Majority Shareholders Research Articles

Shareholder use of CSR reports: an accountability perspective

Purpose This paper aims to investigate the extent of shareholder engagement and satisfaction with corporate social responsibility (CSR) reports of a Chinese-owned company compared to an Australian-owned company in the Australian mining industry. The study is motivated by the speed, extent and nature of Chinese foreign direct investment in Australia, the resulting negative social attitudes and the impact on the perceptions of a report’s credibility. Design/methodology/approach The authors conducted a survey of 202 minority shareholders of two Australian mining companies, one has a Chinese majority shareholder and the other an Australian majority shareholder. The responses highlight users’ comparative perceptions of corporate motivations for reporting, the level of perceived shareholder power over reporting decisions and the resulting propensity to read CSR reports. Findings The authors found that, contrary to decision-usefulness theory, which posits that users will read CSR reports only if they are deemed to be reliable, that perceptions of poor credibility and poor CSR performance actually result in a higher propensity to read the reports. This suggests that the minority shareholders of the Chinese acquired firm are using reports to monitor the level of corporate accountability. Originality/value The findings have implications for firms operating in politically or socially sensitive industries that are likely to use CSR reporting as a legitimising strategy. The paper also provides guidance to regulators in the provision of information, which is meaningful to minority shareholders.

Моделирование инвестиционных альянсов: тренды, институты, роли

The article, based on the results of a study of current Russian economic, corporate management and judicial law enforcement practice, highlights various configurations of investment alliances regulated by the terms of corporate agreements that are in demand in large and moderately large businesses. The author draws the reader’s attention to the reference targets implemented in the operation of the corresponding models of such agreements of investors in the shares of joint-stock companies and shares in the authorized capital of limited liability companies, as well as on the management and legal tools for achieving these goals. The problem of modeling investment alliances in relation to the solution of long-, medium- and short-term goals and objectives of subjects of entrepreneurial practice requires the use of interdisciplinary analysis – research at the intersection of economics, management, management and law. The purpose of the article is to formulate the problem of modeling investment alliances, describe traditional models of investment alliances and reveal the institutions of modeling investment alliances that contribute to solving this problem. Among others, the authors analyze structures that effectively support the joint business practice of majority and minority shareholders, significant minority shareholders who consolidate corporate control with their help, activate the possibilities of corporate agreements concluded under Russian law for the implementation of mergers and acquisitions projects, as well as anti-raider protection of the target company. The author characterizes the traditional models of investment alliances: “Oath of Allegiance”, “Parity Formula”, “Presale Preparation”, “Speculative Agreement”, “Alliance of Minority Shareholders”, “Anti-Raider Coalition”. The author reveals the institutions of modeling an investment alliance: special rights of a participant, disproportionate powers, special rules of non-public companies, disproportionate contributions, and a corporate agreement. The author also emphasizes the diversity of the roles of participants in investment alliances, taken into account when solving the problem of modeling investment alliances.

The governance role of shareholders and board of directors on firm performance: an eclectic governance-performance model

PurposeThis study aims to examine the governance role of shareholders and board of directors in determining firm performance through an eclectic multi-theoretic model that integrates structure and incentive functions of agency theory and capability aspect of the resource-based view.Design/methodology/approachThe research model uses a large panel data set of 2,364 UK firms over the period 2000–2010 and uses alternative specifications of the model to improve robustness.FindingsThe results show that the industry experience of major shareholders as a proxy for shareholder capability has a significant positive impact on investee firm performance. The findings also reveal that the lock-in effect of the largest shareholder has a positive impact on performance, whereas the monitoring effectiveness of shareholders is not associated with ownership concentration. Moreover, the results indicate the underlying capabilities of the board of directors and their impact on corporate performance – particularly, the interlocking directorates of executives have a positive impact on firm performance but those of non-executives have a negative one. However, the previous directorship experience of non-executives has a positive impact on performance.Research limitations/implicationsThis study presents a more comprehensive and complete understanding of the governance-performance relationship beyond the narrow or partial explanations provided by single-theory-based studies or those of investigating the effect of various governance tools separately.Practical implicationsThis study provides more insights into the capability dimension of shareholders and the role of incentives in motivating shareholders to exercise stronger oversight on the management rather than just using ownership concentration. Hence, the study can serve as valuable guidance for investors, corporate managers and policymakers.Originality/valueTo the best of the knowledge, this is the first comprehensive study that uses an eclectic philosophical approach, integrating the agency theory and resource-based view, to not only examine the impact of board of directors but also investigate the governance role of shareholders in modern corporations to understand how shareholders acquire the requisite skills and information, the best practices and processes, and ultimately use the scarce and inimitable resources that help investee firms in improving their performance.

