Percentage Of Ownership Research Articles

THE EFFECT OF PUBLICITY OF THE PRESIDENT DIRECTOR AND MAJORITY SHAREHOLDERS ON TAX AVOIDANCE

The study uses the volume search index (SVI) to see the publicity of the president director through Google Trends, and uses the percentage of share ownership to see stocks that aim to influence tax avoidance. The research object used is a public company registered at PT. Indonesia Stock Exchange and the 50 richest people listed on Forbes in the 2013-2018 period. The sample data of selected companies were 24 companies of 121 observation data for 6 years. This study uses multiple linear analysis. The results of the study support the first hypothesis which indicates that the main director who gets higher attention will do tax avoidance. Firms with higher publicity tend to use more tax planning services from auditors. While the research results contradict the second hypothesis that the higher the share owner will not do tax avoidance.In the end, it is hoped that the results of this research can be used to encourage the government to accelerate the Base Erosion and Profit Shifting mechanism which can be used as a reference for investors and company management to improve tax avoidance strategies so that in the future it will provide maximum benefits for the firm sustainability.

THE EFFECT OF PUBLICITY OF THE PRESIDENT DIRECTOR AND MAJORITY SHAREHOLDERS ON TAX AVOIDANCE

The study uses the volume search index (SVI) to see the publicity of the president director through Google Trends, and uses the percentage of share ownership to see stocks that aim to influence tax avoidance. The research object used is a public company registered at PT. Indonesia Stock Exchange and the 50 richest people listed on Forbes in the 2013-2018 period. The sample data of selected companies were 24 companies of 121 observation data for 6 years. This study uses multiple linear analysis. The results of the study support the first hypothesis which indicates that the main director who gets higher attention will do tax avoidance. Firms with higher publicity tend to use more tax planning services from auditors. While the research results contradict the second hypothesis that the higher the share owner will not do tax avoidance.In the end, it is hoped that the results of this research can be used to encourage the government to accelerate the Base Erosion and Profit Shifting mechanism which can be used as a reference for investors and company management to improve tax avoidance strategies so that in the future it will provide maximum benefits for the firm sustainability.

Ownership Structure and Real Earnings Management: Evidence from Nigeria

Financial statements are expected to assist users in decision making by reporting the true and fair value of companies. However, there always exists the potential risks of manipulations of the reported results if the numbers were intentionally prepared to misrepresent the actual performance or conditions of the companies. Manipulating the reported earnings to achieve pre-set objectives is an art known as earnings management which can be classified into real or accrual manipulations. This study examines the effects of ownership structures (managerial, institutional, and foreign) on real earnings management in Nigeria. The analyses involve a sample of 72 non-financial firms with 360 firm-year observations for a period 2014-2018. Data was collected from the financial reports of these companies, Thompson Reuters, and Bloomberg databases. The multiple regression technique was employed for panel data analysis. The results show that managerial ownership increase management’s desire to manipulate the reported earnings, while institutional ownership have insignificant relationship with real earnings management. Also, the findings reveal that foreign ownership prevent managers’ from manipulating the financial statement. Thus, the study recommends that listed companies in Nigeria should consider higher percentage of foreign ownership to improve their monitoring and have quality financial statement.

Peran Manajemen Laba, Kompensasi Direksi, dan Kepemilikan Saham Direksi Terhadap Agresivitas Pajak pada Industri Manufaktur di Indonesia

This study aims to examine the effect of profit management, directors 'compensation, and directors' share ownership on the tax aggressiveness in manufacturing companies listed on the Indonesia Stock Exchange during the 2014-2018 period. The sample technique used in this study is using purposive sampling method. In addition, the regression analysis model used in this study is the multiple regression analysis method using IBM SPSS V.23 software. The results of this study prove that profit management variables measured by discretionary accruals (DA) and directors' share ownership variables (KSD) as measured by the percentage of share ownership owned by directors have no effect on tax aggressiveness as measured by Effective Tax Rates (ETR). However, different from the directors 'compensation variable (KD) measured by the natural logarithm of the amount of directors' compensation given during one period has a negative effect on tax aggressiveness as measured by Effective Tax Rates (ETR).

