Institutional Share Ownership Research Articles

CSR reporting practices of Islamic and conventional banks based on ownership differences

Purpose This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected. Design/methodology/approach This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score. Findings The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks. Social implications The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures. Originality/value The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.

The Effect of Institutional Share Ownership, Ownership Structure, and Corporate Social Responsibility on Environmental Sustainability in Energy Companies in Indonesia

This research investigates the complex interplay between institutional share ownership, ownership structure, corporate social responsibility (CSR), and environmental sustainability in the context of Indonesian energy companies. A quantitative analysis utilizing structural equation modeling was employed to analyze data from a sample of 150 energy firms. The results reveal significant positive relationships: higher levels of CSR, increased institutional share ownership, and a more concentrated ownership structure are associated with improved environmental sustainability practices. These findings contribute to the understanding of the factors shaping environmental responsibility in the Indonesian energy sector, offering practical insights for companies and policymakers.

THE EFFECT OF CORPORATE GOVERNANCE ON UNDERPRICING DURING THE INITIAL PUBLIC OFFERING

Initial public offering (IPO) is the main gateway for private institutions to adapt to public business and list company shares on the capital market for trading. By conducting an IPO, an institution can obtain funding from the public to pay for company expansion. One phenomenon that is often encountered by business actors conducting an IPO is an underpricing situation, namely a situation where the share price offered in the primary market is lower than the share price in the secondary market. As a manifestation of the company's obligation to use public price ranges, it is the responsibility of companies across society to manage and use public funds well, transparently and accountably, so that good corporate governance can be implemented well. The aim of this research is to analyze the influence of corporate governance on underpricing in organizations conducting IPOs on the Indonesian Capital Market for the 2017-2022 period. Corporate governance is measured through the scale of the board of commissioners, independence of the board of commissioners, management ownership and institutional share ownership. There are 305 groups providing initial public services and indexed on the IDX throughout the 2017-2022 period. Random sampling techniques are used to select samples. The analysis uses a robust linear regression evaluation method. The findings of this research show that the magnitude of the board of commissioners has no effect on underpricing, the of independence commissioners has an impact on underpricing, while management proportion ownership and institutional proportion ownership have a fairly large negative effect on underpricing.

Analisis Pengaruh Kepemilikan Saham dan Struktur Modal terhadap Profitabilitas: Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia pada Periode 2020-2022

This research aims to empirically test the influence of share ownership, namely institutional share ownership (INST) and managerial share ownership (MAN) as well as capital structure (DER) both partially and simultaneously on profitability. The research was conducted on manufacturing companies listed on the Indonesia Stock Exchange in 2020-22 using an annual period. The sample used in this research was 35 manufacturing companies. Where sample selection was carried out using the purposive sampling method. The type of data used in this research is quantitative research, namely where the data used is secondary data. Secondary data is data obtained indirectly but can be published through intermediary media. Secondary data in this research comes from annual financial reports. The data analysis technique used in this research is multiple linear regression. Based on the results of data processing, it shows that institutional share ownership and managerial share ownership have no effect on profitability. Meanwhile, capital structure influences profitability.

The Effect of Corporate Social Responsibility and Ownership Structure on Financial Performance of Consumer Non Cyclicals Companies in Indonesian

This study aims to analyze the influence of corporate social responsibility and ownership structure on financial performance of consumer non-cyclical companies in Indonesian. This study analyzes several variables, namely CSR, institutional ownership, managerial ownership, concentration of ownership, firm age, firm size and leverage to financial performance. This study uses secondary data obtained from the financial statements and annual reports of companies listed on the IDX for the period 2017 - 2022. The collection of research samples was carried out using a purposive sampling method or sampling with certain criteria. There were 33 with 198 observation data coming from 10 sub-industries of Consumer Non Cyclicals Companies. The data analysis used to test the hypothesis is a multiple regression test using eviews 10 software. The results show that CSR and firm age have a positive and significant effect on the financial performance. Meanwhile, institutional ownership, concentration of ownership, firm size and leverage have a negative and significant effect on the financial performance. Managerial ownership has no significant effect on the financial performance. The company should improve programs and policies that implement and integrate corporate social responsibility to company's business, adjusting the percentage of institutional share ownership and concentrated ownership through restructuring the share ownership structure. The company is also expected to reduce the company's leverage value and optimize the use of its assets to carry out profitable investment activities. The results of this study are expected to provide input for companies and investors to consider corporate social responsibility, share ownership structure, firm age, firm size and leverage.