The relationship between political connections, auditor characteristics and auditor narcissism

PurposeThis study aims to assess the relationship between political connections, auditor characteristics (audit quality and industry specialization) and auditors’ intrinsic characteristics (narcissism) in listed firms on the Tehran Stock Exchange. In other words, this paper attempts to answer the question “whether political connections, audit quality and industry specialization contribute to the growth of narcissism and overconfidence of auditors of listed firms on the Tehran Stock Exchange or not.”Design/methodology/approachA multivariate regression model is used for hypothesis testing. The study’s hypotheses were also examined using a sample of 768-year firm listed on the Tehran Stock Exchange during 2013–2018 and by using the multiple regression pattern.FindingsThe obtained results indicate a negative and significant association between political relations, narcissism and overconfidence. The auditor’s overconfidence will go down by increasing political relations. Moreover, the results show a positive and significant relationship between audit quality, industry specialization and narcissism. On the other hand, to the best of authors’ knowledge, this study measured, for the first time, the severity of political connections by using the exploratory factor analysis of eight variables (long-term liabilities, firm size, financial leverage, export, human resources, major governmental shareholders, board members affiliated to the government and institutional ownership).Originality/valueThe authors figured out that few studies carried out, so far, in the emergent markets on political connections and their impacts on narcissism and overconfidence of auditors, so this paper aims to assess the effect of such a phenomenon in the emergent markets and contributes to the development of knowledge and science in this field.

Triggering changes in corporate governance: before and after external whistleblowing

PurposeThe purpose of this paper is to investigate whether a change of corporate governance occurs after financial crimes in Canada revealed through external whistleblowing.Design/methodology/approachBased on the methodology of Smaili and Arroyo (2019), the authors implement a qualitative research framework to examine 11 alleged Canadian corporate financial statement fraud cases publicly exposed during the 1995–2012 period.FindingsThe analysis suggests that firms had a weak traditional corporate governance mechanism before the external whistleblowing occurred. In almost every case, the chief executive officer (CEO) was also the chair of the board of directors. Although the reports by Dey and Saucier recommend that independent directors make up at least 75% of Canadian boards, we note that the percentage of independent directors was under 70% in six cases. Moreover, only two firms had a whistleblowing policy in place, and seven firms had a major shareholder. Regarding the consequences for corporate governance after whistleblowing, the analysis shows that the companies that survived the whistleblowing had enhanced their internal corporate governance by the third year after the whistleblowing. In fact, at all the surviving companies, the CEO was no longer the chair, and the percentage of independent directors had increased to 80%. However, for those survival companies that did not have a whistleblowing policy before the event, the situation did not change quickly, and they only implemented a policy after the enforcement of the new regulation in the year 2003.Originality/valueThis paper adds new insights to the research on financial crime by investigating the relation between corporate governance and whistleblowing.

A Voice for Change? A Network Analysis of Equity Ownership in Canada’s Fossil Fuel Industry

Financial actors may exert considerable influence over the governance of fossil fuel corporations, which bolster or impede steps towards climate action. However, the influence of financial actors on climate instability remains to be examined. This network analysis of equity ownership uncovers the structure of control of financiers in Canada’s fossil fuel industry and examines how sensitive the industry is to major stockholders. The results infer that ownership and influence are concentrated among a small subset of predominantly foreign and corporate equity owners. Moreover, the collective influence of just 14 major stockholders is significant. Finally, high debt loads of fixed assets make fossil fuel companies particularly sensitive to their shareholders. The results infer that these major stockholders will be unlikely to use their voice to curtail carbon emissions. Thus, this study not only allows us to identify key financial actors but map their influence over the economic activities directly associated with climate stability. The paper contributes to theory and practice, bridging the literature on corporate governance, equity ownership, and climate stability.

