Proportion Of Ownership Research Articles

PENGARUH KEPEMILIKAN MANAJERIAL, PROFITABILITAS, LIKUIDITAS, DAN UKURAN PERUSAHAANTERHADAP NILAI PERUSAHAAN

This study aims to analyze the relationship among proportion of managerial ownership, profitability, likuidity, and firm size toward firm value. This research used purposive sampling method. The type data is panel data during 2015-2017 in the from Indonesia Stock Exchange with total sampel was 192 data. Data analysis technique using multiple linear regression with Eviews program 10.0. The results shows that proportion of managerial ownership and likuidity have no significant effects on firm value, meanwhile profitability and firm value has significant on firm value. The results also shows that proportion of managerial ownership, profitability, likuidity, and firm value simultaneously have significant effects on firm value.

Corporate Governance Mechanism, Firm Size and Its Effects on Acceptance of Qualified Audit Opinion

This study aims to examine the effect of internal and external corporate governance mechanisms that are proxied by the size of the independent commissioners, the audit committee’s educational background, the proportion of institutional ownership, audit quality, and company size factors towards acceptance of qualified audit opinion. The population in this study is the infrastructure, utilities and transportation sectors listed in the Indonesia Stock Exchange in 2013-2017. Based on the purposive sampling method, it obtained 120 analytical units from the sample data. The analysis used in this study is logistic regression analysis. The results of this study found that if the size of the company which calculated based on total assets had a negative influence on the acceptance of qualified audit opinion. On the other hand, the element of Good Corporate Governance in the form of independent commissioners, audit committee, institutional ownership, and audit quality has no effect on the acceptance of qualified audit opinion. The conclusion of this study is the presence of the company’s internal support body are not able to influence the company’s accounting for the better.
 Keywords: good corporate governance, qualified audit opinion, firm size

Effects of political promotion on local firms’ social responsibility in China

In China, public officials control enormous resources and their political incentives substantially shape certain firm behaviors. As corporate social responsibility (CSR) activities are one of the important measures that the central government uses to evaluate the performance of local government, firms may strategically implement CSR to build a good relationship with local governments. In this paper, we investigate the effects of political incentives on firms’ CSR performance using a panel of Chinese publicly listed firms for the period 2009–2013. We find political incentives significantly improve firms’ CSR. Moreover, this relationship is particularly pronounced among firms with (i) low proportions of state ownership; (ii) close political connections; and (iii) relatively high financial constraints. We also find that firms that strategically apply CSR to accommodate the local government’s political incentives obtain more tax/subsidy benefits. Overall, this study improves our understanding of the political determinants of CSR in emerging markets.

Business ethics disclosure and corporate governance in Sub-Saharan Africa (SSA)

PurposeThe purpose of this paper is to examine the relationship between business ethics practices disclosure and corporate governance characteristics in Sub-Saharan Africa.Design/methodology/approachThe study uses multiple regression to investigate the association between business ethics disclosure (BED) and corporate governance characteristics in SAA. The study sample is based on 573 non-financial corporations listed on the national stock exchanges of Ghana, Kenya, Nigeria, South Africa and Zimbabwe as of 31 December 2015.FindingsThe findings show that corporate governance characteristics (including the proportion of government ownership, board independence and board gender diversity) are positively and significantly related to BED.Originality/valueThe study contributes to the limited literature by analyzing the relationship between BED practices and corporate governance characteristics in the sub-Sahara African context, which is significantly different from the Anglo-Saxon world.

An investigation into the effect of audit firm size, auditor tenure, institutional ownership, board characteristics on auditor independence

The independence of an auditor is a crucial issue because of its potential impact on audit quality. This study examines the effect of audit firm size, auditor tenure, institutional ownership, board independence, and board diversity on the audit quality. The sample comprised 52 listed service firms on the Jordanian Stock Exchange, whose data were obtained for the years from 2013 to 2016, and 208 firm-year observations were involved in the analyses process. In this study, auditor independence served as the proxy for audit quality. The results reveal that audit firm size and institutional owners and board independence significantly and positively influence audit quality. The results reveal that companies with a higher proportion of institutional ownership and independent members of the board and being audited by a Big 4 firm are more likely to maintain the independence of the external auditor. However, auditor tenure and board diversity had no significant relationship with auditor independence. The results could be useful for the management of companies that are interested in enhancing the quality of audit work in their companies.

