Ownership Structure Of Companies Research Articles

Capital Structure in Emerging Markets: Evidence from China

Although corporate capital structure has been intriguing to scientists for a number of years, very little research has been conducted on the topic for companies in emerging markets. The purpose of this paper is to investigate the determinants of capital structure using a sample of 195 non-financial firms from emerging markets in 2012-2016.
 
 The inclusion of a specific dataset from Chinese companies lends vital focus to this investigation and provides crucial ballast for the investigative function. The final sample contains data on 57 China companies and 90 other companies of emerging markets. Our article focusses on identifying the determinants of capital structure of Chinese companies in comparison with companies of other BRIC countries (Brazil, Russia, India), and sets out a series of hypotheses concerning capital structure with domestic and international variables. We compare and contrast our data using a series of custom evaluation models based on linear regressions.
 
 The results confirm positive impact of tangibility on total debt ratio due to a high share of capital-intensive industries in the sample. It is revealed that growth rates and firm size have positive impacts on financial leverage in Chinese companies as compared to other BRIC countries, and these effects are stronger in capital-intensive industries. We illustrate how a strong negative impact of ROA has increased in recent years, and connect this phenomenon to a considerable decrease in lending rates following a large-scale stimulus program which encouraged Chinese companies to borrow money instead of relying on retained earnings. The presence of the Chinese state in the ownership structure of companies is revealed to be significant for the majority of Chinese companies, especially for the oil and gas and metallurgical sectors.
 
 Our conclusions highlight the importance of government policies and special market conditions in explaining the financing behaviour of companies in emerging countries like China. While capital structure choice varies significantly across industries, nevertheless the differences between Chinese and other BRIC companies reflect the differences in the institutional structure of financing mechanisms in countries. This research and evaluation is especially timely considering the increased focus on Chinese commercial exposure on the world stage, a tendency which is bound to increase research interest in the near future across a range of disciplines. As such, our study and our broad range of conclusions will prove invaluable for students, researchers, policymakers, and decision makers in business, commerce, politics and academia at all levels.

Relationship of Property Structure and Performance of High-Tech Technology Companies

Based on data from high-tech companies in Eastern and Western Europe, the article analyzes the relationship between ownership structure parameters and some corporate governance factors and company performance, and examines the established patterns of ownership structure of successful companies. It is shown that at the initial stage of development of companies, the “Sole leader and like-minded people” is a more favorable model of ownership structure, and at the second stage of development, when the company becomes a large business, the “Leader Team” with a less concentrated level of ownership is a higher priority model.

The Effect of Ownership Structure on the Yield Spread of Corporate Bonds

In the recent recession scenario in Brazil, the credit market experienced shortages, reinforcing the search for alternative sources of credit by companies, such as the issuance of corporate bonds. Among the aspects that may influence the yield spread of companies is the presence of family firms and institutional investors in their ownership structure. Therefore, this study aims at verifying whether the participation of family firms and institutional investors—in the ownership structure of companies—has an impact on the yield spread of their bonds. To verify this impact, this study analyzes 171 companies that carried out 385 bond issuances, from 2010 to 2018. The effects of ownership structure are tested by descriptive statistics, correlation analysis and multiple cross section regression with pooled data. The result shows that the greater the participation of institutional investors in the companies’ ownership structure, the lower the yield spread of their bonds.

The role of profitability in mediating company ownership structure and size of firm value in the pharmaceutical industry on the Indonesia stock exchange

The purpose of this study was to examine the effect of ownership structure, firm size, and profitability on firm value. The research model was built by placing profitability measured by Return on Equity (ROE) as a mediating variable on the effect of ownership structure and firm size on the firm value measured by Price to Book Value (PBV). The study was conducted on the Pharmaceutical Industry in the Indonesia Stock Exchange for the period 2013-2018, with a total sample of 42 obtained by purposive sampling technique and analyzed by path analysis method. The results showed that foreign ownership had a significant positive effect on profitability but did not have a significant positive effect on firm value. Managerial ownership has no significant positive effect on profitability and no significant negative effect on firm value. Institutional ownership does not have a significant positive effect on profitability and firm value. The firm size has a significant positive effect on profitability but does not have a significant positive effect on firm value. Profitability has a significant positive effect on firm value.

