حوكمة الشركات وتركز الملكية وأثرهما على إدارة الأرباح في الأسواق الناشئة : حالة الشركات المساهمة السعودية = Corporate Governance and Equity Ownership Concentration and Their Impact on Earning Management in Emerging Markets : The Case of Saudi Listed Companies

2016 ◽  
Vol 10 (1) ◽  
pp. 1-48
Author(s):  
أحمد بن محمد السلمان ◽  
وليد بن محمد البسام
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Earning Management ◽  
Equity Ownership

scholarly journals The Effect of Corporate Governance and Ownership Structure on Financial Performance of Listed Companies in Nepal

2019 ◽  
Vol 12 (1) ◽  
pp. 1-18
Author(s):  
Surya Bahadur G. C. ◽  
Ravindra Prasad Baral
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Least Squares ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Data Set ◽  
Listed Firms ◽  
And Performance

The paper attempts to analyze relationships among corporate governance, ownership structure and firm performance in Nepal. The study comprises of panel data set of 25 firms listed at Nepal Stock Exchange (NEPSE) covering a period of five years from 2012 to 2016. The econometric methodology for the study consists primarily of least squares dummy variable (LSDV) model, fixed and random effects panel data models and two-stage least squares (2SLS) model. The study finds bi-directional relationship between corporate governance and performance. Among corporate governance internal mechanisms; smaller board size, higher proportion of independent directors, reducing ownership concentration, improving standards of transparency and disclosure, and designing appropriate director compensation package are important dimensions that listed firms and regulators in Nepal should focus on. Ownership concentration is found to have positive effect on performance; however, it affects corporate governance negatively. This study raises understanding and provides empirical evidence for endogenous relationship between corporate governance and performance and offers support for principal-principal agency relationship. The results of this study lead to several practical implications for listed firms as well as policymakers of Nepal in promoting sound corporate governance practices and codes. For listed companies, the improvement in compliance with a code of corporate governance or voluntary adoption of best practices can provide a means of achieving improved performance.

Corporate governance and risk reporting: Indian evidence

2017 ◽  
Vol 32 (4/5) ◽  
pp. 378-405 ◽  
Author(s):  
Ridhima Saggar ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Risk Information ◽  
Ownership Concentration ◽  
Regulatory Regime ◽  
Risk Disclosure ◽  
Firm Level ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose This study aims to measure the extent of voluntary risk disclosure and examine the relationship between corporate governance firm level quality in the form of board characteristics and ownership concentration’s impact on risk disclosure in the annual reports of Indian listed companies. Design/methodology/approach The method adopted in this study is automated content analysis, which is applied to a sample of 100 listed Indian non-financial companies to find out the extent of risk disclosure. Further, multiple linear regressions have been applied to find out the relationship between corporate governance firm level quality in the form of board characteristics, ownership concentration and risk disclosure. Findings The findings reveal that the total number of positive risk keywords surpasses negative risk keywords disclosure. The corporate governance mainsprings, namely, board size and gender diversity have a positively significant effect on risk disclosure, whereas ownership concentration in the hands of the largest shareholder insignificantly affects risk disclosure, but identity of the largest shareholder having ownership concentration negatively affects disclosure of risk information in the case of Indian promoter body corporate, foreign promoter body corporate and non-institutions in comparison to family ownership. Research limitations/implications This study relied on a set of 39 risk keywords for measuring the extent of risk disclosure. Further, it uses a sample of 100 companies to examine the effect of corporate governance on risk disclosure at one point of time. However, a longitudinal study can help in understanding risk disclosure adopted by Indian listed companies in a better manner. Practical implications The findings have implications for regulatory bodies such as the Securities and Exchange Board of India, which needs to strengthen corporate governance norms with respect to board characteristics and keep a check on ownership concentration for improving risk disclosure by companies. Originality/value To best of the authors’ knowledge, this study is a preliminary attempt linking two research lines in India, that is, corporate risk disclosure and corporate governance quality in the form of board characteristics and ownership concentration. The study identifies corporate governance firm level qualities which lead to divulgation of risk information by the companies pointing towards strengthening of regulatory regime in the country for improved corporate governance regulations adopted by listed companies.