Sustaining competitive advantage through good governance and fiscal controls: Risk determinants in internal controls

This study conducts a comprehensive review of the literature published during 1989-2020 to identify the factors that can cause internal control weakness. This review is organized around five main groups, namely: 1) rapid growth and restructuring, 2) financial reporting complexity, 3) auditor tenure, 4) cultural differences, and 5) corporate governance. We perform an integrated literature review approach. Among the several factors found, some factors (the proportion of managerial ownership, Individualism, power distance, financial reporting complexity, rapid growth, and auditor-customer geographic distance) have a positive relationship with internal control weakness while others (the quality of the board of directors and auditing committees, directors’ compensation, and uncertainty avoidance) have a negative relationship. The findings contribute to future research by examining the factors that can cause internal control weakness from different perspectives, which will prove to be useful for investors, auditors, audit committee members, managers, and other stakeholders regarding the prevention of internal controls weaknesses through the application of solid internal controls as well as a path towards the improvement of existing problems of internal control weakness.

Board Education, Growth and Performance of Family CEO Listed Firms in Malaysia

This paper examines the relationship between board education, board size, growth, ownership and firm performance of family CEO and nonfamily CEO listed firms in Malaysia. A sample of 37 firms and data were collected over a period of five years from 2012 to 2016. The 37 samples of family firms were subdivided into family CEO (21), and non-family CEO (16) firms. The independent variables were board education as measured by the proportion of board degrees (BDEG) and the proportion of board professional qualifications (BPRO), board size (BSIZE), growth, and ownership. Meanwhile, firm performance was measured by using return on equity (ROE) and return on assets (ROA). The findings showed that there was a significant difference between family CEO and non-family CEO firms at a five percent level for board professional qualifications confirming that altruism and nepotism were observed among family members which supported the argument of characteristics of nepotism such as granting jobs to family members regardless of merit. In addition, this study also found board professional qualifications as significant but negatively related to external firm performance in family CEO firms. This showed that board education has not really been emphasized among board members. Besides, growth has significant influence on family firm performance which is evidently reflected in their contribution to the country’s GDP.

Pengendalian Tunneling Dalam Asset Utilization: Sebuah Tinjauan Teoritis

Johnson et al. (2000) define tunneling as the transfer of resources out of the company for the benefit of controlling shareholders. This study will focus on institutional ownership and debt policy which will be further investigated as a control mechanism that occurs in asset utilization and has an impact on company performance. The results of the theoretical review of this study, namely institutional ownership and debt policy can control tunneling in asset utilization. Control mechanisms through institutional ownership of company performance can occur because institutional shareholders are very interested in company performance because a large portion of institutional shareholders' wealth is directly related to the company's wealth. The control is relevant to the owner because it is related to wealth that is tied to the company it owns, so that through increasing the proportion of institutional ownership it can reduce agency costs that arise, especially in the case of asset utilization of the company through supervision carried out. The control mechanism through debt policy on company performance can occur because the debt policy is carried out by the owner by transferring it to the banks or creditors to conduct supervision so as to maximize the performance of the company. The control becomes relevant because it is related to funds lent by banks or creditors to the company so that the company is expected to be able to pay interest and principal loans when due.

