Level Of Foreign Ownership Research Articles

Do gender diversity and foreign investor affect sustainability disclosure

AbstractWe examine the effect of female board members and foreign institutional investors on corporate social responsibility (sustainability) disclosure in Indonesian listed firms from 2015 to 2017. Our final sample comprised 1192 firm‐year observations. We apply ordinary least squares pool regression to estimate the associations and address the endogeneity problem using the two‐stage least squares model, generalized method of moments, and lagged variables. While previous studies have focused on the impact of female board members and foreign institutional investors on financial outcomes, we extend the literature by investigating the association between both female board members and foreign investors and sustainable disclosure in Indonesia, where the participation of women is nominal, especially at the top management level, and the level of foreign ownership is high. Our findings propose a proportion of women as board members for listed firms and promote attractive policies to increase the number of foreign investors investing in Indonesia. It also contributes to conflicting results regarding the relationship between corporate governance and corporate social responsibility (CSR) commitment. Our results were robust after testing for endogeneity and adding more control variables. Overall, the findings have practical implications for policymakers and investors regarding corporate disclosure and governance in Indonesia.

Can Foreign Ownership and Leverage Affect Tax Avoidance

A company in carrying out tax avoidance actions is influenced by management decisions and company ownership structure. Companies with a higher level of foreign ownership, then the determination of company policies from foreign parties tends to lead to minimizing the tax burden. Similarly, the leverage owned by the company if it owes too much to foreign companies, it does not rule out the possibility that it will affect the decision of the management to take tax avoidance actions. The purpose of this study is to examine the effect of foreign ownership and leverage on tax avoidance. Quantitative research method, with secondary data obtained from IDX in 2018-2022. The sample used was 35 data. Data analysis using multiple linear regression is assisted by SPSS data processing tools. The results showed the influence of foreign ownership on tax avoidance. While leverage has no effect on tax avoidance. However, simultaneously foreign ownership and leverage affect tax avoidance. The conclusion of this study is that if Telecommunication Companies have the potential to do tax avoidance, it is very detrimental to the country. In the digital era, almost all activities really need the internet. So that Telecommunication Companies have the potential to have large profits, if the company's profits are greater, the hope is that the taxes paid will also be greater so that tax revenues increase, and the state is able to finance nation building.

Foreign Ownership and Corporate Dividend Policy in Cameroon

This article analyzes the relationship between foreign ownership and dividend policy in the Cameroonian context, based on a sample of 197 companies observed over the period 2015-2017. This relationship is estimated using simultaneous equations to account for endogeneity bias. The results show that foreign ownership negatively influences dividend policy, and vice versa. However, these bidirectional links are not linear, but they assume U-shape forms. That is, low levels of foreign ownership are associated with low dividends, while the dividend increases as foreign shares get higher. Similarly, companies paying low dividends attract few foreign shareholders. The latter increases their shareholding when the dividend payout is high. Furthermore, dividend policy is dynamic in Cameroonian companies, as the current dividend is determined by the previous year's.

Effect of Book Tax Difference, Foreign Ownership and Transfer Pricing on Tax Avoidance with Profit Management as Moderating Variables

Purpose — The main objective of this research is to test which is to find out the effect of the book-tax difference, on the other hand, foreign ownership and transfer pricing that is adjusted for tax avoidance, which focuses on the level of profit management which is positioned as an aspect of the moderating variable. Design/methodology/approach — This study focuses on secondary data in the form of samples from several companies engaged in manufacturing, which were listed on the Indonesia Stock Exchange from 2016 to 2019. The companies sampled in this study amounted to 31 companies for 4 years. which is used as a purposive sampling method. The form of data analysis used leads to the Partial Least Square (PLS) method, where it is necessary to use SmartPLS version 3. software. Findings — The study's results found that book-tax difference and transfer pricing influence avoiding taxes. However, the level of foreign ownership does not affect the level of tax avoidance. The research results regarding profit management variables could be moderated regarding the relationship between book-tax difference and transfer pricing on tax avoidance. Still, it cannot relate to the relationship between foreign ownership and tax avoidance practices. Paper type — Quantitative

Corporate social responsibility spending and earnings management: The moderating effect of ownership structure

