Influence Of Ownership Structure Research Articles

Firm ownership and ESG performance in European agri‐food companies: The mediating effect of risk‐taking and time horizon

AbstractThe environmental, social, and corporate governance (ESG) performance of European agri‐food companies is crucial amidst sustainability challenges. Employing property rights and agency theory, we investigate the influence of firm ownership structure on ESG performance, and the mediating role of risk‐taking and time horizon. A recursive system of equations is employed to test the model using data from 936 European firms. The findings indicate that investor‐owned firms (IOFs) outperform family firms and cooperatives in terms of ESG performance. Family firms demonstrate a longer time horizon, while IOFs exhibit greater risk‐taking. Risk‐taking and time horizon are positively and negatively associated with ESG performance, respectively. However, we find no evidence of a mediation effect. This paper contributes to the agency and property rights literature by exploring the implications of ownership structure for other firm characteristics and ESG performance, and outlines implications for policymakers and managers in the development of focused interventions towards sustainability.

Digital payments, ownership structure, and bank performance: insights from Jordan

PurposeThis paper aims to examine the connection between digital payments, ownership structure, and bank performance in Jordan, as well as investigate the moderating role of the independent director in the said relationship.Design/methodology/approachThe study uses data from 12 Amman stock exchange-listed commercial banks, covering the period from 2010 to 2023. This paper employs econometric analysis of panel data, including ordinary least squares (OLS) regression as the primary approach, as well as the generalised method of moments, the two-stage least square (2SLS), and the dynamic model to deal with causality and endogeneity issues in the proposed equations. This ensures that the results are valid.FindingsThe results indicate that digital payments and ownership structure have a significant positive connection with bank performance. Additionally, the independent director variable appears to play a substantial and positive moderating role in the link between ownership structure (e.g. institutional ownership) and bank performance. These results strengthen and support the claims of agency theory and the information systems success model.Practical implicationsOverall, this research helps stakeholders, bankers, managers, investors, customers, and policymakers, identify the influence of digital payment and ownership structure on bank performance in developing economies such as that of Jordan.Originality/valueThis investigation offers a unique understanding by illuminating how digital payment and ownership structure affect bank performance in a developing country such as Jordan. Additionally, it opens avenues for future research to delve into this literature domain in North African and Middle Eastern nations, with a particular focus on Jordan. This investigation is among the initial explorations in Jordan that aim to elucidate these relationships. On the theoretical level, it adds to the agency theory and IS model. It provides new insights into the dynamics of industry banking in developing nations (i.e. Jordan).

Pengaruh Struktur Kepemilikan, Leverage dan Return On Asset (ROA) Terhadap Kebijakan Dividen pada Perusahaan Manufaktur Yang Terdaftar Dibursa Efek Indonesia Tahun 2021-2023

This research aims to analyze the influence of liquidity, ownership structure, leverage, and Return On Assets (ROA) on dividend policy in companies on the Indonesia Stock Exchange (BEI) for the 2021-2023 period. Dividend policy is an important decision for a company in determining the allocation of profits that will be distributed to shareholders and those that will be retained for investment purposes. Liquidity reflects a company's ability to meet short-term obligations, while ownership structure highlights the role of shareholders and managers in decision making. Leverage, which indicates the use of debt in financing, and ROA, as an indicator of profitability, are also considered important factors influencing dividend policy. This research differs from previous research with the addition of leverage variables as well as differences in population, sample and research period. It is hoped that the results of this research will provide a more comprehensive understanding of the factors that influence dividend policy and its implications for company value.