Foreign Ownership and Audit Fees in European Listed Firms

This paper investigates whether foreign ownership affects audit fees by analyzing shareholdings of listed firms from Western European countries. The results show that foreign ownership is an important factor that drives the demand for audit services. However, the willingness to pay higher audit fees is mainly driven by the quality of governance and investor protection of the foreign investor's home country. This is consistent with the notion that foreign investors encourage the firms that they invest in to implement the same corporate governance practices in terms of auditing that they themselves are subject to in their home country. Finally, we document that the influence of the foreign investor on audit fees is increasing in the percentage of ownership held.

Ownership Structure and Earnings Management: Empirical Evidence from Listed Pharmaceuticals and Chemical Firms of Bangladesh

Objective – This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique – Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings – It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty – Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firm-specific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. Type of Paper: Empirical

The effect of institutional ownership on listed companies’ tax avoidance strategies

ABSTRACT The percentage of institutional ownership in China has increased gradually. Does this characteristic of Chinese institutional investors affect their participation in corporate governance, which in turn, affects corporate tax avoidance activities? We take 1108 listed Chinese companies from 2009 to 2017 to study this issue. The paper uses average daily total market capitalization as an instrumental variable to test the endogeneity problems. We run a quantile regression (QR) at the median level as robustness testing to overcome the fat tail of financial data. Then, the shareholding ratio of majority shareholders is introduced to verify that ownership concentration is one of the mechanisms through which institutional shareholders influence corporate tax avoidance decisions. The findings are as follows: The proportion of institutional investors’ shareholdings is positively related to the degree of enterprise tax avoidance. The increase in institutional investors’ shareholdings is likely to promote corporate tax avoidance. When the level of ownership concentration is low, the increase in institutional ownership can play a greater role in promoting tax avoidance.

Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh

Objective – This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique – Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings – It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty – Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firm-specific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. Type of Paper: Empirical Keywords: Ownership structure; Institutional Shareholdings; Foreign Shareholdings; Earnings Management; Bangladesh. Reference to this paper should be made as follows: Hossain, D.A. 2020. Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh, J. Fin. Bank. Review, 5 (2): 58 – 69 https://doi.org/10.35609/jfbr.2020.5.2(3) JEL Classification: G40; G41; G49.

Board diversity and firm performance in the U.S. tourism sector: The effect of institutional ownership

Abstract This study examines the relationship between board diversity and firm performance in the U.S. tourism sector by using institutional ownership as a contingency that moderates this relationship. The study's sample includes publicly-traded companies from the U.S. restaurant, hotel and airline industries. The hypotheses are tested via two-way fixed-effects regression, and the findings of the study indicate that board diversity is positively associated with financial performance (Tobin's Q), and the effect of board diversity on performance is contingent on the degree of institutional ownership. More precisely, the study finds that board diversity has a larger effect on financial performance when institutional ownership is low on a tourism firm's ownership structure. Overall, the findings suggest that boards' internal control and monitoring on management is important to derive higher financial performance, and even yet it is more important when external monitoring by institutional owners, proxied by percentage of institutional ownership, is weak.

Birds of a feather flock together: ownership in cross-border acquisitions by emerging multinationals

PurposeDespite prior studies on cross-border acquisitions (CBAs) have analyzed the determinants of ownership strategies; there is still a quest for evidence on how the differences between home and host market characteristics affect the ownership percentage. Prior studies have acknowledged that entering host countries with greater uncertainty makes multinationals reluctant to acquire high levels of ownership. Nevertheless, emerging multinationals (EMNEs) are usually used to operating under greater levels of uncertainty than multinationals from advanced countries (AMNEs), which can imply different ownership strategies. The purpose of this study is to analyze the ownership percentage acquired by MNEs when designing a CBA in emerging or in advanced countries, and to analyze the extent to which the ownership strategy in emerging countries differs between EMNEs and AMNEs.Design/methodology/approachMobile telecommunications industry is used as research setting to provide empirical evidence of the interaction effect of the advanced versus emerging nature of the host and home countries on the ownership acquired in CBAs.FindingsResults confirm that both home and host countries' characteristics are relevant in explaining the ownership strategies of MNEs.Originality/valueThe authors contribute to the strategy and IB literatures by providing empirical evidence on the recent debate on whether the internationalization strategies followed by EMNEs are similar to the traditional patterns of AMNEs, and analyze how EMNEs differ from AMNEs in their ownership strategies in emerging countries. Focusing in the mobile telecommunications industry, the authors also contribute by extending the analysis to an international and cross-cultural setting that includes 48 mobile groups that come from 35 home and 81 host countries.

