Company Ownership Research Articles

The Value of Cash: Evidence from Indonesia Listed Firms

This study investigates the influence of Islamic law on the value of cash holdings. The empirical analysis was conducted using Indonesian-listed companies from 2012 to 2020 as the research sample. It is hypothesized that companies adhering to Islamic law will increase the value of cash holdings. Considering the ownership structure, it is hypothesized that higher ownership by institutions and corporate insiders in Islamic-compliant companies will lead to higher value of cash holdings. The empirical results of this study reveal that companies adhering to Islamic principles do indeed increase the value of cash holdings. Additionally, higher institutional and insider ownership in Islamic-compliant companies increase the value of cash holdings. The empirical implications of this study suggest that religious beliefs influence managerial decision-making, leading to more cautious control over cash. Both religion and ownership structure play important roles in the efficient use of cash by managers.
 Keywords: Islamic law, value of cash holdings, ownership structure

Empirical Evidence of Inbound Open Innovation Practice by Ghanaian SMEs

Inbound open innovation (IOI) is credited with high productivity in businesses. However, this is marred by resource and structural constraints in Ghanaian SMEs. Therefore, this study explores the odds of Ghanaian SMEs engaging in inbound open innovation given SMEs characteristics and IOI collaboration modes. Further, we examine the mediating effect of SMEs’ CEO characteristics in increasing or decreasing these odds. Using a sample of 657 registered SMEs’ of the Association of Ghanaian Industries, the survey data is estimated with a stepwise logistic regression model to show the multiplicative effects of the variables. The results show that the odds of engaging in inbound open innovation is higher for; SMEs located in urban areas, SMEs with partnership or company ownership structure, SMEs with research and development departments, SMEs not collaborating with universities, manufacturing SMEs, and SMEs that are relatively bigger in size. Further, these odds increase when the characteristics of CEOs of the sampled SMEs are accounted for in the model. Thus, the characteristics and traits of CEOs are only useful given the right resources and environment. Relying on the major (main) outcomes of the study further feasible suggestions are recommended.

A comprehensive historical and geolocalized database of mining activities in Canada

This paper introduces the MinCan database that presents mine-level estimates for the Canadian mining industry with a persistent annual coverage between 1950 and 2022. These estimates are based on archival maps and a selection of historical sources, which follows a hierarchy of criteria-based credibility and standardization. The information contained in MinCan covers 947 mines and provides information about their location (longitude and latitude in decimal), the company ownership, the principal commodities produced, and the years of operation (opening and closing dates). It is the first open access database to propose an exhaustive, free, and reliable compilation of the principal past and present mines producing in Canada. The geographic coordinates enable matching with other local, regional, and national databases, and allow for a wide range of research objectives to be met.

Do large registered investment funds undermine shareholder activism? Evidence from hedge fund proposals

We examine the voting behavior of Registered Investment Funds (Mutual Funds, ETFs and Close-end Funds) on Hedge Funds proposals, a common vehicle of value-driven shareholder activism. We compare the support rates of Registered Funds versus other voting shareholders on different types of proposals set up for voting at shareholders meetings and explore fund-level characteristics that may explain the variation in support rates. Our results show that Registered Funds support rates on Hedge Fund proposals vary depending on the proposal category. In general, the support rates of Registered Funds are about 4 percentage points lower compared to other investors. However, that difference rises to 10 p.p. for proposals that are more confrontational to the incumbent management of the target company. Interestingly, the average lower support rates of Registered Funds are driven by the ten largest funds. On the contrary, Registered Funds from smaller parent groups tend to be more supportive of Hedge Fund activism. We document a 18 p.p. reduction in the probability of favorable votes on Hedge Fund proposals by the largest Registered Funds compared to smaller funds. Our results suggest that the growing ownership in public companies by large Registered Funds reduces the overall support of shareholder activism through Hedge Fund proposals.

The veil of secrecy: Family firms’ approach to ESG transparency and the role of institutional investors

Our analysis explores the relationship between family ownership and ESG (Environmental, Social, Governance) transparency in Italian companies from 2016–2020, employing agency theory, stakeholder theory, and Socio Emotional Wealth (SEW). We find that family-owned firms typically exhibit lower ESG transparency, especially in social aspects, due to priorities like privacy and legacy. Institutional investors (IIs), however, play a crucial role in enhancing transparency, mitigating the usual opacity in these firms. This highlights the importance of IIs in advancing ESG disclosures, providing strategic insights for addressing the transparency challenges associated with family ownership and improving governance practices to narrow the corporate transparency gap.

