Financial Ownership Research Articles

Remanufacturing Operations in Different Financial Ownership Structures with Consideration of the Upwards Supplier

Under the increasing environmental pressure, remanufacturing has increasingly become a new mode of recycling economy and upgrading and transforming the equipment manufacturing industry. Some enterprises include remanufacturing businesses in the original production system by holding or controlling shares in other remanufacturing enterprises. This paper builds a two-echelon supply chain model composed of a supplier, a manufacturer, and a remanufacturer, considering the different ownership structures (i.e., shareholding and share-controlling) between them, in which the supplier sells non-remanufacturable parts to the manufacturer and the remanufacturer. At the same time, the optimal decisions of each firm are considered. The results show that for the manufacturer, a higher shareholding ratio means that it can obtain more profits. For the supplier, the impact of the shareholding ratio depends on the manufacturing cost. When the manufacturing cost is relatively low, the stock sharing relationship between the manufacturer and the remanufacturer will decrease the supplier’s profit. When the manufacturing cost is relatively high, it will depend on the shareholding ratio. In the case of shareholding between the manufacturer and the remanufacturer, a higher shareholding ratio will decrease the supplier’s profit. From the perspective of the supply chain, when the production cost is high enough, the supply chain’s profit decreases first and then increases with the shareholding ratio. Furthermore, the increase in the manufacturer’s shareholding in remanufacturing does not always improve the remanufacturing proportion of products.

Exploring equity in global health collaborations: a qualitative study of donor and recipient power dynamics in Liberia

IntroductionGlobal health collaborations between individuals from high-resource and low-resource settings are complex and often built on hierarchical structures and power differentials that are difficult to change. There have been many...

The Impact of Vertical Integration on Physician Behavior and Healthcare Delivery: Evidence from Gastroenterology Practices

The U.S. healthcare system is undergoing a period of substantial change with hospitals purchasing many physician practices (“vertical integration”). In theory, this vertical integration could improve quality by promoting care coordination but could also worsen it by impacting the care delivery patterns. The evidence quantifying these effects is limited because of the lack of understanding of how physicians’ behaviors alter in response to the changes in financial ownership and incentive structures of the integrated organizations. We study the impact of vertical integration by examining Medicare patients treated by gastroenterologists, a specialty with a large outpatient volume and a recent increase in vertical integration. Using a causal model and large-scale patient-level national panel data that includes 2.6 million patient visits across 5,488 physicians, we examine changes in various measures of care delivery. We find that physicians significantly alter their care process (e.g., in using anesthesia with deep sedation) after they vertically integrate, and there is a substantial increase in patients’ postprocedure complications. We further provide evidence that the financial incentive structure of the integrated practices is the main reason for the changes in physician behavior because it discourages the integrated practices from allocating expensive resources to relatively unprofitable procedures. We also find that, although integration improves operational efficiency (e.g., measured by physicians’ throughput), it negatively affects quality and overall spending. Finally, to shed light on potential mechanisms through which policymakers can mitigate the negative consequences of vertical integration, we perform both mediation and cost-effectiveness analyses and highlight some useful policy levers. This paper was accepted by Stefan Scholtes, healthcare management. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4886 .

Representation and association of Chinese financial equity knowledge driven by multilayer ontology

Aiming at the current situation of complex financial ownership structure and isolated data organization, this study referring to the methods for multi-layer hierarchical construct domain ontology modeling. At the same time, the three dimensions of industry, company and internal environment were integrated, and the concept cube was designed and constructed based on knowledge extraction and text classification technology, so as to provide a multi-level and fine-grained knowledge representation and association method for financial equity knowledge. The experimental results show that conceptual cube structure represents semantic information as a dense low-dimensional representation vector, which greatly enhances semantic relevance and interpretability. The multi-layer ontology-driven ownership structure reflects a variety of knowledge association patterns, and in the “Intelligent Financial Big Data System” developed by the research team, the association query of three categories of association relationships in the field of industry, enterprise and internal environment is realized, as well as the dynamic analysis and supervision of typical financial management problems.