Foreign Ownership and Audit Fees in European Listed Firms

This paper investigates whether foreign ownership affects audit fees by analyzing share-holdings of listed firms from Western European countries. The results show that foreign ownership is an important factor that drives the demand for audit services. However, the willingness to pay higher audit fees is mainly driven by the quality of governance and investor protection of the foreign investor’s home country. This is consistent with the notion that foreign investors encourage the firms that they invest in to implement the same corporate governance practices in terms of auditing that they themselves are sub-ject to in their home country. Finally, we document that the influence of the foreign investor on audit fees is increasing in the percentage of ownership held.

Pengaruh Good Corporate Governance, Kepemilikan Konsentrasi dan Kepemilikan Manajerial terhadap Earnings Management (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI)

This study aims to determine the effect of good corporate governance, concentration ownership and managerial ownership on earnings management. The quality of corporate governance is measured using an index using instruments adopted from the corporate governance Perception Index (CGPI) issued by The Indonesian Institute of Corporate Governance (IICG). Ownership concentration is measured by the percentage of share ownership by individuals or groups outside of managers and the public. Managerial ownership is measured by the percentage of the company's common stock ownership by managers and commissioners. The analytical method used is multiple regression. This study uses empirical data from the Indonesia Stock Exchange (IDX) with a sample of 154 observations from 33 manufacturing companies. The results of the study showed a significant positive effect of ownership concentration on earnings management.Keywords : Good corporate governance; ownership concentration; managerial ownership; earnings management.

The potential impact of managerial entrenchment on firms’ corporate social responsibility activities and financial performance: evidence from Iran

PurposeThe present study aims to assess the effect of managerial entrenchment on firms’ corporate social responsibility (CSR) activities and financial performance in Iran.Design/methodology/approachIn this paper, the variable of managerial entrenchment, which includes board independence, management duality, management tenure, the board compensation, independence and ownership percentage, is initially analyzed using the exploratory factor analysis method, and its effect on performance and CSR is evaluated using the multivariable regression test. Given that a total of 103 listed companies on the Tehran Stock Exchange are selected during 2012–2017. In this paper, return on assets (ROA) and Tobin’sQare the two variables to measure financial performance.FindingsThe results of hypotheses testing indicate that there is a positive and significant relationship between managerial entrenchment and financial performance based on the ROA and Tobin’sQindices, separately. Moreover, the results of this study indicate that there is also a positive and significant relationship between managerial entrenchment and CSR activities.Originality/valueThe current study almost is the first study, conducted in a developing country similar to Iran, and the provided results might be beneficial to other developing countries.

Pengaruh Audit Committee, Ownership Structure, dan Chief Executive Officer terhadap Financial Distress pada Perusahaan Sektor Perdagangan, Jasa, dan Investasi yang Terdaftar di Bursa Efek Indonesia pada Tahun 2015-2018

Financial distress is a condition that occurs before a company goes bankrupt, so before that happens, the company needs to take actions such as good corporate governance practices. The purpose of this research is to determine the effect of the audit committee, ownership structure, and CEO on financial distress in trading, service, and investment companies listed on the Indonesia Stock Exchange for the period 2015-2018. The analysis technique used is logistic regression analysis. This type of research is quantitative by using a sample of 25 companies determined through a purposive sampling technique. The results showed that the frequency of audit committee meetings had a significant and positive impact on financial distress, and institutional ownership had a significant and negative impact on financial distress. While the other variables include: audit committee size, audit committee competence, audit committee independence, managerial ownership, family ownership, government ownership, foreign ownership, block holder ownership, and CEO's gender do not have a significant impact on financial distress. Implications of the results in this study are considering the frequency of audit committee meetings and the percentage of institutional ownership in predicting financial distress that can be used by companies and potential investors.

