Share Ownership Research Articles

Dual Ownership and Risk-Taking Incentives in Managerial Compensation

Abstract This article studies how the three-way interaction among shareholders, creditors, and managers shapes firms’ executive compensation. Firms with a higher ownership share by “dual holders”—institutional investors that simultaneously hold equity and bond of the company—adopt a less risk-inducing compensation structure: less stock options and more inside debt. Exploiting financial institution mergers that increase or decrease dual ownership for portfolio companies, we identify a causal link between dual ownership and CEO compensation policies. Mutual fund proxy voting data suggest that shareholder voting is an important channel for dual holders to implement less convex contracts.

Evaluation Of Stock Through Fundamental Analysis With The Dividend Discount Model (DDM) Approach

The goal of this research is to determine the fairness of stock prices by looking at the intrinsic value of shares in the healthcare industry from 2017 to 2021. Investors use this assessment of the fairness of the share price to choose whether to sell, hold, or purchase shares. The Dividend Discounted Model (DDM) with a Constant Growth Model was used for the analysis. The Dividend Discounted Model (DDM) is used to compare the stock's intrinsic value to its market value to determine the intrinsic value of shares. This value is calculated by anticipating future dividend payments. The Healthcare Sector Company on the Indonesia Stock Exchange is the subject of this kind of descriptive research. Nine companies were chosen as samples using the purposive sampling strategy. Shares of DVLA, KLBF, MERK, MIKA, PEHA, PRDA, SIDO, and TSPC were found to be undervalued in the outcomes. On the other hand, HEAL shares was found overvalued. For potential investors in DVLA, KLBF, MERK, MIKA, PEHA, PRDA, SIDO, and TSPC shares, the best investment decision is to buy shares in these companies before the market price of these shares rises. Meanwhile, investors who already own shares in these companies should hold the company's shares and increase their share ownership with the assumption that the share price will rise in the future. Furthermore, potential investors should not buy HEAL company shares and investors who already own the company shares should immediately sell the company shares in order to get capital gains.

Action research in initial EFL teacher education: emerging insights from a CAR project

ABSTRACT The purpose of this study is to explore what insights pre-service EFL teachers developed through engaging in a collaborative action research (CAR) project which was embedded into an e-practicum course in Turkey. Using a qualitative holistic single-case study design, this study involved seven fourth-year pre-service teachers at a state university in the west of Turkey during the 2020–2021 academic year. After the CAR project was completed, we asked the pre-service teachers to write their reflections on the CAR experience and then we conducted follow-up interviews to elaborate on the points that needed further exploration. We first identified the in vivo codes in the data set and then discussed the deeper meanings they evoked and their interrelationship. The findings revealed that the pre-service teachers’ engagement in CAR enabled them to gain new perspectives on research, their teacher selves, and teacher professional development. Sustained dialogic interaction, collective scaffolding, more symmetrical power relations, a shared goal and ownership of research within the CAR community were the key elements highlighting the pre-service teachers’ new insights into these concepts. Practical implications of these findings for initial EFL teacher education are also discussed.

THE EFFECT OF PROFITABILITY, LEVERAGE AND PUBLIC SHARE OWNERSHIP ON CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE WITH THE BOARD OF COMMISSIONERS AS A MODERATING VARIABLE IN MINING SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE 2019–2021

This study aims to analyze the effect of profitability, leverage and public share ownership on corporate social responsibility disclosure with the board of commissioners as moderating variables in mining companies listed on the IDX in 2019-2021. The population in this study amounted to 31 mining companies. The sample selection method used purposive sampling technique. The type of data used is secondary data with data analysis techniques used, namely panel data regression analysis with multiple linear regression tests using Eviews software. The results show that Profitability has a positive and significant effect on Corporate Social Responsibility Disclosure, Leverage has a negative and significant effect on Corporate Social Responsibility Disclosure,

An Effect of Environsal Performance and Public Share Ownership on CSR Disclosure with Profitability as an Intervening Variable (Study on Manufacturing Business Listed on a Indonesian Stock Exchange in 2016-2018)

An Effect of Environsal Performance and Public Share Ownership on CSR Disclosure with Profitability as an Intervening Variable (Study on Manufacturing Business Listed on a Indonesian Stock Exchange in 2016-2018)

An Effect of Environsal Performance and Public Share Ownership on CSR Disclosure with Profitability as an Intervening Variable (Study on Manufacturing Business Listed on a Indonesian Stock Exchange in 2016-2018)

The purpose of this study was to determine how environsal performance and public ownership affect CSR disclosure in manufacturing business listed on Indonesian Stock Exchange (IDX) since 2016 until 2018. Profitability will be used as an intermediate variable. In this study, environsal performance and a number of public shares held are independent variables. Profitability is a variable that makes this study possible. While corporate social responsibility disclosure is important. This study used a method called "purposeful sampling". Multiple regression is a method used to test data. A goal of this study is to find out what factors affect CSR disclosure so that investors and business can take am into account when making decisions. Profitability is improved by how well an organization takes care of an environs. Having shares retained by a public is good for making money. CSR disclosure is helped by how profitable a corporation is. Profitability can be a link between environsal performance and CSR disclosure, and it can also be a link between public ownership of shares and CSR disclosure.

