scholarly journals From State to Market: A Survey of Empirical Studies on Privatization

2001 ◽  
Vol 39 (2) ◽  
pp. 321-389 ◽  
Author(s):  
William L Megginson ◽  
Jeffry M Netter
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Capital Markets ◽  
Empirical Studies ◽  
Transition Countries ◽  
Relative Performance ◽  
History Of ◽  
The Impact ◽  
Privately Owned

This study surveys the literature examining the privatization of state-owned enterprises (SOEs) We review the history of privatization, the theoretical and empirical evidence on the relative performance of state owned and privately owned firms, the types of privatization, if and by how much privatization has improved the performance of former SOEs in non-transition and transition countries, how investors in privatizations have fared, and the impact of privatization on the development of capital markets and corporate governance. In most settings privatization “works” in that the firms become more efficient, more profitable, and financially healthier, and reward investors.

scholarly journals Assessing Moving Targets: the Impact of Transition Stages on Entrepreneurship Development

Ekonomika ◽  
2005 ◽  
Vol 69 ◽  
Author(s):  
Ruta Aidis ◽  
Arnis Sauka
Keyword(s):  
Empirical Studies ◽  
Job Creation ◽  
Transition Process ◽  
Transition Countries ◽  
Legal Issues ◽  
Entrepreneurship Development ◽  
The Impact ◽  
Development Perspective ◽  
Transition Stages ◽  
Selection Of

An issue that has recently gained in importance in transitional literature is the need to develop a thriving small and medium-sized enterprise (SME) sector since it can contribute significantly to innovation, job creation and economic growth. However, the specific characteristics of SMEs make them especially vulnerable to changes in the legal, social and environmental context. In this paper we are interested in the barriers that SME development encounters during different stages in the transition process. There is no consensus regarding ‘transition stages’, yet various indicators measuring certain aspects of transition progress have been developed. For this paper, we apply a selection of indicators proposed in previous research to approximate three transitional stages that would make sense from an entrepreneurship development perspective. We utilise these indicators to categorise 23 transition countries into transitional stages. On the basis of that utilisation we develop a framework in which we can identify SME development trends based on our analysis of the 25 empirical studies on constraints facing SMEs in transition countries. Our preliminary results indicate that more fundamental barriers related to legal issues are more characteristic of the early stages of transition, while more specific constraints related to human resources and skill development characterise later transition stages.

scholarly journals The impact of ownership type on the relationship between corporate governance and earnings management: An empirical study

2019 ◽  
Vol 16 (4) ◽  
pp. 31-44
Author(s):  
Ahmed Boghdady
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flows ◽  
Real Earnings Management ◽  
Ownership Type ◽  
Moderation Effect ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
The Relationship ◽  
Privately Owned

This study investigates the effect of ownership type on the relation between corporate governance and earnings management. While previous literature has mainly examined the relationship between corporate governance and both accrual and real earnings management, no study to date, to the researcher’s best knowledge, focused on the moderation effect of ownership type on this relationship. Three proxies for measuring accrual and real earnings management, namely discretionary accruals (DA), abnormal cash flows (ACFO), and abnormal discretionary expenses (ADISX) are employed. Three empirical models (i.e. DA, ACFO, and ADISX) are developed in which the earnings management proxies represent the dependent variables and are tested using a sample of non-financial companies containing state-owned and privately owned companies over the period from 2010 to 2017, with 1030 firm-year observations. The results show a positive relationship between ownership type and both accruals manipulation and sales manipulation. In general, the results suggest that the ownership type moderates the relationship between corporate governance and earnings management. The results suggest also that corporate governance mechanisms may not play an almost the same role in monitoring and mitigating real earnings management (REM) practices as they do for accrual earnings management (AEM) in Egypt. Moreover, no evidence is found supportive of the trade-off effect which means that managers in Egyptian firms use both types of earnings management jointly to reach the target levels of earnings