Introduction to Special Issue on Common Ownership and Interlocking Directorates

Common ownership by institutional investors—of minority stakes across multiple competing firms—has become a subject of heated debate in the antitrust community. Although often driven by portfolio diversification strategies, rather than anticompetitive intent, common ownership can result, in some sectors, in the concentration of financial ownership, with possible anticompetitive effects. Over the years, competition authorities on both sides of the Atlantic have taken note. For example, in 2018, the U.S. Federal Trade Commission held a hearing on common ownership.1 In the same year, Margaret Vestager, at that time the Competition Commissioner at the European Commission, stated that the Commission is “looking carefully” at common ownership given indications of its increase and potential for anticompetitive effects.2 In 2017, the Competition and Markets Authority (CMA) examined the extent of common ownership in the banking, insurance, and grocery retailing industries in the United Kingdom.3 Closely related, but currently less discussed, is the question of interlocking directorates among competing companies (companies sharing corporate board members). One key issue is whether these can soften competition, either on their own or in combination with financial links. Although in the United States, Section 8 of the Clayton Act expressly prohibits interlocking directorates between competitors, there is no such prohibition in the EU (apart from Italy in the financial sector). In spite of the prohibition in the United States, the FTC recently stated that interlocks still raise competitive concerns.

Factors Affecting Small and Medium-Sized Enterprises’ Accessibility to Institutional Finance in Pakistan: Moderating Role of Government Support

The study aims to explore the factors influencing the accessibility of small and medium-sized enterprises to institutional finance and moderating role of government supports in the relationship between collateral security, interest rates, financial information, business ownership, and accessibility to finance facilities in Pakistan. The moderation multiple regression analysis was applied for analysis using SMART PLS3.0 software. A fully structured questionnaire is used for gathering data or information from the respondents. The results showed that all the variables are directly and significantly influencing access to finance except interest rates, but interest rates indirectly affect the dependent. The government support does moderate in the interaction between collateral security, interest rate, and financial accessibility. On the other hand, the variable doesn't quite moderate the interaction between financial information, business ownership, and financial accessibility in Pakistan. This research aimed at making access to finance services essentially helpful to the SME industry by knowing what impacts their financial accessibility and helping lending institutions in understanding what effectively prevents the SME industry from accessing finance-related services in Pakistan.

Potret LHKPN dan LPPDK dalam Pemilihan Gubernur dan Wakil Gubernur di Provinsi Jawa Barat dan Jawa Timur Tahun 2018 untuk Mewujudkan Pemilu Berintegritas

Report of State Official Assets (LHKPN) becomes one of the evidences for the amount of financial ownership owned by candidates for head and deputy regional head. This report is submitted as an effort to ensure data transparency and to prevent potential out-of-bounds money circulation during the campaign period. Law 10 of 2016 requires all participants in the head and deputy regional head elections to report the final financing results of activities in the campaign fund stage, namely Report of Receipt and Expenditure of Campaign Funds (LPPDK). Both report formats lead to the creation of elections with integrity. LHKPN does not have a standard assessment of the accuracy of assets owned by regional head candidates. The LPPDK as the final accountability report can only be reviewed from the results of the audit report announced by the KPU. Using a qualitative method, this paper is intended to explain the validity of the model as an instrumentation to create a fair election as well as to convey ideas about a more credible campaign funding reporting for the next local election.

How Orbán won? Neoliberal disenchantment and the grand strategy of financial nationalism to reconstruct capitalism and regain autonomy

Abstract Disenchantment with global finance in Central-Eastern Europe enabled financial nationalism to emerge as a counter-hegemonic strategy. In Hungary, Prime Minister Orbán put forth his explicit aim to increase domestic ownership in banking to over 50% and legitimized the ensuing re-nationalization of the financial sector with resentment over neoliberal banking practices. The article describes how the financial crisis created an opportunity for Orbán and his allies to usher in a new era of financial ownership structures. It provides a critical political economy analysis of how the Orbán government selected economic sectors to target and how it used a network of associated private actors in its quest to re-nationalize and then re-privatize major banks to a newly created elite, the ‘national capitalists’. In this, financial nationalism constituted a grand strategy to reconstruct Hungarian capitalism in order to regain autonomy and assure long-term political survival within a liberal EU context.

