Share Ownership Research Articles

Does the Founder CEO Receive a Higher Pay for the Firm’s Performance? Evidence from Malaysia

This paper examines whether firms run by a founder chief executive officer (CEO) have higher pay and whether their power sources from chairing the board, remuneration committee, tenureship, or share ownership affect the pay-performance nexus. Data for the study was hand-collected amongst 362 family-owned firms listed in Bursa Malaysia from 2009 to 2015 and analysed via the generalized method of moments (GMM) system to address endogeneity. The results showed that initially there was a significant positive pay-performance relationship in Malaysian family-owned firms; however, the founder CEOs had a weak influence on the pay-performance nexus. Secondly, the founder CEOs’ influences on the pay-performance nexus mainly came from their ownership power and their structural power as the chairman of the board. Thirdly, the pay-performance nexus tended to be positive and stronger when the family member of the CEO was chairing the board of directors and remuneration committee, instead of themselves, but the relationship changed to negative when more independent directors sat on the board, including a remuneration committee. The findings offered some policy implications for the regulators to enhance corporate transparency on the directors’ remuneration and ownership.

Executive compensation, characteristics, and shareholder on tax avoidance

This study aims to empirically prove the effect of executive compensation, executive characteristics, and executive share ownership on tax avoidance. Using a descriptive associative research method and secondary data, this study was shown in the consumer goods manufacturing corporation listed on the Indonesia Stock Exchange (IDX) from 2017–2021. The sampling method used purposive sampling. This research used 16 sample corporations, with a five-year research period of 5 years, so 80 objections were obtained for data processing. This study found that executive-compensation variables have no significant effect on tax avoidance, executive characteristics, and executive of the shareholder have a negative effect on tax avoidance.

Insider ownership and performance of Russian public companies: Econometric estimates

Within the agency theory, insider ownership is viewed as a tool for reconciling the interests of owners and the company management. In the new economic reality, the agent problem is of particular relevance due to the challenges that require eliminating risks to ensure companies’ performance. The article assesses the impact of insider ownership concentration on the economic performance of joint stock companies. Methodologically, the study relies on the agency theory, property rights theory and the concept of corporate governance. The research analyzes data on the corporate ownership structure of 68 largest Russian public companies in 2011–2020 and identifies the share of insider ownership in these firms. The methods of econometric modelling were used to evaluate the dependence of EBITDA on insider ownership concentration in the companies of various forms of ownership. To carry out econometric analysis, we apply regression models in two specifications – cubic and piecewise linear regressions. The research results prove that insider ownership has a positive effect on the performance of private companies in the concentration interval of insider ownership between 0% and 35.39%; above this threshold, the positive impact diminishes. For companies with state participation, no statistically significant impact of insider ownership on performance was found. Further research is supposed to develop a more detailed modelling method by including a wider range of factors that characterize the corporate ownership structure and expanding the empirical basis of the study.

Dual-class share structure and firm risks

While costs associated with dual-class share ownership structures are widely documented, the benefits are seldom studied in the literature. We present evidence that a dual-class share structure promotes corporate risk-taking by providing insulation to insiders, such as management and controlling shareholders, from short-term market pressure. We then show that dual-class shares increase the market valuation of firms with high corporate risks, in contrast to the finding in the literature that a dual-class share structure is associated with lower valuation and performance. To provide a possible channel through which dual-class firms can increase corporate risk-taking, we find that dual-class firms are more likely to engage in mergers and acquisitions (M&As), especially non-diversifying M&As. We address endogeneity concerns by using a sample of share unifications and show that when dual-class firms change to single-class status, their corporate risks decrease.

Analisis Fenomena Hyperhonest Penggunaan Fitur Instagram Close Friends Dalam Batasan Privasi

With the development of new social media features that now make social media not only limited to exchanging information, but also used as a space for self-disclosure, one of which is self-disclosure on the Instagram "Close Friends" feature. With this feature, users can use it as a place to vent, express themselves more or be more honest by sharing private matters that are only known by the list of followers of their close friends. In terms of this phenomenon, it is called the hyperhonest phenomenon, namely venting more honestly. The purpose of the importance of this research is to find out and understand the hyperhonest phenomenon experienced by generation Z women in the Instagram close friends feature and the cyber culture of self-disclosure that is formed in the Instagram close friends feature, as well as to contribute to readers so that they consider disclosing personal information on the media. social. This study uses the study of Communication Privacy Management theory by Sandra Petronio (2002) which focuses on privacy management systems to regulate the level of privacy boundaries. The method used is Virtual Ethnography with in-depth interviews with 6 female respondents in the Z generation category and participant observation by researchers. The data validation technique uses data triangulation. Most of them set boundaries in sharing personal problems in the close friends feature that there is trust given to people they trust for shared information ownership, then cyber culture is formed in the Instagram close friends feature where the close friends space becomes a place of refuge to reveal personal information, share hyperhonest story.

