Determinants of ownership concentration in public firms: The importance of firm-, industry- and country-level factors

2013 ◽  
Vol 33 ◽  
pp. 1-14 ◽  
Author(s):  
Ansgar Richter ◽  
Christian Weiss
Keyword(s):  
Ownership Concentration ◽  
Public Firms ◽  
Country Level

Earnings Quality and International IPO Underpricing

2011 ◽  
Vol 86 (2) ◽  
pp. 483-505 ◽  
Author(s):  
Thomas J. Boulton ◽  
Scott B. Smart ◽  
Chad J. Zutter
Keyword(s):  
Earnings Quality ◽  
Ipo Underpricing ◽  
Japanese Market ◽  
Public Firms ◽  
Earnings Information ◽  
Country Level ◽  
Specific Factors ◽  
The Impact ◽  
The U.S ◽  
Country Specific

ABSTRACT: This study examines the impact of country-level earnings quality on IPO underpricing. Examining 10,783 IPOs from 37 countries, we find that IPOs are underpriced less in countries where public firms produce higher quality earnings information. This finding persists after controlling for other deal- and country-specific factors that affect IPO underpricing, and it is driven neither by the large and relatively transparent markets in the U.S. and U.K. nor by the relatively opaque Japanese market. The impact of low earnings quality on underpricing is partially offset by the use of a top-tier underwriter.

Ownership concentration, family control, and auditor choice

2016 ◽  
Vol 24 (1) ◽  
pp. 19-42 ◽  
Author(s):  
Salim Darmadi
Keyword(s):  
Stock Exchange ◽  
Emerging Market ◽  
Empirical Studies ◽  
Ownership Concentration ◽  
High Quality ◽  
Content Type ◽  
Family Control ◽  
Public Firms ◽  
Auditor Choice ◽  
Big 4

Purpose – The purpose of this paper is to extend the existing, yet limited, literature on the influence of ownership concentration and family control on the demands for high-quality audits. This study focusses on an emerging market, namely, Indonesia, where ownership concentration and family control are relatively higher than those in developed markets. Design/methodology/approach – The sample consists of 787 firm-year observations of public firms listed on the Indonesia Stock Exchange. Following prior studies, a firm is considered using a higher quality audit when its external auditor is one of the Big 4 audit firms. Logistic regressions are employed to test research hypotheses. Findings – Empirical evidence obtained reveals that firms with higher ownership concentration are more likely to hire a Big 4 auditor. Hence, in such firms, high-quality audits are employed to mitigate agency issues. However, when the controlling shareholder is a family, the association between ownership concentration and the demands for high-quality auditors turns negative, implying that family-controlled firms tend to sustain opaqueness gains by hiring lower quality auditors. Originality/value – Previous empirical studies examining the influence of ownership concentration and family control on auditor choice are relatively limited in the literature and are heavily focussed on developed economies. In addition, the present study is one of the first to investigate the association between family control and auditor choice in the context of a developing economy.

scholarly journals Ownership structure, large inside/outside shareholders, and firm performance: evidence from Canada

2006 ◽  
Vol 3 (3) ◽  
pp. 96-112 ◽  
Author(s):  
Eduardo Schiehll
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Ownership Structure ◽  
Voting Rights ◽  
Ownership Concentration ◽  
Negatively Associated ◽  
Public Firms ◽  
Large Shareholders

This study gathers additional evidence on the association between ownership concentration and firm performance, as measured by the firm’s Q ratio. Using panel data from a sample of 159 Canadian public firms over a three-year period, I focus on the distinction between large inside shareholders, who directly participate in the management of the firm, and large outside shareholders, who do not. I examine whether direct and indirect monitoring on the part of large shareholders has an impact on the association between ownership concentration and firm performance. Along with the distinction between large inside and outside shareholders, this study also investigates whether concentration of voting rights is associated to firm performance, and whether the identity of the owner affects this association. The findings suggest that large inside shareholdings tend to be negatively associated to firm performance, while no association is found in firms with a majority of large outside shareholdings or firms combining large inside and outside shareholdings in its ownership structure. Concentration of voting rights is negatively associated to firm performance only in firms with a majority of large outside shareholders, suggesting that the market may not discriminate between voting rights and ownership concentration in owner-managed firms. Although the results for the identity of large shareholders are not conclusive, there is evidence that family and institutional large shareholders wield different performance impacts

Ownership structure and voluntary disclosure: A synthesis of empirical studies

2016 ◽  
Vol 42 (3) ◽  
pp. 376-403 ◽  
Author(s):  
Hichem Khlif ◽  
Kamran Ahmed ◽  
Mohsen Souissi
Keyword(s):  
Research Design ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Empirical Studies ◽  
Ownership Concentration ◽  
Institutional Characteristics ◽  
Country Level ◽  
Negative Effect ◽  
Positive Effect

In this article, we meta-analyse 69 empirical studies assessing the association between corporate voluntary disclosure and ownership concentration and types, and how institutional characteristics and research design moderate these relationships. Our overall analyses show that state, foreign and institutional ownerships have a positive effect but managerial ownership and ownership concentration have a negative effect on voluntary disclosure. Since the overall effect may conceal the underlying factors that cause heterogeneity in the effect size distribution, we select two important institutional factors: country-level investor protection and the equity market development, and research design and journal quality, to explain the mixed and conflicting findings. Our results emphasise the need to consider legal and institutional characteristics, and researcher induced-artefacts, in understanding the role of ownership structure and identity in corporate voluntary disclosure.