RACIAL-ETHNIC DIFFERENCES IN NURSING HOME QUALITY OF LIFE FOR ALZHEIMER’S DISEASE AND DEMENTIA RESIDENTS

Nursing homes (NHs) are often racially segregated, and minority residents admitted to NHs usually have more advanced stages of dementia at the time of admission than their white counterparts, with different care needs. Previous work has shown that racial disparities in NH quality of life (QoL) were partially due to different case mix of white and minority residents; it is unclear if disparities persist when comparing residents with similar ADRD diagnoses. The 2011-2015 Minnesota Resident Quality of Life and Satisfaction with Care Survey data contain in-person resident responses from a random sample of residents of all Medicare/Medicaid certified NHs in the state, about 40% of whom have AD/ADRD. These data were linked to the Minimum Data Set (MDS) and facility characteristics data. The population consists of 25,039 White, 580 Black, 94 Hispanic, 229 Native Americans, and 99 Asian/Pacific Islander NH residents with ADRD residing in 376 NHs. Racial/ethnic minority residents reported significantly lower QoL scores compared to their white counterparts, with the largest disparities in the food and relationships domains. We adjusted for resident (age, marital status, education, sex, length of stay, anxiety/mood disorder, activities of daily living scores) and facility characteristics (proportion of minority residents, ownership, urban vs rural, size, and occupancy ratio) using a multivariate random intercept model. After adjustment, significant differences remained in total QoL score and several QoL domains for Black, Asian and Hispanic residents (no significant differences for Native American residents). Practice guidelines should consider different care needs of racial/ethnic minority NH residents with ADRD.

Central-planned Portfolio Selection, Pareto Frontier, and Pareto Improvement

In delegated portfolio management, we formulate a central-planned portfolio selection problem by multi-objective programming (utilities of the investor and the manager) to study the Pareto optimal portfolio and find Pareto improvement. First, we solve out two cases of the closed-form Pareto optimal portfolio based on non-smooth and non-concave utility optimization. One case has a special terminal outcome that the manager suffers a loss and the investor loses nothing, resulting that the optimal portfolio has a novel two-peak-three-valley pattern. We originally divide the optimal portfolio into three terms (Merton term, Aggressive term and Conservative term) to explain the pattern and conduct asymptotic analysis to illustrate economic insights. Second, we establish the collection of Pareto points of a single contract and prove that it is a strictly decreasing and strictly concave frontier. Third, we use Pareto frontiers to compare different contracts, showing that among first-loss contracts with long evaluation time, the investor benefits from the one with a smaller incentive rate and a smaller managerial ownership proportion. In addition, when the evaluation time is short, we discover a way of Pareto improvement by simultaneously adding the investor's utility into the manager's investment objective and increasing the manager's incentive rate.

The influence of privatization on financial performance of Vietnamese privatized state-owned enterprises

This research evaluates the differences in financial performance of enterprises before and after privatization aiming to find out the influence of privatization on the enterprises’ performance. The study is based on the audited financial statements of 105 Vietnamese privatized enterprises privatized in the period from 2005 to 2016. Applying the Wilcoxon signed-rank test, the obtained results prove that after privatization profitability and outputs of investigated firms are significantly higher than prior privatization. However, there is no significant change of leverage. Applying a regression model to evaluate the factors affecting financial performance of firms in the research model, it was found out that the proportion of state ownership, economic growth, operating period, enterprise`s size, and business risk have positive influence on the financial performance of research firms. However, the leverage of these firms has a negative impact on the financial performance. In accordance with the obtained results, this study suggests that the privatization process should be continued regardless of firm size or business type. The government should create fair competition environment, remove incentives and supports for State-Owned Enterprises (SOEs), manage changes in privatized firms, and enforce the legal system.

LIQUIDITY RISK DISCLOSURE: A REVIEW OF CORPORATE GOVERNANCE

Liquidity risk is the potential loss arising from the inability of a company to fulfill its obligations or to fund an increase in assets at maturity without incurring unacceptable costs or losses. The purpose of this study is to analyze the corporate governance factors that influence liquidity risk disclosure. Its factors are the proportion of independent commissioners, audit committees, managerial ownership, and institutional ownership. The sampling technique used a purposive sampling method in consumer goods industrial classification companies listed on the Indonesia Stock Exchange on 2016-2018. The multiple regression uses to analyze the data. Results indicate that the proportion of commissioners and audit committees have an effect on liquidity risk disclosure, meanwhile managerial ownership and institutional ownership have no effect on liquidity risk disclosure.Keywords: liquidity risk disclosure, the proportion of independent commissioners, audit committees, managerial ownership, institutional ownership.

PENGARUH PROPORSI KOMISARIS INDEPENDEN, KINERJA LINGKUNGAN, DAN PERTUMBUHAN PERUSAHAAN TERHADAP PENGUNGKAPAN LINGKUNGAN

The research was conducted aimed at finding empirical evidence on the influence of the proportion of independent commissioners, environmental performance and company growth on corporate environmental disclosures. This study uses a sample of all companies listed on the IDX during 2014 - 2016. The total sample that meets the criteria is 25 companies. The data source used is an annual report, collected using the purposive sampling method. Testing the hypothesis by using multiple regression with the panel method. The results of this study state that the variable proportion of independent commissioners and environmental performance has a positive effect on environmental disclosure, and the proportion of public ownership as a moderation of the relationship of independent commissioners with environmental disclosures and the relationship of environmental performance with environmental disclosure.

