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.

Structural Modeling of Institute of Entrepreneurship in Russia

2019 ◽  
pp. 34-48
Author(s):  
Svetlana L. Sazanova
Keyword(s):  
Global Economy ◽  
Structural Model ◽  
Institutional Environment ◽  
Small And Medium Enterprises ◽  
Structural Modeling ◽  
Entrepreneurial Activity ◽  
Pattern Modeling ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship

Entrepreneurship plays an important role in the modern global economy; the share of products of small and medium enterprises in the gross product and exports not only of the developed but also of developing countries is growing. Innovation processes cover all sectors of the economy, and more and more people are involved in entrepreneurial activity, which contributes to the penetration of entrepreneurial thinking and business values in all areas of the socioeconomic life of society. The Institute of Entrepreneurship plays an increasingly prominent role in the institutional environment of socio-economic systems. This actualizes the problem of studying the relationship of the institution of entrepreneurship with the institutions of law, culture, management. This requires a methodology that allows you to explore the impact on the institute of entrepreneurship not only economic, but also non-economic factors. The methodology of the “old” institutionalism possesses such a tool, it is structural modeling (pattern modeling), which allows to explore the diversity of interrelationships of the institution of entrepreneurship with other components of the institutional and economic environment. The article explored the features of the development of the institution of entrepreneurship in Russia, established the relationship between the institution of entrepreneurship, values, motives and incentives for entrepreneurial activity, built a structural model of the institution of entrepreneurship based on the methodology of the old institutionalism (pattern modeling). The structural model of the institution of entrepreneurship reveals the relationship between the institution of entrepreneurship, the values of entrepreneurial activity, its motives and incentives; as well as the relationship between the institution of entrepreneurship with the institutions of governance, cultural and religious institutions, legal institutions and society.

The effect of equity ownership structure on non-conditional conservatism: an empirical study based on listed companies in Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laila Mohamed Alshawadfy Aladwey
Keyword(s):  
Financial Reporting ◽  
Ownership Structure ◽  
Listed Companies ◽  
Negative Association ◽  
Accounting Conservatism ◽  
Content Type ◽  
Conditional Conservatism ◽  
Equity Ownership ◽  
Equity Ownership Structure ◽  
The Relationship

Purpose This paper aims to examine the effect of different modes of equity ownership structure in unconditional conservatism of financial reporting for non-financial listed companies in Egypt. Design/methodology/approach Using a large sample of Egyptian non-financial listed companies for the period from 2011–2018, this paper used the ordinary least square regression model to test the impact of equity ownership equity on accounting conservatism based on an accrual-based measure developed by Givoly and Hayn (2000) and Ahmed and Duellman (2007). Findings The paper finds that, on average, Egyptian listed companies tend to demonstrate lower levels of unconditional conservatism during the period from 2011–2018. Regarding the different patterns of equity shareholding, a negative association between unconditional conservatism and managerial ownership is found. Briefly, the mild equity shareholding of managers in Egyptian listed companies is accompanied by higher demand for conservative reporting. Besides, a negative association is also reported for the relationship between concentrated ownership and unconditional conservatism in which the concentration of shareholding by a few numbers of individual investors lessen the demand for conservatism. By contrast, a non-significance relationship is reported neither for institutional shareholders nor for governmental ownership in their relationship with unconditional conservatism. Research limitations/implications The paper does not take into account the modifications conducted on the Egyptian accounting standards according to decree number 69 for the year of 2019 because they were not valid until the publishing of this paper. It considers only non-conditional conservatism. Practical implications First, the paper provides clear empirical evidence that Egyptian listed companies are adopting less-conservative accounting policies in their financial reporting during a high-tension period that witnessed several radical political and economic events. This evidence should stimulate regulators and policymakers to revisit the reporting standards to improve the quality of financial information and should also guide investors’ decisions because it helps in clarifying their interpretation of figures and trends reported in financial statements. Second, the paper would direct the attention of the Egyptian government to the importance of increasing their investment in the stock market to enhance its regulatory role. Third, it gives some implications to investors and policymakers toward the shape of the relationship between accounting conservatism and each pattern of equity shareholding in Egypt. Originality/value This paper visualizes an image toward the current state of equity ownership structure for listed companies in Egypt within a period that witnessed critical vulnerabilities and irregularities. In addition, it addresses how the accounting conservatism would be shaped according to the different types of equity shareholdings in Egypt.

