Ownership Preferences, Competitive Heterogeneity, and Family-Controlled Businesses

2006 ◽  
Vol 19 (2) ◽  
pp. 89-101 ◽  
Author(s):  
David G. Hoopes ◽  
Danny Miller
Keyword(s):  
Competitive Advantage ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
Concentrated Ownership ◽  
Monitoring Costs ◽  
Resources And Capabilities

This article models ownership concentration, owner preferences, and competitive advantage. It argues that ownership structure and owner preferences can give rise to resources and capabilities that increase firm profits. The model is then used to explain how successful family-controlled businesses (FCBs) differ from firms with less concentrated ownership and less successful FCBs. Because of their ownership concentration and reduced monitoring costs, many FCBs will have a resource surplus. That surplus and the tendency toward long-term investment among some FCBs create unique competitive opportunities under conditions we specify.

Strategic Transcultural Marketing Management and Global Competitiveness

2014 ◽  
pp. 1226-1248
Author(s):  
Angelo A. Camillo ◽  
Svetlana Holt ◽  
Joan Marques
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Schools ◽  
Global Strategy ◽  
Education Programs ◽  
Competitive Position ◽  
Leadership Culture ◽  
Global Competitiveness ◽  
Resources And Capabilities

An organization achieves competitive advantage if it delivers above average profits in its industry. Strategic management has many definitions. In this context, the authors define global strategic management as a bundle of decisions and acts based on resources and capabilities that a manager undertakes that decide the long-term competitive position of the firm. The past and current economic conditions are evidence that global strategy will never be perfect but an ongoing effort to achieve optimal results for all stakeholders. Hence, the task for the global leaders has become increasingly challenging and hypercompetitive. While these leaders materialize their vision and accomplish their mission, they also build a strong leadership culture. However, successful executives are too busy or do not have the capability to develop new skills to plan and execute their long- and short-term strategies. To narrow the gap between achievement and acquiring new skills, business schools from across the globe offer Executive Education Programs that help them expand their skills. These programs can be highly specialized and individually designed for specific companies in a given industry. Present and future global leaders must stay current with competitive trends and ahead of the competition to achieve and sustain competitive advantage in their industry.

scholarly journals Pengaruh tanggung jawab sosial terhadap kinerja keuangan: Struktur kepemilikan sebagai variabel moderasi

2021 ◽  
Vol 17 (1) ◽  
pp. 54-68
Author(s):  
Anita Anita ◽  
Desrika Putri Amalia
Keyword(s):  
Social Responsibility ◽  
Financial Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Total Sample ◽  
Ownership Concentration ◽  
Moderating Variables ◽  
Corporate Social ◽  
Positive Effect

This research was conducted to prove empirically the influence of social responsibility on financial performance moderated by the ownership structure of companies listed on the Indonesia Stock Exchange. The variables contained in this study were ownership concentration, the proportion of tradeable shares, leverage, long-term debt, and company size. The proportion of tradeable shares and ownership concentration were moderating variables. Companies listed on the Indonesia Stock Exchange with a total sample of 384 companies were selected based on predetermined criteria. Eviews were programs used to test panel data taken from annual company reports published for 5 years. The results of the study after the data test stated that social responsibility has a significant positive effect while the proportion of tradeable shares and ownership concentration do not have a significant effect on performance. The moderating variables contained in this study positively influence corporate social responsibility toward financial performance.

scholarly journals The effects of ownership concentration on sustainability: A case of listed firms from USA, UK and German

2017 ◽  
Vol 14 (3) ◽  
pp. 113-121 ◽  
Author(s):  
Zahid Irshad Younas ◽  
Christian Klein ◽  
Bernhard Zwergel
Keyword(s):  
Firm Growth ◽  
Ownership Concentration ◽  
Direct Role ◽  
Listed Firms ◽  
Concentrated Ownership ◽  
The Usa ◽  
National Trends ◽  
Different Characteristics ◽  
The Impact

Concentrated ownership has been speculated to play a direct role in leading firms to focus more on long-term sustainability. Concentrated ownership, however, can take many different forms, with some forms more common in certain countries, and we posit that the specific form of ownership mediates the impact on sustainability. Additionally, we posit that firms operating at different scales have fundamentally different characteristics which can further impact this relationship. Analyzing a sample of firms from the USA, UK, and Germany using Arellano- Bond GMM, we investigate the relationship between ownership concentration, firm growth and sustainability measures comparatively. Our results show that these relationships are not linear, but are rather dependent on the prevalent form of ownership concentration (determined by country) and the scale (small, medium or large) of the firm. Approaches to sustainability appear to be influenced by not just the owners / investors but also by the type of control and broader contexts, explaining differing national trends.

