Ownership Ratio Research Articles

기업의 부가가치정보와 ESG평가정보가 외국인지분율에 미치는 영향

Foreign investors are expected to assume that companies with high value-added information and ESG evaluation information are sound companies and to invest their funds. Therefore, we would like to verify this. The purpose of this study is: 1) Companies with high added value information will have a high foreign ownership ratio. 2) Companies with high ESG evaluation information will have a higher foreign ownership ratio. And 3) we conducted an empirical analysis predicting that value-added information would have a higher positive influence and information power on the foreign ownership ratio than ESG rating information. The research method is based on the company's added value information and foreign ownership ratio data from 2016 to 2020 provided by Fn-guide and ESG evaluation information published by the Korea ESG Research Institute, which is a statistical processing method such as basic statistical analysis, correlation analysis, Regression analysis was performed. To summarize the research results, the correlation analysis results show the dependent variable foreign ownership ratio and variables of interest: 1) added value information and 2) ESG evaluation information (rating (R), environment (E), society (S), and governance (G) sectors) The results showed that there was a significant positive (+) correlation. And the regression analysis results show that both value-added information and ESG evaluation information (rating (R), environment (E), society (S), and governance (G) sectors) have a significant positive (+) effect on the foreign ownership ratio. appear. In addition, ESG rating information was found to have greater influence and information power on the foreign ownership ratio than value-added information. The implications of these research results suggest that foreign investors are interested in and tend to invest funds in companies with high added value information and ESG evaluation information. Therefore, it is expected that added value information and ESG evaluation information serve as useful accounting information for foreign investors in the capital market.

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

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

The role of ESG scores in ESG fund performance and institutional investor selection

This paper conducts a study on ESG funds between 2012 and 2022 to analyze the impact of ESG fund performance indicators on their institutional ownership ratios. The findings show that the performance of ESG funds is positively correlated with the proportion of institutional holdings. External institutional investors tend to be more inclined to hold funds with excellent historical performance, while fund management companies are more inclined to hold funds with poorer historical performance. In addition, fund management companies are more inclined to hold funds with high ESG scores.

Research on the impact of management control on corporate social responsibility and business performance—The case of listed companies in Vietnam

Purpose: There have been many studies on corporate social responsibility. Still, research on the dual relationship showing the impact of management control on corporate social responsibility and business performance has not been exciting researchers. The article also identifies and measures the elements of management control that affect compliance with corporate social responsibility and business performance. At the same time, the paper also analyzes the influence of compliance with corporate social responsibility on business performance. From the research results, listed companies will see the importance of designing management control and complying with corporate social responsibility to maximize the business’s profits. Findings: The article demonstrates the practicality of institutional theory in the relationship between management control, corporate social responsibility, and business performance. Institutional theory influences the relationship between management control, CSR, and business performance by highlighting the role of external institutional pressures, legitimacy, and conformity to societal norms. Companies that strategically integrate institutional expectations into their management control systems can enhance their CSR efforts, improve their reputation, and contribute to better business performance. Methodology: We collect data on 195 manufacturing enterprises listed on the Vietnam stock market in 6 sectors. This study’s main data analysis method is the structural equation modeling method (SEM). The article used AMOS software to evaluate and measure the influence of each factor. Practical implications: The article has analyzed five aspects of management control to corporate social responsibility and business performance: Size of the Board of Directors (BOD), percentage of independent members in the BOD, and concurrence. CEO and Chairman of the Board of Directors, state ownership ratio and foreign shareholder ownership rate. The results show that a company with a CEO who is not the Chairman of the BOD will have a higher level of CSR compliance than a company with a CEO who is also the Chairman of the BOD. The larger the Board size, the higher the level of CSR, but This has not been verified for the company’s business performance. The higher the foreign ownership ratio, the better the CSR compliance; however, this has the opposite direction for the state ownership rate. The higher the percentage of independent members on the Board of Directors, the lower the level of CSR compliance. In terms of impact on business performance in the enterprise: The higher the company’s compliance with corporate social responsibility, the better it’s business performance. A company with a CEO who holds the position of BOD will have lower business performance than companies with a CEO who does not hold the position of Chairman of the Board of Directors. Companies with a high percentage of state ownership will have lower business performance. The higher the percentage of independent members on the Board of Directors, the lower the business performance. Originality: This attests that the research paper I submitted is the result of my original and independent work. I have duly acknowledged all sources from which the ideas and quotations have been obtained. The project does not contain any plagiarism and has not been sent elsewhere for publication.