Monitoring or tunneling by large shareholders: evidence from China private listed companies

2015 ◽  
Vol 5 (2) ◽  
pp. 187-211 ◽  
Author(s):  
Xiaobao Song
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Company Performance ◽  
State Dependency ◽  
Content Type ◽  
General Managers ◽  
Large Shareholders ◽  
The Difference ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between ownership concentration and company performance in China private listed companies. Design/methodology/approach – By taking into account of the difference of managerial positions of large shareholders in listed companies (whether they assume the posts as presidents or general managers), and based on the two agency theories, the paper analyzes the state dependency of the relationship between ownership concentration and the company performance of listed companies with the samples of China private listed companies from 2003 to 2011. Findings – The paper finds that if the large shareholders assume no posts in the listed companies, there is an inverted U shape relation between shareholding ratio of the largest shareholders and the company performance. This result indicates the inadequate or excessive monitoring to the companies by the large shareholders according to different shareholding ratios. If large shareholders assume posts in the listed companies, there is a U shape relation between shareholding ratio of the largest shareholders and the company performance. This result indicates the tunneling and propping to the small shareholders by the large shareholders according to different shareholding ratios. Research limitations/implications – This paper has not taken the influence of earnings management of the listed companies. Practical implications – For strengthening the protection of investors, proper distinction shall be made among shareholders of different conditions, and difference of roles large shareholders play in the company under different conditions shall be understood correctly, so as to formulate and perfect market rules for corporate governance, rather than just restraining the power (rights) of large shareholders. The study in this paper is for helping understand the different roles large shareholders play under different corporate governance conditions. Originality/value – First, different from the research paradigm of relationship between ownership concentration and company performance in existing literature, the paper discriminates the study background with the post-assuming conditions of large shareholders in listed companies and believes that relationship between ownership concentration and company performance shall be presented differently under different post-assuming conditions. Second, by using monitoring theory and tunneling and propping theory to explain the behaviors of large shareholders under different post-assuming conditions respectively, a new theory explanation view is provided for explaining the relation between ownership concentration and company performance.

scholarly journals Corporate governance and firm valuation in emerging markets: evidence from UAE listed companies in the Middle East

2013 ◽  
Vol 11 (1) ◽  
pp. 637-656
Author(s):  
Mohamed Adawi ◽  
Kami Rwegasira
Keyword(s):  
Corporate Governance ◽  
Middle East ◽  
Emerging Markets ◽  
Financial Markets ◽  
Listed Companies ◽  
Firm Valuation ◽  
Tobin's Q ◽  
Governance Indicators ◽  
Company Valuation ◽  
Price Earnings Ratio

There has been previous empirical research on corporate governance and board of directors which focused on attempting to find a direct relationship between internal governance variables and firm valuation. It has however also been argued that there are differences in the nature, direction, magnitude and processes of operation of this relationship between developed and developing financial markets because of differences in their respective economic, social, regulatory framework and market behaviour . This study examines this relationship in the context of the United Arab Emirates (UAE) as one of the emerging markets in order to extend evidence further beyond the western developed capital markets into the Middle East. Does the prevalence of family-ownership in the UAE for example matter to the company valuation? What about the presence of institutional ownership or ownership concentration? And do the corporate communication and disclosure scores published by the UAE Institutional Investor in cooperation with Hawkamah, The Institute for Corporate Governance; have any relationship to corporate valuation? More specifically this study, using multiple regression analysis, examines the impact of firm level internal corporate governance indicators namely board structure, ownership structure, and transparency and disclosure governance practices on the valuation of listed companies in the UAE after controlling for company size, industry, leverage, and dividend payout using Tobin’s Q, Price - Earning Ratio (PER) and Price - Book Value Ratio (PBVR) as surrogates for company valuation. The results show no significant relationship between internal corporate governance indicators and company valuation when using Tobin’s Q and PBR as measures of company valuation. However they reveal statistically significant links between some of the internal corporate governance indicators on the one hand and company market valuation on the other when company valuation is measured by the price earnings ratio (PER) which is one of the most common and important stock market indicators for investors. These results suggest that the company valuation measures like the price earnings ratio which explicitly reflects the financial markets assessment of the firm investment and dividend policies lead to a better correlation with internal corporate governance indicators. Moreover, the regression results indicate that the frequency of board meetings, adoption of best transparency practices and the presence of private institutional investors such as sovereign wealth funds are the most significant internal corporate governance variables in accounting for differences in company market values in the UAE. The structural aspects of the board such as size and composition turned out not to be statistically significant in their impact on company valuation.