PENGARUH CORPORATE GOVERNANCE DAN STRUKTUR KEPEMILIKAN TERHADAP KINERJA KEUANGAN PERUSAHAAN

This study examines the effect of corporate governance and ownership structure on the company's financial performance. Good corporate governance is proxyed by the proportion of independent commissioners, while the ownership structure is proxyed by the proportion of institutional and managerial ownership. Financial performance indicators are measured by Return on Equity (ROE) and Return on Assets (ROA). The sample used was 22 companies from a population of 54 property companies and public real estate that were publicly traded on the Indonesia Stock Exchange and obtained a total of 110 observations for the period 2011-2015. The sample is determined using the purposive sampling method. This study uses multiple regression analysis and is processed using SPSS. The results showed that there was a significant negative effect between the proportion of independent commissioners and institutional ownership of financial performance as measured by ROE. However, managerial ownership was found not to have a significant effect on financial performance as measured by ROE. Other results indicate that the proportion of independent commissioners, institutional ownership, and managerial ownership has a positive and significant effect on financial performance measured using ROA.

Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, Kepemilikan Asing, dan Ukuran Perusahaan terhadap Kinerja Modal Intelektual (Studi Empiris pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

The purpose of this study was to determinate the effect of firm size and ownership structure such as manajerial ownership, institutional ownership and foreign ownership towards intellectual capital performance. The method of this study is quantitative. The population in this study was banking sector company in Indonesia Stock Exchange in 2015 until 2017.The sample of this study determined by purposive sampling. Data analysis techniquefor hypothesis testing using multiple regression analysis. The result of this research showed that ownership structure such as manajerial ownership, institutional ownership and foreign ownership have no significant effect while firm size has positive and significant effect to intelectual capital performance. This happens because the proportion of manajerial ownership is low and the institution investor more focused on maximizing profit as short term goals so institution investor seing IC as charges rather than expenses of investment-generating future economic benefit.Based on the results oh this study, it can be suggested that: (1) Company should increase their asset in regard to increase the firm size so company had more financial funding to manage their IC performance and create more value added, and (2) For further researcher, it is suggested to increase the number of sample companies, add other variables and use other proxy in subsequent research.Keywords: Foreign ownership; Intellectual capital performance; Institutiona ownership; Managerial ownership

The Role of Stability and Ownership Structure in Determining the Efficiency of US Bank Holding Companies

During the last three decades,the focus of regulatorshas been to enhance the stability of the financial system.However, there is little research as to how the desire for higher financial stability for bank holding companies would affect their efficiency. Byusing a dataset of 553 US Bank Holding Companies (BHC)for the period 2004 to 2015 and a dynamic panel methodology,this study investigates whether the efficiency of BHC was affected by the requirement for higher stability and ownership structure during the sample period. The empirical findings suggest that BHC with higher stability (lower risk levels) are relatively more efficient. Regarding the ownership structure, we find evidence that BHC with a higher proportion of institutional ownership, especially those that exerting market discipline such as mutual funds and hedge funds,positively affects the efficiency of BHC. On the other hand,a higher level of government ownership adversely impacts the efficiency of BHC.Overall empirical findings support the regulatory view that higher stability levels and close monitoring by shareholders help in improving efficiency. The results remain robust with alternative measures of efficiency. Thesefindings have implications for regulators and investorsalike asthere is a need to carefully evaluate regulatory policies such that they may not adversely affect efficiency while keeping the banking sector healthy and stable.