The Determinants of Financial Performance at Food and Beverage Companies in the Indonesia Stock Exchange

This study was aimed to analyze the factors that influence the performance of food and beverage companies on the Indonesia Stock Exchange. The data used in this study are secondary data sourced from the financial statements of food and beverage companies during the 2017-2022 period. The research sample was determined using purposive sampling with a total sample of 18 companies from 84 companies listed on the Indonesia Stock Exchange in 2022. Data were analyzed using descriptive statistical analysis and panel data regression analysis processed with E-Views 10. The results of the analysis found that the best regression model was the fixed effects model and it was known that institutional ownership and capital loans negative effect on financial performance. In addition, research also found that attention distraction has an effect on purchase intention and consumer loyalty. Other results also found that the ratio is fast, asset turnover ratio and company size has no effect on company performance. To improve company performance, it is necessary to minimize institutional share ownership, ensure a balance in the composition of debt and assets as business capital and be more careful in expanding assets.

Implications of Good Corporate Governance (GCG) on Financial Statement Integrity

The development of a strategy by the government as a public organization to deal with the implementation of good corporate governance, which is now a requirement for each company in order to win global business competition and also overtake the problem of the economic crisis, is required by the rapid and massive advances in information technology that have occurred during the industrial revolution 4.0 era. The Agency theory was utilized to support this research since it fosters the formation of the notion of Good Corporate Governance in managing the company's business to reduce agency conflicts. Companies are required to be able to provide good financial reports. A solid financial report is one that maintains the integrity of the information it contains. The extent to which financial reports reflect financial facts fairly, honestly, and not more or less is referred to as their integrity. The goal of this study is to identify the implicit influence of good corporate governance (GCG) on the financial statements of different Indonesian enterprises. Research data is collected through financial reports and company annual reports. The SPSS statistical software was used to analyze the research data. The study's findings indicate that institutional share ownership and management support as part of Good Corporate Governance have a significant impact on the financial statements of Indonesian enterprises

PENGARUH INTELLECTUAL CAPITAL DAN GOOD CORPORATE GORVERNANCE TERHADAP NILAI PERUSAHAAN MENGGUNAKAN ROA SEBAGAI VARIABEL INTERVENING

This study aims to examine the effect of intellectual capital and good corporate governance on firm value using ROA as an intervening variable. This study used a purposive sampling method in selecting the sample. The research data used in secondary data obtained from goods and consumption companies that have gone public and are listed on the Indonesia Stock Exchange (IDX) in 2016-2021. the independent variables used in this study are intellectual capital and GCG in the form of institutional share ownership and independent board of commissioners. And dependent variable is firm value and intervening variable used in this study is profitability. Profitability is able to mediate Intellectual Capital, Independent Board of Commissioners, Institutional Ownership on Company Value.

PENGARUH STRUKTUR KEPEMILIKAN TERHADAP PENGUNGKAPAN CORPORATE SOCIAL REPONSIBILITY PADA PERUSAHAAN HIGH PROFILE DI BEI

This research was conducted to see the effect, of foreign share ownership, managerial share ownership, and institutional share ownership, on Corporate Social Responsibility (CSR) disclosure. This research is a quantitative descriptive research method using secondary data. Determination of the sample using the purposive sampling method in order to obtain a sample of 35 samples from 110 companies. Analysis of the data used is a multiple linear regression analysis using the IBM SPSS Statistic 16 application. The results of this study indicate that foreign share ownership has no effect on Corporate Social Responsibility (CSR) disclosures with a significant value of 0.650, managerial stock ownership has an effect on Corporate Social Responsibility (CSR) disclosures with a significant value of 0.047, institutional share ownership has an effect on corporate social disclosures. Responsibility (CSR) with a significant value of 0.010. Simultaneously foreign share ownership, managerial share ownership, and institutional share ownership have a significant effect on the disclosure of Corporate Social Responsibility (CSR) with a significant value of 0.002.