PENGARUH KINERJA KEUANGAN, UKURAN PERUSAHAAN, DAN KEPEMILIKAN SAHAM TERHADAP KINERJA LINGKUNGAN PADA PERUSAHAAN PERTAMBANGAN DI BURSA EFEK INDONESIA


 
 
 
 Abstract. This research aims to determine the effect of financial performance, firm size, and share ownership on environmental performance based on the Environmental Performance Rating Program in Environmental Management (PROPER) at mining companies listed on the Indonesia Stock Exchange (BEI) in 2012 to 2016. This research uses quantitative method. The population in this research are 41 mining sector companies listed on the Stock Exchange and the number of samples in this research are 36 selected using purposive sampling method. The hypothesis in this research are tested using multiple linear regression. The results of this research indicate that profitability and firm size have a significant effect on PROPER-based environmental performance, while liquidity and share ownership have no significant effect on PROPER-based environmental performance.
 
 
 
 

Legal Protection for Automatic Exchange of Information Taxation in Indonesia: The Importance of Synergy with Cybersecurity Institutions

<span lang="EN-US">Every citizen who is the subject of taxes and already has a Taxpayer Identification Number (NPWP or NIK) must do tax reporting on his income. Such reporting ensures taxpayer property and income data validation while supporting good governance. Data automation support is needed from other agencies such as banks to find out the balance and ownership of deposits and bank securities, land bodies to know land ownership, stock exchanges to know share ownership and other institutions related to property ownership. Integration between these institutions will increase the validity of reporting property and income owned by government officials, ultimately improving integrity towards good governance. In reality, there is no automation of validation of annual notification letter (SPT) charging data on property ownership data in each institution due to the sectoral ego of each institution, and there is no real-time regulation of property validation. Automatic Exchange of Information (AEOI) enables the automated sharing of a set of information that has been previously defined by the tax authorities. AEOI is a plan of the G20 members and is initiated by the OECD. The AEOI system works through the exchange of financial data of foreign nationals living in a country. The exchange of financial data is carried out between the tax authorities in each country. Indonesia is prepared to put this into practice as a G20 member, as evidenced by the previous release of Minister of Finance Regulation Number 39/PMK.03/2017 (PMK 39), covering Procedures for Exchange of Information Based on International Agreements. Types of Documents and/or Additional Information Required to Be Retained by Taxpayers Conducting Transactions with Related Parties and Procedures for Management, Minister of Finance Regulation No. 213/PMK..03/2016 (PMK 213). As a result, in addition to the Automatic Exchange of Information (AEOI) regulation put out by the Organization for Economic Cooperation and Development, there needs to be legal protection (OECD). Furthermore, the author emphasizes the importance of cooperation and synergy with cybersecurity institutions to secure tax exchange data.</span>

Pengaruh Profitabilitas Dan Ukuran Perusahaan Terhadap Disclosure Corporate Social Responisibility (CSRD) Pada Perusahaan Pertambangan Di Bei

Effect of profitability, firm size, board of commissioners, and public share ownership of CSR Disclosure.The purpose of this study is to determine the effect of profitability, firm size, board of commissioners, and public share ownership of CSR Disclosure. The type of research used is associative. The data used is secondary data. Data collection techniques used in this study is document analysis. Data analysis method used in this research is qualitative and quantitative analysis.The results show that there is influence between board of commissioner of CSR disclosure and not influence between profitability, firm size and public share ownership of CSR disclosure.