Mergers and acquisitions in Greece

AbstractThe financial crisis has paradoxically protected many sectors of the Greek economy from collapse. The ownership structure of companies in Greece was dominated by state and local government companies. Private companies have not only contributed capital and protected employees from unemployment, but have also given a new organisational culture to companies.

L' effet synergique des déterminants de l'accès au financement bancaire par les PME au Cameroun

ABSTRACT This paper explores the synergistic effect of the determinants of access to bank financing by Small and Medium Sizes Enterprises (SMEs) in Cameroon. The methodology of analysis is the binomial logistic regression applied on data collected by a questionnaire administered to a sample of 78 SMEs. Three main results stem from this research. Firstly, the bank-firm relationship measured by the duration of the relationship and the number of banks in a financing relationship with the firm has a positive and significant effect on access to bank credit. Secondly, the company's ownership structure has a significant impact on access to bank financing. Thirdly, the profile of the manager captured through his age has a significant influence on SMEs access to bank financing.

Capital structure and performance in Latin American companies

The purpose of this study is to explain the financial performance of companies in Latin America through the lens of capital structure and ownership structure. We perform a quantitative analysis of companies in Brazil, Chile, Mexico, and Peru using a panel data method. To avoid endogeneity problems, instrumental variables, generalised method of moments models, and panels with random effects are employed. The data cover the period 2000 to 2015. We find a positive relationship between financial performance, growth, and size of the company. However, there are mixed results for short- and long-term financial leverage, as well as for company liquidity. With respect to the ownership structure of Chilean companies, a positive effect is observed for the first major shareholder with financial performance. In general, our results are in line with those of previous studies. However, the existence of mixed results between companies and countries makes for an interesting and novel conclusion.

Study of Operational Efficiency of Large-Scale Publicly Owned Companies in Russia

A sustainable economic growth is partly a consequence of the best possible balance between public and private sectors. Reasons for changed government efforts in economy are highly diverse and lie in the area of strategic development goals. A review of evidence-based studies shows that public ownership in a capital of companies influences some characteristics of their operational activities. The specific components, elaborated in the paper, contribute to this. Based on data provided in financial statements of leading publicly owned companies in Russia, the research aims at identification of causal relationships in composition and ownership structure of companies, as well as their impact on economic ratios. Researchers verified the assumptions, put forward in this respect, using the correlation-regression analysis. The basis for the operational efficiency comparison included the return on equity (ROE), return on assets (ROA), return on sales (ROS), equity ratio and current liquidity ratio. Findings show that there are sufficient arguments in favour of the assumption that publicly owned companies are consistently less efficient against the private ones. Obtained data made it possible to conclude that a change in the state’s share in the capital of large-scale companies in Russia significantly influences the return on assets and return on equity only. Other ratios under consideration express poor correlations. The heterogenic impact on adjacent ratios of operational efficiency prevents from concluding in a rigorous manner that publicly owned companies are a priori less efficient. One needs to keep in mind sector affiliation and a capital concentration ratio.

Ownership structure and financial performance of Spanish port service companies

The Spanish port system represents approximately 20% of the transport sector’s GDP. We analyse the impact of ownership structure, in particular the family characteristics of Spanish port services companies, on profitability. Our study reveals that the ownership of these companies is highly concentrated, with more than 80% having a dominant shareholder, while over 60% are in the hands of a family, which in most cases is the only shareholder. Of the port services themselves, we find that the most profitable one is pilotage, with an average Return on Assets (RoA) of 26%, while the least profitable port service is cargo handling (7.8%); the rest have similar returns, ranging between 12 and 14%. In terms of the ownership-profitability relationship, the results lead us to conclude that companies with one sole or dominant shareholder are more profitable. We show that profitability declines when the sole shareholder is a member of the family. We also find that companies in which the family maintains ownership in second or successive generations are more profitable than those of the first generation. These results suggest that the existence of other, non-family, shareholders reduces the negative influence of the family, and that the alleged greater degree of professionalization of managers in second and successive generations contributes to improving the results of family businesses. We believe our results are applicable to other family businesses outside the port domain.