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

The Effect of Ownership Structure and Iso 14001 Certification on Corporate Social Responsibility Disclosure with Company Size as A Moderating Variable

THE FACTORS AFFECTING DIVIDEND POLICY OF MANUFACTURING COMPANIES IN INDONESIA STOCK EXCHANGE

Dividends as returns on investment in company shares are expected to increase investor wealth. Companies are not required to pay dividends every year but shareholders value stocks that pay dividends regularly. The purpose of this study is to analyze dividend policy in manufacturing companies listed on the Indonesian stock exchange. We analyze the relationship between company dividend policy and various determinant variables which are variables used as company life cycle, profitability, capital structure, liquidity, company assets, and institutional share ownership. By using data panel analysis and multivariate regression analysis, we process financial statement data for the period 2014-2016. We find that profitability, capital structure and assets have a significant effect on dividends while other variables have no effect. This research provides additional empirical evidence that explains the theory of life cycles in growth level and signaling explanation. Keywords: dividend payout, life cycle, profitability, capital structure, firm’s characteristics

Drivers of mandatory disclosure in GCC region firms

PurposeThis paper aims to investigate firm-level variations in the extent of mandatory disclosures and address the drivers of mandatory disclosure using data from the Gulf Co-operation Council (GCC) region.Design/methodology/approachThe extent of mandatory disclosure is examined using a disclosure index created with reference to 24 International Financial Reporting Standards (IFRSs).FindingsThe authors find that the extent of mandatory disclosure required by applicable IFRSs/International Accounting Standards increases with international presence, group firms, the level of voluntary disclosure, firm age and the education level of company financial controllers. It decreases with firm size and the proportion of institutional share ownership. The degree of board independence is positively related to the level of mandatory disclosure in firms with no state ownership. Profitability positively affects the level of mandatory disclosure to a greater extent in more liquid GCC firms. The results confirm that there is a greater sensitivity of mandatory disclosure to loss than to profit. Loss increases, whilst profit decreases, the extent of mandatory disclosure.Research limitations/implicationsThe results promote further understanding of international financial reporting differences in an emerging country setting.Practical implicationsThe findings provide a detailed insight to investors, financial analysts, practitioners and academics.Originality/valueThe authors develop a highly granular mandatory disclosure index in a developing country setting and identify key drivers of such disclosure.

Pengaruh Karakteristik Perusahaan, Kinerja Keuangan, Dan Corporate Governance Terhadap Sustainability Rreporting

This study aims to analyze and examine the effect of fim’s characteristics, financial performance, and corporate governance on sustainability reporting. The research method uses a quantitative approach. The population in this study are State-Owned Enterprises (BUMN) listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses purposive sampling method and obtained 13 state-owned companies with 78 research samples for six years of observation. The data were tested using multiple linear regression method. The results of this study indicate that the variables of firm’s characteristics proxied by leverage, and corporate governance as proxied by independent commissioners and directors have a significant effect on sustainability reporting. While the variables of firm’s characteristics which are proxied by firm size and liquidity, financial performance variables which are proxied by profitability, and corporate governance variables which are proxied by institutional share ownership, and the audit committee have no significant effect on sustainability reporting. The results of this study can be used for decision making of various parties.

