive sampling method with a total of 84 data for three years. The results showed that family ownership and firm size had a significant positive effect on firm performance. In contrast, firm age, family involvement on the board of commissioners, and family involvement on the board of directors had no effect on firm performance.

Effects of family ownership and family management on the performance of entrepreneurial firms

Extending past research, this paper proposes that the quadratic inverse-U relationship between family ownership and the performance of entrepreneurial firms when moderated by the presence of family management and external blockholding. Specifically, it proposes that both factors exacerbate the decline in performance when the proportion of family ownership in entrepreneurial firms remains high. The proposed hypotheses are tested on ten years of panel data from a sample of European firms. Analysis of data supports the hypotheses. Implications for the theory and practice of entrepreneurial firms are discussed.

How does family ownership and management influence green innovation of family firms: evidence from China

PurposeBased on the socio-emotional wealth and agency theories, this study empirically investigates the impact of family ownership and management on green innovation (GI) in family businesses, as well as the moderating effects of institutional environmental support factors, namely, the technological achievement marketisation index and the market-rule-of law index.Design/methodology/approachThis study empirically tests the hypotheses based on a sample of listed Chinese family companies with A-shares in 14 heavily polluting industries from 2009 to 2019.FindingsThere is a U-shaped relationship between the percentage of family ownership and GI, and an inverted U-shaped relationship between the degree of family management and GI. Additionally, different institutional environmental support factors affect these relationships in different ways. As the technological achievement marketisation index increases, the U-shaped relationship between the percentage of family ownership and GI becomes steeper, while the inverted U-shaped relationship between the degree of family management and GI becomes smoother. The market rule-of-law index weakens the U-shaped relationship between family ownership and GI.Originality/valueFirst, the authors enrich the research on the driving factors of GI from the perspective of the most essential heterogeneity of family businesses. This study shows nonlinear and opposite effects of family ownership and management on GI in family firms. Second, this study contributes to the literature on family firm innovation. GI, not considered by researchers, is regarded as an important deficiency in research on innovation in family businesses. Therefore, this study fills that gap. Third, the study expands research on moderating effects in the literature on GI from the perspective of institutional environmental support factors.

STRATEGY AS MODERATION AND AGENCY COST AS MEDIATION IN NON-FINANCIAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN 2016-2018

This research aims to analyze some hypotheses provided. First, the effect of family ownership on financial performance. Second, the effect of family ownership on agency cost. Third, the effect of agency cost on financial performance. Forth, the effect of business strategies in moderating the relationship between family ownership and financial performance. Lastly, the effect of agency cost as a moderating variable between family ownership relationships and financial performance. The object of this research is to analyze the non-financial companies listed on the Indonesia Stock Exchange by looking at the Annual Reports in 2016-2018. The sampling method is by using purposive sampling, which obtained 117 of company or 351 units of analysis. Those sample tested by PLS-SEM through Smart PLS Version 3. The results of this research are found in the following sentences. First, family ownership has a direct and having significant positive effect on financial performance. Second, family ownership has a positive but not having significant effect on agency cost. Third, agency cost has a negative and having significant effect on financial performance. Forth, business strategy is moderating the relationship between family ownership and financial performance. Lastly, the indirectly agency cost is not moderating the relationship between family ownership and financial performance

Family Ownership, Corporate Governance and Risk-Taking

This paper analyses the effect of family ownership and the characteristics of the board of directors on the risk assumed by Spanish non-financial companies. The sample consists of 176 Spanish non-financial companies listed on Spanish stock exchanges during the period 2012–2015. The results show that the level of family ownership concentration affects the level of exposure to risk non-linearly and confirms the importance of the characteristics of the board of directors in risk-taking.

Environment-friendly practices: Family versus non-family firms

The effect of family ownership on the environmental performance of firms has been increasingly investigated in the economic and business literature, adopting various theoretical frameworks. Nonetheless, only limited empirical research is available, especially in cross-country contexts. Integrating socioemotional wealth (SEW) and stewardship perspectives with institutional theory, this study provides evidence on the relationship between family firms and environment-friendly practices (EFP), highlighting the moderating role of regulatory pressure. Drawing on Enterprise Surveys (ES) conducted in 2018–2020 and applying multiple regression analyses, family ownership is found to be positively associated with the propensity to engage in pollution prevention and control. This evidence corroborates the idea that ceteris paribus SEW and reputational assets associated with family businesses can leverage the tendency of firms to mitigate their environmental footprint. Furthermore, greater institutional pressure appears to be particularly beneficial for non-family firms, which are less likely to pursue nonfinancial goals.

