Role of educational, regional and religious attributes of CEOs in performance of Indian family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ranjan DasGupta ◽  
Rajesh Pathak
Keyword(s):  
Educational Attainment ◽  
Fixed Effects ◽  
Family Firms ◽  
Religious Affiliation ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Top Executives ◽  
Northern India

PurposeThe authors investigate whether community-based CEO's attributes, particularly educational attainment, regional and religious affiliation, are direct antecedents of performance in family-controlled Indian firms. The authors further examine whether CEO's education moderates the linkage of firm performance with regional and religious affiliation.Design/methodology/approachThe authors employ pooled Ordinary Least Square with fixed effects and Fama-Macbeth regression techniques to test their hypotheses.FindingsThe results reveal that firms with post-graduate CEOs in business and firms with doctorate CEOs, significantly outperform peer firms. The authors also find that CEOs from northern India outperform peer CEOs consistently which emanates from the risk-taking differentials of CEO's across regions. Hindu CEOs also deliver superior return on assets. However, CEO's educational attainment moderates the influence of regional and religious affiliations.Originality/valueThis study is unique as it contributes on the role of regional affiliation of top executives in determining performance which almost remains unexplored in existing literature.

Insurance regulations, risk and performance in Ghana

2019 ◽  
Vol 28 (1) ◽  
pp. 74-96
Author(s):  
Baah Aye Kusi ◽  
Abdul Latif Alhassan ◽  
Daniel Ofori-Sasu ◽  
Rockson Sai
Keyword(s):  
Random Effect ◽  
Least Square ◽  
Insurance Market ◽  
Content Type ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
And Performance ◽  
First Time

Purpose This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study. Design/methodology/approach This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis. Findings The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability. Practical implications The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana. Originality/value This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.

scholarly journals The Role of Political Connections on Family Firms’ Performance: Evidence from Indonesia

2019 ◽  
Vol 7 (4) ◽  
pp. 55 ◽  
Author(s):  
Iman Harymawan ◽  
Mohammad Nasih ◽  
Muhammad Madyan ◽  
Diarany Sucahyati
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Least Square ◽  
Political Connections ◽  
Family Ownership ◽  
Ols Regression ◽  
Ordinary Least Square ◽  
Relationship Of ◽  
The Relationship

The purpose of this study is to investigate the relationship of firms with family ownership and their performance in Indonesia and further examine on how political connections affect this relationship. This study used 933 samples from 413 companies listed on the Indonesia Stock Exchange (IDX) in the period between 2014 and 2016. Using ordinary least square (OLS) regression, the results shows that firms without family ownership (non-family firms) have better performance than firms with family ownership (family firms) in Indonesia. Furthermore, the findings also show that the performance of family firms significantly improve when the firms are affiliated with political connections. Our findings imply that establishing political connections in family firms will increase the performance of the firms.

Relative institutional quality and FDI inflows in ASEAN countries

2017 ◽  
Vol 44 (1) ◽  
pp. 115-137 ◽  
Author(s):  
Tajul Ariffin Masron
Keyword(s):  
Multinational Corporations ◽  
Relative Effectiveness ◽  
Institutional Quality ◽  
Least Square ◽  
Limited Information ◽  
Fdi Inflows ◽  
Content Type ◽  
Ordinary Least Square ◽  
Asean Countries

Purpose Foreign direct investment (FDI) inflows into any country, especially ASEAN countries, is affected by any improvement in the institutional quality (IQ) of competitors such as China. As generally investors make decisions by comparing two countries’ IQ, the ratio of two countries’ IQ matters more than a single country’s IQ. The purpose of this paper is to re-examine the role of IQ on FDI inflows in ASEAN countries for the period 1996-2013. Design/methodology/approach With limited information on IQ, this study pools eight ASEAN countries as the sample for analysis from 1996 until 2013. A panel dynamic approach – namely, dynamic ordinary least square and fully modified ordinary least square – is utilized. Findings This study confirmed that relative IQ significantly affects FDI inflows into ASEAN countries. The low effect is more reflective of the small portion of world FDI inflows into the ASEAN region. Research limitations/implications This study observes the crucial relationship between IQ and FDI – that the relative effectiveness of IQ in attracting FDI inflows depends heavily on the changes in both countries’ IQ. Hence, the effort of ASEAN countries to improve IQ and use it as a means to lure FDI inflows should go beyond a mere improvement. Focus should be on significant improvement of IQ so that multinational corporations will comfortably remain or inject new FDI into the country. Practical implications Every ASEAN country should double their efforts toward improving their IQ in order to attract future FDI. Originality/value Several studies have confirmed the role of IQ on FDI inflows. However, the majority of these studies have investigated the effect of IQ exclusively for a specific country even though some of them have used a panel of several countries’ data. On the other hand, investors normally evaluate their decision on whether or not to invest based on the relative terms, comparing several potential locations of investment at once. This study can be considered the first to explore the potential effect of IQ after taking into account the possibility of each ASEAN country’s IQ being easily offset by changes in the IQ of China.