PENGARUH FREE CASH FLOW, OWNERSHIP STRUCTURE, GROWTH OPPORTUNITY TERHADAP KEBIJAKAN DIVIDEN

This study aims to explain the effect of free cash flow, ownership structure which is divided into managerial ownership and institutional ownership, and growth opportunity on dividend policy in property and real estate companies in Indonesia. This research is located in property and real estate companies listed on the Indonesia Stock Exchange. Sampling in this study using census techniques using the entire population of property and real estate companies that distribute dividends, so as to get a sample of 18. The analysis technique used in this study uses multiple linear regression analysis. From the analysis conducted, the results of the study indicate that free cash flow has a significant positive effect on dividend policy. Managerial ownership, which is proxied by the percentage of manager's share ownership, has a significant positive effect on dividend policy. Institutional ownership which is proxied by the percentage of institutional share ownership has a significant positive effect on dividend policy and growth opportunity which is proxied by asset growth has a significant positive effect on dividend policy.
 Keywords: free cash flow, ownership structure, growth opportunity, dividend policy

Effect of Good Corporate Governance Mechanism on Company Profitability Ratios

Determining good corporate governance mechanisms’ effect on profability of company specifically companies that are a part of property and real estate sub-sector which also exist on the list that belongs to the Indonesia Stock Exchange (IDX) from year 2014-2019 is the purpose of this research. Purposive sampling is used as a research method, 12 companies are involved as sample. The results showed that the GCG-forming variables consisting of institutional share ownership, managerial share ownership, board of directors, independent board of commissioners and audit committee do have effect on company profitability. The profitability of said company wouldnt even be partially affected by institutional share ownership, managerial share ownership, board of directors and independent commissioners. Meanwhile, the audit committee partially affects the company's profitability. It is important for investors to look more into the aspects of Good Corporate Governance as a consideration in investing. Further researchers are expected to conduct research on Good Corporate Governance against profitability by taking a sector other than Real Estate and Property.

Faktor-Faktor Yang Mempengaruhi Financial Restatement Pada Perusahaan Manufaktur Yang Terdaftar Dalam BEI

The purpose of this study is examine the analysis of factors affecting the re-issuance of financial statement in manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2018. Financial restatement as the dependent variable is measured using a dummy variable where the number 1 is given for companies that did the restatement and the number 0 for companies that did not do the restatement. Samples were selected using the purposive sampling method, 128 companies were collected, consisting of 64 companies that did the restatement, and 64 companies did not do the restatement. The data processing technique uses logistic regression analysis with the help of SPSS (Statistical Product and Service Solution) version 25 for Windows and Microsoft Excel 2016. The result of this study shows that managerial stock ownership had a significant positive effect on the occurence of restatement. While the size of the board of commissioners, the independence of the board of commissioners, institutional share ownership, and the size of the audit committee did not have a significant effect on the occurrence of restatement.

Analysis of The Influence of Pentagon Fraud in Detecting Financial Statement Fraud Using Method F- Score

This study aims to examine the elements of fraud in the fraud pentagon theory in detecting financial statement fraud. Pentagon fraud is variables from the pressure element, opportunity, rationalization, capability, and elements of arrogance, namely political relationships which are hypothesized to affect financial statement fraud. The F-Score method is used to determine financial statement fraud. This research sample was selected using the purposive sampling method from 47 manufacturing companies in the basic industry and chemicals industry listed on the Indonesia Stock Exchange (BEI) in the period 2015 to 2019. Hypothesis testing uses multiple regression analysis models using SPSS 22 to test the effect of the target. finance, financial stability, external pressure, institutional share ownership, ineffective supervision, influence on the nature of the industry, quality of external auditors, replacement of auditors, change of directors and political relations to financial statement fraud. The results showed that the quality of external auditors and auditor turnover had a significant positive effect on financial statement fraud. Meanwhile, financial targets, financial stability, external pressure, institutional share ownership, ineffective supervision, the influence of the nature of the industry, the change of directors, and political relations have no effect on financial statement fraud.