Ownership Structure and Tax Avoidance: Evidence from Indian SMEs

2020 ◽  
Vol 23 (02) ◽  
pp. 2050012
Author(s):  
Omar Farooq ◽  
Angie Abdel Zaher
Keyword(s):  
Ownership Structure ◽  
Institutional Environment ◽  
Tax Avoidance ◽  
Negative Association ◽  
Ownership Concentration ◽  
Concentrated Ownership ◽  
Enterprise Surveys ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Relationship

The paper examines the relationship between ownership concentrations and tax avoidance for small–medium enterprises (SMEs) in India. With a panel dataset built from small- and medium-sized enterprise surveys over the period between 2013 and 2014, we find that SMEs with concentrated ownership have a negative association with tax avoidance. The result is more pronounced for SMEs headquartered in states/provinces with stronger economic and institutional environment. The results also indicate that for any two SMEs with similar levels of ownership concentration, the SME with higher capital needs is more likely to avoid taxes.

CEO COMPENSATION AND FIRM INNOVATION: MODERATING ROLE OF OWNERSHIP CONCENTRATION

2019 ◽  
Vol 24 (06) ◽  
pp. 2050058
Author(s):  
MUHAMMAD ZULFIQAR ◽  
KHALID HUSSAIN
Keyword(s):  
Ownership Structure ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Chinese Economy ◽  
Strategic Decision ◽  
Ownership Concentration ◽  
Firm Innovation ◽  
Concentrated Ownership ◽  
Innovative Culture

A performance-based CEO compensation plan can help organisations incorporate an innovative culture. Concentrated ownership structure can enable shareholders to play a key role in the strategic decision-making of a company by exercising their statutory rights. Purpose of this paper is to understand the moderating impact of ownership concentration on the nexus of CEO compensation and firm innovation relationship. Data about all A-share non-financial companies listed at the Shanghai Stock Exchange and Shenzhen Stock Exchange is obtained from CSMAR database of China. Panel data analysis by using year and industry effects indicates that CEO compensation positively and significantly affects organisational innovation. Furthermore, ownership concentration as measured by top 5 shareholders strengthens this relationship. Findings of this study can help investors, policymakers and creditors to understand the importance of CEO compensation towards innovation in the presence of a concentrated ownership structure. Chinese economy is the fastest growing developing economy and therefore, Chinese contextual findings may be selected as a benchmark for other developing countries.

scholarly journals The effect of the ownership concentration on earnings management. Empirical evidence from the Italian context

2017 ◽  
Vol 14 (3) ◽  
pp. 236-248 ◽  
Author(s):  
Francesco Grimaldi ◽  
Anna Lucia Muserra
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
Accounting Fraud ◽  
Policy Makers ◽  
Concentrated Ownership ◽  
Corporate Governance Mechanisms ◽  
The 2008 Financial Crisis ◽  
Italian Context ◽  
Annual Earnings

The numerous cases of business disruptions, involving opportunism and accounting fraud by shareholder, directors and managers, that have occurred in different countries over the past two decades along with institutional and context phenomena and with the rise of the 2008 financial crisis, have refocused the attention of academia, professionals and world policy makers on the disclosure processes used by companies and on corporate governance mechanisms. This paper, after a systematic description of the investigated issues – ownership structure, ownership concentrations and largest shareholders examines the relationship between ownership structure or concentrated ownership and earnings management in the Italian context, characterized by concentrated ownership and the dominance of the largest shareholder who exercises typically significant influences on management decisions directly or indirectly. Existing literature suggests, in an unequivocal way, the effect of the ownership structure on earnings management. According to some researchers, the ownership structure decreases the incentive to manage earnings. Others have the opposite opinion, they think ownership structure on earnings management provides the opportunity and incentive to manipulate earnings. Therefore, the main purpose of this paper is to analyse whether, in the Italian context, a firm’s ownership structure, measured with several variables, exacerbates or alleviates earnings management. Using a sample of 300 non-financial listed Italian firms from 2011 to 2013. We find that discretionary accruals, as a proxy for earnings management, is negatively related to ownership concentration and the second largest shareholder and positively related to first largest shareholder. The study’s results suggest that ownership concentration improve the quality of annual earnings, in a particular agency setting, by reducing the levels of earnings management.