PENGARUH KARAKTERISTIK KEUANGAN DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA KEUANGAN PERUSAHAAN

This study aims to analyze and test whether there is an influence of financial characteristics and ownership structure on the company's financial performance. This research uses a quantitative approach as its method. The population in this study were property and real estate companies whose data were obtained from the IDX in 2020-2022. In collecting samples, this study uses criteria in determining the sample so that 41 samples are obtained based on the specified criteria. The results prove that liquidity has no effect on the company's financial performance, solvency affects the company's financial performance, activity affects the company's financial performance, institutional share ownership has no effect on the company's financial performance, and managerial share ownership affects the company's financial performance

Women who money: the impact of female board members and institutional ownership on firms’ financial performance

Purpose This study aims to explore the relationship between board diversity and financial performance, examining how the presence of women on corporate boards affects metrics such as profitability. In addition, this study investigates how corporate governance and ownership structure influence gender diversity policies and the appointment of women to boards. Design/methodology/approach Two hypotheses were proposed and following regression models were developed for data analysis. The sample for this study consists of companies listed on the Taiwan Stock Exchange in five years (2015–2019). The data was extracted from the Taiwan Economic Journal Taiwan database with the final data set comprised 9,379 firm-year observations. Findings This study indicates a positive association between board diversity and financial performance. Moreover, the relationship between female directors on the board and financial performance is stronger for firms with a higher percentage of institutional investors. Originality/value By highlighting how gender-balanced boards and engaged institutional shareholders improve profitability, this study suggests that actively recruiting women directors and pursuing governance reforms that empower shareholders can pay dividends for Taiwanese companies. The results make an important contribution to the limited research on diversity's impact within Asian corporate settings.

The Influence of Profitability, Leverage, Company Size, Ownership Structure and Board of Commissioners on Risk Management Disclosure

The Influence of Profitability, Leverage, Company Size, Ownership Structure and Board of Commissioners on Risk Management Disclosure

Influence of ownership structure and international operations on web-based environmental disclosure in the Asian mining industry

Based on the stakeholder theory, this research explores the influence of various forms of stakeholder pressure on web-based environmental disclosure within the Asian mining industry. This paper included all mining companies listed on the capital markets of Asian countries that showed strong motivation as they obtained higher recognition and demand among investors and the general public. In total, 202 mining companies met the specified criteria in Asia. However, 67 mining companies were excluded as they either not having resourceful website or had websites that were not accessible in English. The study's findings reveal that both government and institutional exert a positive and significant impact on the extent of web-based environmental disclosure. Similarly, international operations are closely linked to the scope of web-based environmental disclosure. Thus, the outcomes of this research contribute to a more comprehensive understanding of the factors determining web-based environmental disclosure, bridging a gap left by prior research which predominantly focused on company characteristics.

The Role of Ownership Structure on Corporate Tax Avoidance: Evidence from Manufacturing Company in Indonesia

ABSTRACT This research aims to examine the influence of company ownership structure on tax avoidance. The ownership structure in this research uses three types of ownership, namely managerial ownership, institutional ownership and foreign ownership. The sample used is manufacturing companies registered on the IDX during 2021-2022. By using purposive sampling, the final data used for analysis was 176 data. The analytical tool used is SPSS with multiple linear regression analysis. The research results support all hypotheses, showing that managerial ownership, institutional ownership and foreign ownership have a negative effect on tax avoidance. The results of this research conclude that the existence of an ownership structure tends to be reluctant to be involved in tax avoidance, because it is more interested in improving the company's reputation and business continuity in the long term.

Ownership structure and female board representation in selected Nigeria-listed firms

Purpose This paper examines the influence of various ownership structures on female participation on the boards of listed firms in Nigeria between 2012 and 2021. It focuses on how ownership concentration, institutional ownership, and foreign ownership impact gender diversity at the board level. Methodology The study uses ownership concentration, institutional ownership, and foreign ownership as proxies for ownership structure, while firm size is included as a control variable to improve the model's goodness of fit. Pooled binary logistic regression was employed to test the hypotheses. Findings The results reveal that ownership concentration significantly decreases the presence of females on the boards of quoted companies in Nigeria. In contrast, both institutional ownership and foreign ownership significantly increase female board representation during the study period. Practical Implications The study recommends diversifying ownership structures by reducing concentration while promoting institutional and foreign ownership to enhance female representation on corporate boards in Nigeria. These changes could foster gender diversity in corporate governance. Originality This research contributes to the literature on board gender diversity by identifying specific ownership structures that facilitate female participation on boards. It provides valuable insights for policymakers seeking to encourage greater institutional and foreign ownership to support gender diversity in Nigerian firms.