What matters for pension planning in Turkey: financial literacy or perceived consumer risks?

PurposeThis study mainly aimed to show that financial literacy is not always enough in explaining workers' individual pension plan ownership as financial literacy knowledge does not always result in financially literate decisions/actions, and in such cases perceived consumer risks can be used to explain the IPP ownership decision of workers.Design/methodology/approachThe data were collected via a questionnaire adapted from earlier questionnaires using convenience and snowball sampling methods with Internet based applications such as Facebook, Twitter, Instagram and WhatsApp. T-tests, ANOVA and Chi-Square tests were conducted to find out if there is a relation/interaction between individual pension plan (IPP) ownership and financial literacy, and perceived consumer risks (N = 651).FindingsIt is found out that financial literacy level does not have a statistically significant relation with individual pension system (IPS) involvement of workers in Turkey, but perceived consumer risks show differences based on IPP ownership.Originality/valueTo the best of authors’ knowledge, this study contributes to the literature being the first paper to study the relationship between financial literacy and workers' IPP ownership decisions in Turkey and it also shows that perceived consumer risks can be used for explaining workers' IPS involvement in cases where financial literacy knowledge does not translate into financially literate decisions.

Why do state-owned utilities become subject to financial logics? The case of energy distribution in Flanders

According to political economists, the state’s governance of infrastructure is becoming prone to processes of financialization. To date, however, research on how state owners of infrastructure enable and react to the entry of financial logics into such domains remains limited. This paper mobilizes the case of Eandis, a Flemish energy grid company, as a typical case to examine the causal mechanisms involved when state-owned utilities become subject to financial logics. During the 2000s, Flemish municipalities increased their ownership of Eandis, while the company deepened its debt exposure to optimize return on capital. In 2016, Eandis aimed to attract private financial equity and selected a Chinese investment fund as a potential co-shareholder. Although this buy-in was blocked, the conditions under which the state-owned company became increasingly entangled with financial markets remain unchanged and warrant a deeper examination. To explain this trajectory, we identify two causal mechanisms in the fields of market-making and ownership strategies by the multiscalar state. First, we show how regulatory models caused Eandis to focus on financial metrics such as credit ratings, subjecting management to financial market disciplines. Second, we find that budgetary constraints, combined with top-down utility governance, have made municipalities dependent on financial returns on utilities. The interaction between market-making and financial ownership strategies institutionalizes a financialized gridlock, in which municipal shareholders’ interests conflict with the need for low consumer fees and green grid investment. We argue that reforming the regulatory framework and strengthening fiscal solidarity across state layers would allow states to develop non-financialized strategies.

A Cross-National Examination of Food Insecurity and Gender Equality

Women’s equality has been positively linked to household food security in many countries. Since women still do the bulk of food labor, women’s empowerment can lead to an increase in the allocation of resources toward food, improving food security. However, we do not know how country-level laws of gender equality intersect with household-level actions. This study examines household food insecurity from a cross-national and multilevel perspective. I explore the relationship between gender inequality (in terms of both opinions and laws) and household food insecurity. I use household data from the World Values Survey, Wave 6, collected in 2010 through 2014. The analytic sample includes 42 countries and 37,152 individuals. My country-level data come from the World Bank and the Social Institutions and Gender Index. I find that positive measures of women’s empowerment at the household level reduce a household’s likelihood of food insecurity. Surprisingly, I find that country-level policies do not always create the intended outcomes of increased equality. Legal equality between men and women at the country level (financial, legal, and land ownership) does not have a direct relationship with food insecurity. However, legal equality moderates the relationship between food insecurity and country-level variables (agricultural exports and urbanization) and household-level variables (income). The research suggests that the inclusion of gender equality complicates development theory.