Ownership structure of a company and accounting earnings management

The objective of our study is to investigate whether the ownership structure of a company, including ownership concentration, managerial ownership and the presence of institutional investors, affects accrual earnings management practices. We first modelled discretionary accruals using the modified approach of Jones (1991), and then we built the model describing the relationship between discretionary accruals and elements of ownership structure of companies and control variables, determining regression using the least square method. We provided evidence of negative dependence between the magnitude of accrual earnings management and shareholder concentration. We do not corroborate the relationship between accrual earnings management and managerial ownership. The presence of institutional investors reduces the magnitude of accrual earnings management. We do not provide evidence that the presence of State Treasury affects accrual earnings management. We do not confirm that accrual earnings management is used for meeting or beating earnings benchmarks.

Развитие альтернативной энергетики в России в контексте формирования модели низкоуглеродной экономики

The article is dedicated to the analysis of the development of alternative energy in Russia as one of the key factors of forming a low-carbon economy model. Authors reviewed the main stages of forming the institutional environment which regulated the process of the transition to a low-carbon economy model and a wider use of alternative energy including renewable energy sources (RES).Authors analyzed the renewable energy industry in Russia. The empirical base of the study consists of auctions results conducted in the framework of the government support of RES during 2013-2018 and the information system “SPARK”. Using the Concentration ratio, the Herfindahl-Hirschman and the Hall-Tideman indices authors revealed a high level of concentration in this industry in the context of each type of RES. In addition, an analysis of the ownership structure of companies has shown that the most successful companies are companies in the form of partnerships between the state, a Russian company and / or a foreign company.

Does Accounting Disclosure of Ordinary Free Float, Investment Held and Strategic Ownership Matters for Corporate Financial Policies and Performance?

This empirical research is the first which examine the relationship of structure-performance-leverage-dividend. Thus this research aims to observe the link between these variables for the interest of shareholders, potential investors, and managers. The ownership structure of a firm is examined for its link with its performance, capital structure and other decision making. In this research paper, the main aims are to identify and explore the accounting disclosure of three defined ownership structure, the public ordinary ownership (free float shares) (FF), the strategic (managerial) ownership (SS), and the investment held ownership (IH) and also seek toinvestigate and examine how the ownership structure of companies influence corporate financial performance (profitability and liquidity), leverage and dividend policy using earnings per share (EPS), total assets (TA) and industry type (IND) as control variables. Data used in the analysis were collected from the annual financial statements. dimensions. In the reserach the time series data of different variables related to Ownership structure, firm’s performance and dividend policy of the companies is used. Four multiple linear regression analysis are used to test the research hypotheses. The sample used examines the effect of three types of ownership structure of companies other than financial ones as independent variables on return on equity ratio, current ratio, debt/equity ratio, dividend yield ratio as dependent variables of 116 companies listed on the Egyptian Stock Exchange between 2012-2017. According to regression analysis, the results showed that there is a significant positive relationship between ROE and the three types of ownership structure (FF, IH, SS) and also with the EPS and it is found that the relationship between liquidity measured using the current ratio and ownership structure (FF and SS) is positive and significant, while for investment held ownership found a significant negative relatinship. The result reveals also that all ownership structures are negetavely correlated with high extent to the financial leverage measured using debt/equity. Findings indicate also an insignificant positive relationship between dividend yields and FF and SS, while for IH found insignificant negative. EPS found to have a significant positive impact on ROE and dividend yields. TA representing the firm size have a significant negative impact on the liquidity of firms and significant positive impact on its financial leverage level. The findings in this research are useful for investors to understand how the financial policies and performance of firms are affected by the level and type of managerial ownership; high level of managerial ownership decreases the tendency of firms to go for debt financing, while increase the dividends yield as the EPS is enhanced in such firms.

