Managerial Share Ownership Research Articles

How does finance and accounting supervision affect stock price crash risk?

As an essential component of China's national supervision system, finance and accounting supervision plays an important role in regulating financial order, promoting economic development, and maintaining social stability. This study selects the special action of finance and accounting supervision as a quasi-natural experiment and conducts a difference-in-differences estimation to alleviates the problem of endogeneity. Using a sample of A-share listed firms from 2007 to 2013, this study examines the effect of finance and accounting supervision on stock price crash risk in the context of China. Our results indicate that firms subject to finance and accounting supervision are less likely to suffer a stock price crash. We explore the underlying mechanism and find that finance and accounting supervision mitigates firms' information asymmetry, thereby reducing future stock price crash risk. We also find that the negative effect of finance and accounting supervision on stock price crash risk is more pronounced for highly financialized firms, firms with larger management shareholding, and firms with poorer stockholder checks and balances. This study has significance for enriching research on the factors influencing stock price crash risk and assessing the effectiveness of finance and accounting supervision in the capital market.

Governance of Corporate Greenwashing through ESG Assurance

This study utilizes data from Chinese A-share listed companies from 2014 to 2022 to theoretically analyze and empirically test the governance effect of ESG assurance on corporate greenwashing behavior, as well as the role played by the legal environment and management shareholding in this context. The impacts of ownership and the governance mechanism of ESG assurance on corporate greenwashing behavior are also explored. This study employs text mining, OLS, PSM, IV-LIML, treatment effect models, feasible generalized least squares, placebo tests, bootstrap methods, etc., to conduct empirical analysis and conclude the following results: ESG assurance has a significant inhibitory effect on corporate greenwashing behavior, playing a crucial role in resource allocation, particularly in non-state-owned enterprises. The legal environment has a certain substitution effect on ESG assurance in inhibiting corporate greenwashing behavior, meaning that when the legal environment is weak, ESG assurance is more effective in curbing such behavior. Management shareholding also has a certain substitution effect on ESG assurance in inhibiting corporate greenwashing behavior, indicating that when management shareholding is low, ESG assurance is better at curbing such behavior. Further research reveals that corporate ESG performance plays a mediating role between ESG assurance and corporate greenwashing governance. This article provides policy references and empirical evidence for strengthening ESG assurance and enhancing corporate ESG performance and greenwashing governance to promote high-quality corporate development.

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

The Role of Shareholder Management and Market Management in the Enterprise Operations Management-Enterprise Performance Relationship

This research aims to explore the moderating roles of shareholder management and market management in the relationship between operational management and firm performance. By conducting an empirical analysis of 1929 U.S. companies from 2015 to 2023, the results demonstrate that shareholder management capability and market management capability significantly moderate this relationship. Specifically, higher shareholder management capability optimizes firm performance by enhancing the efficiency of shareholder equity utilization and increasing decision-making flexibility, while higher market management capability improves performance by effectively responding to market fluctuations and demand changes. The findings support the financial management perspective of global strategy, emphasizing the importance of efficient financial resource management in international firms. This research provides new insights into the complex roles of shareholder management and market management in enhancing firm performance, particularly in the context of U.S. companies.

Pengaruh profitabilitas, likuiditas, leverage, kepemilikan manajerial dan risiko bisnis terhadap kebijakan dividen dengan firm size sebagai variabel moderasi pada perusahaan sektor consumer cyclicals

This study aims to examine the effect of probability, liquidity, leverage, managerial ownership, and business risk on dividend policy and to determine whether firm size can moderate the influence of profitability, liquidity, leverage, managerial ownership, and business risk on dividend policy. The sample of this study consisted of 52 companies confirmed by the Indonesian Stock Exchange in the consumer cyclical industry from 2020-2022. The sampling technique used purposive sampling. The analysis technique uses Multiple Regression Analysis (MRA) with STATA 17. The findings obtained show that managerial ownership has a significant positive effect on dividend policy. Profitability, liquidity, leverage, and business risk do not affect dividend policy. Firm size cannot moderate the effect of profitability, liquidity, Leverage, managerial ownership, and business risk on dividend policy. Under the agency model theory, consumer cyclical companies are expected to monitor the performance and the proportion of managerial ownership shares on deciding dividend policy because the more significant the percentage of managerial share ownership will minimise agency conflicts.