More money, more honey? An examination of additionality of China’s government R&D subsidies

This study considers the interaction effects of government subsidies, financial constraints, and ownership structure on the firm’s net research & development (R&D) based on a sample of 3440 Chinese-listed firms during 2000-2019. Our results indicate that R&D subsidies reduce financial constraints irrespective of ownership type; however, the reduction appears more pronounced for private-owned enterprises (POEs) compared with state-owned enterprises (SOEs). Further analysis reveals that the impact of R&D subsidies on R&D investments depends on the interactive effect between financial constraint and ownership type. For financially constrained SOEs, subsidies spur net R&D investment whereas this is not the case for financially constrained POEs. We also examine the potential factors through which ownership types and financial constraints affect innovation input, namely, institutional development and industrial competition. Our evidence indicates that, in a more institutionally developed province, the effect of subsidies on net R&D input is negative for SOEs, but positive for POEs. In a more competitive industry, SOEs tend to face less agency risk and stronger monitoring, while POEs depend more on their financial slack. Our study challenges the ‘more money, more innovation investment’ story, suggesting that alleviating financial constraints does not necessarily stimulate more net R&D investments.

Knowledge Big Graph Fusing Ontology with Property Graph: A Case Study of Financial Ownership Network

The scale of know­ledge is growing rapidly in the big data environment, and traditional know­ledge organization and services have faced the dilemma of semantic inaccuracy and untimeliness. From a know­ledge fusion perspective-combining the precise semantic superiority of traditional ontology with the large-scale graph processing power and the predicate attribute expression ability of property graph-this paper presents an ontology and property graph fusion framework (OPGFF). The fusion process is divided into content layer fusion and constraint layer fusion. The result of the fusion, that is, the know­ledge representation model is called know­ledge big graph. In addition, this paper applies the know­ledge big graph model to the ownership network in the China’s financial field and builds a financial ownership know­ledge big graph. Furthermore, this paper designs and implements six consistency inference algorithms for finding contradictory data and filling in missing data in the financial ownership know­ledge big graph, five of which are completely domain agnostic. The correctness and validity of the algorithms have been experimentally verified with actual data. The fusion OPGFF framework and the implementation method of the know­ledge big graph could provide technical reference for big data know­ledge organization and services.

The effect of financial architecture and ownership structure on the financial performance and corporate value, reciprocal relationship between financial performance and corporate value

The effect of financial architecture and ownership structure on the financial performance and corporate value, reciprocal relationship between financial performance and corporate value

Використання фінансових послуг населенням у світі та Україні

Under the Findex dataset, paper suggests a comparative assessment of the usage of financial accounts by groups (developing countries, high-income countries, and Ukraine). Authors outlines the barriers, which arise while using financial services and both socio-economic (income level, employment), and demographic characteristics (gender, age) of users. The increase of account holders, who make payments using mobile phones and the Internet, was marked. Simultaneously, women and poorer users have less access to these technologies, both among the banked and unbanked population. In contrast to world indicators in Ukraine, the level of financial account ownership is the same for both women and men, but there is a gap between richer and poorer, and a gap across the active labour force. Having analysed the unbanked population’s causes and characteristics, Ukrainians’ distrust of financial institutions was a significant barrier to account ownership. An overview of the indicators of financial account usage to make public payments, receive wages in the private sector, settlements with business (utility payments, domestic remittances, payments from individual entrepreneurs) is under consideration. The intensification of digital payments in Ukraine is observed in comparison with the majority of developing countries. The holders use debit cards more often in developing countries as well as in high-income countries and Ukraine. It is highlighted that financial account ownership does not indicate the population’s addiction to use it to accumulate savings. In general, the level of financial inclusion from the demand side is growing globally, and faster in developing countries, including Ukraine, due to the outspread of mobile phones and the Internet. There is more active usage of financial services in high-income countries, despite inequality in age, gender, employment. Although Ukraine usage indicators correspond to the average, the level lags far behind the indicators of high-income countries. It has been revealed that people in high-income countries owning financial account are more likely to be economically active, to save and borrow from financial institutions than those living in developing countries, who prefer informal ways of saving and lending. A low level of penetration of deposits and loans among individuals was noted alongside activation of non-cash payments. It is substantiated that the high level of financial inclusion of the population depends not only on the possession of a financial account but also on its usage mechanisms. The ways of increasing the use of financial services are identified, such as mobile payments, digitalisation of private and public payments, and an increase in financial literacy.

