Ownership structure, business group affiliation and R&D investments

2012 ◽  
Author(s):  
Y.R. Choi ◽  
S.A. Zahra ◽  
T. Yoshikawa ◽  
B. H. Han
Keyword(s):  
Ownership Structure ◽  
Business Group ◽  
Group Affiliation ◽  
Business Group Affiliation

Business group affiliation, ownership structure, and the cost of debt

2013 ◽  
Vol 23 ◽  
pp. 311-331 ◽  
Author(s):  
Hae-Young Byun ◽  
Sunhwa Choi ◽  
Lee-Seok Hwang ◽  
Robert G. Kim
Keyword(s):  
Ownership Structure ◽  
Business Group ◽  
Cost Of Debt ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
The Cost

Business Group Affiliation, Ownership Structure, and the Cost of Debt

2012 ◽  
Author(s):  
Hae-Young Byun ◽  
Sunhwa Choi ◽  
Lee-Seok Hwang ◽  
Robert Genehung Kim
Keyword(s):  
Ownership Structure ◽  
Business Group ◽  
Cost Of Debt ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
The Cost

Value Relevance of Earnings Quality: Importance of Corporate Governance, Ownership Structure and Group Affiliations in the Listed Firms of Pakistan

2020 ◽  
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Value Relevance ◽  
Earnings Quality ◽  
Panel Data Analysis ◽  
Business Group ◽  
Group Affiliation ◽  
Business Group Affiliation ◽  
Reported Earnings

This study is an endeavor to answer the question that does corporate governance, ownership pattern and business group affiliation effect value relevance of reported earnings quality in a sample of 300 listed Pakistani firms for the period of 2006-2018. The study uses earnings response coefficient and earning predictability as proxy of reported earnings quality. The panel data analysis shows that CEOduality and director ownership have significant inverse effect on the quality of reported earnings i.e. the two do not contribute towards improvement of quality of reported earnings. Whereas board independence, independence of audit committee and external audit from big4, institutional ownerships have significant direct effect on the quality of reported earnings. Moreover, it is observed that these effects are relatively more prominent in the case of group firms. Furthermore, firm size, earning persistence, growth and leverage have positive association with the quality of reported earnings while beta has significant negative effect on the quality of earnings. Further, it is found that in times of financial crisis, firms improve its reporting quality to uphold confidence of the investors where group firms showed relatively more tending to pursue this practice. This study has several implications for shareholders, prospect investors, external auditors and regulators. This is the first study of its nature that has investigated the role of group affiliation with reported earning quality. Key words: Earnings quality, corporate governance, ownership structure, business group affiliation, ERC.

scholarly journals The Effects of Losing a Business Group Affiliation

2018 ◽  
Vol 32 (8) ◽  
pp. 3036-3074 ◽  
Author(s):  
Borja Larrain ◽  
Giorgo Sertsios ◽  
Francisco Urzúa I
Keyword(s):  
Business Group ◽  
The Other ◽  
Group Affiliation ◽  
Oxford University ◽  
Capital Misallocation ◽  
Editorial Decision ◽  
Business Group Affiliation ◽  
Industry Peers ◽  
Published Paper ◽  
Identification Strategy

Abstract We propose a novel identification strategy for estimating the effects of business group affiliation. We study two-firm business groups, some of which split up during the sample period, leaving some firms as stand-alone firms. We instrument for stand-alone status using shocks to the industry of the other group firm. We find that firms that become stand-alone reduce leverage and investment. Consistent with collateral cross-pledging, the effects are more pronounced when the other firm had high tangibility. Consistent with capital misallocation in groups, the reduction in leverage is stronger in firms that had low (high) profitability (leverage) relative to industry peers. Received July 3, 2017; editorial decision April 7, 2018 by Editor Wei Jiang. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Corporate social responsibility, business group affiliation and shareholder wealth: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eswaran Velayutham ◽  
Vijayakumaran Ratnam
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Market ◽  
Business Group ◽  
Shareholder Wealth ◽  
Group Affiliation ◽  
Content Type ◽  
Business Group Affiliation ◽  
Corporate Social ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and shareholder wealth arising from announcement returns of security issuance from a frontier market. It also explores the role of business group affiliation (BGA) on this relationship. Design/methodology/approach The study uses short-term scenarios to examine the link between CSR and shareholder wealth using the event study methodology which helps us mitigate the reverse causality problems related to studies of the relationship between CSR and firm value. Abnormal returns surrounding the security issue announcements were generated using the market model. Findings This paper finds that security issuers with high CSR scores are associated with higher shareholder value. However, this paper finds that CSR activities of security issuers with BGA are value-destroying which is consistent with the agency perspective of CSR. Research limitations/implications This study is limited to only one nascent market, namely the Colombo Stock Exchange. Originality/value This study documents that CSR and BGA are important determinants, among others, of stock price reactions to security offerings in emerging markets.

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