Pengaruh Kepemilikan Manajerial Dan Kepemilikan Institusional Terhadap Nilai Perusahaan Dengan Kebijakan Hutang Sebagai Variabel Intervening

Background - Increasing company value one of the determining factors is ownership structure. Managerial ownership will tend to improve management performance for the benefit of themselves and shareholders. Institutional ownership can control manager behavior and enhance optimal supervision of managers. The high ownership structure within a company will make managers feel monitored and act more cautiously in the use of debt. Thus, companies must be able to create debt at a certain level so that the company's goals to increase company value can be achieved. Objectives - This study aims to examine the effect of managerial ownership and institutional ownership on firm value with debt policy as an intervening variable. Design / methodology / approach - The type of research used is comparative causal used to explain causal relationships between variables. The population in this study are companies that fall into the Jakarta Islamic Index (JII) index listed on the Indonesia Stock Exchange (BEI) in 2016 - 2018. Samples of 11 companies were selected using the purposive sampling method. This research uses path analysis. The value of the company is measured by Tobin's Q. Managerial and Institutional Ownership is measured by the percentage of share ownership. Debt policy is measured by Debt to Equity Ratio (DER). Findings - Based on the results of the analysis show that (1) managerial ownership affects the value of the company, (2) institutional ownership affects the value of the company, (3) debt policy affects the value of the company, (4) institutional ownership affects the debt policy, (5) Managerial ownership affects the debt policy, (6) Managerial ownership affects the value of the company through debt policy as an intervening variable, (7) institutional ownership affects the value of the company through the debt policy as an intervening variable. Research Implications - This research has implications that can provide an overview and reference for companies related to matters that can affect the value of the company, and can be used as an evaluation material for companies related to company performance during the observation year. Research limitations - The research sample consisted of only 11 companies listed in the Jakarta Islamic Index (JII), with an observation span of only 3 years, and the data used were not yet normal, there was heteroscedasticity and autocorrelation. So the square root transformation is done to improve the data.

Pengaruh Kepemilikan Manajerial Dan Kepemilikan Institusional Terhadap Nilai Perusahaan Dengan Kebijakan Hutang Sebagai Variabel Intervening

Background - Increasing company value one of the determining factors is ownership structure. Managerial ownership will tend to improve management performance for the benefit of themselves and shareholders. Institutional ownership can control manager behavior and enhance optimal supervision of managers. The high ownership structure within a company will make managers feel monitored and act more cautiously in the use of debt. Thus, companies must be able to create debt at a certain level so that the company's goals to increase company value can be achieved. Objectives - This study aims to examine the effect of managerial ownership and institutional ownership on firm value with debt policy as an intervening variable. Design / methodology / approach - The type of research used is comparative causal used to explain causal relationships between variables. The population in this study are companies that fall into the Jakarta Islamic Index (JII) index listed on the Indonesia Stock Exchange (BEI) in 2016 - 2018. Samples of 11 companies were selected using the purposive sampling method. This research uses path analysis. The value of the company is measured by Tobin's Q. Managerial and Institutional Ownership is measured by the percentage of share ownership. Debt policy is measured by Debt to Equity Ratio (DER). Findings - Based on the results of the analysis show that (1) managerial ownership affects the value of the company, (2) institutional ownership affects the value of the company, (3) debt policy affects the value of the company, (4) institutional ownership affects the debt policy, (5) Managerial ownership affects the debt policy, (6) Managerial ownership affects the value of the company through debt policy as an intervening variable, (7) institutional ownership affects the value of the company through the debt policy as an intervening variable. Research Implications - This research has implications that can provide an overview and reference for companies related to matters that can affect the value of the company, and can be used as an evaluation material for companies related to company performance during the observation year. Research limitations - The research sample consisted of only 11 companies listed in the Jakarta Islamic Index (JII), with an observation span of only 3 years, and the data used were not yet normal, there was heteroscedasticity and autocorrelation. So the square root transformation is done to improve the data.