Relationship between Corporate Governance, Leverage and Firm Value: Empirical Evidence from Indonesia

This research investigates the relationship between corporate governance using measurements of company ownership structure in upholding the values of transparency, accountability, equality, and leverage its influence on firm value, and placing growth as a control variable. The research method uses a quantitative approach, analyzing causal relationships through the formulation of hypotheses. The research sample is 175 manufacturing companies in Indonesia which were observed during 2017-2021 with N of 875 observations. The analysis technique uses ordinary least squares with panel regression. The results of the robustness test analysis of the model, growth as a control variable, robustly show that managerial ownership and institutional ownership represent the upholding of corporate governance values with a significantly positive response by investors. Apart from that, the leverage variable positively influences company value. The novelty of the results of this research, firstly, is the enforcement of manufacturing company governance values in Indonesia, represented by managerial ownership and institutional ownership. Second, the company funding structure policy supports the optimal capital structure theory (Modigliani F. and Miller M., 1963)

Pengaruh Audit Tenure, Ukuran KAP, dan Struktur Kepemilikan Perusahaan terhadap Kualitas Audit dengan Spesialisasi Auditor sebagai Variabel Moderating

The Effect of Audit Tenure, KAP Size, and Company Ownership Structure on Audit Quality with Auditor Specialization as a Moderating Variable. Thesis, Jakarta: Faculty of Economics, State University of Jakarta, 2023. This study aims to This study aims to determine the effect of audit tenure, hood size, and company ownership structure on audit quality with auditor specialization as a moderating variable. In this study, the population used was companies in the transportation & logistics sector listed on the IDX during the 2018-2020 period. The results of this study indicate that the significant value of the audit tenure variable is 0.165 and with these results showing a value greater than the significance value used in this study, namely 0.05, so that based on the results of these findings it can be concluded that audit tenure has no effect on audit quality.

Corporate Social Responsibility and Financial Performance: A Relationship Mediated by Stakeholder Satisfaction

Research work on the relationship between Corporate Social Responsibility and financial performance has been going on for seven decades. Even when the prevailing studies are those that found a positive influence of social responsibility on financial performance, strong conclusive results are still unavailable. Some explanations for this situation are based, among other reasons, on the fact that the variables have a relation mediated by multiple factors. Additionally, it is still unknown whether the results obtained can be extrapolated to all types of companies since the majority of studies have focused on large companies listed on the stock exchange. This research studied how one of those factors (stakeholder satisfaction) mediated in companies of different sizes (including SMEs) and different types of companies (publicly listed companies or private ownership companies). A questionnaire was used, including indices relative to (1) the degree of development of the company’s social responsibility policies, (2) the changes in the satisfaction of four key stakeholders (employees, customers, suppliers, and shareholders) and financial performance (sales and profitability). Findings show the existence of a correlation between social responsibility and financial performance and also that such a relationship is mediated by the satisfaction of stakeholders. That relationship was also found to be independent of company sizes and the type of company This research work is intended to be a contribution towards that field of study, as it has detected a relationship between variables in medium-sized and private ownership companies.

OWNERSHIP STRUCTURE AND DIVIDEND POLICY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

The study examines the effect of ownership structure on dividend policy of listed oil and gas companies in Nigeria. The independent variable was proxied using managerial ownership, government ownership and foreign ownership. On the other hand, dividend policy was proxied by dividend payout ratio. The study employed the ex-post facto research design in analyzing the panel data collected from eight (8) oil and gas companies sampled from a total population of twelve companies listed on the Nigerian Exchange Group (NGX). the study covered a period of ten years (2013 to 2022) while the purposive sampling technique was employed. The multiple regression technique of analysis was employed in analyzing the data and the results of the analysis revealed a positive and significant relationship between Managerial Ownership and Dividend policy. Thus, suggesting that, an increase in the proportion of shares held by management would results in increased dividend payment. On the contrary, government ownership and foreign ownership had no significant effect on dividend policy of listed oil and gas companies in Nigeria. The study therefore concludes that, managerial ownership would influence dividend payment. Hence it is recommended that, managerial ownership of oil and gas companies be monitored by regulatory agency to ensure compliance with relevant codes and provision.

