Agency theory, insider ownership and corporate focus: some South African evidence

1997 ◽  
Vol 11 (2) ◽  
pp. 51-68
Author(s):  
S Davidson
Keyword(s):  
Agency Theory ◽  
South African ◽  
Insider Ownership ◽  
Corporate Focus

scholarly journals Does Ownership Structure Pay Attention to The Corporate Cash Policy? Evidence in Indonesia Firms

ETIKONOMI ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 209-220
Author(s):  
R. Heru Kristanto HC ◽  
Mamduh M Hanafi
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Firm Value ◽  
Institutional Ownership ◽  
Dynamic Panel ◽  
Insider Ownership ◽  
Listed Firms ◽  
Research Findings ◽  
Dynamic Panel Regression ◽  
Theory Framework

Cash and its use will connect to many things, such as the performance of corporate governance. This empirical research examines the interaction effect of insider ownership, institutional ownership, and independent board toward the influence of cash policy on the firm value. This research using agency theory framework, corporate governance using Indonesia listed firms’ samples over 2001-2017 (197 firms, 3349 observation). Fixed effect dynamic panel regression and regression-moderated analysis used in this research. We show that these results suggest that the insider ownership, institutional ownership, and independent board strengthen the influence of the corporate cash policy on firm’s value. It develops the previous research findings in Indonesia, especially in the implication of cash management from the perspective of agency theory and corporate governance.JEL Classification: G32, L21

scholarly journals Meeting Dividend Thresholds Through Earnings Management of Listed Companies in South Africa

2020 ◽  
pp. 77-95
Author(s):  
Xin Yao Li ◽  
Pei-Wen Chen
Keyword(s):  
South Africa ◽  
Earnings Management ◽  
Regression Model ◽  
Agency Theory ◽  
Prospect Theory ◽  
South African ◽  
Listed Companies ◽  
Study Data ◽  
Signal Theory ◽  
Dividend Distribution

Dividend distribution influences corporate operating decisions, and the prior year’s dividends represent an earnings threshold. The purpose of this study was to clarify perceptions regarding the manipulation of income toward a desired earnings goal (i.e., dividend threshold). In this study, data from 2011 to 2019 were collected from the S&P Capital IQ database. A regression model was adopted to analyze the manipulation of income toward a dividend threshold (i.e., desired earnings goal) among South Africa’s listed industry. Moreover, the behavior of managers of listed South African firms tended to meet or exceed dividend thresholds by manipulating earnings, which is consistent with signal theory, prospect theory and agency theory. Keywords: Dividend thresholds, Earnings management, South Africa, Signal theory, Prospect theory.

scholarly journals Can agency theory recommendations affect performance of family firms? Evidence from the Italian market

2007 ◽  
Vol 4 (4) ◽  
pp. 9-17
Author(s):  
Stefano Caselli ◽  
Stefano Gatti
Keyword(s):  
Agency Theory ◽  
Agency Costs ◽  
Family Firms ◽  
Stock Exchange ◽  
Foreign Investor ◽  
Insider Ownership ◽  
Low Level ◽  
Italian Market ◽  
Using Data ◽  
High Level

Using data on all family owned firms listed on the Italian Stock Exchange for the entire period between 2001 and 2005, it is shown that agency theory prescriptions and monitoring activities differentially impact the market value and profitability of family owned firms. Specifically, nonfounder family firms benefit from a low level of board and insider stock ownership and a high level of stockholder and foreign investor ownership, because these firms necessarily face high agency costs. Conversely, founder family firms benefit from a high level of board and insider ownership, and a low level of stockholder and foreign investor ownership, owing to their lower agency costs

scholarly journals Determining Agency Theory Framework through Financial Leverage & Insider Ownership: Evidence from Pakistan

2017 ◽  
Vol 9 (3) ◽  
pp. 21 ◽  
Author(s):  
Hafiz Mustansar Javaid ◽  
Snober Javid
Keyword(s):  
Agency Theory ◽  
Stock Exchange ◽  
Cost Minimization ◽  
Agency Cost ◽  
Public Image ◽  
Insider Ownership ◽  
Financial Firms ◽  
Long Term Performance ◽  
Term Performance

Sound practices of corporate governance help firms to lift their performance and bring in investors’ confidence while enabling shareholders’ rights protection, qualifying the legal requirements and spotlight the vast public image about how they are operating their business. Most of the previous literature on agency theory in Pakistan has demonstrated connection among ownership structure on firm performance, value and profitability. This study extends the literature by proposing the effect of change in leverage & insider equity ownership on agency cost mitigation. Proxy is used to measure agency cost: Expense ratio: Operating expense / annual sales. We applied “Fixed effect” method on sample of 41 non-financial firms from four economic groups listed in Pakistan Stock Exchange from the period of 2010-2014. The practical implications of the study is that those investors who desire long term performance of the firm may perhaps invested in those firms which are owned by insiders or containing acceptable amount of debt, for the reason that such firms try to maintain & continue long term performance by agency cost minimization & shareholders’ interests protections.