Does Stock Liquidity Kill Firm Innovation?The Role of Executive Share Incentive

As an important factor that affects the capital market's efficiency, stock liquidity has an important impact on firm innovation activities. However, there is still considerable controversy in academia as to whether stock liquidity can improve the level of firm innovation. This paper takes the 2007-2019 Chinese Shanghai and Shenzhen A-share listed firms as a research sample, introduces the important variable of executive share incentives, and deeply studies the impact of stock liquidity on firm innovation. The research results show that there is a significant inverted U-shaped relationship between stock liquidity and firm innovation. The increase in stock liquidity can reduce firms' actual financing costs and facilitate the entry of major shareholders and increase the number of executives to conduct innovative research and development. The desire for long-term investment, however, excessive liquidity will drive institutional investors to short-term arbitrage, increase the pressure of firms to be acquired, aggravate the short-sighted behavior of executives, and inhibit firm innovation. Further research shows that executive share incentives significantly regulate the relationship between stock liquidity and firm innovation. Executive share incentives can ease principal-agent conflicts, drive executives to review the situation, cater to shareholders' interests, improve innovative decision-making, optimize investment structure, and enhance the firm Innovation level. This study enriches the relevant theoretical research on firm innovation from the cross-over perspective of firm external capital markets and internal executive incentives. Meanwhile, it provides management enlightenment for firms in the new era to better carry out innovation activities and enhance technological innovation capabilities.

Does Shareholding Heterogeneity on First Major Shareholder Incentively Affect Audit Characteristics?-Evidence From Tobacco and Non-tobacco Enterprises

Objectives: This study is to examine the effect of first major shareholders on audit characteristics, and emphasize their incentives towards corporate reform. In addition, we also emphasize on the tobacco industry that is totally state-owned by Chinese central government, as their internal audits are mainly conducted by the State Council. Methods: Taking A-share listed enterprises in Chinese Shanghai and Shenzhen Stock Exchange as samples, this paper analyzes the changes in corporate audit characteristics, which are caused by the holding heterogeneity on the first major shareholders. Then a series of endogenous and robustness tests are to confirm the baseline results. Based on the results of population, we specifically analyze and forecast the tobacco industries. Results: This positive relationship remains significant. Also, the channels for the first major shareholder to reduce non-standard audit opinions originate from their constraints and incentives, which reflect on enhanced supervision, sustainable business operation and market competition. These contribute to their revised managerial behavior. Finally, additional tests illustrate that the effect of strengthened equity is heterogeneous in terms of size, equity nature and growth stage of enterprises. Conclusion: The study domestrates the importance of equity structure and first major shareholders, which calls attention to managerial motives and behavior. The marginal effect is supposed to be shrunk in tobacco business as it is initially in absolute control by public authority. The already economic profits have made it reached favorable audit report. The enhanced shareholdings of first major shareholders could alleviate managerial myopia and moral hazard, and give the inspiration to enterprises in the reform of the ownership structure. Research limitations/implications-Effect of increasing first major shareholders’ holdings on audits is required to be applied in certain situations. However, the unavailable data and minimal samples of listed tobacco enterprises make it hard to clearly estimate the shareholding effect in this certain industry. Therefore, we have to qualitatively analyse tobacco business based on average population. Originality/value-This paper enlarges the role of major shareholders in audit characteristics, and emphasizes their managerial behavior towards audit process. The study indicates that stronger first major shareholdings tend to obtain qualified and standard audit opinions, pay higher audit fees and select high-quality auditors. The results and anlyses could enlight the tobacco and non-tobacco industries.