How does analyst coverage influence corporate social responsibility (CSR)? The governance- and information-based perspectives.

Based on a sample of Chinese public manufacturing firms, this study empirically investigates whether and how analyst coverage drives corporate social responsibility (CSR) under different governance or information conditions. The results show that firms with greater analyst coverage take more social responsibility, representing magnified concerns and better CSR visibility for legitimacy and reputation. This relationship could be strengthened under high governance condition (high institutional ownership ratio, none CEO duality, low executive ownership) or low information situation (high earnings management and low accounting conservatism). These findings provide new evidence of information-based mechanism underlying the promotions of CSR in imperfect information environments.

Do ESG ratings inhibit corporate leverage manipulation? The moderating effects of internal and external supervision

Purpose This paper aims to investigate the relationship between corporate environmental, social and governance (ESG) ratings and leverage manipulation and the moderating effects of internal and external supervision. Design/methodology/approach The authors draw on a sample of Chinese non-financial A-share-listed firms from 2013 to 2020 to explore the effect of ESG ratings on leverage manipulation. Robustness and endogeneity tests confirm the validity of the regression results. Findings ESG ratings inhibit leverage manipulation by improving social reputation, information transparency and financing constraints. This effect is weakened by internal supervision, captured by the ratio of institutional investor ownership, and strengthened by external supervision, captured by the level of marketization. The effect is stronger in non-state-owned firms and firms in non-polluting industries. The governance dimension of ESG exhibits the strongest effect, with comprehensive environmental governance ratings and social governance ratings also suppressing leverage manipulation. Practical implications Firms should strive to cultivate environmental awareness, fulfil their social responsibilities and enhance internal governance, which may help to strengthen the firm’s sustainability orientation, mitigate opportunistic behaviours and ultimately contribute to high-quality firm development. The top managers of firms should exercise self-restraint and take the initiative to reduce leverage manipulation by establishing an appropriate governance structure and sustainable business operation system that incorporate environmental and social governance in addition to general governance. Social implications Policymakers and regulators should formulate unified guidelines with comprehensive criteria to improve the scope and quality of ESG information disclosure and provide specific guidance on ESG practice for firms. Investors should incorporate ESG ratings into their investment decision framework to lower their portfolio risk. Originality/value This study contributes to the literature in four ways. Firstly, to the best of the authors’ knowledge, it is among the first to show that high ESG ratings may mitigate firms’ opportunistic behaviours. Secondly, it identifies the governance factor of leverage manipulation from the perspective of firms’ subjective sustainability orientation. Thirdly, it demonstrates that the relationship between ESG ratings and leverage manipulation varies with the level of internal and external supervision. Finally, it highlights the importance of governance in guaranteeing the other two dimensions’ roles by decomposing overall ESG.

A regression model for determinants of foreign ownership ratio of listed financial firms: Evidence from the Vietnam stock exchange

Foreign ownership in financial enterprises is a crucial characteristic that impacts the activities of these enterprises. Therefore, the topic of foreign ownership ratio in these enterprises and factors that affect this ratio has drawn the attention of many researchers both domestically and internationally. Based on previous research findings along with qualitative research methods, this study provides an overview of theoretical foundations and practical considerations in order to propose a model to investigate the factors influencing the foreign ownership ratio in financial enterprises. The novelty of this research lies in its focus on listed financial enterprises in the Vietnam stock market, specifically in the context of significant fluctuation due to the impact of the COVID-19 pandemic. The proposed model serves as a premise and reference for future studies aiming to evaluate the influence of various factors on the foreign ownership ratio in listed financial enterprises on the Vietnam stock exchange.

Does Investor Sentiment Drive Corporate Green Innovation: Evidence from China

Green innovation plays an increasingly significant role in sustainable development. We use the data of Chinese listed firms from 2010 to 2019 to investigate the impact of investor sentiment on corporate green innovation. The result indicates that optimistic investor sentiment significantly promotes corporate green innovation. Mechanism analysis shows that the higher the financial constraints, institutional ownership ratio, and analyst coverage of a firm, the stronger the impact of investor sentiment on green innovation, indicating that optimistic investor sentiment promotes green innovation through external financing and managerial catering channels. In addition, the impact of investor sentiment on corporate green innovation is more pronounced for state-owned firms. The study sheds light on a novel determinant of corporate green innovation and offers policy recommendations to advance green innovation, environmental protection, and sustainable development.