The influence of board gender diversity and ownership structure on integrated reporting: Evidence from Malaysia

This study examines the influence of board gender diversity and ownership structure on integrated reporting. Integrated reporting is widely regarded as a report providing the most comprehensive and valuable information regarding an organization's performance and value creation, offering significant benefits in improving stakeholder relations. This type of reporting is expected to accurately represent existing relationships between organizations and their stakeholders by focusing on investors and other stakeholders. Therefore, the purpose of this study is to examine the influence of gender diversity and the role of ownership structure in an integrated reporting context. In order to elucidate the relationships among the variables in this study, the agency theory was utilized. The sample of the study was derived from the top 100 Malaysian companies based on market capitalization for the years 2018 to 2020. The content analysis approach was employed to hand-collect the data from the annual reports. The findings of this study show a positive and significant relationship between board gender diversity and government ownership with integrated reporting. However, this study found a negative and significant relationship between family and foreign ownership with integrated reporting. This study could assist company owners and management in improving their company's information disclosure practices. Also, companies might consider adopting policies and practices that promote gender diversity in leadership roles and optimize ownership structures to enhance their integrated reporting practices. Additionally, regulatory authorities might find the results of this study valuable in formulating effective policies aimed at advancing integrated reporting.

Ownership structure and financial distress: is the tale from Sub-Saharan Africa different?

PurposeThe paper investigates the effect of ownership structure on the financial distress of firms listed in sub-Saharan Africa.Design/methodology/approachUsing secondary data from 106 non-financial firms listed in 9 selected SSA countries from 2016 to 2021, the research using paired t-tests and conditional logistic regression model analysed a sample of 174 distressed observations matched with 174 non-distressed observations.FindingsT-tests determined significant differences between distressed and non-distressed groups concerning institutional, foreign, and local ownership. Conditional logistic results established that institutional, foreign, and state ownership significantly reduce distress. However, managerial ownership does not influence financial distress while a significant positive relationship is observed between local ownership and financial distress.Originality/valueThis is the first study to investigate the influence of ownership structure, including local ownership, on financial distress in SSA, employing a unique methodology of matched design and conditional logistic regression analysis. Furthermore, the paper presents cross-country evidence from emerging frontier markets, highlighting the importance of governance frameworks in firms’ stability.

The impact of board size, ownership structure and characteristics of the supervisory board on the financial performance of listed companies in Vietnam

This study focuses on examining the influence of board size, ownership structure and characteristics of the supervisory board on the financial performance of companies listed on the Vietnam stock market. Using the fixed-effects regression model (FEM) and the random-effects model (REM) with panel data from 2017 to 2021, the research results have shown: (i) ownership (share ownership ratio of major shareholders are state, foreign investors, domestic private investors, members of the board of directors) have a positive influence on financial performance, (ii) board size has a negative effect on the financial performance, and (iii) characteristics of the supervisory board has a positive effect on the financial performance of companies listed on the Vietnam stock market. Based on the research results, the authors propose several key policy recommendations to enhance the financial performance of listed companies on the Vietnam stock market.

Board composition, ownership structure and dividend policy: Evidence from NSE listed companies in India