Corporate Governance Disclosure Attributes and Organisational Performance in Sub-Sahara Africa

Purpose of the article: There seems to be lack of studies on the link between corporate governance disclosure attributes and organisational performance, particularly for consumer and industrial goods companies in sub-Sahara Africa in a single study. Consequently, this study was carried out with the view to evaluating whether certain corporate governance disclosure attributes (chief executive officer compensation and share ownership) affect organisational performance (return on capital employed) in sub-Sahara Africa.Methodology/Methods: Secondary data from 2012–2021 were obtained from the annual reports and accounts of sixteen (16) companies, of which four (4) were selected from each region of sub-Saharan Africa (West Africa: Nigeria; Southern African: South Africa, East Africa: Kenya; and Central Africa: Egypt). Data obtained were analysed via descriptive (mean, median, standard deviation, minimum and maximum values, kurtosis, skewness and Karl Pearson correlation matrix), post estimation (factor and principal component analyses, variance inflation factor and heteroscedasticity) and inferential (Ordinary Least Square, Fixed and Random Effects Regression) statistical tools.Scientific aim: This paper assessed corporate governance disclosure attributes and organisational performance in sub-Sahara Africa.Findings: The fixed and random regression result indicated that while chief executive officer compensation had significant relationship with organisational performance (coefficient = –1.1971; z_value = –3.40 and prob_z = 0.001), chief executive officer share ownership (coefficient = 0.00087, z_value = 0.04 and prob_z = 0.082) had insignificant relationship with organisational performance in sub-Saharan Africa.Conclusion: The study advocates the need to decrease chief executive officer share ownership concentration, as it may probably reduce decision-making process, transparency and objectivity of the board. Thus, concentration of chief executive officer sharehodling should be taken seriously by top management in that chief executive officers should not be accorded too much opportunity to aquire companies’ stocks.

Tinjauan Yuridis Ditolaknya Pernyataan Pailit Atas Dasar Perlakuan Yang Sama Pada Anak Perusahaan BUMN

BUMN in carrying out restructuring carry out the principle of holding companies in maximizing capital. The legal relationship established in the application of the holding company principle between the parent company and its subsidiaries is caused by the takeover of shares by the parent company. BUMN subsidiaries are treated the same as BUMN by fulfilling several conditions as specified in Article 2A paragraph (7) of PP RI Number 72 of 2016. This research is focused on analyzing and analyzing problems related to the legal status of BUMN subsidiaries according to Indonesian law, legal provisions regarding the legal relationship of BUMN holding companies to BUMN subsidiaries filed for bankruptcy, and analysis of the rejection of bankruptcy applications based on equal treatment of BUMN subsidiaries in Decision Number 35/Pdt.Sus-Pailit/2021/PN. Niaga.Jkt.Pst. The research method used is a normative research method that is descriptive. Data sources were obtained through primary, secondary, and tertiary legal materials. The data collection technique used is a literature study. This normative research is based on qualitative analysis of secondary data in the form of laws and regulations and library materials. To prevent various interpretations regarding the limitation of bankruptcy application authority for BUMN subsidiaries engaged in the public interest sector, it is necessary to have clear arrangements. Currently, the Bankruptcy Law has not explicitly regulated the authority to apply for bankruptcy, especially for state-owned companies that adopt a holding system, so it is necessary to make changes or additions to the regulations. In Decision Number 35/Pdt.Sus-Bankruptcy/2021/PN.Niaga.Jkt.Pst the judge did not consider the aspect of share ownership of the bankruptcy respondent and its source of capital that must be owned entirely by the state against BUMN subsidiaries that are treated the same as BUMN engaged in the public interest when referring to Article 2 paragraph (5) of UU KPKPU.

Audit committee ownership, firm size, and audit delay: Empirical evidence from Indonesia

Research on audit committee ownership is still very limited, making it highly worthy of further investigation. Investors and regulators acknowledge the significance of having audited financial information that is released in a timely manner. Audit delay conducted by the auditor creates high information uncertainty for investors. This study aims to analyze the effect of audit committee ownership and firm size on audit delay mediated by the quality of financial reporting with a sample of 75 non-financial companies listed on the IDX in 2016-2020 with the sampling technique used is purposive sampling. This study uses path analysis with Eviews software version 9. The results of this study indicate that company share ownership and Firm Size have no effect on audit delay, financial reporting quality does not mediate the effect of company share ownership on audit delay, while financial reporting quality mediates the effect of size company against audit delay. This research contributes theoretically by enriching the literature on audit committee ownership.

To what extent does share ownership affect informative earnings management? Evidence from Indonesian manufacturing sector

Inconsistent findings regarding the relationship between share ownership and earnings management, specifically in terms of informative and opportunistic practices, have been observed in previous studies. To address this gap, the present research aims to investigate the impact of institutional, governmental, and family ownership on informative earnings management. The sample comprises 615 manufacturing firm-year observations listed on the Indonesian Stock Exchange. Earnings management is assessed by examining discretionary accruals, which are further categorized into informative and opportunistic acts based on earnings growth. Logistic regression analysis is employed to analyze the data. The results indicate that both institutional and family ownership have a positive effect on informative earnings management. This suggests that institutional and family shareholders play influential roles in monitoring managerial behavior, particularly in encouraging informative earnings management practices rather than opportunistic ones. Conversely, governmental ownership does not have a significant effect on earnings management. This finding suggests that government shareholders may have lesser interest in evaluating managerial performance based on earnings and instead prioritize political and social considerations. Overall, this study contributes to the existing literature by shedding light on the distinct influences of different types of share ownership on earnings management practices, particularly in terms of their impact on informative earnings management.