Determinats of Profitability and Implications on Corporate Value

This study aims to prove empirically the determinants of profitability and their implications for firm value in manufacturing companies listed on the Indonesia Stock Exchange during the 2015-2019 period by using a panel data regression model with 25 manufacturing companies as the research sample. Based on the empirical results, the influencing variables positive and significant impact on profitability is Managerial Share Ownership, Audit Committee Effectiveness, Corporate Social Responsibility, company size. and variables that do not have a significant effect are institutional stock ownership and the Debt To Equity Ratio. positively and significantly. Individual companies are affected by profitability; The biggest positive influence is the company Japfa Comfeed Indonesia Tbk, the smallest positive is the Lion Metal Work Tbk company, and the biggest negative influence is the Bata Shoe Company Tbk, the smallest negative is the company Holcim Indonesia Tbk. The results of this study have implications for firm value (Tobins Q); The variables that show a positive and significant influence are the variable of Audit Committee Effectiveness, Corporate Social Responsibility, Company Size, and Debt To Equity Ratio, Return on Asset variables that have no effect are Institutional Share Ownership, Managerial Share Ownership. the biggest positive influence on changes (Tobins Q) of the company Japfa Comfeed Indonesia Tbk. the smallest positive is the company Semen Batu Raja Tbk, the biggest negative influence is the Company Tempo Scan Pacific Tbk; The smallest negative influence is the company Holcim Indonesia Tbk.

Analysis of the Impact of Managerial Ownership, Institutional Ownership, Firm Size, Leverage, Profitability and Sales Growth Toward Earnings Management in Manufacturing Companies Listed on IDX in the 2015-2019 Period

The phenomenon of earnings management is very interesting to research because it can provide an overview of the behavior of managers in reporting their business activities in a certain period, namely the emergence of earnings management caused by managers by manipulating company profits to be higher, lower, or always the same for several periods. Certain motivations encourage them to manage or manage financial data, especially reported earnings. This study aims to analyze a model regarding the effect of Managerial Ownership, Institutional Ownership, Firm Size, Profitability (ROA), Leverage (DER), and Sales Growth toward Earnings Management in Manufacturing Companies listed on the IDX in the 2015-2019 period. The type of non-probability sampling used in this study is purposive sampling because the sampling technique is based on certain considerations. Certain considerations in determining the sample or respondent in this study are manufacturing companies that are consistently listed on the IDX website during the 2015-2019 period and companies that have managerial and institutional share ownership data respectively during the observation period. The number of samples (N) used was 285 data obtained from 57 manufacturing companies with a 5year study period. The result of the study concludes that Managerial Ownership, Institutional Ownership, Company Size, and Leverage (DER) do not affect Earnings Management. Meanwhile, Profitability (ROE) and Sales Growth have a significant positive effect on Earning Management.

Market Myopia's Climate Bubble

A growing number of financial institutions, ranging from BlackRock to the Bank of England, have warned that markets may not be accurately incorporating climate change-related risks into asset prices. This Article seeks to explain how this mispricing occurs, drawing from scholarship on corporate governance and the mechanisms of market (in)efficiency. Market actors: (1) Lack the fine-grained asset-level data they need in order to assess risk exposure; (2) Continue to rely on outdated means of assessing risk; (3) Have misaligned incentives resulting in climate-specific agency costs; (4) Have myopic biases exacerbated by climate change misinformation; and (5) Are impeded by captured regulators distorting the market. Further, trends in institutional share ownership reinforce apathy toward assessment of firm-specific fundamentals, especially over long-term horizons. This underpricing of corporate climate risk contributes to the negative effects of climate change itself, as the mispricing of risk in the present leads to a misallocation of investment capital, hindering adaptation and subsidizing future combustion of fossil fuels. These risks could accumulate to the macroeconomic scale, generating a systemic risk to the financial system. While a broad array of government interventions are necessary to mitigate climate-related financial risks, this Article focuses on proposals for corporate governance and securities regulation—and their limits. The Securities and Exchange Commission is currently drafting a rule on mandatory climate risk disclosure. This Article argues that the SEC should seek out climate expertise through interagency collaboration and staff hiring, work with auditors and the Public Company Accounting Oversight Board, and provide guidance on climate risk analytics. This Article argues that climate risk disclosure is necessary, though alone not sufficient, to address the widespread disregard of corporate climate exposure.