Research on the Influence of Major Shareholders’ Reduction of Tobacco Related Listed Companies on Enterprise Value: Based on the Intermediate Effect of Financing Constraints

Objectives: Compared with ordinary consumer goods, tobacco and tobacco products have their particularity, which not only plays an important role in the economic development of all countries in the world, but also plays a different role in people’s daily life. In China, the production and sales of tobacco leaves, cigarettes and other tobacco products as well as related tobacco machinery and raw and auxiliary materials have an important impact on fiscal revenue. As the Chinese stock market has basically completed the share-trading reform, stocks that were originally restricted from circulation have begun to circulate. With the continuous increase in the number of lifted bans, the phenomenon of major shareholders reducing their shareholding is also happening constantly. Methods: the paper provides empirical evidence to avoid the adverse effects of major shareholders’ reductions on the promotion of corporate value of listed tobacco Enterprises. From the perspective of the flow of shares after the major shareholders reduce their holdings, with the help of the theory of financing constraints, the article uses an empirical analysis method to explore the effect of the major shareholders of listed tobacco Enterprises on the value of the reduced listed private companies after they reduce their holdings. Results: the results show that when the equity of listed tobacco Enterprises is acquired by state-owned enterprises after the reduction of major shareholders, that is, when state-owned enterprises participate in the shares, the reduction of major shareholders contributes to the increase of the value of tobacco Enterprises. And the larger the reduction proportion of major shareholders, the greater the value of the enterprise. However, when major shareholders reduce their holdings and the equity is acquired by investment institutions and small and medium shareholders, it is not conducive to the improvement of corporate value. Especially when major shareholders maliciously reduce their holdings, it would have an adverse impact on the company’s development and stock price. Conclusion: therefore, from the perspective of enterprise value appreciation, no matter what the purpose is for major shareholders to reduce their holdings, the flow of equity to state-owned enterprises after the reduction is the best choice. The financing constraints of the enterprise could be reduced and it helps enhance the value of the enterprise.

The mechanisms of smell loss after SARS-CoV-2 infection

The mechanisms of smell loss after SARS-CoV-2 infection

What is the ideal triage process and the resources it requires?

What is the ideal triage process and the resources it requires?

Majority Shareholders’ Stock Sales, Dual Agency Conflicts, and Management Earnings Forecasts

ABSTRACT This paper examines whether and how stock sales by majority shareholders in China affect the management earnings forecasts (MEFs) of listed firms. It shows that managers choose the type of disclosure, the timing, and the forecast characteristics to help majority shareholders sell their stocks for higher profits. The findings imply that the selected characteristics of MEFs matched with the majority stockholders’ stock sales decrease the quality of information disclosure and reduce the efficiency of capital allocation in Chinese capital market.

Case Analysis: FGV Holdings Berhad

This empirical study is pursued with the objective to examine the evolution of FELDA since its establishment in 1956 until the listing of its investment holding company, FGV Holdings Berhad, at Bursa Malaysia in 2012. Due to the poor financial performance of FGV, Felda has no choice but to take it out from Bursa Malaysia. From the literature review, the FGV company is one of the biggest producers of crude palm oil (CPO) in the world, contributing about 15% of Malaysia’s total annual production of CPO over the past ten years. FGV company operates in 9 countries throughout Asia, the Middle East, North America and Europe. Backed by a powerful workforce of more than 45,000 employees, FGV is indeed a multinational company. The main business focus of FGV has been on three key industry sectors - plantation, sugar, and logistics. FGV Holdings Berhad holds one important vision which is “To be among the world’s leading, integrated and sustainable agribusiness that delivers value to customers and stakeholders especially the smallholders”. However, the poor performance of FGV over the past five years has raised some concerns among its shareholders and stakeholders. FGV is supposed to focus on creating value through human capital development, the embodiment of governance and compliance, building an integrated value chain advantage, and lastly cultivating diversification in commodities and geography. Overall, Felda understands the importance of FGV in nation building and this major shareholder is very concerned about value of partnership, integrity, dynamism, and sustainability because these are the critical factors for entrepreneurial success in the long run.