Valuation of State Owned Companies (Based on Energy Sector)

The transition to the market orientation from the centralized economy, which started from 1990s, brought a great deal of important changes in Mongolian economy. Implementation of policies on market liberalization, promotion of free market and fair competition and privatization of state managed assets enabled the development of private sector and creation of legal entities in various forms such as privately owned companies, joint stock and state owned enterprises operating on the market. By February of 2024, there are 26 state owned companies (SOC) operating in energy sector of Mongolia, among over 100 fully or partially state owned companies that are involved in strategic sectors such as energy, mining, communications and transportation. Being fundamental to the national security and overall socio-economic stability of the country, the energy sector is necessarily considered to be developed ahead of other sectors and hence, this research is focused on the comprehensive valuation of performances for state owned energy manufacturing and transmission companies of Mongolia. Main research subjects are 26 State Owned Companies (SOC) operating in energy sector of Mongolia.

Business Analytics: A Patent Landscape Retrospective Mapping

Knowledge of patents relevant to business analytics (business analytics) is very important for entrepreneurs and companies in developing environmentally friendly business and innovation strategies. This study aims to find out the patent landscape and the main trends in patent intellectual property on the topic of business analytics around the world by using bibliometric analysis. Researchers applied an analysis of the patent landscape using data on 4,731 patent intellectual property documents from the Lens database. The results of the study show that every year in general there is an increasing trend in the number of patents related to the field of business analytics. Patents related to business analytics are dominated by the physics (G) and electricity (H) patent sections. There is an entrepreneurial opportunity without paying royalties by using 234 patent discontinues related to business analytics. Intellectual property patents related to business analytics are dominated by company ownership and inventors from the United States. There are 2,143 simple family patent business analytics in 12 jurisdictions of countries or regions and the highest is the United States.

Patent Landscape of Social Media in Education: A Review

This study aims to identify global trends in intellectual property patents and the patent landscape related to social media in education. Researchers applied a patent landscape analysis using data on 17,471 patent intellectual property documents from the Lens database. The study results show that every year, in general, the number of patents about social media in education is rising. There are entrepreneurial opportunities without paying royalties using 3,623 patent discontinues related to social media in education. Patent intellectual property related to social media in education is dominated by company ownership and inventors from the United States. Patents related to social media in education are dominated by the physics (G) and electricity (H) sections. There are 8,260 simple family social media patents in education in 7 jurisdictions of countries or regions and the highest in the United States.

Innovations in Social Informatic: A Patent Landscape Review

Patent intellectual property in social informatics with entrepreneurship support creates greater opportunities to improve human life. It has the potential to open enormous innovation opportunities in various fields, such as technology, health, services, and society. This research was conducted to review the patent landscape and the main trends of patents on social informatics in all countries. Researchers applied a patent landscape analysis using data on 487 patent documents over 16 years from the Lens.org database. The study results show yearly patented development patterns related to social informatics. There is a royalty-free opportunity by using 15 patent discontinued. Patent related to social informatics was dominated by company ownership and inventors from the United States. The patent physics (G) section overwhelmed patents related to social informatics. There were 334 simple family patents on social informatics in nine jurisdictions; the United States was the highest.

Rezervisani sopstveni udeo i finansijski instrument - pravo na sticanje udela - mehanizmi za realizaciju ESOP-a u Republici Srbiji

The possibility of introducing employees into ownership of the employer in the Republic of Serbia was significantly limited by 2020. Amendments to the Company Act introduced the possibility of including employees into the ownership of a limited liability company. The subject of this paper is the analysis of the newly introduced legal institutes: reserved own share and financial instrument - share purchase right. These are institutes introduced with the idea of involving employees in the ownership of the employer. By analyzing the aforementioned institutes, authors seek to notice the positive and negative sides of the relatively new regulations, and suggest de lege ferenda corrections, in order to enable unhindered functioning of the ESOP arrangement.