Associations and mediators between types of motorcycle ownership and road traffic injuries among motorcycle taxi drivers in Dar es Salaam, Tanzania

BackgroundRapid growth in the use of motorcycle taxis in low-and-middle-income countries has been associated with an increased risk of road traffic injuries (RTIs). This study aimed to examine the association between types of motorcycle ownership, such as self-ownership, rental or shared ownership, and the risk of RTIs among Tanzanian motorcycle taxi drivers. Furthermore, we investigated whether the risky driving behaviours, number of working hours and motorcycle conditions mediate the association between types of motorcycle ownership and risk of RTIs. The study included 164 cases of motorcycle taxi drivers with RTIs resulting in hospitalisation and 400 controls of motorcycle taxi drivers randomly selected from parking stages. The results show that motorcycle taxi drivers who co-own or rent their motorcycles were two to three times more likely to have RTIs than those who self-own their motorcycles after adjusting for age, education, marital status and the number of dependents. Mediation analysis shows that risky driving behaviours have a greater indirect effect on the risk of RTIs among motorcycle taxi drivers who rent their motorcycles, while the number of working hours had a significantly higher mediation effect on the risk of RTIs among motorcycle taxi drivers who co-own their motorcycles. This study shows that co-ownership or rental of motorcycles is associated with a higher risk of RTIs. Risky driving behaviours and the number of working hours are found to be important mediators. Further research on tailored approaches to improve and promote the safety of motorcycle taxi drivers’ working conditions is needed.

FOREIGN SHARE OWNERSHIP LIMITS IN THE BUSINESS FIELD OF MINERAL AND COAL MINING ON PEOPLE’S WELFARE

<p>Natural Resources as an unrenewable resources are a gift from God Almighty and owned by the Indonesian people, according to Article 33 paragraph (3) of the 1945 Constitution, and their management must be used to realize people’s welfare. In practice, the management of mineral and coal mining is carried out by involving foreign investors who require security guarantee for their business and investment. This research aims to answer the problem regarding setting limits on foreign share of ownership in the mineral and coal mining business sector in Indonesia and its implementation. This problem is then used as a basis for consideration to realize policies that have legal certainty to support efforts to realize people’s welfare. This study uses two theories, namely the purpose of law (Gustav Radburch) and the theory of the legal system (Lawrence Friedman). The research method used is normative juridical with empirical juridical support.</p>The findings of the research show that in enforcing limits on foreign share ownership there is still law smuggling, for example through borrowing names or nominees to secure the interests of foreign investors even though normatively they do not fulfill the legal terms of agreement as stipulated in article 1320 of the Civil Code. For investors the nominee agreement is a legal solution to ensure the security of investment in the mining sector in Indonesia. Therefore, the state needs to carry out supervision and law enforcement so that limitation on foreign share ownership can be implemented in accordance with the applicable laws and regulations. So that the purpose of exploiting mineral and coal mining for the welfare of the people in the mining sector can be realized and in

Foreign passive ownership and tariff‐induced free technology transfer under vertical integration

AbstractThis study constructs a vertical structure model in which a foreign firm holds upstream partial passive ownership and examines tariff‐induced free technology transfer from the firm to its downstream rival. We show that a strategic tariff can induce technology transfer when the share of foreign ownership is large, which always yields higher welfare under both vertical separation and integration, while vertical integration can better induce technology transfer. We also consider an extensive analysis with some variations, such as upstream or downstream competition, downstream passive ownership, government commitments to no‐tariff policies, and foreign firm commitments to no‐licensing strategies, and discuss policy implications regarding the pro‐competitive effect of foreign passive ownership when free technology transfer is involved.

GOOD WAY TO PREVENT NON-PERFORMANCE LOANS: TEMPORARY STOPPING DISTRIBUTION OF BANTEN MICRO CREDIT BY PT BPR SERANG (PERSERODA) KASEMEN BRANCH


 
 
 PT BPR Serang (Perseroda) Kasemen Branch is one of the banks whose share ownership is partially owned by the local government of Serang Regency and has the main activity in the form of lending aimed at the community in the Serang Regency area. One of the credit products provided by PT BPR Serang (Perseroda) Kasemen Branch is the Banten Microcredit. The credit is a loan aimed at micro, small and medium enterprises to increase the business capital of these business actors. During the Covid-19 pandemic, PT BPR Serang (Perseroda) Kasemen Branch has temporary stopping micro-credit to minimize credit risk during the Covid-19 pandemic. This research conducts a case study of PT BPR Serang (Perseroda) Kasemen Branch and finds out whether it is true that the termination of microcredit can minimize credit risk or even have a negative impact on the business operations of Serang (Perseroda) Kasemen Branch
 