Pengaruh Kepemilikan Manajerial terhadap Kinerja Keuangan Perusahaan: Analisis Literatur

Financial performance is the ability of the company in managing and controlling resources. Indicators of capital adequacy, liquidity and profitability are often used to measure financial performance. These requirements are often determined by indicators of capital adequacy, liquidity and profitability. Methods used Qualitative techniques, literature studies, or literature studies, and literature works based on ideas presented, especially on the subject of financial management. The purpose of this article as comparing theories and research literature of all scientific publications. Based on the analysis can be concluded the performance of a company, managerial ownership, the impact of shareholder management. The results show that the ownership structure of the company has an effect on financial success this is in accordance with the ownership of managerial shareholders. Balance in companies is very necessary for effective and efficient management and can improve finances and align managerial

Can high-speed railway promote enterprise ambidextrous innovation: a quasi-natural experiment in China

PurposeWell-constructed transportation infrastructure may effectively decrease barriers to the flow of innovative human resources and inventive elements, accelerating enterprise innovation activities. This study will explore how HSR helps enterprises achieve ambidextrous innovation, including the mediating mechanism of absorbed slack resources, innovative talents, and the heterogeneous effects of management shareholding ratio and financing constraints.Design/methodology/approachBased on resource dependence theory and social network theory, this study employs a quasi-natural experiment of China’s high-speed railway and builds a multi-time point DID model to investigate its influence on enterprise ambidextrous innovation.FindingsResults suggest that the HSR positively influences both exploitative and exploratory innovation, and the influence is more substantial on exploitative innovation. Further analysis finds two influencing channels through which HSR influences enterprise ambidextrous innovation: providing redundant resources and attracting innovative talents. Heterogeneity analysis indicates that HSR has a more significant positive effect on exploratory innovation for enterprises with high management shareholding. In the low financing constraint group, the HSR opening has a more significant impact on ambidextrous innovation.Practical implicationsIn ambidextrous innovation, enterprises should rationalize the allocation of resources, attach importance to the innovative talent introduction, and choose differentiated paths based on intrinsic characteristics. Meanwhile, the government should actively improve the HSR routes and continuously improve the innovative environment.Originality/valueThis study enriches the theoretical research framework of HSR and ambidextrous innovation by identifying the channel mechanisms and boundary conditions through which HSR affects ambidextrous innovation and expands the consequences of HSR and the antecedents of ambidextrous.

Executive compensation and corporate sustainability: Evidence from ESG ratings

Selecting A-share listed companies in Shanghai and Shenzhen, China, during the period of 2012–2021 as research subjects, this study examines the relationship and operational mechanisms between executive compensation and corporate ESG Ratings. It is found that executive compensation incentives can significantly enhance corporate ESG Ratings. This effect is achieved through promoting green innovation efficiency, enhancing environmental information disclosure, and improving financial performance. However, this positive impact weakens with an increase in management shareholding, but strengthens with a higher proportion of independent directors. When compensation exceeds appropriate levels, overcompensation leads to a decline in ESG Ratings. The significance of this study lies in revealing potential pathways for enhancing corporate sustainability through executive compensation incentives, while also emphasizing the importance of formulating appropriate compensation strategies.

Low-carbon city pilot policy and corporate environmental violations: Evidence from heavily polluting firms in China

This study examines the impact of China's Low-Carbon City Pilot Policy (LCCPP) on heavily polluting firms’ environmental violations. Using a staggered difference-in-differences (DID) model, we find that LCCPP significantly reduces heavily polluting firms’ environmental violations. Mechanism tests indicate that this reduction is driven by strengthening government green attention, increasing environmental subsidy, and environmental investment. Heterogeneity studies reveal that the policy's effects are more pronounced in state-owned enterprises, firms in less competitive industries, and firms with lower levels of management shareholding. Our research provides theoretical and empirical support for the ongoing expansion of LCCPP, highlighting its positive effects on environmental governance.

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.