Faktor-Faktor Yang Memengaruhi Firm Value Dengan Firm Performance Sebagai Variabel Mediasi

The purpose of this research is to obtain empirical evidence about the effects of family ownership, independent commissioner, audit committee and institutional ownership on firm value using firm performance as a mediating variable. This research was conducted by taking 135 samples from manufacturing companies and listed in IDX from 2017-2019. The sample selection technique used is purposive sampling. SmartPLS 3.3.2 is used to analyze data. The result shows that independent commissioner, institutional ownership and firm performance has a significant effect on firm value while family ownership and audit committee has not significant effect on firm value. Besides, firm performance can mediate the effect of independent commissioner but can’t mediate the effect of family ownership, audit committee, and institutional ownership on firm value. The implication of this study is family ownership and audit committee must pay more attention in corporate governance to increase firm value which bring a good signal for investors.

Corporate Governance, Audit Quality, Family Ownership and Earnings Management

This study aimed to obtain empirical evidence regarding the influence of corporate governance and audit quality on earnings management measures, as well as their relationship with the effect of family ownership. Research on earnings management has been widely conducted, but research in family firms is still limited, while based on previous observational data, 95% of companies in Indonesia are family firms. In addition, the difference in the concept of corporate governance in developing countries compared to developed countries is crucial in relation to company supervision patterns. Earnings management practices carried out by company management can be caused by the occurrence of information asymmetry in which management as an agent has more information related to the company than the company owner. This information asymmetry is used by managers to mislead other parties with the aim of increasing their managerial career or compensation. Implementing the corporate governance mechanism is a way to reduce earnings management. Another factor affecting earnings quality is audit quality. This study took a sample of manufacturing companies listed on the Indonesian Stock Exchange during the 2017- 2018 period. 152 sample data were tested. This study used secondary data obtained from annual reports of companies listed on the Indonesian Stock Exchange. Moderated regression analysis (MRA) was used. Corporate governance had no effect on earnings management and audit quality had a significant effect on earnings management behavior. Family ownership was able to strengthen the effect of audit quality in determining earnings management actions.
 Keywords: corporate governance, audit quality, earnings management, family ownership

The Effect of Family Ownership on the Relationship between Busy Directors and Stock Price Crash Risk for Listed Firms on the Indonesia Stock Exchange

This study explores the impact of busy directors on the stock price crash risk if an individual holds three or more board positions. Since Indonesia has adopted a two-tier system, directors refer to Commissioners. Most of the literature suggests that the main risk factor for stock price crashes arises from the tendency of management to withhold adverse news from investors regarding compensation contracts and career issues. This research aims to verify whether busy directors help to limit managerial opportunistic behavior. Results show that multiple positions bring no effect on the stock price crashes risk due to cross over interaction which negated the substantial effect on the risk of stock price crashes. As a country with high family ownership concentration, the results illustrate that family firms in Indonesia will strengthen the influence of Commissioners who hold multiple positions in reducing stock price crashes risk. This investigation uses a sample of companies listed in the Indonesia Stock Exchange over the period between 2014 and 2019. The generalized method of moment (GMM estimator) is used as a research method to reduce endogeneity problems. DOI: https://doi.org/10.26905/jkdp.v25i1.4909

The Effect of Family Ownership and Corporate Governance on Firm Performance: A Case Study in Indonesia

The Effect of Family Ownership and Corporate Governance on Firm Performance: A Case Study in Indonesia

Family ownership and corporate tax aggressiveness: The moderating effect of independent commissioner

The family firm literature has found that 73% of empirical studies focus on American and European family firms (De Massis, Sharma, Chua, & Chrisman, 2012). De Massis et al. (2012) propose investigating family firms with contextual nuances of family firms in under-represented areas such as Asia. In addition, study on family firms related to tax aggressiveness activities is limited and the mixed results. Therefore, this study aims to explain the effect of family ownership on corporate tax aggressiveness. This study also investigates whether independent commissioners influence the practice of tax aggressiveness by family firms. The study observed 220 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2015. We found that family ownership has a negative effect on tax aggressiveness. We also found that independent commissioners reinforce the negative influence of family ownership with tax aggressiveness. Our study contributes to the family firm literature in developing countries, particularly in terms of tax aggressiveness. We also provide practical implications for management to consider independent commissioners to provide adequate supervisors and advisors regarding family firm tax strategies.