The Cost/Consequences of Bad Corporate Governance

Corporate governance is something that benefits us all as players in one way or the other in the different segments of the economy, be it as investors, creditors, directors, regulators, service providing professionals, etc. Ethics, good standards in financial reporting and corporate governance enhance the common good rather than diminish it. It has been argued that corporate governance can be viewed from two perspectives or models: the narrow model/perspective and the broad model/perspective of corporate governance. The narrow view or model of corporate governance deals with how structures within a corporate entity or enterprise receive their basic orientation and direction. The broad view or model of corporate governance is the centre-point of both market economy and democratic society. The broader model suggests that issues of institutional, legal and capacity building as well as the rule of law are at the very heart of corporate governance. In order to achieve good corporate governance, there is need for effective and efficient control measures in dealing with the ownership structure and management of companies as well as issues of accountability, transparency and reporting to ensure shareholder and stakeholders value maximization. In order to ensure that successful corporate governance is in place, there are certain essential principles of corporate governance that must be adhered to. Compliance should embody observance of statutory provisions, codes of corporate governance, as well as ethics. The isolation of ethics or ethical behaviour from business dealings have in so many instances in the past led to business and system failures with catastrophic consequences. The consequences of bad corporate governance are far too high for the subject to remain a good to have. Corporate governance has become a must have and a sine qua non for meaningful growth and economic development.

중국 상장기업 지분구조 및 재무리스크와의 관계에 관한 연구 : 2011-2017제조업 상장기업의 중심으로

최근에 몇 년 동안 상장기업들은 경제적 이익을 지나치게 추구하고, 재무리스크를 무시하여, 심지어는 자신의 재정위기로, 심지어는 파산을 선고한 예가 이미 셀수없이 많다. 회사의 재무리스크에 영향을 주는 요소가 매우 많은데, 예를 들면 비이성적 담보, 관리자의 도덕적 문제, 역선택 및 부당관련 거래 등과 같은 것들을 분석하면, 이러한 요인을 분석하면 부당한지 분구조가 근본원인에서 회사의 전체구조에 영향을 미친다는 것을 알 수 있다. 회사가 재무리스크를 심층적으로 발생시키는 원인이다. 상장회사는 주식시장의 혈액으로서 그 주식구조가 불합리한 것은 투자자들의 중요한 이익에 큰 영향을 미치며, 전체 주식시장과 자본시장의 지속적인안정성 과 직접적으로 관련이 있다. 따라서 본 연구는 우선 제조업상장기업의 지분구조와 재무리스크의 관계를 지분구조차원에서 연구하고 있다.BR 본 연구는 우선 2011~2017년 중국의 상장제조 기업에 1377개를 지분구조와 재무위험에 관한이론을 결합하여 선정한다. 지분의 유통성구조,지분의성질,지분집중도,지분균형의 네 가지 측면을 제시하고, 연구가 가정적으로 회귀모델구축, 통계분석기법으로 중국제조업 상장기업의 지분구조와 재무리스크구조에 대한 기술적 방법은 회귀분석을 사용합니다. 회귀모델을 구성하기 위한 가설을 세우고, 중국제조기업의 상장기업의 지분구조 및 재무리스크구조에 대한 기술통계하여 상관관계분석 및 회귀분석방법을 사용한다. 실증연구결과는 지분집중도와 재무위험의 상관관계가 유의성를 가장 높이고 지분집중도가 높을수록 회사의 재무위험수준을 통제하는 데 유리하다는 결과가 나왔다. 지분균형도는 재무리스크의 수준과 역상관되며, 상장제조업체의 지분구조는 재무리스크사이에 유의성을 높이게 있으며, 유통주식의 비율은 재무리스크 수준의 역상관이 되어있지만 유의성이 거의 없다. 국유주식의 비율은 재무리스크 수준과 역상관이 있다.

Shareholder activism impact on efficiency in Brazil

Purpose This paper aims to investigate the long-term impact of shareholder activism on Brazilian listed companies. Design/methodology/approach This study uses a sample of 194 companies in 2010, 2012 and 2014 and a two-stage data envelopment analysis to generate an efficiency score based on corporate governance, ownership structure and financial characteristics of companies. In the second stage, the study applies a bootstrap truncated regression to identify whether there is a relationship between the efficiency scores and a company-level activism index. Findings The results show a negative correlation between the efficiency scores and the activism index, suggesting that activist shareholders tend to target less efficient companies. A time analysis over the period 2010-2014 does not offer evidence of impacts of activism on changes of the efficiency scores. Practical implications Activist shareholders target less efficient companies. Shareholder activism increased after regulation that facilitated shareholder voting and required greater company transparency was introduced. Originality/value The two-stage nature of the procedure used in the analysis ascertains that this result is not spurious, assuring data separability between productive resources and contextual variables. This study contributes to the scarce literature on activism in emerging markets.