Audit Quality, Ownership Structure, and Agency Cost in Nigerian Quoted Industrial Goods Firms

This study examines the relationship between Ownership Structure, Audit Quality, and agency cost of Nigerian quoted industrial goods companies. Data from the annual reports of nine (9) selected companies whose data were readily available at the time of the study were included in the sample over a period of eleven years (2011-2021) on audit quality, managerial ownership share, institutional ownership share, administrative expenses ratio, and payout ratio were analyzed. The primary purpose of this study was to investigate the relationship between Audit Quality, Ownership Structure and agency cost of quoted Nigerian industrial goods companies. The data were analyzed using descriptive and inferential statistical techniques, including correlation matrix and fixed panel model regression. The correlation analysis revealed that all variables AER, AUQ, IOS, MOS, and PAR had correlation coefficients that were positive or negative and less than 0.9. Moreover, the results of the Fixed Effect panel model regression indicated that the probability values of the predictors were less than the study's adopted 5% level of significance (p-values 0.05), except for managerial ownership share and institutional ownership share, whose probability values were greater than 5% level of significance (p-values > 0.05). The study concluded that there is a significant relationship between the Audit Quality, Ownership Structure of industrial goods companies and agency costs. As a result, it was suggested that there should be a balance between equity ownership managers and institutional investors to reduce agency costs and that audit quality should be improved by utilizing the Big-4 to reduce asymmetric information by managers and minimize agency conflicts.

Analysis of Decisions of The General Meeting of Shareholders That Have a Balanced Percentage of Share Ownership

This Legal Research is entitled Juridical Analysis of the decisions of the General Meeting Of Shareholders (GMS) that have a balanced percentage of ownership in a limited liability company. If there is a Limited Liability Company in which there are only 2 (two) shareholders who have a balanced percentage of ownership so that there is a problem, namely that one of the shareholders does not attend the GMS or one of the shareholders does not agree on a GMS decision. The provisions regarding the quorum of the GMS and the decisions of the GMS have been determined with certainty, but in reality problems regarding this are still encountered. This research based on by 2 (two) problem formulations, the first is how to regulate shareholders who have a balanced percentage of ownership in the legislation, then the second is how the legal steps should be taken by shareholders. The First results of this study are if the two shareholders still have different interests then the Company is unlikely to continue. Because the two shareholders are decision makers, and if the deadlock continues then this will have an impact on the Company. In this case, the district court may dissolve the Company on the grounds that it is impossible for the Company to continue. And the Second, is a legal step that can be taken by one of the shareholders is to apply for an application to the district court, namely by requesting a quorum and the decision of the GMS.

Implications of Good Corporate Governance (GCG) on Financial Statement Integrity

The development of a strategy by the government as a public organization to deal with the implementation of good corporate governance, which is now a requirement for each company in order to win global business competition and also overtake the problem of the economic crisis, is required by the rapid and massive advances in information technology that have occurred during the industrial revolution 4.0 era. The Agency theory was utilized to support this research since it fosters the formation of the notion of Good Corporate Governance in managing the company's business to reduce agency conflicts. Companies are required to be able to provide good financial reports. A solid financial report is one that maintains the integrity of the information it contains. The extent to which financial reports reflect financial facts fairly, honestly, and not more or less is referred to as their integrity. The goal of this study is to identify the implicit influence of good corporate governance (GCG) on the financial statements of different Indonesian enterprises. Research data is collected through financial reports and company annual reports. The SPSS statistical software was used to analyze the research data. The study's findings indicate that institutional share ownership and management support as part of Good Corporate Governance have a significant impact on the financial statements of Indonesian enterprises

Pengaruh Kepemilikan Asing, Kualitas Audit, Dan Effective Tax Rate Terhadap Transfer Pricing