VILLAGE FUNDS IMPLEMENTATION FOR BIRTH AND DEATH CERTIFICATE INTEGRATED

This paper describes local government innovations that are part of the Civil Service and Civil Registry (Dukcapil) reform. Arrangement of birth certificate and death certificate integrated village fund is an innovation policy in West Aceh Regency which is abbreviated as Aklamasi Dansa. The issue of legal identity is still a problem in Indonesia, many people do not have a legal identity so it impacts all services provided by the government to the community. The policy of integrating birth certificates and death certificates is an innovation that brings government and society closer together. The Aklamasi Dansa has been running since 2017 and operates in the assisted village. This study uses a qualitative method with a case study approach. The informant of this research is the community as the recipient of services, the government of West Aceh as an innovator. The results showed that the Aklamasi Dansa policy have shown that they are capable of significantly increasing the percentage of ownership, as can be seen from the percentage of birth certificates in 2016, only 86% after the Aklamasi Dansa was implemented to be 94% in 2019. The same thing happened with the death certificate issued by Disdukcapil in West Aceh in 2016 only 86 death certificates after the aklamasi dansa went on to 1629 in 2019. The Aklamasi Dansa as one of the innovations in service to the community went very well in improving village data administration and making it easier for citizens to receive services in taking care of birth certificates and death certificates.

Does CSR reporting matter to foreign institutional investors in China?

This study empirically examines how the mandatory reporting of corporate social responsibility (CSR) affects the investment behavior of foreign institutional investors as measured by Qualified Foreign Institutional Investors (QFIIs) in China. Our analysis uses difference-in-differences (DiD) design by exploring the enactment of China’s 2008 CSR mandatory disclosure requirement. The results show that firms with mandatory CSR reporting undergo an increase in their QFII ownership percentage. Local institutional investors’ ownership and investment weight relative to the market portfolio also increased following the mandate for firms to provide CSR reporting. We find some evidence that QFIIs from common-law countries may invest more in firms with CSR reporting when compared with QFIIs’ full portfolio and QFIIs from code-law countries. Overall, our study provides practical guidance on the impact of nonfinancial information, indicating that CSR reporting can help firms in China to improve their information environment and attract international and local institutional shareholders.

Social media visibility, investor diversity and trading consensus

PurposeThe purpose of this paper is to investigate the effects of Facebook users' responses to corporate Facebook posts on investor diversity and trading consensus.Design/methodology/approachThe authors collect publicly available data on corporate Facebook posts and user responses to such posts. They use the OLS regression framework to analyze the effects of such Facebook activities on institutional ownership percentage and trading consensus among investors.FindingsThe authors find that Facebook users' responses to corporate Facebook posts reduce large institutional investors' ownership. Their interpretation for this finding is that such Facebook activities increase the visibility of the companies across a more diverse group of investors. This increased visibility especially makes information more accessible to smaller investors so that they are attracted to invest more in these companies. They also find that Facebook activities increase the buy-sell consensus among investors, indicating that the information disseminated through social media reduces the disagreements among investors.Research limitations/implicationsThis paper examines the effects of user reactions to all kinds of corporate Facebook posts without separately identifying the types of posts such as advertising, financial information and corporate news. Future research may try to identify the differential effects of specific types of posts and reactions on investor diversity.Practical implicationsThe results suggest that social media has become a new and effective supplement to traditional disclosure channels in making information available to all investors in the capital market.Originality/valueThis paper is among the first to document the effects of corporate disclosures on social media in changing investor composition and reducing the information gap among investors.

Deriving successful venture capital deal profile through decision tree analysis in Indian context

PurposeThis study is based on the development of predictive classification for the success of a venture capital (VC) deal derived from both qualitative and quantitative indicators.Design/methodology/approachDecision tree analysis has used for devising the success model of VC deal. Various deal characteristics are considered in this study as the observable component of success.FindingsThe finding of this analysis indicates that the success of the deal does not only depend on the final outcome like post company valuation (POST_COMP), realised revenue (RREV) but also depends on various observable contractual characteristics like syndication, use of convertible security and ownership percentage with some noticeable deal features.Practical implicationsThis study increases the further scope of study on a contractual mechanisms such as allocation of cash flow right and control right in the deal contract between venture investor and entrepreneur firm. This could give a better understanding of success path of a venture deal.Originality/valueThis study has attempted to derive a performance model based on observable attributes of a VC deal.