scholarly journals The Association of Board Composition, Intellectual Capital and Firm Performance in a High Ownership Concentration Context: Evidence from Italy

2016 ◽  
Vol 11 (10) ◽  
pp. 317 ◽  
Author(s):  
Stefania Veltri ◽  
Romilda Mazzotta
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Capital Market ◽  
Ownership Concentration ◽  
Board Composition ◽  
Firm Efficiency ◽  
Management Literature ◽  
Sophisticated Model ◽  
The Relationship

<p>The association of Corporate Governance (CG) with Firm Performance (FP) has always been an issue relevant to management literature. Nevertheless, the notable heterogeneity of studies and their mixed results highlight the opportuneness of continuing to investigate the association of CG with FP. The article aims to contribute to this research by building and employing a sophisticated model to take into account beyond the  board composition ownership structure and firm efficiency in using its intellectual capital (as measured by VAIC<sup>TM</sup>). The findings provide evidence that the board composition, the ownership concentration and the efficiency of intellectual capital increases firm efficiency in producing profits (as measured by ROA). Furthermore, our findings add knowledge to the relationship between CG and FP, by confirming a positive relationship in Italy, a continental European capital market under-investigated on this issue.</p>

Family Business in the Middle East: An Eexploratory Study of Retail Management in Kuwait and Lebanon

2006 ◽  
Vol 19 (1) ◽  
pp. 29-48 ◽  
Author(s):  
Dianne H. B. Welsh ◽  
Peter Raven
Keyword(s):  
Middle East ◽  
Customer Service ◽  
Family Business ◽  
Employee Perceptions ◽  
The Family ◽  
The World ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Relationship

The Middle East is a growing, lucrative marketplace that has recently captured the interest of the world for political as well as economic reasons due to the War in Iraq, which began in 2003. This exploratory study examines the relationship between retail small/medium enterprises (SMEs) that are family business owned, organizational commitment, and management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees of family-owned businesses in the Middle East behave in ways similar to those in Western countries; however, there are differences, probably related to cultural characteristics. The Middle East is a richly diverse region, a myriad of unique cultures. As the market becomes more sophisticated, the importance of service quality increases. Global retailers can benefit from this study by better understanding the managers and employees in the region and the pivotal role of the family on business. Implications for practice are discussed.

How small-medium enterprises leverage intangibles during recessions. Evidence from the Italian clothing industry

2014 ◽  
Vol 52 (8) ◽  
pp. 1491-1515 ◽  
Author(s):  
Marco Cucculelli ◽  
Cristina Bettinelli ◽  
Angelo Renoldi
Keyword(s):  
Business Model ◽  
Market Share ◽  
Business Models ◽  
Additional Data ◽  
Data Set ◽  
Content Type ◽  
Contingent Factor ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Relationship

Purpose – The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions. Design/methodology/approach – Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account. Findings – Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions. Originality/value – This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).

Corporate disclosure of human capital via LinkedIn and ownership structure

2017 ◽  
Vol 18 (1) ◽  
pp. 102-127 ◽  
Author(s):  
Sabrina Pisano ◽  
Luigi Lepore ◽  
Rita Lamboglia
Keyword(s):  
Human Capital ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
Quantitative Methodology ◽  
Corporate Disclosure ◽  
Content Type ◽  
The Relationship ◽  
Stock Of Knowledge ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the relationship between ownership concentration and human capital (HC) disclosure released via LinkedIn. Design/methodology/approach This study uses a quantitative methodology. The sample is composed of 150 European companies. Content analysis was used to examine HC disclosure via LinkedIn. Regression analysis was used to test the hypothesis. Findings The results indicate that ownership concentration negatively influences HC disclosure via LinkedIn, confirming that closely held firms have little motivation to voluntarily release information. Research limitations/implications The main limitation of this study relates to the sample size. Furthermore, this study investigates only the quantity of HC disclosure; it does not consider the quality of this information. Practical implications The typical ownership structure of European firms generates a force that opposes the growing pressure for internationalization and global transparency. This important issue needs to be considered in investor decisions, HC management and reporting and in setting accounting standards. Moreover, the study points out that, despite the potential opportunities provided by LinkedIn to build and enforce relationships with their stakeholders, companies mainly use LinkedIn for recruitment purposes. Originality/value This study contributes to the literature on HC disclosure because it is, to the best of the authors’ knowledge, the first study that exclusively examines HC disclosure by European companies via LinkedIn and because it develops a disclosure index that includes items concerning the stock of knowledge and capabilities of employees in addition to the practices in human resource management.