Corporate ownership concentration and financial reporting quality

2019 ◽  
Vol 17 (1) ◽  
pp. 104-132 ◽  
Author(s):  
Neal Arthur ◽  
Huifa Chen ◽  
Qingliang Tang
Keyword(s):  
Financial Reporting ◽  
Ownership Structure ◽  
Reporting Quality ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Financial Reporting Quality ◽  
Content Type ◽  
Controlling Shareholders ◽  
Country Level ◽  
Important Extension

Purpose The purpose of this study is to investigate whether a country’s ownership concentration affects the financial reporting quality in a cross-country setting. Design/methodology/approach This paper uses six accounting and auditing indicators to construct a comprehensive index to measure the country-level financial reporting quality. Findings The authors find a non-linear nature of the relationship between the national financial reporting quality and national ownership structure. Specifically, the relation is negative in a relatively spread ownership structure with no controlling shareholders, implying the entrenchment effects dominate. When ownership is highly concentrated, particularly with controlling shareholders whose interest is aligned with that of the firm, the relation turns to positive and alignment effects dominate. Originality/value The study is an important extension of prior research examining the financial reporting quality effect of ownership concentration. It enhances the understanding of the role of ownership concentration in determining a country’s financial reporting quality and has potential important policy implications for countries’ reformers and regulators who are concerned with the transparency of financial reporting and the quality of corporate governance.

scholarly journals Internal factors of dividend policy in public firms in Bosnia and Herzegovina

2019 ◽  
Vol 5 (2) ◽  
pp. 1-16
Author(s):  
Ante Džidić ◽  
Igor Živko
Keyword(s):  
Logistic Regression ◽  
Bosnia And Herzegovina ◽  
Ownership Concentration ◽  
Internal Factors ◽  
Negative Relation ◽  
Research Results ◽  
Public Firms ◽  
Investment Opportunities ◽  
The World ◽  
Dividend Distribution

AbstractThis paper examines the characteristics of dividend paying firms in Bosnia and Herzegovina. The research is conducted on a sample of 35 largest public firms during the period of five years, from 2013 to 2017, using multiple linear regression and logistic regression. The aim of the research is to explore the internal determinants of dividend payouts and to find whether there are any deviations from empirical experiences in the world. The research results show that larger and more profitable firms are more likely to pay dividends, while more indebted and closely held firms are less likely to pay dividends. The negative relation found between the dividend decision and investment opportunities is not statistically significant. The research results also show that the size is positively associated with higher payout ratios, while the payout ratios decrease with greater use of financial leverage. Profitability, investment opportunities and ownership concentration do not affect the level of dividend distribution.

scholarly journals Inovação e sustentabilidade ambiental e social: um estudo comparativo entre empresas do Brasil e da Europa

2019 ◽  
Vol 12 (5) ◽  
pp. 995
Author(s):  
José Glauber Cavalcante dos Santos ◽  
Alessandra Carvalho de Vasconcelos ◽  
Márcia Martins Mendes De Luca ◽  
Jacqueline Veneroso Alves da Cunha
Keyword(s):  
Environmental Sustainability ◽  
Corporate Sustainability ◽  
Low Carbon ◽  
Financial Reports ◽  
Public Firms ◽  
Developed Economies ◽  
Country Level ◽  
European Public ◽  
Definition Of ◽  
Indirect Relationship

In this descriptive and qualitative study, we evaluated innovation and socio-environmental sustainability as strategic organizational profiles in 78 Brazilian and European public firms traded on BM&FBovespa or NYSE Euronext between 2010 and 2013 and listed in at least one of the following indices: the Corporate Sustainability Index (ISE), the Carbon Efficient Index (ICO2) and the Low Carbon 100 Europe index®. Information was retrieved from financial reports, explanatory notes and sustainability reports. Innovation was proxied by intangible innovation assets, patents and R&D. Sustainability was evaluated based on the disclosure of GRI indicators. The two strategies were found to be strongly incorporated in European firms (i.e., in developed economies). A growing demand for innovation and sustainability was observed in both settings, indicating an indirect relationship between the two strategic profiles. Our results suggest that country-level economic and institutional factors play an important role in the definition of innovation and socio-environmental sustainability as strategic organizational profiles.

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