Strategic Transcultural Marketing Management and Global Competitiveness

2014 ◽  
pp. 316-338
Author(s):  
Angelo A. Camillo ◽  
Svetlana Holt ◽  
Joan Marques
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Business Schools ◽  
Global Strategy ◽  
Education Programs ◽  
Competitive Position ◽  
Leadership Culture ◽  
Global Competitiveness ◽  
Resources And Capabilities

An organization achieves competitive advantage if it delivers above average profits in its industry. Strategic management has many definitions. In this context, the authors define global strategic management as a bundle of decisions and acts based on resources and capabilities that a manager undertakes that decide the long-term competitive position of the firm. The past and current economic conditions are evidence that global strategy will never be perfect but an ongoing effort to achieve optimal results for all stakeholders. Hence, the task for the global leaders has become increasingly challenging and hypercompetitive. While these leaders materialize their vision and accomplish their mission, they also build a strong leadership culture. However, successful executives are too busy or do not have the capability to develop new skills to plan and execute their long- and short-term strategies. To narrow the gap between achievement and acquiring new skills, business schools from across the globe offer Executive Education Programs that help them expand their skills. These programs can be highly specialized and individually designed for specific companies in a given industry. Present and future global leaders must stay current with competitive trends and ahead of the competition to achieve and sustain competitive advantage in their industry.

Informational role of ownership concentration: evidence from the Casablanca stock exchange

2019 ◽  
Vol 10 (5) ◽  
pp. 726-735
Author(s):  
Omar Farooq ◽  
Khondker Aktaruzzaman
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Relevant Information ◽  
Ownership Concentration ◽  
Content Type ◽  
Vector Autoregressive ◽  
Concentrated Ownership ◽  
Structure Lead ◽  
Dispersed Ownership

Purpose The purpose of this paper is to provide empirical evidence on the informational role played by ownership concentration. Design/methodology/approach The authors use bivariate vector autoregressive models to document the informational role of ownership concentration. Findings The findings suggest that the returns of firms with concentrated ownership structure lead the returns of firms with dispersed ownership structure in Morocco during the period between 2004 and 2014. The authors argue that this lead-lag relationship arises because a better information environment in firms with concentrated ownership structure enables quick incorporation of relevant information. The results are robust under different information regimes. Originality/value The authors believe that this paper is one of the first evidence on the informational role of ownership concentration in Morocco.

scholarly journals Asset liquidity, stock liquidity, and ownership concentration: Evidence from the ASE

2016 ◽  
Vol 14 (1) ◽  
pp. 48-58
Author(s):  
Ghada Tayem ◽  
Mohammad Tayeh ◽  
Adel Bino
Keyword(s):  
Ownership Structure ◽  
Investor Protection ◽  
Cash Flows ◽  
Ownership Concentration ◽  
Private Benefits ◽  
Stock Liquidity ◽  
Concentrated Ownership ◽  
Asset Liquidity ◽  
Show Evidence ◽  
The Impact

This paper examines how ownership concentration influences the relation between stock liquidity and asset liquidity. Liquid assets reduce uncertainty of assets in place and hence improve stock liquidity. However, liquid assets are less costly to turn into private benefits compared to other assets. Therefore, liquid assets may result in increasing the uncertainty of assets in place rather than reducing it. In this paper we examine the impact of asset liquidity on stock liquidity conditional on a company’s ownership structure using the context of Jordan. Jordanian companies listed in the ASE are mostly characterized by highly concentrated ownership. In the absence of investor protection, concentrated ownership allows shareholders with large ownership stakes to exercise control over the firm and hence may result in increasing the uncertainty of assets in place. The uncertainty regarding the usage of liquid assets in cash-rich firms leads to greater uncertainty regarding the firm’s cash flows and hence lower stock liquidity. The findings of this study show evidence that as ownership concentration increases asset liquidity becomes negatively related to stock liquidity.

The Impact of Property Characteristics on Economic Performance of Russian Industrial Enterprises

2005 ◽  
pp. 53-68 ◽  
Author(s):  
R. Kapeliushnikov ◽  
N. Demina
Keyword(s):  
Detailed Analysis ◽  
Economic Performance ◽  
Ownership Concentration ◽  
Corporate Sector ◽  
Concentrated Ownership ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
Control Premium ◽  
And Performance ◽  
The Impact

The paper provides new survey evidence on effects of concentrated ownership upon investment and performance in Russian industrial enterprises. Authors trace major changes in their ownership profile, assess pace of post-privatization redistribution of shareholdings and provide evidence on ownership concentration in the Russian industry. The major econometric findings are that the first largest shareholding is negatively associated with the firm’s investment and performance but surprisingly the second largest shareholding is positively associated with them. Moreover, these relationships do not depend on identity of majority shareholders. These results are consistent with the assumption that the entrenched controlling owners are engaged in extracting "control premium" but sizable shareholdings accumulated by other blockholders may put brakes on their expropriating behavior and thus be conductive for efficiency enhancing. The most interesting topic for further more detailed analysis is formation, stability and roles of coalitions of large blockholders in the corporate sector of post-socialist countries.

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