This study aims to determine the effect of foreign ownership, audit quality and effective tax rate on transfer pricing. This study uses a sample of mining companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2021 period. The sampling method used purposive sampling with criteria set by the researcher so that a sample of 24 companies was used in this study. Management of data in research using multiple linear regression. The results of this study indicate that foreign share ownership has an effect on transfer pricing, audit quality and effective tax rate have no effect on transfer pricing. The contribution in this study empirically explains the relationship between foreign ownership using the percentage of foreign share ownership, audit quality using a dummy variable by determining a sample of company financial statements that are audited by big four KAP with a value of 1 and non-big four KAP with a value of 0, and the effective tax rate using the expense ratio current tax with pre-tax profit. This research provides information for the government to be able to decide on a policy of strict sanctions in overcoming problems related to tax suppression and stakeholders in the company can monitor the company's transaction activities with related parties in countries with low tax rates.
 Keywords: Foreign Ownership, Audit Quality, Effective Tax Rate, Transfer pricing

AirTouch Communications’ Innovative Disclosure: “Proportionate Financial Data”

ABSTRACT This note relates and discusses the financial reporting innovation in the 1990s by AirTouch Communications, Inc., a wireless telephone service provider. The innovation was intended to show the parent company’s proportionate ownership share of its subsidiaries’ and joint ventures’ operations, restating key figures from the income statement and operating cash flow. The author corresponded with AirTouch’s then chief financial officer (CFO) for an explanation of the reasoning behind the innovation. Another issue that this note addresses is the opinion given by the audit firm on supplemental disclosures that depart from GAAP.

Impact of The Covid 19 Pandemic: Is There Overreaction in LQ 45 Stock?

The Covid-19 pandemic has had an impact on various aspects of life, including the capital market which has caused a negative response on most stock exchanges around the world, including the Indonesia Stock Exchange. The Effecieny Market Hypothesis (EMH) explains that the price of a stock will always be reflected from the information available in the market or investors tend to be rational. However, dramatic events such as COVID-19 allow investors to overreact. The results showed that there was an overreaction in both winner and loser stocks in the LQ 45 group on the IDX in 3 months of observation since covid was announced as a pandemic. This overreaction is then followed by a price reversal even though it has not given a significant return after t+13 for both winner and losser stocks. The speed of price recovery (magnitude effect) after the price reversal on the loser stock is higher (faster) than the winner stock. The speed of this price recovery is significantly affected by the company's capital structure and share ownership of individual investors (local and foreign).

Analisis Yuridis Persyaratan Kepemilikan Saham Asing Pada Bidang Usaha Perkebunan Kelapa Sawit Berdasarkan Daftar Negatif Investasi

Oil palm plantations play an important role in the national economy and have great potential for national economic development in the context of realizing the prosperity and welfare of the people in an equitable manner. Even though Indonesia needs foreign capital, foreign investment must still pay attention to the national interest. One of the national interests is to protect natural resources in Indonesia. The Presidential Regulation No. 44 of 2016 concerning the List of Business Fields That Are Closed and Business Fields That Are Open with Requirements regulates the limitation of foreign share ownership in companies engaged in oil palm plantations by 95%. The oil palm plantation business does not require high technology, only land, nurseries, and fertilization which have been done since the colonial era. However, with the existence of the Presidential Regulation on the Negative Investment List, the Government has opened up a huge influx of foreign investment. Therefore, problems arise 1) Requirements for foreign share ownership in the oil palm plantation business sector based on the Negative Investment List in Indonesia; and 2) The basis for consideration in determining the requirements for limiting foreign share ownership in the oil palm plantation business sector in Indonesia. This research is normative legal research. The nature of descriptive research. Data analysis was carried out qualitatively and deductively concluded. The results of the research show that: 1) Presidential Regulation No. Investment Negative List. 44 of 2016 is a government policy that supports foreign investment more than domestic investment, and 2) The basis for considering the opening of foreign shareholdings of up to a maximum of 95% based on the Presidential Regulation on the Negative Investment List is the relatively large need for funds which cannot be fully met solely by relying on Domestic Investment.

Comparing organizational democracy in Norway and Mondragon: Lessons learned for other nations and initiatives

We have been asked to compare and contrast the Norwegian system of industrial democracy with the Mondragon federated corporation of worker cooperatives to arrive at a realistic appraisal of what can be learned from both systems and to discern the lessons to be learned for other nations and other initiatives. In doing so, the kinds of lessons that are needed for the emerging system of broad-based employee share ownership and industrial participation in the United States will be introduced as a part of our analysis. We are hoping that our colleagues and readers can benefit from the books and empirical research sponsored by Rutgers University’s Institute for the Study of Employee Ownership and Profit Sharing1 and our sister Journal of Participation and Employee Ownership.