The Influence of Institutional Ownership, Intellectual Capital, Profitability, Leverage and Corporate Social Responsibility (CSR) on Firm Value at Food and Beverage Industry Companies Listed in the Indonesian Stock Exchange in the Period of 2018-2022

The Influence of Institutional Ownership, Intellectual Capital, Profitability, Leverage and Corporate Social Responsibility (CSR) on Firm Value at Food and Beverage Industry Companies Listed in the Indonesian Stock Exchange in the Period of 2018-2022

Investigation of environmental and health impacts solid waste management problems and associated factors in Asella town, Ethiopia

Solid wastes are substances thrown away by the institutions of individual households in the urban community. The solid waste management practice in Asella town was inappropriate caused environmental pollution and exposed different urban health difficulties. The main objective was to determine the environmental and health impacts of solid waste management problems and associated factors in Asella town. Data collection was carried out through a house-to-house community survey process with a method of cross-sectional study design. A total sample size of 418 households was selected and implemented a simple random and systematic probability sampling technique. The statistical analysis of the binary logistic regression model was used to perform the correlational test about health issues in Asella town.The environmental impact assessment indicators were 13.4% soil pollution, 31.6% air pollution, 20.8% environmental deterioration, and 34.2% water pollution. The health impact indicators were 49.5% respiratory diseases, 18.2% asthmatic (bronchitis) cases, 15.8% diarrheal diseases, 14.8% protozoan illnesses, and 1.7% cancer cases.The odds ratio of females AOR = 1.18; 95%, CI:0.48–2.89, educational districts of can't read and write AOR = 2.31: 95% CI = 0.48–11.1, primary cycle AOR = 2.32, 95% CI:0.58–9.21, Secondary cycle AOR = 2.19, 95% CI = 0.60–7.98, and tertiary cycle AOR = 4.98, 95% C1.06–23.46. the odds ratio of house ownership of government AOR = 2.95, 95% CI:0.54–16.14, private households AOR = 4.18, 95% CI:0.79–22.16 and rented house property AOR = 1.71, 95% CI:0.32–9.18. The odds ratio of income group of lower status AOR = 2.0, 95% CI:0.91–4.98, middle income AOR = 5.7, 95% CI: 0.73–44.53 and higher income AOR = 2.8, 95% CI:0.35–23.14. The odds ratio for sorting of solid waste AOR = 1.38, 95% CI:0.56–3.40, and reusing of solid waste AOR = 7.90, 95% CI:2.12–29.42. Thus, the odds ratio of reusing solid waste was statistically significant correlated factors that limit health issues in Asella town.Therefore, the inadequate solid waste management practice was a query for environmental and health impacts in Asella town. The principles of reusing, reducing, and recovering solid waste management practice must be supported by professional interventions and government policy.

The liability of foreignness and operational security: evidence from emerging markets

PurposeIn this research, we explore the adverse impact of foreign ownership on operational security, a critical operational implication of the liability of foreignness (LOF).Design/methodology/approachThe empirical analysis is based on a multi-country dataset from the World Bank Enterprises Survey, which contains detailed firm-level information from over 8,902 firms in 82 emerging market countries. We perform a series of robustness checks to further confirm our findings.FindingsWe find that a high ratio of foreign ownership is associated with an increased likelihood of security breaches and higher security costs. Our results also indicate that high levels of host countries’ institutional quality and firms’ local embeddedness can mitigate such vulnerability in operational security.Originality/valueThis study is one of the first to uncover the critical operational implication of the LOF, indicating that a high ratio of foreign ownership exposes firms to operational security challenges.

FDI, financial constraint and partial ownership

AbstractThis study uses matched firm‐bank‐FDI data from 1989 to 2016 to explore how a firm's financial constraints affect its foreign affiliate ownership structure choice. Importantly, it tests the hypothesis that parent firms with banks as their largest shareholders hold lower ownership shares in their foreign subsidiaries, in part due to typical bank risk‐averse behaviour. The empirical analysis confirms that foreign subsidiary ownership ratios are negatively associated with parent firms' debt ratios. Moreover, this study finds evidence that greater bank ownership of the investing parent leads to lower foreign affiliate ownership shares. However, this result is not robust to two specifications: ‘crisis times’ when bank lending is greatly restricted to all borrowers, and a follow‐the‐customer relationship where the bank already has an overseas subsidiary in the host country.