Study on Corporate Governance in Emerging Markets: A Focus on Compliance of South African and South Korean Listed Companies

2019 ◽  
Vol 23 (6) ◽  
pp. 93-112
Author(s):  
Joseph Kwaku Ahialey ◽  
Ho-Jung Kang
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
South African ◽  
Listed Companies ◽  
South Korean

scholarly journals Company characteristics and compliance with ASX corporate governance principles

2015 ◽  
Vol 27 (3) ◽  
pp. 373-392 ◽  
Author(s):  
Tek Lama ◽  
Warwick Wyndham Anderson
Keyword(s):  
Corporate Governance ◽  
Best Practice ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Board Structure ◽  
Content Type ◽  
Cross Listing ◽  
Price Earnings Ratio ◽  
Better Than

Purpose – This study aims to examine whether company characteristics determine the structure and composition of a company’s board. In particular, it investigates the three board-design choices that Australian-listed companies make in the context of Australian Stock Exchange (ASX) corporate governance principles (published in 2003) where they are allowed to depart from the recommended best-practice board structure if the departure better serves their unique board and governance requirements. Design/methodology/approach – A logistic regression is performed on a cross-section of data for 258 ASX-listed companies averaged over the years 2004 to 2007, using the company variables size, age, leverage, ownership concentration, profitability, liquidity, price-earnings ratio, market-to-book ratio and cross-listing. Findings – The study finds that size has a strong, statistically significant impact on all three principles. Ownership concentration, price-earnings ratio and age have statistically significant impacts on the likelihood of compliance with at least one principle but have no consistent influence over all. This finding supports the underlying philosophy of the ASX corporate governance principles that flexible guidelines serve companies better than inflexible rules. Originality/value – This study breaks new ground in empirically investigating the effect of company variables on compliance with the ASX’s Principles of 2003, which are new for Australia in requiring an “if not, why not” response from companies.

scholarly journals Ownership Concentration and Degree of Compliance with Corporate Governance Best Practices of Public Listed Companies in Sri Lanka

2016 ◽  
Vol 1 (1) ◽  
pp. 103 ◽  
Author(s):  
G.S. Mapitiya ◽  
A.R. Ajward ◽  
Samanthi Senaratne
Keyword(s):  
Corporate Governance ◽  
Sri Lanka ◽  
Best Practices ◽  
Listed Companies ◽  
Ownership Concentration

scholarly journals Difficulties in being responsible institutional investors: evidencefrom Malaysia

2019 ◽  
Vol 16 (4) ◽  
pp. 507-520
Author(s):  
Hairul Azlan Annuar
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Institutional Investors ◽  
Design Methodology ◽  
Shareholder Activism ◽  
Listed Companies ◽  
Qualitative Approach ◽  
Content Type ◽  
Different Types

Purpose The purpose of this paper is to ascertain whether institutional investors in Malaysia faced limitations when they are involved in the corporate governance of their investee companies. Design/methodology/approach A qualitative approach, consisting of a series of interviews with senior investment managers of different type of institutional investors, was chosen. In total, 18 interviews were conducted over a period of two months, which is thought to sufficiently provide the answers to the research purpose. Findings The interviews revealed there are difficulties in monitoring all investee companies due to lack of time and resources. Traditional measures such as company financial performance and dividend policy, continued to be favored and rigorously monitored. The overdependence on hard criteria may be a result of a culture of overly rewarding beneficiaries and a lack of expertise in being involved in specialized company areas such as strategy. Strict regulations hamper effort to be more involved in governing investee companies. Research limitations/implications The research used interviews and generalization may become an issue. In addition, access to many managers depended on recommendations, and the respondents are selected to represent the different types of institutional investors. Originality/value Investigation into factors that may limit institutional investors’ involvement in corporate governance in Malaysian public listed companies, especially from a more qualitative viewpoint, is lacking. In addition, this paper advances the understanding of shareholder activism by adding to the literature by exploring the issue in a specific emerging markets context.

Sign in / Sign up

Export Citation Format

Share Document