The dark side of blockholder control: evidence from financial statement fraud cases

PurposeThe purpose of this study is to investigate whether large blockholders are associated with financial statement fraud at their companies. Although a substantial body of prior studies has focused on chief executive officers’ motivations to manipulate financial statements, the correlation between majority shareholders and financial statement fraud has received little attention. This paper aims to fill this gap by investigating whether the sample firms have controlling shareholders or executives (i.e. blockholders vs management) and whether financial statement fraud schemes, motivations and consequences differ between blockholder- and management-controlled firms.Design/methodology/approachUsing a clinical approach, the authors Study 12 Canadian financial statement fraud cases uncovered by the Ontario Securities Commission between 1997 and 2020.FindingsFirst, the authors find blockholder control in six cases. These findings infer that these large shareholders received private benefits at the expense of minority shareholders. The comparative analyzes suggest that fraudulent firms controlled by blockholders go bankrupt more often than those controlled by managers. The authors also find that improper disclosure is the most common fraud scheme in blockholder-controlled firms.Originality/valueThe authors conduct a deep analysis of financial statement fraud cases to examine the of blockholder control on the likelihood of financial statement fraud. This paper adds new insights to the research on financial crime by investigating whether large shareholders affect the probability of fraud and the extent to which they might do so.

A Liverpool Shipping Line: Ocean Steam Ship Company Limited’s shipbuilding experience, 1962–1978

This article is based on a study, ‘Ocean’s Shipbuilding Experience’, undertaken in April 1976 and updated in January 1977 and January 1978, which investigated the company’s experience in ship construction in the UK and abroad. The investigation applied only to ships built for the Ocean Steam Ship Company and its principal associate companies, and vessels built for Ocean prior to it subsuming the Elder Dempster Line in 1965, in which it was the major shareholder. China Navigation Company vessels were not included in the study. After putting into context, the shift by British shipowners to ordering abroad, we look at some of the classes of ships Ocean included in the study built domestically and abroad and compare accordingly.

Outcomes of Immunosuppressive Therapy for Pediatric Aplastic Anemia: A North American Pediatric Aplastic Anemia Consortium (NAPAAC) Study