Ownership structure and corporate financial performance in an emerging market: a dynamic panel data analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahab Ud Din ◽  
Muhammad Arshad Khan ◽  
Majid Jamal Khan ◽  
Muhammad Yar Khan
Keyword(s):  
Financial Performance ◽  
Agency Theory ◽  
Ownership Structure ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Corporate Financial Performance ◽  
Dynamic Panel ◽  
Content Type ◽  
Insider Ownership ◽  
The Impact

PurposeThis study examines the impact of ownership structure on firm financial performance, for 146 manufacturing firms listed at the Pakistan Stock Exchange (PSX) for the period 2003–2012.Design/methodology/approachThe theoretical background of the present study is based on the agency theory. Ownership structure is measured by institutional shareholdings, insider shareholdings, foreign shareholders and government shareholdings, while return on assets (ROA), return on equity (ROE), market-to-book ratio (MBR) and Tobin's Q (TQ) are used as proxies of corporate financial performance. The dynamic panel generalized method of moments (GMM) method is employed to cater for the issue of endogeneity.FindingsWe find that institutional ownership exerts a significant positive impact on ROE and MBR, which suggests that institutional investors play a significant role in improving the financial performance of the sample Pakistani. Furthermore, the results reveal a significant positive relationship of insider ownership with ROA, ROE, MBR and TQ, which is consistent with the prediction of agency theory that concentration of insider ownership aligns the interest of shareholders with those of the managers and hence improves performance. A significant positive association of government shareholdings with ROA and ROE was also found. Therefore, policymakers may encourage government ownership in firms, which can help to improve corporate financial performance.Originality/valueThe present study contributes to the existing literature on ownership structure and corporate financial performance in an emerging market like Pakistan. It is worth mentioning that the institutional setup and corporate governance structure in Pakistan is yet at an evolving stage. Findings of this study may provide useful insights to corporate managers and investors about the relationship between ownership structure and financial performance of firms from the manufacturing sector in Pakistan.

The Three-dimensional structure of frozen-hydrated nudaurelia capensis β virus

1987 ◽  
Vol 45 ◽  
pp. 650-651
Author(s):  
N. H. Olson ◽  
T. S. Baker ◽  
Wu Bo Mu ◽  
J. E. Johnson ◽  
D. A. Hendry
Keyword(s):  
South African ◽  
Rna Virus ◽  
Carbon Film ◽  
Three Dimensional ◽  
Dimensional Structure ◽  
Electron Dose ◽  
Total Electron ◽  
Three Dimensional Structure ◽  
Negative Stain ◽  
Dimensional Reconstruction

Nudaurelia capensis β virus (NβV) is an RNA virus of the South African Pine Emperor moth, Nudaurelia cytherea capensis (Lepidoptera: Saturniidae). The NβV capsid is a T = 4 icosahedron that contains 60T = 240 subunits of the coat protein (Mr = 61,000). A three-dimensional reconstruction of the NβV capsid was previously computed from visions embedded in negative stain suspended over holes in a carbon film. We have re-examined the three-dimensional structure of NβV, using cryo-microscopy to examine the native, unstained structure of the virion and to provide a initial phasing model for high-resolution x-ray crystallographic studiesNβV was purified and prepared for cryo-microscopy as described. Micrographs were recorded ∼1 - 2 μm underfocus at a magnification of 49,000X with a total electron dose of about 1800 e-/nm2.

Suicidal Behavior in Black South Africans

Crisis ◽  
2003 ◽  
Vol 24 (1) ◽  
pp. 24-28 ◽  
Author(s):  
Lourens Schlebusch ◽  
Naseema B.M. Vawda ◽  
Brenda A. Bosch
Keyword(s):  
South African ◽  
Suicidal Behavior ◽  
Health Care Facilities ◽  
South African Society ◽  
South Africans ◽  
The Past ◽  
The People ◽  
Care Facilities ◽  
Black South Africans ◽  
To Come

Summary: In the past suicidal behavior among Black South Africans has been largely underresearched. Earlier studies among the other main ethnic groups in the country showed suicidal behavior in those groups to be a serious problem. This article briefly reviews some of the more recent research on suicidal behavior in Black South Africans. The results indicate an apparent increase in suicidal behavior in this group. Several explanations are offered for the change in suicidal behavior in the reported clinical populations. This includes past difficulties for all South Africans to access health care facilities in the Apartheid (legal racial separation) era, and present difficulties of post-Apartheid transformation the South African society is undergoing, as the people struggle to come to terms with the deleterious effects of the former South African racial policies, related socio-cultural, socio-economic, and other pressures.

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