Empirical Studies of Corporate Law and Governance

2017 ◽  
Author(s):  
Michael Klausner
Keyword(s):  
Corporate Governance ◽  
Empirical Studies ◽  
The United States ◽  
Corporate Law ◽  
Empirical Literature ◽  
Related Literature ◽  
Takeover Defenses ◽  
The Us ◽  
Governance Quality ◽  
The Impact

This chapter examines the empirical literature on corporate law and governance in the United States. Four areas of the US corporate governance literature are discussed: (i) state competition to produce corporate law, (ii) independent boards, (iii) takeover defenses, and (iv) the use of corporate governance indices. The chapter concludes that these areas of research reflect varying degrees of success. The literature on state competition has been a major success. We know much more in this area as a result of empirical analysis in this area than we did on the basis of theory alone. At the other extreme is the literature on takeover defenses and the related literature that uses governance indices as measures of governance quality. Those empirical literatures are plagued by misunderstandings of how takeovers and takeover defenses work, and many results are therefore not as informative as they appear to be. In between is the literature on the impact of an independent board. Here, empiricists faced perhaps insurmountable challenges in proving causation, but nonetheless exposed informative associations.

scholarly journals Financialisation and the coupon pool

2002 ◽  
Vol 26 (3) ◽  
pp. 119-151 ◽  
Author(s):  
Julie Froud ◽  
Sukhdev Johal ◽  
Karel Williams
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Capital Markets ◽  
Shareholder Value ◽  
The Other ◽  
Critical Examination ◽  
Generic Term

This article aims to extend our understanding of the role of capital markets in present day capitalism. It starts from a critical examination of established terms, shareholder value, corporate governance and financialisation, before suggesting a new generic term, coupon pool capitalism. The second half aims to demonstrate that, unlike the other terms, the coupon pool concept distinctively emphasises the generation of contradictions and instabilities. Empirical evidence is used to support the concept and explore dynamics.

The Baring Crisis and the Brazilian Encilhamento, 1889–1891: An Early Example of Contagion Among Emerging Capital Markets

2005 ◽  
Vol 12 (2) ◽  
pp. 199-225 ◽  
Author(s):  
GAIL D. TRINER ◽  
KIRSTEN WANDSCHNEIDER
Keyword(s):  
Financial Crisis ◽  
Capital Markets ◽  
Capital Flows ◽  
International Markets ◽  
Money Markets ◽  
Bond Yield ◽  
History Of ◽  
Emerging Capital Markets ◽  
The Impact

This article assesses the role of international markets in the brazilian financial crisis of 1890/91 (the crash of the encilhamento). It looks for the impact of the argentine financial crisis in 1890 (the baring crisis) on brazilian access to capital markets. The history of bond yield fluctuations in london for brazilian and argentine debt, exchange rates, data on investment flows and archival and journalistic accounts reveal a close congruence between the argentine and brazilian crises. The effects of the argentine experience carried over to brazil because the open capital and money markets of the period easily transmitted crisis from one economy to another and because fundamental conditions in both economies rendered them similarly vulnerable to fluctuations in capital flows. The article raises this case as a precedent for the contagious financial crises that emerging markets faced at the end of the twentieth century.

Ownership structure and financial performance in Islamic banks

2014 ◽  
Vol 7 (2) ◽  
pp. 146-160 ◽  
Author(s):  
Sarra Ben Slama Zouari ◽  
Neila Boulila Taktak
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Policy Implications ◽  
Bank Performance ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
The Impact