Immunosuppressive therapy (IST) is effective treatment for severe aplastic anemia (SAA); however data on the quality of that survival for pediatric patients are limited. To investigate the clinical features and outcomes of children with SAA treated with IST, NAPAAC conducted a retrospective study of patients aged 1 to 20 years (yrs) treated with IST at 25 member institutions between 1/1/2002 and 6/30/2014 with a minimum of 24 months (mos) of follow-up.A total of 314 patients were treated with IST for SAA defined as a hypocellular marrow with at least two cytopenias: 1) absolute neutrophil count <500/uL, 2) platelet count <20,000/uL, and/or 3) hemoglobin <8 g/dL. The median age at diagnosis was 9.7 yrs and 51.6% were male. Patients were racially diverse with 58.3% white (15.9% overall Latino ethnicity), 16.6% Black, 7.3% Asian, and 17.8% mixed/other. A history of hepatitis was reported in 43 (13.7%) patients. Mean red cell volume (MCV) was elevated ≥100 fL in 54 of 272 pts (19.9%), median 89.1fL. Absolute lymphocyte count was <1,000/uL in 110 of 260 pts (42.3%). Lymphocyte telomere length was <1st percentile for age in 6 of 92 pts (6.5%). A granulocyte PNH clone was detectable in 55 of 140 pts (39.3%), all with a small clone size (75th quartile 0.12%).IST regimens included: horse ATG and cyclosporine (hATG/CSA; n=263), horse ATG/ tacrolimus (n=15), rabbit ATG/CSA (n=14), rabbit ATG/tacrolimus (n=1), cyclophosphamide (n=19) and sequential horse/rabbit ATG (n=2). Median time from diagnosis to IST was 24 days, with 168 (54.2%) treated within 4 weeks (wks).Response to IST was defined as follows: •Complete Response (CR): Hgb ≥ 10 g/dl, ANC ≥1,000/uL, Plts ≥100,000/uL•Very Good Partial Response (VGPR): Hgb ≥ 8 g/dl, ANC ≥ 500/uL, Plts ≥ 50,000/uL•Partial Response (PR): Hgb ≥ 8 g/dl, ANC ≥ 500/uL, Plts ≥ 20,000/uL•No Response (NR): Hgb < 8 g/dl, ANC < 500/uL, Plts < 20K/uLPatients receiving PRBCs within 6 wks, platelets or G- or GM-CSF within 2 wks of a timed endpoint were deemed to have no response.At a median follow-up of 61.5 mos post IST, 30 of 314 pts (9.6%) had died. Best response at any time after IST of 301 evaluable patients was CR (192; 61.1%), VGPR (25; 8%), PR (10; 3.2%) and NR (74; 23.6%). The median time to best response was 6 mos (range 3-48 mos), and did not differ with time between diagnosis and IST. Of the 227 pts with a CR, VGPR or PR at any time, 47 (20.7%) ultimately died or required additional therapy (IST and/or HSCT). Overall survival was 98% at 6 mos, 95% (95% CI: 92-97) at 24 mos, and 93% (95% CI: 90-96) at 60 mos. Survival did not differ between patients treated <4 vs ≥4 wks from diagnosis (p=0.533) with 24 mos estimate of 96% vs 94%. Survival without a subsequent therapy was 84% (95% CI: 80-88) at 6 mos, 68% (95% CI: 63-73) at 24 mos, and 58% (95% CI: 52-64) at 60 mos. Of the 261 evaluable pts treated with hATG/CSA, 21 pts (8.1%) died, overall survival was 94% (95% CI: 91-97) and one-third required at least one additional therapy.Cytogenetics were available at diagnosis for 271 of 314 (86.3%) pts, and 8 (3%) had clonal abnormalities. Of 171 patients with cytogenetics after IST, 13 (7.6%) additional patients developed clonal abnormalities at a median time of 28.5 mos (range: 4.3-143 mos). Monosomy 7, del 7q, and del 13q were the most common abnormalities. Only 4 patients with clonal abnormalities developed MDS, with one each progressing to ALL and AML. The other two patients received a HSCT soon after the MDS diagnosis. There was no significant association between hepatitis, cytogenetic abnormalities, short telomeres, or PNH clone at diagnosis with response to IST.In conclusion, we report a large multicenter retrospective analysis of ethnically diverse North American IST treated pediatric SAA patients. Acquisition of clonal abnormalities and progression to MDS/leukemia was rare. Outcomes included 69.1% of pts with a CR or VGPR and overall survival of 93%. Among the 314 patients, event-free survival was 58% at 60 mos with 130 (41%) having died or required subsequent therapies. Unexpectedly, neither clonal abnormalities at diagnosis or time between diagnosis and IST affected response. Clinical and laboratory features associated with survival, quality, and durability of response to IST are currently being ascertained. These data support the need for new approaches to treatment of pediatric SAA. DisclosuresRogers:Terumo BCT: Consultancy; Pfizer: Research Funding. Rothman:Agios Pharmaceuticals: Honoraria; Pfizer: Consultancy. Thompson:Celgene: Consultancy, Research Funding; Baxalta: Research Funding; Novartis: Consultancy, Research Funding; bluebird bio: Consultancy, Research Funding. Glader:Agios Pharmaceuticals: Membership on an entity's Board of Directors or advisory committees. Huang:Baxter: Research Funding; Biogen: Research Funding; Bio Products Laboratory: Other: Study investigator; Novartis: Other: support to attend meeting. Shimamura:TransCellular Therapeutics: Other: Spouse is majority shareholder .