The present study investigates the moderating influence of ownership structure on the association between corporate social responsibility (CSR) and earnings management of non-financial corporations listed on 100 Index of the Bombay Stock Exchange. The study utilizes a panel data derived from Prowess IQ for the 100 Index listed firms for the period from 2015 to 2020. The results indicate that CSR spending is linked with real earnings management in the contexts where there is a dominant domestic controlling shareholder and founder ownership, but not in the context of institutional or foreign ownership. The results also exhibit that higher levels of foreign ownership weaken the relationship between CSR spending and earnings management activities. The current study provides valuable insights for regulators, policymakers, board members, auditors, analysts, and academicians into a number of issues concerning earnings management activities and stakeholders' engagement. Stakeholders’ engagement mechanisms that include responsible parties encompassing regulatory authorities, external and internal auditors, shareholders, and board monitoring should be enhanced to support the notion of ethical and responsible practices. The results help settle the debate that was caused by finding different things about the link between disclosing CSR performance and managing earnings with ownership structure as a moderator.

The Impact of Foreign Ownership on the Choice between Emission Taxes and Emission Standards*

This research examines how foreign ownership affects the choice of two environmental policies. We find that a monopoly with foreign ownership produces more (less) and abates less (more) under emission standards than under emission taxes. As foreign ownership increases, with a small foreign ownership level the government is more likely to adopt the emission tax; and with a large foreign ownership level, if the abatement efficiency is high, then the government is also more likely to adopt the emission tax. We also examine the duopoly case in which a domestic firm with foreign ownership competes with another pure domestic firm.

ESG가 이익조정에 미치는 영향에 관한 경험적 증거

In this study, we examine whether a negative relationship between a high degree of ESG(and/or factors) and EM (i.e., AEM, REM) with regard to ① direct effect, ② moderating effect, and ③ combined effect. For this, we base the sample of our study consisted of 6,250 firm-year observations using the evaluation information of KCGS those listed on the Korea Exchange from 2011 to 2020. The empirical result of our study is as follow. First, we find that ESG ratings have a negative influence on REM but not on AEM in respect of direct effect. Second, we do not find that high-grade ESG negatively moderates the positive relation between loss avoidance as well as earnings decrease avoidance (i.e., a strong incentive for managers to report earnings) and EM in respect of moderating effect. Third, we find that firms with higher level of foreign ownership negatively moderate the relation between ESG and EM in respect of combined effect of the interactions between ESG and external corporate governance. In sum, Our findings provide a contribution on the relationship between sustainability engagement and EM practices, extending the prior research focused on moderating effect and combined effect. Thus, we fill the prior research gap.

Does media exposure moderate the relationship between ownership structure and environmental disclosure quality: evidence from Jordan

PurposeGiven the increasing emphasis on environmental issues, this study attempts to offer concrete evidence on the relationship between ownership structure and environmental disclosure quality and whether media exposure moderates this relationship.Design/methodology/approachThe sample adopted in this study includes a group of 94 Jordanian companies listed on the Amman Stock Exchange from 2010 to 2016. Data about companies' environmental disclosure were manually collected using the content analysis method.FindingsOur findings reveal that increasing the levels of ownership concentration and management ownership can negatively impact the quality of environmental reporting among companies in Jordan. This type of reporting, however, is likely to be benefited from the presence of a high level of foreign ownership. In terms of the role played by media, media coverage may act as a buffer against the negative relationship between environmental reporting and ownership concentration and management ownership. On the other hand, the relationship between foreign ownership and environmental reporting remains positive and significant no matter the amount of media attention the company is receiving.Originality/valueThis study is crucial because it contributes to the existing environmental debate studies in two crucial ways. It first offers the first evidence on how media exposure can moderate the relationship between ownership structure and environmental disclosure. Second, this study's findings provide important implications for regulators and policymakers in Jordan.

Kepemilikan Manajerial, Kepemilikan Institusional, dan Kepemilikan Asing terhadap Manajemen Laba

Earnings management in manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The sampling technique was purposive sampling and the sample in this study was 10 samples for 5 years. Panel data regression analysis was used to analyze the data. The results of this study prove that institutional ownership and foreign ownership affect earnings management. The implication of institutional ownership is that some investors cooperate with company managers to obtain the desired profit, rather than monitoring to minimize earnings management actions, while foreign ownership which has an effect on the higher the level of foreign ownership shares in a company can reduce earnings management actions. With results indicating an increase in foreign ownership shares can affect earnings management actions.