 

History and Approaches to Heritage Studies, Pedagogy and Practice in Heritage Studies

History and Approaches to Heritage Studies, Pedagogy and Practice in Heritage Studies

Allocative Efficiency towards Energy Transition: The Cases of Natural Gas and Electricity Markets

Conventional economic theory indicates that the free market contributes to allocative efficiency. However, specific energy markets present network industry characteristics which distance them from perfect competition. These markets, therefore, need effective regulation. The liberalizing reforms which took place in the Organization for Economic Cooperation and Development (OECD) and emerging countries from the 1990s onwards have reduced the share of state ownership in the energy sector, but not its functions of regulation, coordination and planning. It is also worth noting the expansion of the government’s agenda due to the energy transition that has unequivocally imposed itself in the 21st century. This article uses the Slacks-Based Measure of the Data Envelopment Analysis (SBM-DEA) methodology to investigate the relationship between market liberalization and sustainability in a low-carbon energy transition context. Taking the cases of the natural gas and electricity markets, we verify whether liberalization contributes to the progress of the energy transition, driven by the emergency need to tackle climate change. The results show that the most advanced markets, in their processes of opening up, tend to be positively associated with a more vigorous energy transition. European nations, such as the United Kingdom and Norway, have experienced a relatively more advanced market liberalization leading to an efficient path toward energy transition. Chile, Canada and Colombia also have efficient scores regarding their energy transitions. For low performing countries, such as Brazil, the study suggests some calls for action that should be pursued to improve their energy market indicators, resulting in a stronger energy transition towards renewables, more competitive energy prices and a larger participation of natural gas in the energy mix, which will contribute to decreasing its external dependency.

Productivity Improvement from the Mixed-Ownership Reform: A Financial Frictions Perspective

How to raise productivity level has become the core issue of ensuring China’s sustained Economic Growth in the Future. The mixed-ownership has both the financing advantage of the SOEs and the competitive ability of the Private firms, which can improve the governance of the firms. This paper builds a model based on the financial frictions literature, and studies the process of the mixed-ownership reform. The main results include: 1. On average, the mixed-ownership reform enhances the performance of the firms; 2. The relationship between the share of state ownership—full privatization, state-ownership, or mixed-ownership—and the performance depends on both the productivity and the restriction of financing; 3. When production efficiency is low, privatization works best; when production efficiency is medium, partial privatization works best; when production efficiency is high, nationalization works best; 4. Our model explain the puzzle of state-owned equity ratio and performance.

Shareholder concentration and control in Australia

ABSTRACT There is ongoing interest in understanding share ownership and control dynamics in publicly listed companies, given the governance and regulatory implications arising therefrom. This article presents a new empirical analysis of shareholder data, focusing on the largest 50 publicly listed companies in Australia, filling a striking gap in the existing literature. Specifically, the following issues are investigated within each company: 1. The level of institutional ownership within the largest 20 registered shareholders; 2. The percentage of issued capital owned by the largest three registered shareholders; 3. The control of that ownership, to determine the extent to which ownership and control diverge; and 4. Substantial shareholding information is collected and analysed, in order to reduce the information gap which exists between ownership and control, and to provide a more complete picture of shareholding patterns. Several explanatory factors behind the identified landscape and the implications arising from the findings are then discussed.

Executive compensation, share ownership, and earnings management of banks in Nigeria

Aim/purpose – Higher compensation and increased share ownership are believed to drive fewer earnings management. Therefore, the study examines the moderating impact of share ownership on the relationship between executive compensation and earnings management of listed Deposit Money Banks in Nigeria. Design/methodology/approach – Panel Least Square regression and Stata 13 were used for the estimation. The secondary data source was employed and extracted from the banks’ published financial statements covering the period from 2007-2018. Post- estimation tests, including normality tests of standard error, heteroscedasticity, and mul- ticollinearity, were carried out to validate the outcome. Executive compensation variable is represented by Chief Executive Officer Pay (CEO Pay), Board Chairman’s compensa- tion, and the highest-paid director, while executive share ownership represents the mod- erator variable. Chang et al. (2008) model was used to proxy earnings management. Findings – The findings revealed that CEO Pay increases the banks’ level of earnings management, while after moderation with executive share ownership; CEO pay decreas- es the possibilities of earnings management by banks. Compensation to Chairmen of the banks decreases the level of earnings management of banks. However, an increase in share ownership of the board with an increase in compensation to chairmen of banks’ boards increases the earnings management practices of the management of the banks. Research implications/limitations – The findings imply that the executive ownership interest should be made to align with that of the minority shareholders following an increase in their stake so that they can act in the overall best interest of the owners. The study is limited to only the banking sector and some specific executive compensation variables. Originality/value/contribution – The utilization of the highest paid director variable and use of share ownership as a moderator between executive compensations and earn- ings management. Keywords: earnings management, executive, share ownership, compensation, and expectan- cy theory. JEL Classification: M21, M41, M42, G32.