MDS and AML in Shwachman-Diamond Syndrome: Clinical Features and Outcomes

Genetic predisposition to MDS and AML is recognized in a growing subset of patients, but data to inform medical management and outcomes are sparse. Shwachman-Diamond syndrome (SDS) is an inherited marrow failure syndrome associated with increased risk of myelodysplasia (MDS) and acute myeloid leukemia (AML). The aim of this multi-institutional retrospective study was to investigate clinical features, treatment, and outcomes of 37 patients with SDS who developed MDS or AML. Diagnosis of SDS was established by SBDS genetic testing (n=30), exocrine pancreatic dysfunction (n=5), or data were unavailable (n=2). Nine individuals presented with AML (4 male, 5 female), 26 with MDS (13 male and 13 female), one male with refractory cytopenia (RC), and one male with isolated persistent somatic TP53 mutation. Eight of 26 MDS patients, had MDS-EB1 or EB2 at diagnosis, of whom two progressed to AML. Three patients initially presenting with early MDS progressed to MDS-EB1, MDS-EB2, or AML. Median age (years) at diagnosis of early MDS was 13.8 (range 0.5-28.8), for MDS-EB1/2 was 16 (range 9-30) and for AML was 33 (range 5.5-47). Nine patients with MDS and 1 patient with AML were receiving G-CSF chronically prior to diagnosis of MDS/AML.Complex cytogenetics, (>3 cytogenetic abnormalities per clone), were noted in 8/9 AML cases. One AML patient presented with normal cytogenetics. Complex clonal cytogenetic abnormalities were noted in 5 of 6 patients with MDS-EB1/EB2 for whom reports were available. Cytogenetic data were available for 16 MDS cases and clonal abnormalities were noted in 10. Aberrations involving chromosome 7 were most common. The patient with the somatic TP53 mutation had normal cytogenetics. Centralized bone marrow pathology review is currently ongoing.Follow up data were available for 8 patients with AML; 6 are deceased. Six received chemotherapy with intent to proceed to hematopoietic stem cell transplant (HSCT), of whom 5 failed to achieve remission and died with disease without proceeding to transplant. One AML patient proceeded to HSCT with progressive disease post-chemotherapy, but died with relapsed disease. One patient proceeded to HSCT without prior chemotherapy and was in remission at day 30 post-HSCT. The sole long-term surviving AML patient achieved remission with chemotherapy and underwent HSCTs with 3 separate stem cell infusions due to primary graft failure after the initial two infusions. He remains alive in remission more than 4 years after diagnosis. Notably this surviving AML patient was the only AML patient with normal cytogenetics at diagnosis.Follow up data are available for 6 of 8 patients presenting with MDS-EB1/EB2, 4 of whom are deceased. One patient who presented with MDS-EB1 is alive with relapsed disease after HSCT and one patient is in remission 100 days after HSCT.Follow up data are available for 17 of 18 early MDS patients, 7 of whom are deceased including three who had progressed to MDS-EB1, MDS-EB2, or AML. Four of the 7 deceased patients had received a HSCT. One individual with MDS died of hepatic failure unrelated to MDS. Seven MDS patients are alive in remission after HSCT without prior chemotherapy. Treatment was not reported for an additional 2 surviving patients. One patient receiving a hypomethylating agent is alive with stable disease 4.8 years from diagnosis. The patients with RC and with a TP53 clonal abnormality are alive at 6.5 years and 1.7 years from diagnosis respectively.In summary,prognosis is poor for patients with SDS who develop AML or MDS-EB1/2, with few long-term survivors due to resistant disease and treatment-related complications. Outcomes are better if transplanted for MDS prior to acquisition of increased blasts, with 10 of 17 (59%) subjects surviving (median follow up 6 years, range 1.5-11.2). AML often presents in adulthood highlighting the need for continued surveillance of SDS patients with bone marrow examinations including cytogenetics and FISH. These data demonstrate the importance of early detection of clonal evolution in this leukemia predisposition syndrome. Better markers for risk stratification are needed to identify patients who would benefit from early transplant prior to advanced clonal disease. Novel therapeutic strategies, such as targeted therapies, are urgently needed to improve outcomes of SDS patients with advanced MDS or AML. DisclosuresDiNardo:Daiichi-Sankyo: Honoraria, Research Funding; Agios: Honoraria, Research Funding; Novartis: Honoraria, Research Funding; Celgene: Honoraria, Research Funding; AbbVie: Honoraria, Research Funding. Norkin:Celgene: Honoraria, Research Funding. Shimamura:TransCellular Therapeutics: Other: Spouse is majority shareholder .

Do Family and Institutional Ownerships Influence the Corporate Dividend Policy?

The difference of interests among shareholders in the middle of ownership structure that is dominated by majority shareholders enlarges the possibility of deprivation towards the minority shareholders' rights. Therefore, a dividend is considered as a tool to reduce conflict of interests between both parties with the assurance of pro-rata distribution of the company's resources. Family and institutional ownerships have unique characteristics that are frequently found in Indonesian firms. Thus, this study intended to analyze the impact of majority ownership owned by family and institution to dividend policy in nonfinancial firms listed in Bursa Efek Indonesia (BEI) during 2013-2017. The samples are chosen with the purposive sampling method resulting in 373 firms and 1.484 observations obtained. The data used in this study was secondary data from firms' annual and financial reports along with data extracted from Capital IQ. According to the regression results using the fixed-effect model, this study confirms the negative impact of majority ownership owned by families towards firms' dividend policy. Whilst, majority ownership owned by institutions shows that it has no significant impact on dividend policy. Otherwise, profitability, size, and leverages are proven to impact firms’ dividend policy. However, growth indicates no significant impact.