Purpose – This study aims to investigate empirically the relationship between ownership structure (concentration and mix) and Islamic bank performance, with a special attention to the identity of the block investor (foreign, family, institutional and state). Design/methodology/approach – Regression analyses are conducted to test the impact of the identity of the first shareholders and the degree of concentration on Islamic bank performance, using a panel data sample of 53 Islamic banks scattered over > 15 countries from 2005 to 2009. Findings – Results suggest that ownership is concentrated at 49 per cent, and for 41 banks from the full sample, the ultimate owner is institutional. State investors come in second place, followed by family ultimate shareholders. Using return on assets and return on equity as performance measures, empirical evidence highlights the absence of correlation between ownership concentration and Islamic bank performance. It also reveals that the combined effort of family and state investors is beneficial to bank performance. Results also indicate that banks with institutional and foreign shareholders do not perform better. Empirical findings suggest that the financial crisis impacts negatively Islamic bank performance. Research limitations/implications – The use of dummy variables to measure the nature of the largest owner represents the main limitation of this study. This is due to the lack of information, as the percentage of the largest capital held referring to owner category was available only for some banks. Practical implications – This research has given a brighter insight into corporate governance and bank performance in selected Islamic banking institutions. Findings provided useful information to bank managers, investors and policy makers. Financial performance can be improved by identifying practices associated with ownership structure. So, it will have policy implications for Islamic banks as to how to improve their performance. Finally, different types of bank ownership have had different concerns about implementing corporate governance practices among Islamic banks. Originality/value – This work is the first of its kind for Islamic banks. It extends previous research by examining whether ownership structure (concentration and mix) affects performance. It also fills the gap in the literature by providing empirical evidence on a large sample involving data from 15 countries. Finally, manual data collection on ownership structure constitutes a large part of the research for this paper.

scholarly journals Evaluating the scope and intensity of the conflict trap

2017 ◽  
Vol 54 (2) ◽  
pp. 243-261 ◽  
Author(s):  
Håvard Hegre ◽  
Håvard Mokleiv Nygård ◽  
Ranveig Flaten Ræder
Keyword(s):  
Low Income ◽  
Armed Conflict ◽  
Empirical Studies ◽  
Income Country ◽  
Low Income Country ◽  
Internal Armed Conflict ◽  
Long Time ◽  
History Of ◽  
Time Periods ◽  
The Impact

Several studies show that internal armed conflict breeds conflict by exacerbating conditions that increase the chances of war breaking out again. Empirically, this ‘conflict trap’ works through four pathways: conflicts increase the likelihood of continuation, recurrence, escalation, and diffusion of conflict. Past empirical studies have underestimated the scope and intensity of the conflict trap since they consider the impact of conflict only through one of these pathways and rarely across sufficiently long time periods. This article shows that simulation and forecasting techniques are useful and indeed necessary to quantify the total, aggregated effect of the conflict trap, over long time periods and across countries. We develop a country-year statistical model that allows estimating the probability of no conflict, minor conflict, and major conflict, and the probabilities of transition between these states. A set of variables denoting the immediate and more distant conflict history of the country are used as endogenous predictors in the simulated forecasts. Another set of variables shown to be robustly associated with armed conflict are treated as exogenous predictors. We show that the conflict trap is even more severe than earlier studies have indicated. For instance, if a large low-income country with no previous conflicts is simulated to have two to three years of conflict over the 2015–18 period, we find that it will have nine more years of conflict over the 2019–40 period than if peace holds up to 2018. Conversely, if a large low-income country that has had major conflict with more than 1,000 battle-related deaths in several of the past ten years succeeds in containing violence to minor conflict over the 2015–18 period, we find that it will experience five fewer years of conflict in the subsequent 20 years than if violence continues unabated.

scholarly journals Impact of equity and debt financing on financial performance of quoted manufacturing companies in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 64-76
Author(s):  
Bibiana Njogo ◽  
◽  
Jaiyeoba Oladele ◽  
Oladotun Mabinuori ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Secondary Data ◽  
Debt Financing ◽  
Least Square ◽  
Manufacturing Companies ◽  
Earnings Per Share ◽  
The Impact ◽  
A Company

Empirical studies have shown that equity and debt financing is one of the important determinants affecting the performance of a company. This study sought to examine the impact of equity and debt financing on performance on quoted manufacturing companies in Nigeria using the Panel Fully Modified Least Square on secondary data on earnings per share, debt and equity covering the period 2010-2018. To increase earnings, findings show that equity positively influences earnings per share while a negative relationship exists between earnings per share and debt. The study recommends that firms should finance their company majorly with equity shares rather than debt. KEY WORDS: Corporate governance, Equity, Debt, Earnings per share, and Firm’s performance.

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