Purpose The purpose of the study is to analyse the influence of board composition and ownership structure on the dividend pay-out policy of selected listed Indian companies. Design/methodology/approach The top 30 companies listed on National Stock Exchange were examined for a period of three financial years from 2019 to 2021. Due to the cross-sectional and time-series character of the data, fixed effect panel model is used as the primary analytical approach. Findings The results revealed that there is a significant and positive association between board size and dividend policy. The results confirm that the firms with higher Indian ownership and non-institutional ownership distribute higher levels of dividend. No significant association was found between board independence and dividend decisions of ratios. Finally, it is observed that there is a positive impact of return on assets on dividend policy. Research limitations/implications Future studies can confirm the impact of ownership determinants and board characteristics on dividend distribution policy by taking stock dividends into account and enlarging the sample size of developing market businesses. They can also investigate ownership factors including management ownership and international ownership, in addition to other board attributes like qualification, tenure and age. This will offer a more thorough comprehension of how these variables relate to dividend policy. Practical implications Because they are better able to assess the financial position and make educated judgments, a diverse and independent board of directors may result in more strategic and cautious dividend policies. The dividend policy of a firm is also influenced by its ownership structure and strategic objectives; small or primary shareholders may exert pressure for larger payments. By focusing on long-term strategic goals rather than immediate requirements, managers may guarantee that interests are aligned. The findings of this study offer significant guidance to management and regulators about the dividend policy of publicly listed corporations. Social implications According to agency theory, the link between ownership structure, board composition and dividend policy may be explained by agency conflicts. Independent directors are necessary for the board to make decisions that effectively balance the interests of management and shareholders, particularly when it comes to paying dividends. According to studies, companies with non-executive directors have greater interest alignment and fewer agency issues. In addition, the ownership structure and makeup of the board are important factors in lowering agency conflicts and enhancing corporate governance procedures. Companies may improve their governance procedures and increase value for shareholders by resolving conflicts of interest. Originality/value The research paper contributes to the existing body of knowledge by analysing and uncovering significant and unknown relationship between board composition, ownership structure and dividend policy. The paper explores the relationship between specific ownership structures and dividend policy in context of a developing country where limited research exists and addresses a research question that has not been extensively studied before.

The Influence of Ownership Structure on Sustainability Report Disclosure in Indonesian Consumer Goods Companies: The Mediating Role of Firm Size

The Influence of Ownership Structure on Sustainability Report Disclosure in Indonesian Consumer Goods Companies: The Mediating Role of Firm Size

The influence of ownership structure and political connections on tax avoidance in Indonesia

This study intends to examine the influence of ownership structure and political connections on tax avoidance using the Book Tax Differences (BTD) method. The data used is industrial entities registered on the IDX for the 2018-2022 period. By utilizing the proportional sampling method, the study sample that fulfilled the criteria was only 40 companies so 200 observational data were obtained which were used as the study sample. Panel data regression analysis is the chosen analytical method in this research which includes the Chow test, Hausman test, and hypothesis testing using Eviews as a data analytics tool. The test results imply that (i) government ownership negatively impacts tax avoidance, (ii) institutional ownership positively impacts tax avoidance, (iii) family ownership positively impacts tax avoidance, (iv) foreign ownership shows a non-significant positive impact on tax avoidance, and (v) political connections exhibit a non-significant negative impact on tax avoidance.

The influence of board characteristics, ownership structure and public attention on climate change disclosure in banking sector companies

AbstractThis study aims to analyze the influence of board characteristics, ownership structure, and public attention on the disclosure of information related to climate change in the banking industry. This study uses panel data from financial reports and corporate sustainability in the banking sector. The data is processed using the Eviews application, using a sample of 348 companies from 2018 to 2021. The results show that the presence of women on the board, foreign board members, foreign ownership, and public attention all have a positive and significant effect influence. In contrast, board size and institutional ownership have a negative influence on the disclosure of climate change information by banking companies in different countries. Statistical tests also show that although the level of climate change information disclosure by banking companies is relatively good, there is still room for improvement to be in line with evolving standards. The study also looks at public attention through media coverage, as measured through Google Trends, which has the potential to impact climate change information disclosure, especially in sectors that are sensitive to the issue. Furthermore, the study conducted additional tests by categorizing the sample based on companies located in countries with high and medium rankings in the climate change performance index, as well as grouping them by region (Asia, Americas, and Europe). This research has important practical and theoretical contributions, advancing the understanding of the application of legitimacy and stakeholder theories to climate change and the factors that influence climate change disclosure strategies.