Implementation of Corporate Governance in Emerging Markets: Indonesia Stock Exchange and Singapore Stock Exchange

The objective of this study is to examine the execution of corporate governance in manufacturing sector firms listed on Indonesia and Singapore's stock exchanges. The study reveals that an increase in the frequency of audit committee meetings has a substantial and favorable impact on Indonesia's financial performance. Conversely, in the case of Singapore, there is a notable adverse impact on financial performance. However, the presence of an independent board of commissioners, a higher frequency of commissioner’s meetings, a more significant percentage of managerial share ownership, and the magnitude of the Board of Commissioners have a substantial adverse impact on ROA. Conversely, the frequency of board commissioner meetings and the extent of managerial share ownership hurt Tobin's Q. The presence of an independent board of commissioners and the number of commissioners on the Board does not substantially impact Tobin's Q. In the case of Singapore, the presence of an independent board of commissioners, the size of the Board, the frequency of board meetings, and the overall percentage of managerial share ownership do not have a noteworthy impact on ROA. Conversely, the quantity of Board of Commissioners meetings has a favorable impact on Tobin's Q. The overall proportion of ownership held by managers negatively impacts Tobin's Q. Both the autonomy of the Board of Commissioners and its size do not substantially influence Tobin's Q.

Corporate External Guarantees and M&A Performance Commitments

This study analyzes the effect of corporate external guarantees on M&A performance commitments using a research sample of Chinese A-share listed companies from 2008 to 2022. The study finds that listed companies are more likely to sign performance commitments in M&As and sign higher performance commitments when the proportion of corporate external guarantees is higher. It has been found that corporate external guarantees have a hollowing-out effect compared to the governance effect of corporate guarantees. The higher the proportion of external guarantees, the more insider self-interest behavior exacerbates the financing constraint problem of the enterprise. To alleviate financing constraints, controlling shareholders have a stronger incentive for market value management by signing performance commitments. The analysis of heterogeneity reveals that when management shareholding is low and the two rights of the company are highly separated, the proportion of corporate external guarantees has a more significant effect on M&A performance commitments. This study's findings have reference value for financial institutions when making credit decisions and for regulators to improve the efficiency of M&A supervision.

Will green innovation strategies trigger debt default risk? Evidence from listed companies in China

This paper empirically examines the effects of green innovation on corporate debt default risk using data from Chinese A-share listed companies spanning the years 2013 to 2021. The findings indicate that the adoption of a green innovation strategy by enterprises can elevate the risk of debt default. This heightened risk is attributed to over-investment behavior within green-innovating enterprises, which subsequently triggers corporate debt default risk. Notably, this effect is more pronounced in state-owned enterprises and markets characterized by high concentration. Management shareholding may be an effective preventive measure for mitigating corporate debt default risk in the context of green innovation strategies.

Managerial ownership and labor income share

This paper investigates the influence of executive compensation on labor income share. I expect that higher managerial shareholding reduces labor income share. Consistent with this conjecture, the empirical evidence suggests that both augmented innovation investment and alleviated bankruptcy costs explain the reduction in labor income share. Our results remain robust by addressing the potential unobserved variable concerns and reverse causality issues. Heterogeneity tests show that the effect is more pronounced in firms with weaker political connections, higher institutional ownership, higher customer concentration, and in state-owned firms. This study contributes to the merging literature on the lowering of labor income share.

ОРГАНІЗАЦІЙНІ УМОВИ КОРПОРАТИВНОГО УПРАВЛІННЯ В АГРАРНОМУ ІНТЕГРОВАНОМУ ПІДПРИЄМСТВІ

The article is devoted to the study of scientific knowledge on the general organizational conditions for corporate governance in an agrarian integrated enterprise. Based on the analysis of scientific knowledge on the conditions and features of corporate governance in integrated agricultural structures, the authors have found that relations arise not between the owners of a corporation, but between the corporation and the owners, and thus relations in the group of owners are absent or minimized. In practice, the key element of contracting is not an attempt to determine the behavior of the CEO in all possible situations, but to develop a structured system of remuneration for managers. The main goal of this operation is to find the optimal combination of different types of remuneration for top managers, which will ensure mutually beneficial interests of both shareholders and managers of the corporation. The author proves that the most effective mechanism of internal control over the activities of a corporation's management personnel is to involve shareholders in protecting their interests through agents (outsiders) who are not employees of the corporation but are vested with certain controlling powers. It is assumed that these agents will not be directly related to the operational management of the corporation, and thus they become the defenders of the interests of the owners. It is found that there is a direct relationship between agency conflicts and corporate governance mechanisms. The result of the study is the identification of positive and negative aspects of capital concentration in a corporation. This leads to the conclusion that with an increase in the manager's shareholding, the level of agency conflicts decreases. The authors propose a detailed model of corporate governance that takes into account the interests of all participants. The conflict of interests between owners and managers of a corporate structure is investigated. The peculiarities of functioning of the external mechanism of control by the financial market in the corporate governance system and their shortcomings are highlighted. The institutional factors influencing the corporate governance system of an integrated agricultural enterprise are demonstrated. Keywords: corporate governance, agricultural enterprise, integrated structure, financial market, control mechanism.