The role of independent commissioner in the effect of family ownership on capital structure in family companies in Indonesia

The purpose of this research is to analyze the effect of family ownership on capital structure with independent commissioner as a moderating variable in family companies in Indonesia. The study used the population consisting of family businesses listed on Indonesia Stock Exchange. The data were taken from the Indonesian Capital Market Directory (ICMD), financial statements, and annual report and the observation period was done from 2012 to 2018. The sampe was taken by a purposive sampling based the specified criteria. Based on the analysis result, it can be concluded that family ownership has a significant negative effect on capital structure. Independent commissionerweakens significantly the negative effect of family ownership on capital structure. Furthermore,firm sizehas a significant positive effect on capital structure, but profitability has a significant negative effect on capital structure.

The effect of family ownership on accrual-based and real activities based earnings management: Evidence from the French context

Research Question: What is the effect of family ownership on accrual-based earnings management (ABEM) and on real earnings management (REM)? Motivation: Despite the importance and the predominance of family companies among the worldwide listed firms, there is a few study having examined earnings management in family businesses when compared to non-families ones. Their particular characteristics distinguishing them from typical public companies, family firms could provide an interesting setting for the purpose of investigating their earnings quality. Idea: Using agency theory and socio-emotional wealth (SEW) theory, we suggested and explained the impact of family ownership on earnings management. Data: We analyze a sample of French firms listed in CAC All-Tradable index in the period ranging from 2014 to 2016. Tools: We adopts the Generalized Least Squared (GLS) technique correcting heteroskedasticity and serial correlation problems related to panel data. Findings: We document that family ownership has no significant effects on ABEM, but it has a positive and significant influence on REM. In fact, this study conducted on French family firms shows that they are more involved in upward earnings management than non-family firms. Our results supports the hypothesis that family firms suffer from type II agency problems, and it can be explained by the desire to ensure the control and influence among the firm. Contributions: This study is expected to increase the understanding of the family firms’ behavior in terms of their earnings management practices building on the both agency and SEW theory.

Strategic and Organizational Change

Strategic and Organizational Change

Existence Of Company Size In Control Towards Family Ownership And Debt Policy Value Of Companies

This study aims to examine the effect of family ownership, debt policy on firm value with firm size as a control variable. The sample used was a family company listed on the Indonesia Stock Exchange from 2014 to December 2017. The type of this research was quantitative using Agency theory and Signaling Theory. Analysis technique with multiple regression analysis. The results showed that family ownership had a positive and significant effect on firm value, and debt policy had a negative and significant effect on firm value. While company size as a control variable in this study cannot control the relationship of the influence of family ownership and debt policy on firm value, in other words, company size as a control variable does not have a significant effect on the relationship of family ownership and corporate value policy debt.

The Effect of Family Ownership and Control on Dividend Policy of Publicly Listed Firms in Indonesia and Malaysia

The purpose of this study is to determine the influence of family ownership and family control ona firm’s dividend policy of publicly listed firms in Indonesia and Malaysia. This study applied thegeneralized least square panel data over 2003-2016 and considering the period of global financialcrisis 2008-2010. The results show that a firm with a higher percentage of family ownership paysmore dividend compared to non-family firms. The same effect applies to the percentage of familycontrol. In contrast, we found that higher debt levels will reduce the dividend payment. These findingsindicate that dividend distribution can be used as a policy to lessen agency problems of listed firms.

Ownership, board, and enterprise risk management

This paper analyses the effect of family ownership and the characteristics of the board of directors on the implementation level of enterprise risk management (ERM) in Spanish non-financial companies. The sample consists of 162 Spanish non-financial companies listed on Spanish stock exchanges and markets during 2012–2015. The results obtained show that the relationship between the level of family ownership concentration and the implementation level of an ERM system has a non-linear structure. Therefore, a reduction in implementation for moderate ownership levels is observed, although this increases with high ownership values. Regarding corporate governance, our study confirms the importance of certain characteristics of the board of directors, such as the size and the figure of the shareholder director in the implementation of formal ERM systems.