A Potential Risk of Increasing Cross-National Distance: Evidence from Less Sustainable Tax Policies

This study explores a possible risk of overseas investment in long cross-national distance host countries using the foreign direct investment (FDI) data in Japan. We expect that increasing cross-national distance would relate to the less sustainable tax policies by increasing the differences in economic, political, administrative, cultural, demographic, knowledge, and geographic perspectives, which enhance the motivation of tax aggressiveness and the likelihood of earnings management. Consistent with our expectations, we find that firms with longer cross-national distance are less likely to adopt sustainable tax policies. After some robust tests, our main findings remain unchanged. In additional analysis, we find the above relation is weakened when firms invest in a tax-haven country or have a high proportion of foreign ownership, while it is strengthened when firms meet an earnings benchmark. Overall, our results suggest the one risk of increasing cross-national distance between host country and home country is less sustainable tax policies.

FACTOR THAT INFLUENCING CAPITAL EXPENDITURE: PERSPECTIVE PECKING ORDER AND MANAGERIAL HYPOTHESIS

The objectives of this study are to observe the impact of internal cash flow, insider ownership, investment opportunity, investment opportunity and firm size on the capital expenditure in two different theories. Those theories are: (1) the pecking order hypotheses and (2) the managerial hypotheses, tested in Indonesian case. On the one hand, the pecking order hypotheses postulates that managers can choose the level of capital expenditure to maximize the wealth of current shareholders without considering insider ownership in the company. On the other hand, according to the managerial hypotheses, managers whose ownership proportions are small tend to use higher level of internal cash flows to finance the capital expenditure than that which would maximize the wealth of current shareholders. The data of this study is collected from 11 manufacture companies as listed in the Indonesian Stock Exchange. The result of this study shows that the internal cash flow, insider ownership, firm size and investment opportunity have positive impact on the capital expenditure. However, the impact of insider ownership and investment opportunity on the capital expenditure are not significant. Eventually, this study is disposed appropriate with the pecking order hypotheses.

Pengaruh Good Corporate Governance dan Ukuran Perusahaan terhadap Nilai Perusahaan dengan Kinerja Keuangan sebagai Variabel Moderasi

- This study aims to examine whether the influence of Good Corporate Governance is proxied by institutional ownership, an independent board of commissioners, and an audit committee as well as the size of the company that is moderated by financial performance on the value of the company in manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2015 -2017. This research uses descriptive quantitative research, which uses multiple linear regression-based methods with Eviews 10. The population of this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) for the 2015-2017 period. The sample was determined based on the purposive sampling method, with a total sample of 18 manufacturing companies, so that the total observation in this study was 54 observations. The data used in this research is secondary data. Data mining techniques using methods carried out through the official sites www.idx.co.id and www.idnfinancials.com. Hypothesis testing using t test. The results of the study prove that Good Corporate Governance is proxied by institutional ownership, an independent board of commissioners, and an audit committee, as well as company size. institutional ownership has a significantly negative effect on firm value. This reflects the higher proportion of institutional ownership, the higher the pressure from various corporate investors to raise profits. While the independent board of commissioners, audit committee, and company size do not significantly influence the value of the company. This reflects that more and more members of the board of independent commissioners will cause difficulties in coordination between members of the board of independent commissioners and the audit committee and may hamper supervision. The impact of this is that the market gives a negative reaction and results in a decrease in the value of the company. Financial Performance does not moderate the relationship between institutional ownership, independent board of commissioners, and audit committee, as well as the size of the company
 against the value of the company in manufacturing companies listed on the Indonesia Stock Exchange in the 2015-2017 period.

Corporate governance, intellectual capital, and performance of indonesian public company

Two important issues for companies’ sustainability are corporate governance and intellectual capital. This research is intended to test the relation between corporate governance, intellectual capital and companies’ performance. This is a quantitative research with archival data. The data is taken from Financial Reports and Annual Reports of Indonesia Public Company during 2011-2016. Corporate governance is measure using proportion of female director and public ownership. Intellectual capital indicators are CEE (Capital Employed Efficiency) and ICE (Intellectual Capital Efficiency). Companies’ performance construct are Tobin’s Q and Return on Assets (ROA) Data then analysed using Partial Least Square. The empirical results is as follows. First, Corporate Governance has positive effect on Intellectual Capital. Second, there is negative effect of Corporate Governance on Performance. Third, Intellectual capital has no effect on firm’s performance. Fourth, Intellectual capital has no mediating effect to the the relation between corporate governance and company’s performance. This results are prove that Agency Theory is the better than Resources Based Theory to explain the Indonesia public companies condition.