RESPONSIBILITY OF MAJORITY SHAREHOLDERS IN ADOPTING LIMITED LIABILITY COMPANY POLICIES AFFECTING MINORITY SHAREHOLDERS IN TERMS OF BUSINESS JUDGMENT RULE AND GOOD FAITH PRINCIPLES

In an increasingly complex world, humans frequently do business not only alone but more often in groups which is very profitable because it can produce enough significant capital. One form of the joint venture is a limited liability company (LLC), a business with capital divided into shares. This shared ownership can determine the policy direction in the LLC, and there is a majority shareholder. The policies taken by the majority shareholder can sometimes harm the company if the shareholder does not use good faith. Law No. 40 of 2007 on LLCs does not regulate good faith in the majority shareholder. This ambiguity can make the majority shareholder to harm the minority shareholder because of the bad faith made by the majority shareholder toward the assessment or policymaking in the LLC that the business judgment rule principles are the responsibility of the majority shareholder. This research aims to know and understand the majority shareholder's responsibilities by looking at the aspect of good faith in policy-making in the LLC and applying the business judgment rule principles in policymaking by the majority shareholder so as not to the detriment of the minority shareholders. This research used normative juridical research methods using literature as the primary material to explore information in applying business judgment rules in several countries. Common law countries first proposed the principle of business judgment rule. Indonesia absorbed this principle incorporated into Law No. 40 of 2007 on LLCs, where the implementation of this principle concerns only the management, in this case, the director, but not the shareholders. Keywords : Business Judgment Rule, Good Faith, Majority Shareholder, Responsibility DOI： https://doi.org/10.35741/issn.0258-2724.58.2.25

Consolidation of Changes In Share Ownership Rights

Consolidation of Changes In Share Ownership Rights

Factors affecting income smoothing practice: Insights from the Indonesian capital market

The objective of this quantitative study is to examine the factors that influence income smoothing practices in the Indonesian capital market, including share ownership by groups/institutions, family-owned firms, and industrial sectors, with firm size serving as a control variable. This study used a purposive sampling technique to acquire a sample of 112 businesses over the years 2017 to 2021, yielding 560 observations by using a panel data approach. The findings indicate that neither share ownership by a group/institution nor a family-owned firm has a substantial impact on income smoothing practice. Among industrial sectors, only the sector of consumer products significantly influences income smoothing. As a control variable, business size has a favorable influence on income smoothing. This paper provides empirical evidence on financial accounting research, namely on the subject of income smoothing and the quality of earnings reporting, despite a number of limitations, such as a relatively short observation period.

Web3 as ‘self-infrastructuring’: The challenge is how

The term ‘Web3’ refers to the practices of participating in digital infrastructures through the ability to read, write and coordinate digital assets. Web3 is hailed as an alternative to the failings of big tech, offering a participatory mode of digital self-organizing and shared ownership of digital infrastructure through software-encoded governance rules and participatory practices. Yet, very few analytical frameworks have been presented in academic literature by which to approach Web3. This piece draws on the theoretical lens of infrastructure studies to offer an analytical framework to approach the emergent field of Web3 as an exploration in ‘how to infrastructure’ through prefigurative self-infrastructuring. Drawing on qualitative examples from digital ethnographic methods, I demonstrate how the origins of Web3 reveal the intentions of its creators as a political tool of prefiguration, yet its practices reveal the inherent tension of expressing these ideals in coherent technical and institutional infrastructure. Thus, I argue that one of the fundamental challenges Web3 is negotiating through technical and governance experiments is ‘how to self-infrastructure?’.

Bringing dissent to shareholders’ meetings

This article deals with critical shareholding, that is, the action of non-profit organizations that resorts to involvement in corporate ownership as shareholders to promote socially responsible corporate behaviours. Based on the combined use of sociological and anthropological tools, I focus on the attendance of annual general meetings (AGMs) as a gateway to understand the potential and the limits of the transformative power of marginal actors in investment capitalism. My findings suggest that confrontation through share ownership exerts transformative pressures not only on companies but also on activist organizations, which over time are called to redefine their skills, actions and intervention logic to pursue their goals more effectively and report them to their stakeholders. Thus, the analysis of the phenomenon reveals the dialectical nature of the processes that take place in and around the AGM, giving them a place in the complex dynamics of movements and countermovements of finance and their mutual relationship.