Value Creation and Corporate Governance

Shareholder value maximization has been severely criticized in recent years, but it is not clear what, if anything, is to take its place. In this paper, we review three models of corporate value creation – shareholder value, stakeholder value, and company purpose achievement – and their implications for corporate governance. We first discuss shareholder value and how it is implemented through dispersed financial ownership, facilitation of takeovers, stock options and other mechanisms. Secondly, we discuss stakeholder value and its implementation through cooperatives, mutuals, employee representation and ESG indicators. Thirdly, we consider the more recent idea of a company purpose, which calls for responsible long-term ownership, management continuity and financial conservatism. We conclude that the purpose view may be the most promising alternative because it addresses weaknesses in the two other models by providing a clear social objective that is consistent with constrained profit maximization. However, we argue that agency problems and tensions with the broader interests of society are likely to persist regardless of value creation model.

ANALISIS FRAUD DIAMOND DALAM DETERMINASI PENDETEKSIAN KECURANGAN LAPORAN KEUANGAN DENGAN FAMILY OWNERSHIP SEBAGAI VARIABEL MODERASI

Abstract - The purpose of this research is to determine the influence of financial targets, ineffective monitoring, rationalization, and capability of fraud detection of financial statements. This research also uses family ownership as a moderation variable. The fraudulent financial reporting in this study were measured using earnings management. The population in this research is a banking company listed on the Indonesia Stock Exchange (IDX) for the period 2016-2018. The amount of samples is 123 samples for Model 1 and Model 2. The analytical methods used are multiple linear regression analyses, coesfisien determinations, simultan test (test F) and partial test (Test T) with application SPSS (Statistical Product and Service Solution) version 25th . The research result indicates that financial target, ineffective monitoring, rationalization, and capability have a significant influence on the detection of fraud financial statements and family ownership can moderate variable relationships Capability change of Directors on fraud detection of financial statements. Keywords: fraudulent financial reporting , fraud diamond, family ownership

Factors affecting the dividend policy of non-financial joint-stock companies in Ukraine

Dividend policy, as part of corporate governance, is largely dependent on the institutional environment in which companies operate. The study aims to determine factors affecting dividend policy in the conditions of the Ukrainian underdeveloped stock market, legal insecurity of minority shareholders, high cost and concentration of capital. For this purpose, hypotheses about the impact of a company’s financial state, size, business risk, and ownership structure on dividend payments were tested using a sample of 58 Ukrainian non-financial public joint-stock companies and applying Interactive tree classification techniques (C&RT). The resulting classification model for predicting dividend decisions correctly classifies 92.86% of companies that paid dividends and 93.3% of companies that did not. The findings, based on the classification tree and importance scale, prove the hypothesis that companies in which individuals and institutional investors have a controlling interest are more likely to pay dividends than other non-state companies. The financial indicators accurately classify only those firms that do not pay dividends, and business risk does not affect classification accuracy at all. The paper substantiates the ways of using the study findings for economic regulation, protection of minority shareholders’ rights, and proliferation of modern corporate governance practices.