R&D investment under stress and uncertainty: the case of Argentina

ABSTRACT Firms in developing economies are subject to macroeconomic fluctuations and policy swings, which generate uncertainty about the future behaviour of key variables that condition their return to innovation. In this paper, we explore how macroeconomic uncertainty and past exposure to macroeconomic shocks affect R&D investments. Using firm-level data on Argentina for the period 1992–2001, we find that firms that have experienced more shocks are less likely to commit to R&D investment and, also, that macroeconomic uncertainty prevents firms’ investment in R&D. We find that this effect is stronger for firms that have experienced more macroeconomic-shocks and weaker for firms with higher levels of foreign ownership.

The effects of state ownership and tax rate cuts on accounting conservatism: evidence from Vietnam

PurposeThe purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam.Design/methodology/approachThe paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio.FindingsState-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs.Practical implicationsThis research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing.Originality/valueTo the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.

The impact of foreign ownership on the performance of Johannesburg Stock Exchange‐listed firms: A blessing or a curse?

AbstractThe impact of foreign ownership on firm performance is debated in the literature from both a theoretical and empirical perspective. This study examines the effect of foreign ownership on the performance of nonfinancial firms listed on the Johannesburg Stock Exchange from 2012 to 2018. Using the system generalised method of moments approach to account for endogeneity, foreign ownership is found to have a positive impact on return on equity at levels of foreign ownership below 40.1% but a negative effect at higher levels. Foreign ownership has no impact on return on assets or Tobin'sq. The implications of these findings are discussed.

Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile

This paper explores the effects of import competition on the manufacturing sector in Chile following the implementation of the country’s two largest Free Trade Agreements (FTA) (with the USA and China). Exploiting cross-industry variation in import exposure, we analyse the effects on manufacturing sales, employment and labour productivity at the finest level of industrial classification (4 digit ISIC level). We detect an overall negative effect of increased Chinese import penetration, owing to substitution effects from low and medium tech imports and a less pronounced effect from USA imports. By introducing interaction effects, we find that the levels of foreign ownership and the export intensity of the domestic industries reverse the negative effect due to the opportunities offered via participation in global value chains. An IV strategy is applied to address standard endogeneity concerns and confirm the robustness of our estimates.

Factors Affecting Financial Reporting through the Internet (Internet Financial Reporting) in the Company's Website (Literature Study)

The use of the internet in the business world has influenced the traditional form of presenting corporate information. In addition, the rapid development of the internet creates new ways for companies to communicate with investors. Companies use the internet to report financial information to investors, known as Internet Financial Reporting (IFR). Disclosure of data on the company's website is a signal from the company to outside parties, one of which is reliable financial information and will reduce uncertainty about the company's prospects. This article examines the effect of firm size, profitability, liquidity, type of industry, leverage, auditor reputation, age of listing, level of public ownership, and level of foreign ownership on the probability of companies implementing Internet Financial Reporting (IFR). The data used in this study is secondary data in the form of data from non-financial companies listed on the Indonesia Stock Exchange. The conclusion that can draw from this article is that the variables of profitability, firm size, liquidity, type of industry, auditor reputation, foreign ownership, and public ownership have a positive and significant effect on financial reporting practices via the internet (Internet Financial Reporting). While the leverage variable, listing age, was not proven to substantially impact financial reporting practices via the internet (Internet Financial Reporting).

Foreign ownership and corporate risk-taking: Panel threshold evidence from a transactional economy

This article scrutinizes the influence of foreign ownership on corporate risk-taking for 461 listed companies in Vietnam between 2012 and 2016. A regression method is employed for assessing whether a threshold influences foreign ownership interests. The findings show that foreign investment promotes corporate risk-taking up to a certain point; once past this threshold, there is little significant influence on foreign investment. The findings imply that a minimum level of foreign ownership is needed in order to have a significant effect on corporate risk-taking in Vietnam.