scholarly journals Ownership Concentration and Economic and Financial Performance in Latin-American Companies

2018 ◽  
Vol 4 (4) ◽  
pp. 1
Author(s):  
Tarcísio Pedro da Silva ◽  
Maurício Leite ◽  
Jaqueline Carla Guse ◽  
Tania Cristina Chiarello
Keyword(s):  
Financial Performance ◽  
Latin American ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
American Depository Receipts ◽  
Publicly Traded ◽  
Linear Combinations ◽  
Depository Receipts ◽  
Relationship Of ◽  
The Relationship

The study examined the relationship of ownership concentration in the economic and financial performance of publicly traded Latin American companies possessing American Depository Receipts (ADRs). Generally, the capital structure decisions are tied directly to the results of the organizations, thus reflecting the economic and financial performance. The correlation between the set of variables within the group of ownership structure with the group of economic and financial performance showed significant correlation with the linear combinations, when analyzed in the set of all the samples of companies and taken separately by country. However, the results did not show similar correlation to Venezuela, Colombia and Peru due to the existence of few observations. The results also portrayed a significant correlation within economic and financial performance, higher to Mexican companies, when compared with the results of other countries and among the set of the two groups of variables that highlighted the analysis by ownership structure and economic and financial performance as well.

scholarly journals Capital Structure, Ownership Structure and Corporate Governance of SMEs in Ghana

2019 ◽  
Vol 26 (01) ◽  
pp. 45
Author(s):  
Ibrahim Anyass Ahmed
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Regression Model ◽  
Developing Country ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Small And Medium Enterprises ◽  
Board Size ◽  
Medium Enterprises ◽  
The Relationship

The purpose of this paper is to investigate the relationship between three variables; capital structure, ownership structure and corporate governance. Although these issues have been largely researched, less attention has been focused on small and medium enterprises (SMEs). At the time of this study, evidence was not found for a study analyzing all three variables in relation to SMEs, within the context of a developing country. This current study examines the link between capital structure, ownership structure, and corporate governance. Using an appropriate regression model, the study assesses how governance mechanisms and ownership decisions affect the choice of financing SMEs. The results show a positive relationship for all corporate governance variables except for board size. Ownership structure is found to be positive and significantly related to capital structure. The signs indicated by control variables are those which are in consonance with conventional capital structure literature. Generally, ownership and corporate governance are found to affect the financing mix of SMEs in Ghana.

scholarly journals The moderating role of family ownership on the relationship between ownership concentration and comply-or-explain disclosure: An analysis on Italian listed companies

2019 ◽  
Vol 15 (3) ◽  
pp. 27-42
Author(s):  
Federico Alvino ◽  
Luigi Lepore ◽  
Sabrina Pisano ◽  
Gabriella D'Amore
Keyword(s):  
Ownership Structure ◽  
Boards Of Directors ◽  
Negative Relationship ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Family Ownership ◽  
The Relationship ◽  
Moderating Role ◽  
Comply Or Explain

The aim of the paper is to investigate the relationship between ownership concentration and the degree of comply-or-explain disclosure regarding the composition and functioning of boards of directors, also considering the moderating role played by family ownership. The study is conducted on a sample of 227 Italian non-financial listed companies. The results reveal a negative relationship between ownership concentration and the degree of comply-or-explain disclosure. Moreover, this relationship is stronger in companies having a family firm as a dominant shareholder. The paper contributes to previous studies on the degree of adherence to corporate governance code by investigating both the comply aspect and the explanations provided in cases of non-compliance. Moreover, the study contributes to previous research on the relationship between ownership structure and disclosure by considering the moderating role played by shareholder identity.

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