밀레니얼세대와 X세대, 86세대의 금융상품 보유 행동

세대는 각 세대가 성장하면서 경험한 고유의 특성에 의해 서로 다른 특징을 지닌다. 세대별 차이를 파악하는 것은 각 세대에 대한 이해의 폭을 넓힐 수 있으며 개인재무설계 의사결정에서 맞춤형 재무설계안의 도출에 도움을 줄 수 있고, 현재 세대가 라이프사이클 상의 다음단계로 진입할 때 이전세대와 어떤 차이를 나타낼 것인가를 가늠할 수 있게 해 준다는 점에서 의의가 있다. 본 연구에서는 밀레니얼세대(1988~1998년생), X세대(1971~1974년생), 86세대(1964~1970년생)의 금융상품 보유행동을 비교하였다. 특히, 금융상품 보유행동에 영향을 미칠 것으로 여겨지는 자기과신, 재무적 자기효능감, 재무위험수용성향을 비교하여 이러한 특성이 세대별 금융상품 보유행동 차이에 영향을 미치는지를 파악하고자 하였다. 이를 위하여 2019년 4월 전문 조사업체를 통해 밀레니얼세대 316명, X세대 171명, 86세대 148명을 대상으로 개인의 금융상품 보유행태, 자기과신, 재무적 자기효능감, 재무위험수용성향을 온라인으로 조사하였다.<BR> 분석결과 각 세대별로 심리적인 특성과 금융상품 보유행동에서의 차이를 파악할 수 있었다. 먼저 각 세대는 개인재무와 관련이 있는 심리적인 태도에서 차이를 보였다. 특히 밀레니얼 세대의 경우에는 X세대 및 86세대와는 다른 태도를 보였는데 투자에서의 자기과신 성향이 높고, 재무적 자기효능감을 높게 평가하며, 재무위험수용성향이 높은 경향을 보였다. 밀레니얼과 X세대, 86세대의 금융상품 보유현황은 세대별로 차이가 있어 대부분 금융상품은 밀레니얼 세대보다 X세대와 86세대에서 보유의 비중이 높은 것으로 나타났으나 밀레니얼 세대는 다른 세대와 비교할 때 암호화폐 보유 비중이 높았다. 다른 변수를 통제한 상태에서 밀레니얼 세대는 X세대 및 86세대와 비교할 때 중간 이상 위험을 가진 금융투자상품 보유와 비교하여 위험 수준이 낮은 안정형 상품을 보유할 경향이 높았으며 또한 암호화폐와 같은 위험수준이 매우 높은 상품을 보유할 경향이 높았다. 자기과신, 재무적 자기효능감, 재무위험수용성향이 높을수록 위험 수준이 높은 금융상품을 보유할 경향이 큰 것으로 나타났다. 본 연구는 금융상품 보유 의사결정에서 세대 차이와 심리적 변수의 영향을 밝혔다는 데 의의가 있다.

The trajectories of companies’ financial architecture in the real economy

The formation of an effective company’s financial architecture, which includes such basic elements as the capital structure, ownership structure, and the state of corporate governance, has a significant impact on maintaining a certain market position and ensuring stable profitability of activity. This research aims at determining the state of financial architecture, changing its trajectory, and its impact on company’s market position. Twenty-two (22) Ukrainian companies were selected for the study from the list of top 200 in terms of the largest volume of sales revenue received, and those that provided full financial statements for the period from 2007 till 2017. To determine the state of company’s financial architecture and the relevant market position, the authors used a cluster analysis using the method of the most remote neighbors. Algorithms of Kohonen’s self-organizing maps were applied. Harrington’s desirability function was used to determine the integral index. The selected sample demonstrated a high level of ownership concentration in almost all companies and showed that only a few individuals controlled a significant amount of assets, thereby confirming the oligarchic structure of the Ukrainian economy. As a result, seven cluster groups were obtained, reflecting the companies in terms of the quality of their financial architecture. Only five companies in the total sample were found to have high-quality financial architecture, i.e., capital structure and ownership structure are consistent and optimal and ensure that the company maintains a leading market position.