Impact of foreign ownership on capital structure and firm value in emerging market: case of Amman Stock Exchange listed firms

This research explores the influence of foreign ownership on non-financial public shareholding firms in the Amman Stock Exchange (ASE). The study involved an investigation into the connection between non-Jordanian ownership and the company growth opportunity, stock liquidity, leverage, dividend policy and business output. The results highlight that foreign ownership can provide improved corporate governance practices by playing a decisive role in increasing the growth opportunity and enhancing the firms’ market valuation, as measured by Tobin’s Q. Moreover, the findings indicate that companies with foreign board membership have better operating performance and higher firm value. The rewards were reaped by foreign investors based on their superior monitoring ability, which affects the decisions made and actions taken by management.

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Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from Turkey

South East European Journal of Economics and Business ◽

10.2478/v10033-010-0005-4 ◽

2010 ◽

Vol 5 (1) ◽

pp. 57-66 ◽

Cited By ~ 10

Author(s):

Pınar Mandacı ◽

Guluzar Gumus

Keyword(s):

Firm Performance ◽

Firm Value ◽

Stock Exchange ◽

Emerging Market ◽

Ownership Concentration ◽

Managerial Ownership ◽

Holding Companies ◽

Listed Firms ◽

Average Percentage ◽

Negative Effect

Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from TurkeyThis study examines the effects of ownership concentration and managerial ownership on the profitability and the value of non-financial firms listed on the Istanbul Stock Exchange (ISE) in the context of an emerging market. We measure the firm's performance by Return on Assets (ROA) and Tobin's Q ratios, where the former measures profitability and the latter the value of the firm. In addition, we give detailed information on the main characteristics of the ownership structures of the firms in our sample and find that ownership of Turkish firms is highly concentrated. In addition, the unlisted holding companies have the highest average percentage of shares, which supports the belief that individuals or families establish the holding companies in order to control their listed firms. After controlling for investment intensity, leverage, growth and size, we find that ownership concentration has a significantly positive effect on both firm value and profitability, while managerial ownership has a significantly negative effect on firm value.

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FINANCIAL PREFERENCES OF LISTED FIRMS IN EMERGING MARKET: THEORY AND PRACTICE IN THE CASE OF THAILAND

Australian Journal of Business and Management Research ◽

10.52283/nswrca.ajbmr.20110106a14 ◽

2012 ◽

Vol 01 (06) ◽

pp. 134-142

Author(s):

Suveera Srijaroen ◽

Jun Jiang

Keyword(s):

Capital Structure ◽

Stock Exchange ◽

Empirical Test ◽

Emerging Market ◽

Explanatory Power ◽

Theory And Practice ◽

Financial Leverage ◽

Market Theory ◽

Listed Firms ◽

Tax Shield

The study aims to identify the determinants of Thai listed firms’ capital structure using derived theoretical-based models from CAPM and Hamada equations, which incorporate the control variables, i.e. company’s operating performance and capital size, with time-invariant and random effects, for improving the explanatory power of the model. The empirical test employs the quarterly data covering the year 2006 to 2010 from the Stock Exchange of Thailand. The results showed that the tax shield and industry classification explicitly demonstrate material relevance to the alteration of the firm’s degree of financial leverage. The results also showed that the fixed assets merely exert moderate influences on the firm’s willingness to implement a policy of increasing financial leverage. Conclusively, none other relevant factors possess a significant impact on the choice of capital structure, in the case of Thailand.

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Struktur Modal dan Kinerja Perusahaan (Studi pada perusahaan yang terdaftar di Bursa Efek Indonesia periode 2011 s/d 2012)

JURNAL RISET AKUNTANSI DAN AUDITING "GOODWILL" ◽

10.35800/jjs.v5i1.4928 ◽

2014 ◽

Vol 5 (1) ◽

Author(s):

Novi S Budiarso

Keyword(s):

Firm Performance ◽

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Optimal Level ◽

Stock Exchanges ◽

Listed Firms ◽

Total Debt ◽

The Impact

Abstract This paper examine the impact of capital structure on firm performance, in Indonesian Stock Exchange. Firm performance are analyzed from the side of accounting indicators, in this research use liquidity. Because the optimal level of debt of the firm is limited by the liquidity of the assets and it depends on the average usage of the debt in the particular industry. In the other side liquidity is conventionally seen as reflecting investors’ degree of risk -aversion, The study collects of listed firms in Indonesian Stock Exchanges during 2011 to 2012. The listed firms on sub sector trade, services and investment. Multiple Regression analysis approach was employed in carrying out this analysis. Specifically, determined the simultaneous relationships among the various variables. The results show that as partial total debt to asset significantly influences to company’s performance but long term debt to asset not significantly influences to company’s performance. Simultaneously, total debt to asset and long term debt to asset influences company’s performance. This evidence is consistent with models of optimal capital structure and with the hypothesis that debt level changes release information about changes in firm value/performance.

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STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING. (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BEI PERIODE 2016-2018).

JURNAL ILMIAH EDUNOMIKA ◽

10.29040/jie.v4i02.1219 ◽

2020 ◽

Vol 4 (02) ◽

Author(s):

Anindiya Mustika Gunarwati ◽

Siti Maryam ◽

Sudarwati Sudarwati

Keyword(s):

Capital Structure ◽

Firm Size ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Company Size ◽

Manufacturing Companies ◽

Descriptive Research ◽

Company Value ◽

Quantitative Descriptive

The purpose of this study was to determine the effect of Capital Structure and Firm Size on Firm Value with Profitability as Intervening Variables. (Case Study on Manufacturing Companies in the Consumer Goods Industry Sector which are listed on the Indonesia Stock Exchange for the 2016-2018 Period). This research uses quantitative descriptive research type. Sample 27 companies using Purposive sampling technique. The analysis method uses path analysis with SPSS software version 21.Based on the test result min this study that the variable capital structure and company size have a positive and significant effect on profitability. Capital structure has no effect on firm value, firm size and profitability affect company value, and profitability is able to mediate the effect of capital structure and firm size on firm value. Keywords: capital structure, company size, profitability and firm value.

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Effect of Profitability, Company Size, Capital Structure, and Liquidity Risk on Firm Value of Indonesian Banks

Organum: Jurnal Saintifik Manajemen dan Akuntansi ◽

10.35138/organum.v4i1.110 ◽

2021 ◽

Vol 4 (1) ◽

pp. 14-27

Author(s):

Fenty Fauziah ◽

Rafiqoh Rafiqoh

Keyword(s):

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Sample Selection ◽

Liquidity Risk ◽

Share Price ◽

Company Size ◽

The Public ◽

Retained Earnings

The main objective of any firm is to maximize shareholder's wealth, which can be seen from firm value. This study aims to analyze and explain the effect of profitability, company size, capital structure, and liquidity risk on firm value banking companies in Indonesia. The population of this study is all banking companies listed on the Indonesia Stock Exchange, with an observation period of 2017-2018. The sample selection using a purposive sampling method. Data have both cross-section and time variation. Analysis and hypothesis testing were carried out by using a linear regression analysis using Eviews 11. The results showed that investors viewed that the company's overall profits from its business activities could increase its share price. The capital structure owned by the public relatively small, which meant that the company could provide a source of funds from within the company in the form of the owner's capital or retained earnings. Funds obtained from loans, if they were not followed by the ability to manage funds or were not channeled back to the community, would cause interest expenses and destroy profits. This condition results in investors selling their shares. Investors in making investment decisions paid attention to one indicator at a time and paid attention to all the factors that determined the company's value.

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