Ukuran Perusahaan, Kepemilikan Institusional, Struktur Kapital dan Nilai Perusahaan Publik di Indonesia

ABSTRACT The purpose of this study was to determine the importance of the role of corporate value in the manufacturing industry of public companies in Indonesia. Specifically, this study intends to examine whether company size and ownership structure play a role in increasing the value of the company, especially through the capital structure. This study focuses on manufacturing companies in Indonesia that are listed on the Indonesia Stock Exchange (IDX). Determination of company samples in this study was carried out by purposive sampling method, with the criteria of manufacturing companies listed on the Indonesia Stock Exchange during the period of 2016, the data collection method used in this study was the method of documentation study. The data analysis method used is Path Analysis. The results of the study, the minimum value of the company size was 12.74, while the maximum value was 30.87. The average value of company size is 23.98 with a standard deviation value of 4.87. Institutional ownership variables with a minimum value of 0.87 and a maximum value of 99.38 with an average value of 59.57 and a standard deviation of 29.22. The capital structure variable with a minimum value of 10.52 and the highest is 1658.82 with an average value of 133.98 and a standard standard deviation of 19.33. In the variable value of the company it is known that the minimum value is 0.14 and the highest is 62.78 with an average value of 3.35 and a standard deviation of 20.41. Noting the value of the cut-of-value and Goodness of fit results of the model, it appears that the criteria are good so that it is feasible to be used for further testing.

Empirical analysis of Dividend Policy of Public and Private Companies in Russia

The ownership structure of large Russian companies is characterized by a high share of state participation, but the relationship of dividend policy with the ownership structure (public or private) is not defned. Statistical analysis of the Russian companies shows that this relationship exists and can be nonlinear. In the course of the regression analysis, the authors tested hypotheses about the existence of a negative relationship between the volume of dividends paid and the share of state participation. We use panel data from nonfnancial companies listed in the Moscow stock exchange from 2008 to 2016, who paid dividends during this period; 150 companies in total. Three specifcations were tested: the frst one uses the dividend payout ratio as a dependent variable; the second — the share of dividends in the free cash flow; the third has a quadratic form — the nonlinear dependence of dividend payout ratio and share of state participation. Control variables were based on life cycle theory. Testing has shown that in the linear form there is no statistically signifcant relationship between the indicators of dividend payouts and the share of state participation. We have shown that the relationship between the dividend payout ratio and the share of government participation is non-linear and has the form of an inverted u-shape parabola. For a low level of state participation the dependence is positive but for a high level of participation, it is negative. This result can be explained in the framework of the agency theory: a positive relationship indicates the use of dividend payouts to resolve the agency conflict; a negative — the concentration of money in the hands of managers due to minority shareholders weakness. Further development of the study may include the addition of institutional constraints to the model, as well as the expansion of the concept of the dividend policy outcome within the framework of the frm’s sustainable development theory.

(Analysis of the Impact of the Ownership Structure of Russian Companies on Their Performance and Dividend Policy)