Board independence and firm performance: evidence from Kuwait

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Firm Performance ◽  
Least Square ◽  
Independent Directors ◽  
Board Independence ◽  
Content Type ◽  
Listed Firms ◽  
Ordinary Least Square ◽  
Large Shareholders ◽  
The Relationship

Purpose This paper aims to reduce the knowledge gap by using a large sample and different regressions while controlling the endogeneity and causality issues. Design/methodology/approach This study used the ordinary least square (OLS) and two stage least squares (2SLS) regressions to control the endogeneity and causality problems; this estimation strategy allows for comparison of both estimates to identify any inconsistency and biases in the parameters. Findings General speaking, this study found that board independence negatively affected firm performance based on Tobin’s Q only and the relationship between the two variables ran from board independence to firm performance but not vice versa. Originality/value The current independent directors are not adding value to Kuwait’s listed firms. Some directors who represent large shareholders and the conflict between large shareholders and small shareholders could affect the role of independent directors in Kuwait. To best of the researchers’ knowledge, this study is the first to consider board independent after controlling the issues of endogeneity and causality in Kuwait; thus, the results could be useful for Kuwaiti firms, regulators and policymakers.

Understanding the determinants of festival attendee spending: the role of cultural capital

2020 ◽  
Vol 11 (2) ◽  
pp. 145-159 ◽  
Author(s):  
Andrea Báez-Montenegro ◽  
María Devesa
Keyword(s):  
Cultural Capital ◽  
Regression Models ◽  
Least Square ◽  
Tobit Regression ◽  
Content Type ◽  
Ordinary Least Square ◽  
The City ◽  
Practical Implications

PurposeThe purpose of this paper is to explore which factors determine visitor spending at a cultural festival, focusing particularly on cultural capital variables.Design/methodology/approachThe case study is the Valdivia International Film Festival. Data from a survey conducted amongst a representative sample of attendees at the festival is used and ordinary least square (OLS) and Tobit regression models are applied.FindingsSix of the variables included from the model prove statistically significant: gender, age, place of residence, participation in other activities at the festival, and “leisure and sharing” motivation.Practical implicationsFestival organisers should draw up a programme and prepare activities that are balanced so as to attract local film lovers, but that should also appeal to outside visitors, who would see the festival as an opportunity to enjoy a wider tourist experience, all of which would have a broader economic impact on the city.Originality/valueUnderstanding which factors determine spending leads to an improvement in the event's viability and ensures its future sustainability. This study adds to the growing literature establishing a sound theoretical corpus on the topic.

Slack in family firms: evidence from Italy (2006-2010)

2014 ◽  
Vol 4 (2) ◽  
pp. 171-193 ◽  
Author(s):  
Giacomo Laffranchini ◽  
Mike Braun
Keyword(s):  
Family Firms ◽  
Least Square ◽  
Curvilinear Relationship ◽  
Board Independence ◽  
Reverse Causality ◽  
Publicly Traded ◽  
Content Type ◽  
Family Enterprises ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between available slack and firm performance in Italian family-controlled public firms (FCPFs) from 2006 to 2010. In addition the authors analyze the moderating effects of specific board structure variables on the relationship between slack resources and firms’ performance. Design/methodology/approach – A pooled cross-section of family and non-family publicly traded firms was drawn from COMPUSTAT global and matched with corporate governance and family firm variables hand-collected from companies’ standard profiles from Italy's primary stock exchange, Borsa Italiana. The hypotheses were tested using the feasible generalized least square method in order to analyze the data from 583 firms-observations, controlling for self-selection bias and reverse causality. Findings – The study shows that FCPFs with available slack experience less than proportionate increases in performance, suggesting a concave curvilinear slack-performance relationship. However, the slack-performance relationship is contingent on board independence and board size: greater board independence and larger boards in FCPFs relate to higher performance when the firm lacks or has too much slack available. The findings suggest that a balanced approach of oversight and stewardship helps families to make better resources allocation, to the benefit of outside shareholders as well. Research limitations/implications – The slack measure was restricted to available slack. Future studies can expand this research inquiry with other forms of slack, including potential and recoverable slack. The sample included only publicly traded family and non-family firms, thereby limiting the generalizability of the findings to other types of family enterprises. Lastly, the results only attend to the slack-performance relationship by controlling whether the firm's performance is below or above the industry average. Practical implications – Policy makers and non-family stakeholders may rely on the findings better understand the factors that can alter the family's propensity for risks and its related strategic decisions in the Italian context. Procedures to fully monitor family management's decision making or, at the other extreme, to give the family free reign are likely to disadvantage families, their business, and their outside stakeholders. Originality/value – The study reconciles the debate on the role of slack on firms’ performance by proposing a curvilinear relationship. The study is one of only a handful of research inquiries centrally addressing the role of slack in family-owned businesses, and the only analysis focussed on Italian FCPFs.