Eficiencia técnica en la ganadería de carne bovina en Uruguay

Livestock farming is the agricultural activity with the greatest individual land-use, but it faces competition from other sectors for land, and is criticized for its environmental footprint. In this global context, Uruguay emerges as an important case study, boasting a long tradition and significance in the beef export sector. Enhancing livestock productivity is imperative to mitigate environmental impacts, and bolster farm competitiveness and food production. This study delves into the technical efficiency of cattle ranches focused on cow-calf production in Uruguay during the 2011 agricultural year, with nationwide and mandatory data coverage. Using data from the 2011 General Agriculture Census we estimate a translog stochastic production frontier model encompassing key inputs (livestock units, grazing area, and labor), along with control variables such as soil suitability and infrastructure improvements. Our findings underscore the potential to augment Uruguay's beef production by an average of 26.4%, harnessing existing resources and technology while improving ranch management. Moreover, variables like the extent of reliance on livestock farming as the primary source of income of the ranch, the use of outsourced services, foreign cattle ownership ratios, and agronomic and veterinary consultation exert noteworthy significant impacts on TE.

Vietnam law on stock ownership limits in commercial bank

One of the new points of the Law on Credit Institutions 2024 is adjusting the limit on share ownership in commercial banks. The Law on Credit Institutions 2024 has stricter regulations on share ownership ratios. Accordingly, an individual shareholder is not allowed to own shares exceeding 05% of the charter capital of a credit institution; An institutional shareholder may not own shares exceeding 10% of the charter capital of a credit institution. Thus, the share ownership ratio compared to Article 55 of the Law on Credit Institutions in 2010 has had many changes: the ownership ratio of institutional shareholders decreased from 15% to 10%; shareholders and related persons reduced from 20% to 15%. Maintain the 5% ratio for individual shareholders. As for foreign investors, the above provisions will not apply but will follow the government's regulations. Using analytical methods, the article determines the meaning of changes in the share ownership ratio in commercial banks and provides some comments and recommendations.

Achieving SDGs: The Role of Independent Commissioners, Managerial Ownership, Audit Committees, and Profitability in the Manufacturing Industry

This research examines the influence of Independent Commissioners, Managerial Ownership, Audit Committees, and Profitability on the disclosure of Sustainable Development Goals (SDGs) in manufacturing companies in Indonesia. This secondary research uses quantitative data on 84 manufacturing companies that report sustainability reports from 2020 to 2022, with a total sample of 252. Independent commissioners are proxied by the ratio of the number of independent commissioners to total commissioners, managerial ownership is measured using the managerial ownership ratio, audit committees are measured using the number of audit committees, profitability is measured using return on assets, and SDGs disclosure is measured using the number of SDGs objectives. SPSS was used for hypothesis testing in this research. The results show that independent commissioners, managerial ownership, audit committees, and profitability have an impact on SDG disclosure.

Impact of equity structure on risk of financial distress in Vietnam

This study aims to evaluate the impact of transparency of budget structure on risk of getting into financial distress in Vietnam. The article uses data regarding equity proportion from the financial reports of business entities on Hanoi Stock Exchange (HNX), divided into four main categories, namely large ownership, institutional ownership, managerial ownership, and state ownership ratio, to find the relation between the allocation of equity and the chance a company having financial failure. From the mentioned information, the research attempts to explain the relations, as well as suggestions for companies to prepare and avoid financial distress from an equity structure perspective. Results from the study’s sample show insignificant correlations between the share of owners and financial distress situation of a company, which plays a part to help the overall estimation of risk in businesses as a whole.