Russian Abstract: На основании показателей выборки из 146 российских публичных компаний за период с 2006 г. по 2016 гг. в статье исследуются тенденции в сфере их дивидендной политики. Были выявлены существенные отличия в дивидендной политике частных компаний и КГУ. Начиная с 2007 г. зафиксирована стабильная тенденция переноса сроков выплаты дивидендов по итогам прошлого года на более поздний период времени внутри текущего года. В работе показаны разные модели дивидендной политики частных компаний и КГУ в зависимости от изменения рентабельности капитала и уровня долговой нагрузки. У КГУ зависимость между коэффициентом дивидендных выплат относительно чистой прибыли и рентабельностью капитала являлась значимой и отрицательной, в то время как у частных компаний она была незначима. Было установлено, что на процесс принятия решения о произведении дивидендных выплат в текущем году влияние прямой или суммарной государственной доли незначимо, а влияние косвенной доли значимо и положительно. Косвенное владение позволяет выплачивать дивиденды, которые являются следствием более эффективного управления и повышенности финансовой результативности. Также результаты оценки подтверждают, что финансовая эффективность и наличие притока денежных средств после учета инвестиционной программы ведет к росту вероятности дивидендных выплат. English Abstract: Based on the sample numbers from 146 Russian public companies for the period from 2006 to 2016, in the article tendencies in the sphere of their dividend policy are investigated. Significant differences in the dividend policy of private companies and KSU were revealed. Since 2007, there has been a stable trend of postponing the payment of dividends for the last year for a later period of time within the current year. Different models of the dividend policy of private companies and KSU are shown in the paper, depending on changes in the profitability of capital and the level of debt load. At KGU, the relationship between the dividend payout ratio relative to net profit and the profitability of capital was significant and negative, while for private companies it was insignificant. It was established that the influence of direct or total state share is insignificant on the process of making a decision on making dividend payments in the current year, and the influence of the indirect share is significant and positive. Indirect ownership allows you to pay dividends, which are the result of more effective management and increased financial performance. Also, the results of the assessment confirm that financial efficiency and the availability of cash inflows after accounting for the investment program lead to an increase in the probability of dividend payments.

Pengaruh Profitabilitas ,Pertumbuhan Perusahaan ,Struktur Kepemilikan , Dan Ukuran Perusahaan Terhadap Struktur Modal Dan Nilai Perusahaan (Studi Pada Perusahaan Manufaktur Di Bursa Efek Indonesia)

This study aims to examine and examine the effect of profitability, company growth, ownership structure and firm size on firm value through capital structure as a mediation variable on manufacturing companies In Indonesia Stock Exchange. The analysis model used is the model of structural equation and analytical tool using Smart Partial Least Square (PLS). The number of companies studied are 17 companieswith observation year during 2009-2014. Research sampling with purposive sampling method based on the criteria of manufacturing companies listed in Indonesia Stock Exchange during the observation period, 2009-2014, has paid cash dividend, has complete data about Debt to Equity Ratio (DER), Dividend per share the previous year, Return on Equity (ROE), Rate of Return on Assets (ROA), Earning Per Share (EPS), has been audited by a public accountant with an unqualified auditor's opinion, publishes consecutive financial statements, and has positive equity, Observation of 17emittenwith 102 observation periods.The results in found that profitability, company growth, firm size, and capital structure have an effect on firm value, but the ownership structure has no effect on firm value. The ownership structure affects the capital structure but profitability, company growth, and firm size have no effect on capital structure. Furthermore, there is found mediation of capital structure on indirect influence of company growth, ownership structure, and firm size to firm value, but there is no mediation of capital structure on indirect effect of profitability to firm value. The findings of this study support Signaling Theory, Packing Order Theory, Agency Theory, and Static trade-off theory.Keywords: Profitability, Growth Company, Ownership Structure, Firm Size, Capital Structure, Firm Value, Manufacturing company, Capital Market.

Transparency, Social Responsibility and Corporate Governance: Human Capital of companies

Companies develop their activity in an environment characterized by knowledge-based economies, with qualified and highly skilled workers. Human Capital is one of the most important intangible resources that companies have to generate sustainable wealth. The main objective of this paper is to analyse the Human Capital information provided by companies in the field of Corporate Social Responsibility and Corporate Governance. Using the methodology of content analysis, this paper analyses the Human Capital disclosure contained in social responsibility reports of Spanish companies belonging to the IBEX 35. In addition, it identifies factors related to Corporate Governance (characteristics of the Board of Directors, and ownership structure of companies) with greatest impact on information provision. Balanced panel data are used to test our hypotheses. Empirical evidence shows a quadratic U-shaped relationship among the size of the board, independence, and the ownership concentration with Human Capital disclosure; and an inverted U-shaped relationship between managers’ ownership of shares and Human Capital disclosure. In addition, it has been found that companies with greater gender diversity on their Board, as well as with greater board activity, tend to disclose more information related to Human Capital.