The Firm’s Performance in Relation to Capital Structure and Foreign Ownership: Evidence from Vietnam

The paper examines the impact of capital structure in the context of foreign ownership on firm performance on non-financial companies in Vietnam between 2008 and 2018. The study employs Pooled OLS, Fixed effect, random effect, and Generalized Least Square to analyze the data. The study finds a non-linear relationship of foreign ownership and firm performance, so that the relationship, which is at first a positive one, becomes negative beyond a certain level of foreign ownership (30-45% ownership depending on the measure of performance). This insight is then combined with a generally inverse relationship between capital structure and performance. Besides, we find that the firm’s size (SIZE) has a positive influence on profitability and financial leverage, while both financial leverage (LEV) and the number of listed years of company (AGE) impact negatively on firm performance. Furthermore, growth of sales (GROWTH) has a positive effect on the debt ratio, and growth rate (GDP) has a negative effect on financial leverage. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium provided the original work is properly cited.

PENENTU KEBIJAKAN DIVIDEN PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

The dividend distribution policy is a difficult financial decision for management. The research objective was to examine the determinants of the Dividend Payout Ratio (DPR) in companies listed on the Indonesian stock exchange. The independent variables used in this study are Free Cash Flow (FCF), Debt Rate (LEVERAGE), Foreign Ownership Level (FOREIGN), Growth Rate (GROWTH), and Company Size (SIZE).The research sample was 62 non-financial companies listed on the Indonesia Stock Exchange using multiple regression analysis. This study is exposed to the problem of classical assumptions, namely data normality and cannot be resolved due to the limitations of the study sample. This study is also affected by the problem of heteroscedasticity so that the hypothesis testing uses weighted least square (WLS).The results showed evidence that FCF, Growth and Size have an effect on dividend payment policies and Leverage and Foreign have no effect on dividend payments. This study shows that investors who expect dividend payments can invest in companies that have a high FCF, large size and low growth, on the other hand, if investors expect a greater investment return, it can be obtained from Capital Gain. This research also shows that agency conflicts related to FCF can be resolved through dividend payments.

Micro-foundational dimensions of firm internationalisation as determinants of knowledge management strategy: A case for global strategic partnerships

Innovation is a critical source of competitive advantage in an increasingly changing and globalising environment, thus, knowledge management lies at the core of a firm's global business strategy. This paper investigates the relationship between micro-foundational dimensions of firm internationalisation and its knowledge management strategy in the emerging economies, which have been found more efficient in converting technology into socio-economic impact. We specifically look at the technology acquisition modes which are operationalised into three categories: internal development, global strategic partnership, and outsourcing. Results from the analysis of World Bank data collected from manufacturing firms operating in emerging economies show that specific micro-foundational dimensions such as the share of foreign employees, level of foreign input and foreign sales have a significant impact on the choice of technology acquisition mode by a firm; whereas the level of foreign ownership does not have such an effect.

Can foreign ownership reduce bank risk? Evidence from Vietnam

This study investigates the impact of foreign ownership on bank risk in Vietnam between 2006 and 2015. Our findings show that foreign ownership can lower bank risk, suggesting that the State Bank of Vietnam should further remove restrictions on foreign investments in the banking system. The findings also indicate that higher bank risk is associated with greater technical efficiency, suggesting that the skimping-cost hypothesis may exist. The same conclusion is true for large banks, for banks with higher liquid assets, and those with greater loan growth. More interestingly, we do find evidence that state-owned banks with a greater level of foreign share are likely more stable. This is also true for the case of listed banks with a higher level of foreign ownership.

The Business Sector, Firm Age, and Performance: The Mediating Role of Foreign Ownership and Financial Leverage

The paper explores the business sector and firm age effects on firm performance mediated by foreign ownership levels in domestic firms and financial leverage by examining 146 Medium Enterprises (MEs). The results show that except for ownership, the business sector, firm age, foreign ownership level, and financial leverage significantly influence performance. Foreign ownership substantially mediates the correlation between firm age and performance but not leverage. Both foreign ownership and leverage have no substantial mediating effect on the relationship between the business sector and financial performance. Moreover, the findings reveal business sectors whose performance is statistically different from zero based on the referent group.