Pengaruh Struktur Kepemilikan terhadap Kualitas Audit dengan Koneksi Politik sebagai Variabel Pemoderasi

This research aims to determine the influence of ownership structure on audit quality with political connections as a moderating variable. The ownership structure is a representation of GCG (Good Corporate Governance) which is proxied by Institutional Ownership, Foreign Ownership, Family Ownership and Blockholder Ownership. This research uses descriptive quantitative methods. The sampling technique uses a purposive sampling method with the samples used in this research being banking companies listed on the Indonesia Stock Exchange (BEI) with research data from 2020 to 2022. The data collection technique is carried out using secondary data in the form of data originating from the company's financial reports. which is listed on the Indonesian Stock Exchange (BEI). The results of this study show that Institutional Ownership and Foreign Ownership have no effect on Audit Quality while Family Ownership and Blockholder Ownership have a positive effect on Audit Quality. And for Political Connections successfully moderated the influence of Foreign Ownership and Blockholder Ownership on Audit Quality. However, it was unsuccessful in moderating the effect of Institutional Ownership and Family Ownership on Audit Quality. Keywords: Audit Quality, Ownership Structure, Political Connections.

The Influence of Ownership Structure, Board Composition and Financing Decisions on the Performance of Manufacturing Companies in the Consumer Goods Sector

This research aims to investigate the impact of ownership structure, board size, proportion of independent directors, funding decisions, company size, and dividend policy on the performance of consumer goods manufacturing companies. Purposive sampling was employed for data collection. Results indicate that ownership structure and board size positively and significantly influence company performance, as measured by Tobin's Q and ROA. However, the proportion of independent directors, funding decisions, company size, and dividend policy do not exhibit significant effects. Consequently, effective management of ownership structure and board size is crucial for enhancing company performance in the consumer goods manufacturing sector. These findings provide valuable insights for companies to improve their performance and corporate governance practices, fostering stability and sustainability in alignment with economic trends.

Unveiling the veil: A critical analysis of news coverage in Sri Lankan print media

Media plays a fundamental role in shaping public opinion and discourse, with print media serving as a primary source of news and information worldwide. This research critically analyzes news coverage within the print media landscape of Sri Lanka, a country marked by diverse socio-political complexities. Through in-depth interviews with journalists, editors, media analysts, and academics, the study examines media bias, agenda setting, framing of conflict and ethnic issues, representation of minorities, and the influence of political affiliations and ownership structures. Thematic analysis reveals pervasive biases, selective reporting, and challenges in equitable representation. The findings underscore the pivotal role of the media in shaping public perception and discourse, while highlighting the imperative of upholding journalistic ethics and professionalism. Addressing these challenges necessitates fostering media pluralism, promoting diversity in ownership, and ensuring adherence to ethical standards. Ultimately, the study contributes to a deeper understanding of media dynamics in complex socio-political contexts and underscores the importance of a free, impartial, and responsible media in fostering informed public discourse and democratic values.

Ownership Structure and Financial Sustainability of Saudi Listed Firms

This research assesses the impact of ownership structure on financial sustainability. Panel data from 102 Saudi non-financial listed firms covering 2013 to 2022 were analysed using OLS and fixed effects methods. Further, the GMM was employed to check for robustness. The research outcomes reveal the strong and positive effects of institutional ownership and family shareholding on financial sustainability. This positive impact implies that robust and stringent monitoring of family shareholding and institutional investors may neutralise managerial entrenchment, reduce agency costs and pave the way for financial sustainability. However, government ownership appears insignificant, while managerial ownership exerts a strong negative influence on financial sustainability. The negative effect suggests that managerial shareholding may be counterproductive to organisational efficiency. Importantly, the outcomes look consistent using several econometric models. Therefore, the research findings may further shape policymakers’ understanding of how the diverse monitoring strategies of ownership structure influence financial sustainability. Also, the results may serve as an incentive for managers and standard setters to support firms in embracing institutional and family shareholding. The presence of these shareholders may minimise agency conflicts and maximise firm value for sustainable profitability.