Mitigation of Tax Aggressiveness through Good Corporate Governance Company’s Website and Corporate Social Responsibility Disclosure: Evidence-Concentrated Ownership Companies

Mitigation of Tax Aggressiveness through Good Corporate Governance Company’s Website and Corporate Social Responsibility Disclosure: Evidence-Concentrated Ownership Companies

The impact of ESG and executive structure on the default risk of family businesses: Evidence from China

The study analyzes the Environmental, Social and Governance (ESG) performance, related to the probability of default risk in family businesses. The sample includes from 2015 to 2022 and comprises the 300 biggest family-owned businesses in China. This investigation finds that the ESG score correlates positively and statistically significantly with the Z-score. Both the environmental and social ESG scores support this. We include the number of family members on the board of directors and the degree to which family members are concentrated in the company's ownership. We discover a negative correlation between family representation on the board and the Z-score, and we find a non-linear relationship between the concentration of ownership and the Z-score. Ultimately, the influence of the ESG score on the Z-score is mitigated by the financial limits of family businesses.

Beneficial Ownership – Demand for Transparency, Threat to Privacy

The basic idea behind establishing the register of beneficial owners is to increase the transparency and accessibility of data on beneficial ownership of companies and other legal entities with the aim of ensuring the public availability of data on domestic and foreign natural and legal persons. However, the possibility of the data being accessible to the general public instead of to persons or organizations that can demonstrate a legitimate interest raised the issue of violating the principles of respect for private or family life and the protection of personal data. Consequently, this raises the question of drawing the line between contributing to the common good and fighting against money laundering and terrorist financing, on the one hand, and protecting personal data, with the possibility of their misuse, on the other. A balance as well as a response to the possibility of setting soft limits of legitimate interest that would result in the achievement of all set goals was sought in the practice of the European Court of Justice. One of the legislative solutions regarding the extent of access to data on beneficial owners for the entire public, along with the establishment of different types of registers in order to prevent money laundering and terrorist financing, is described using the example of Croatia.

How do carbon emissions trading impact the financialization of non-financial companies? Evidence from a quasi-natural experiment in China.

This study examines whether and how carbon trading policy impacts the financialization of non-financial firms, using China emission trading scheme as a quasi-natural experiment. We find that the carbon trading policy exerts a substantial and enduring inhibitory effect on corporate financialization. Our findings are robust to possible result bias and more precise control group. Additionally, we explore potential channels through which carbon trading policy can affect financialization, and find that it curbs financialization by reducing financing constraints. Finally, we demonstrate that the relationship between carbon trading policy and financialization of non-financial companies is moderated by company's ownership, region, and industry competition.

Shared funding of R&D in small and medium-sized innovative enterprises: the case of Chinese biomedical industry

This study delves into the corporate governance challenges confronted by small and mediumsized innovative biomedical enterprises in the context of equity financing. Its objective is to provide valuable recommendations for the successful implementation of such financing. In order to address issues such as imperfect equity structure, inadequate financial audit systems, and low stability of the core team during equity financing, a range of improvement measures are proposed. These measures comprise optimizing internal management mechanisms, establishing an efficient R&D organizational structure, implementing practical incentive mechanisms for R&D enterprises focused on benefits, and enabling technical experts to actively engage in company ownership structures. Equity financing plays a vital role in resolving the difficulties faced by small and medium-sized innovative biomedical enterprises, particularly in fostering the development of innovative pharmaceutical products within the biomedical R&D field. Thus, it has a positive impact on effectively advancing China’s biomedical industry.”

How convenient is deviance to circumvent and evasion sanctions against Russia? The case of alleged economic crime in a Norwegian seafood company

When Russia attacked Ukraine, national states as well as multinational bodies such as the European Union imposed economic sanctions against Russia. Companies in sanctioning countries were expected to terminate their business with companies in the sanctioned country. However, the threat of bankruptcy made some companies chose deviance to circumvent and evasion sanctions. The case study in this paper describes an insurance firm’s attempt to terminate an insurance arrangement to avoid allegations of money laundering. The ownership of a seafood company in Norway had been transferred from Russians to a Norwegian. However, it seemed that the Russians were still the real owners since the Norwegian had paid nothing for the ownership. This paper presents the civil trial in the case and discusses convenience propositions for the Norwegian based on convenience theory in the dimensions of motive, opportunity, and willingness for deviance.