КОНЦЕНТРАЦІЯ ВЛАСНОСТІ КОРПОРАЦІЙ: ТЕОРЕТИЧНИЙ АСПЕКТ

Corporate governance and its mechanisms, including ownership structure, have a long history of research. Many scientific papers show that when the ownership concentration grows above a certain limit, it not only directly affects the performance of firms and their value but also indirectly affects the mechanism of corporate governance. In the case of the concentration of ownership, majority shareholders can gain significant control over the firm to obtain private benefits from minority shareholders. In such circumstances, special attention should be paid to the concentration of ownership and its relationship with the activities of the firm and its value. The article highlights the essence of the concept of "ownership concentration" from the standpoint of corporate governance and from the standpoint of the characteristic of the corporations' capital structure. The peculiarities of corporate governance in Ukraine and in the world are generalized with their division into internal and external mechanisms. The concentration of ownership as a tool of corporate governance is determined since the fact that there are shareholders with significant stakes that have the necessary incentives and resources to monitor and discipline management. It is noted that the ownership concentration can be considered as a tool to compensate for the shortcomings (ineffectiveness) of external mechanisms of corporate governance. As a quantitative indicator of capital structure, the ownership concentration is measured by the number of shareholders and the percentage of their individual or collective ownership of shares, considering exercising control influence on the joint-stock company. The threshold of concentrated ownership is indicated, based on Ukrainian legislation and existing approaches.

Multiple Large Shareholders and Audit Pricing: Evidence from Chinese Family Companies

Multiple large shareholders （MLS） are a general ownership phenomenon in the global capital market. In the traditional context of corporate governance, non-controlling large shareholders are the key guardians of the interests of small and medium shareholders. They can not only supervise the controlling shareholders, but also enhance the value of companies. However, in recent years, the events that MLS of family companies unite to infringe the interests of small and medium investors are increasing. Therefore, in the special case of the typical nepotism of MLS in family companies, it is worth further testing whether the supervision and balance function of large shareholders still exists. Audit pricing has always been the focus of the audit theory and practice. The principal-agent problem between internal large shareholders and external investors has a crucial impact on audit pricing. Audit pricing also provides a good external perspective for us to explore whether there is any collusion motivation between large shareholders of family companies or not. Under the special circumstances of typical nepotism among the major shareholders of family companies, this paper examines whether the supervision and balance function of MLS still exists from the perspective of audit pricing. Based on the data of Shanghai and Shenzhen A-share family listed companies from 2007 to 2017, we find that the existence of MLS stimulates a significant increase in audit fees. This phenomenon exists only when the controlling shareholders of family companies pledge their shares and the market is undeveloped. Moreover, the equity pledge will significantly enhance the promotion effect of MLS on audit fees in undeveloped areas. The channel effect test shows that MLS stimulates the stock price through earnings management, stock dividends and strategic stock change. These three ways can lead to the increase of audit risk and auditing institutions always choose to charge a premium to compensate the risk. This paper scrutinizes the possible collusion motivation of MLS in family companies from the perspective of audit pricing, which provides a new “puzzle” for the research of economic consequences of MLS. It also provides some empirical evidence for understanding auditors’ dereliction of duty regarding the encroachment on the interests of small and medium shareholders in the capital market. And through the research of whether MLS in family companies contribute to higher audit fees, this paper also provides a supplement for the risk compensation theory of the audit pricing theory. The policy suggestions of this paper are mainly reflected as follows: （1） As for the collusion among MLS in family companies, investors should strengthen the relevant protection consciousness. （2） In China’s capital market, there are so many accidents that large shareholders of family companies empty the wealth of small shareholders. The external independent auditor is indeed responsible for dereliction of duty. The research has certain enlightenment for the regulatory authorities to regulate the professional ethics of auditing institutions and protect the interests of external investors.