Negative Performance Aspiration Gap and Stock Price Crashes: Based on Behavioral Theory and Agency Theory Perspective*

AbstractThe paper explores how agency behavior of insiders within a company influences the risk of a stock price crash in the context of a continued expansion of the performance expectation gap. A panel data analysis of 10 727 observations of Chinese A‐share listed companies over the period 2003–2020 shows that as the negative performance aspiration gap widens, stock price crashes are more likely to occur. Furthermore, the separated role of top management and chairperson and an increase in the ownership proportion of major shareholders significantly amplifies the positive effect, whereas the increase in managerial shareholding and the equity balance diminish the main relationship.

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.

Financing Moroccan SMES: Analysis of the influencing factors and the crucial role of the government guarantee scheme

This study uses a quantitative approach to examine the determinants of SME financing in Morocco. The sample consists of 500 Moroccan SMEs that have submitted applications for bank finance, with their applications being assessed for a possible government credit guarantee. The sample includes companies that obtained state-guaranteed bank financing, those whose applications were rejected but that obtained other financing, and those that did not obtain financing, all evaluated in the year following the application. The analysis is based on nominal logistic regression to examine the interactions between different variables, including the amount of credit requested, profitability, debt level, repayment capacity, size, managerial shareholding, decision-making maturity, and the presence of a government credit guarantee. Following careful collection and analysis of the data, a number of results were drawn. In particular, it emerged that high profitability, solid repayment capacity, a minimum size requirement, an appropriate level of debt, high decision-making maturity and the presence of a government credit guarantee are significant factors that increase the likelihood of obtaining financing. On the other hand, the amount of credit requested and the manager’s shareholding did not show any significant impact on the probability of obtaining financing.

Kepemilikan Manajerial Terhadap Kinerja Keuangan PT Indofood Sukses Makmur Pada Bursa Efek Indonesia

PT Indofood Sukses Makmur is a public company listed on the Indonesia Stock Exchange. One factor that can influence a company's financial performance is managerial ownership. The aim is to provide a holistic understanding of the relationship between managerial ownership interacting with the financial performance of a company and understand the factors that may or may limit the impact. The descriptive method for analyzing managerial ownership of the financial performance of PT Indofood Sukses Makmur on the Indonesia Stock Exchange can involve calculating certain formulas below. managerial ownership (km)(Number of managerial ownership shares)/(Number of outstanding shares) X 100%. Based on the results of the calculations above regarding managerial ownership in 2022 at PT. Indofood Sukses Makmur Tbk, namely the number of managerial ownership shares is 1,380,020 and the number of outstanding shares is 8,780,426,500, so the result of the number of managerial ownership shares and the number of outstanding shares is 0.00015717. The discussion regarding managerial ownership of financial performance includes an analysis of the impact of managerial share ownership by management on the company's financial performance. Conclusion regarding managerial ownership at PT Indofood Sukses Makmur can have a positive impact on the company's financial performance.

Analysis Of The Influence Of Sustainability Reporting, Auditor Switching, And Good Corporate Governance On Going Concern Audit Opinion

Going concern is a basic assumption of financial statements preparation, where the company must able to maintain its operational survival in the present and also be able to continue the business in the future. The purpose of this study is to test the influence of sustainability reporting, auditor switching, and good corporate governance as measured through variables of managerial share ownership, independent commissioners, board of directors, and audit committees on the provision of audit opinions on the going concern of coal sub-sector companies listed on the Indonesia Stock Exchange in 2016-2020. This research uses a quantitative method research. This research used logistic regression for data analysis using Eviews 12. The research results show that the variables of sustainability reporting, auditor switching, and good corporate governance measured through managerial share ownership, independent commissioners, board of directors, and audit committee simultaneously affect audit opinions. Furthermore, managerial share ownership variables positively influence the provision of audit opinions going concern. In addition, the independent commissioner variable negatively influences the provision of audit opinions. Meanwhile, the variables of sustainability reporting, switching auditors, board of directors, and audit committees have no partial effect on the provision of audit opinions going concern