scholarly journals Political connections, corporate governance, and tax aggressiveness in Malaysia

2017 ◽  
Vol 25 (3) ◽  
pp. 424-451 ◽  
Author(s):  
Effiezal Aswadi Abdul Wahab ◽  
Akmalia M. Ariff ◽  
Marziana Madah Marzuki ◽  
Zuraidah Mohd Sanusi
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Least Square ◽  
Political Connections ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between political connections and corporate tax aggressiveness in Malaysia. In addition, this paper investigates the relationship between corporate governance variables and corporate tax aggressiveness. Next, the study investigates the mitigating role of corporate governance in the relationship between political connections and corporate tax aggressiveness. Design/methodology/approach The sample of this study is based on 2,538 firm-year observations during the 2000-2009 periods. This study employs a panel least square regression with both period and industry fixed effects. The study retrieved the corporate governance variables from the downloaded annual reports, whilst the remaining data were collected from Compustat Global. Findings This study finds that politically connected firms are more tax aggressive than non-connected firms. Furthermore, the study finds that large board size decreases the likelihood of tax aggressiveness and a non-linear relationship exists between institutional ownership and tax aggressiveness suggesting increase in monitoring as the ownership increases. However, the study finds no evidence to suggest that corporate governance mitigates the influence of political connections in promoting tax aggressiveness behavior. The findings suggest that the impact of political connections could outweigh the benefits of changes in corporate governance in Malaysia. Research limitations/implications The data are not recent, but it reflects a rather longitudinal research period. Originality/value This paper extends the literature of tax research in Malaysia which is in its’ infancy stage. Furthermore, it investigates the role of political connections in tax-planning research.

scholarly journals Do firm characteristics and ownership structure affect corporate philanthropic contributions in Jordan?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Husam Ananzeh ◽  
Hashem Alshurafat ◽  
Khaled Hussainey
Keyword(s):  
Ownership Structure ◽  
Fixed Effects ◽  
Design Methodology ◽  
Least Square ◽  
Firm Characteristics ◽  
Content Type ◽  
Ordinary Least Square ◽  
Service Sectors ◽  
Ordinary Least Square Regression ◽  
New Evidence

Purpose This paper aims to examine the drivers of corporate donations in Jordan. In particular, to examine whether firm-specific characteristics and ownership types affect corporate donations. Design/methodology/approach The analysis is based on a sample of 94 Jordanian listed companies, drawn from the manufacturing and service sectors, over the period 2010–2016. This paper uses ordinary least square regression with a year and industry fixed effects to test the research hypotheses. Findings This paper finds that corporate philanthropic contributions are positively associated with company size, age, profitability, media exposure and governmental ownership. This paper also finds that corporate philanthropic contributions are negatively associated with financial leverage and family ownership. Originality/value The paper provides new evidence on the determinants of corporate philanthropic contributions in a developing country.

The impact of Islamic accounting standards on information asymmetry

2017 ◽  
Vol 10 (2) ◽  
pp. 170-185 ◽  
Author(s):  
Abiot Mindaye Tessema ◽  
Samy Garas ◽  
Kienpin Tee
Keyword(s):  
Information Asymmetry ◽  
Financial Institutions ◽  
Fixed Effects ◽  
Economic Consequences ◽  
Least Square ◽  
Data Availability ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
The Impact

Purpose The purpose of this paper is to investigate whether disclosure as required by Islamic Financial Service Board Standard No. 4 (IFSB-4) influences information asymmetry among investors in the Gulf Cooperation Council (GCC) member countries. In addition, the paper investigates whether the influence of IFSB-4 on information asymmetry varies between Islamic and conventional financial institutions. Design/methodology/approach The paper tests the hypotheses using a sample of firms listed in the GCC over a period of 2000-2013. Ordinary least square regression and fixed-effects estimation techniques are applied to test the hypotheses. Findings The findings reveal that information asymmetry among investors is lower after the implementation of IFSB-4 than before, indicating that the standard has increased transparency. The results also reveal that information asymmetry after the implementation of IFSB-4 is lower for Islamic than for conventional financial institutions. This suggests that IFAB-4 promotes more transparency for Islamic than conventional institutions. Research limitations/implications Owing to data availability, we were unable to use other proxies of information asymmetry, e.g. bid-ask spreads, and the level of disclosure, e.g. self-constructed disclosure index. Practical implications The paper concludes that disclosures under IFAB-4 reduce information asymmetry among investors. In this context, this study increases the awareness of standard setters academics investors regulators and many other stakeholders about the economic consequences of disclosure standards in the region. Originality/value This study takes a first step to fill evident gaps in the literature by investigating the influences of disclosure standard on information asymmetry in a unique setting that is often ignored by accounting researchers, which helps to widen our knowledge on accounting practices across the globe.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

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