The Impact of Corporate Governance and Ownership Structure on The Level Of Corporate Social Responsibility Disclosure of Listed Manufacturing Companies on The Ho Chi Minh Stock Exchange – Vietnam

Purpose: The study has provided an overview of the theoretical foundation and empirical evidence on the impact of corporate governance on the level of corporate social responsibility (CSR) disclosure among listed manufacturing companies on the Ho Chi Minh Stock Exchange in 2021, utilizing secondary data from 118 manufacturing firms. Theoretical framework: In accordance with Agency Theory, the Separation of Ownership and Management, and the Stakeholder Theory, this study aims to investigate the influence of corporate governance characteristics on the extent of corporate social responsibility (CSR) disclosure in the manufacturing sector. Results and conclusion: The quantitative research model is constructed with five corporate governance factors and one control variable related to company characteristics, including the board size, the proportion of female members in the board, the proportion of independent board members, the foreign ownership ratio, the state ownership ratio, and the company size. The results from the Ordinary Least Squares (OLS) regression analysis indicate that the majority of the corporate governance variables are correlated with the level of CSR disclosure, except for the proportion of independent board members. Research implications: The study suggests managerial implications to help businesses recognize the importance of corporate governance in CSR disclosure, aiming to enhance reputation and attract investments. Originality/value: Additionally, the results also demonstrate that company-specific factors, such as company size and financial leverage, significantly impact the company's profitability.

Is ‘Herding’ Peculiar to Certain Stocks? A Perspective from the Turkish Stock Market

We test the existence of daily/weekly herding behavior in the Turkish stock market between June 2013 and October 2020 on the stocks that remained listed on the benchmark stock index over the analysis period. Rather than performing the test on a set of stocks belonging to firms with different characteristics as in the literature, we conduct it on subsets of stocks we form based on foreign ownership ratio, firm size (measured by total assets), and prominent financial indicators (price-to-earnings and market-to-book ratios). Our analysis provides no evidence of herding behavior but yields important insights. Specifically, it demonstrates that financial indicators have no bearing on herding behavior, but investor type and firm size may. A slight indication of herding tendency emerges in stocks with a relatively higher investment from local investors but disappears in those with a comparatively higher investment from foreign investors. This finding suggests a potential market knowledge disparity between local and foreign investors, with the less expert being the local group. Moreover, a faint sign of herding tendency also appears in stocks that belong to small firms, possibly due to a heightened uncertainty inherent in such stocks.

잉여현금흐름정보와 ESG평가정보의 상호작용효과가 외국인지분율에 미치는 영향

The purpose of this study is to verify whether the interaction effect of free cash flow information and ESG evaluation information is related to foreign ownership and how it affects it.
 The research method is based on the free cash flow and foreign ownership ratio data from 2016 to 2020 provided by Fn-guide and ESG evaluation information data disclosed by the Corporate Governance Service, basic statistical analysis, correlation analysis, Regression analysis was performed.
 Summarizing the research results, the correlation analysis results show that the dependent variable foreign ownership ratio and variables of interest 1) free cash flow information and 2) ESG evaluation information (rating (R), environment (E), society (S), governance (G) category) showed a significant positive (+) correlation.
 And the results of the regression analysis show that the interaction effect information between free cash flow information and ESG evaluation information (rating (R), environment (E), society (S), and governance (G) sectors) excludes the social (S) sector. was found to have a significant positive (+) effect on the foreign ownership ratio. In other words, the higher the interaction effect between free cash flow information and ESG evaluation information, the higher the foreign ownership ratio.
 The implication of these research results suggests that foreign investors invest funds with interest in companies with high levels of free cash flow information and ESG evaluation information. Therefore, the interaction effect between free cash flow information and ESG evaluation information is expected to serve as useful accounting information for foreign investors in the capital market.

PENGARUH KEPEMILIKAN INSTITUSIONAL DAN KEBIJAKAN DIVIDEN TERHADAP KINERJA PERUSAHAAN DENGAN UMUR PERUSAHAAN SEBAGAI VARIABEL KONTROL PADA PERUSAHAAN SEKTOR MANUFAKTUR YANG TERDAFTAR DI BEI 2019-2021

This study examines the impact of institutional ownership and dividend policy on the financial outcomes of manufacturing businesses trading on the Indonesia Stock Exchange (BEI) from 2019 to 2021, with the impact of company age serving as a control variable. To determine an organization's Return On Assets (ROA), net income is divided by its total assets. The age of a company is calculated by subtracting the current year from the year it was founded; the Institutional Ownership Ratio compares the percentage of shares owned by institutions to the total number of shares outstanding; and the Dividend Payout Ratio (DPR) evaluates dividends paid to shareholders in relation to earnings per share. The 183 companies included in this study were chosen using a stratified random selection technique. This study's results suggest that (1) institutional ownership significantly affects firm performance in a positive way. (2) A dividend plan is excellent for a company's bottom line.