The Effect of Corporate Ownership Structure on the Profitability : Comparison between KSE and KOSDAQ Listed Firms

2018 ◽  
Vol 25 (1) ◽  
pp. 53-79
Author(s):  
Shin Cho ◽  
◽  
Jee-Hyung Jo ◽  
Woo-Jin Jung
Keyword(s):  
Ownership Structure ◽  
Corporate Ownership ◽  
Listed Firms ◽  
Corporate Ownership Structure

scholarly journals The effects of ownership structure, sub-optimal cash holdings and investment inefficiency on dividend policy: evidence from Indonesia

2019 ◽  
Vol 55 (3) ◽  
pp. 857-900
Author(s):  
Abdul Moin ◽  
Yilmaz Guney ◽  
Izidin El Kalak
Keyword(s):  
Ownership Structure ◽  
Payout Policy ◽  
Legal Environment ◽  
Corporate Ownership ◽  
Data Set ◽  
Listed Firms ◽  
Foreign State ◽  
Corporate Ownership Structure ◽  
Minority Interests ◽  
Negative Links

AbstractWe investigate how a firm’s decision to hold excessive cash or to overinvest could influence its dividend payout policy in Indonesia. Additionally, we examine the association between corporate ownership structure and cash dividends. Using a data set of Indonesian listed firms for the period from 1995 to 2014, we find that excessive cash holding (overinvestment) positively (negatively) affects a firm’s likelihood of paying dividends. Also, we find that family, foreign, state and institutional ownership have significantly negative links with dividends, which suggests the signals of expropriation of firms’ wealth by major shareholders. These findings strongly support the expropriation hypothesis that commonly applies to firms with higher level of concentration or to firms in a weak legal environment by which the rights of minority interests are put at risk by large shareholders.

The Influence of Corporate Ownership Structure and Board Members’ Skills on the Accounting Conservatism: Evidence from Non-Financial Listed Firms in Amman Stock Exchange

2014 ◽  
Vol 4 (1) ◽  
pp. 177
Author(s):  
Dea’a Al-Deen Omar Al-Sraheen ◽  
Faudziah Hanim Bt Fadzil ◽  
Syed Soffian Bin Syed Ismail
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Negative Relationship ◽  
Accounting Conservatism ◽  
Annual Reports ◽  
Board Members ◽  
P Value ◽  
Corporate Ownership ◽  
Listed Firms ◽  
Corporate Ownership Structure

The purpose of the current study is to examine the influence of ownership structure and board members’ skills in the practice of accounting conservatism of Jordanian listed firms. The data were obtained from the annual reports of 116 Jordanian listed firms for year 2011. By using the multiple regression analysis, the results show that the influence of corporate ownership structure and board skills on accounting conservatism were somewhat varied. All variables were a positive relationship with the conservatism with the exception of the board multiple directorship which has negative relationship with conservatism. Five hypotheses were developed and offered in this paper, institutional ownership and board financial expertise were supported, while family ownership, board tenure and board multiple directorships were not supported due to the higher level of P-value compared to 0.05. These results refer that corporate governance plays a vital role in enhancing the level of conservatism and reducing the agency conflict. Further, regulators bodies in Jordan should increase the effectiveness role of corporate governance in Jordanian companies in order to enhance the quality of financial reports. In addition, this study opens up avenues for more studies on accounting conservatism not only in Jordan, but also in other countries where this area of study is lacking.

scholarly journals The Simultaneous Effect of Corporate Ownership on Dividends and Capital Structure: Malaysian Evidence

2020 ◽  
Vol 11 (6) ◽  
pp. 46
Author(s):  
Mousa Sharaf Adin Hezam Saleh ◽  
Yusnidah Ibrahim ◽  
Hanita Kadir Shahar
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Empirical Studies ◽  
Foreign Ownership ◽  
Corporate Ownership ◽  
Financial Policies ◽  
Listed Firms ◽  
Regression Techniques ◽  
Corporate Ownership Structure ◽  
The Impact

Most of the researchers analyzed the impact of ownership structure on dividends and capital structure decisions separately. Drawing upon preceding empirical studies, the interdependence between dividends and capital structure raises the potential of the endogeneity bias when interdependent factors are segmented. Therefore, this study examined the effect of corporate ownership structure on capital structure and dividend policy simultaneously. This study utilized 407 Malaysian-listed firms over the period from 2012 to 2016 and adopted simultaneous modelling using 2SLS and 3SLS regression techniques. The results changed markedly in sign, magnitude and significance when moving from OLS estimator to 2SLS and 3SLS estimators. The findings show that both dividend and capital structure policies have positive interdependence. The substantial, family, government and foreign ownership affect dividends positively and capital structure negatively. The study provides various theoretical and practical implications to improve corporate governance and corporate financial policies. This study contributes to the growing literature on corporate finance and corporate ownership. Particularly, it provides simultaneous investigation on the effect of family, government and foreign ownership on dividends and capital structure for Malaysian firms.

scholarly journals CORPORATE OWNERSHIP STRUCTURE AND FIRM VALUE: EMPIRICAL EVIDENCE OF JSE-LISTED FIRMS, SOUTH AFRICA

2021 ◽  
Vol 9 (2) ◽  
pp. 89-106
Author(s):  
Adeyanju Adebiyi Sunday ◽  
◽  
Farai Kwenda ◽  
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Ownership Structure ◽  
Firm Value ◽  
Ownership Concentration ◽  
Corporate Ownership ◽  
Listed Firms ◽  
Governance Practices ◽  
Corporate Ownership Structure ◽  
And Control

This paper examines the relationship between corporate ownership structure and firm value of JSE-listed firms in the phase of the Black Economic Empowerment program in South Africa. Since the end of the apartheid era, corporate governance practices have evolved and the enactment of the BBE Act has altered ownership and control in the South African corporate sector. Using data from 187 firms between 2004 and 2016, we observed that ownership concentration measured by five large shareholders and foreign ownership has a negative impact on firm value proxied with Tobin’s Q and return on assets, while domestic share ownership has a positive relationship with corporate performance. Contrary to the agency theory notion on the role of large shareholders in minimizing losses that arise from the separation of ownership and control and significant foreign investors corporate governance practices in the host countries, the results obtained in this study suggest that local shareholders in the host capital market are important in strengthening corporate governance practices and improve corporate performance. This study contributes to the ownership-firm value relationship literature by offering new evidence on the impact of ownership concentration, foreign ownership, and domestic ownership in an emerging market undergoing transformation through programs addressing its historical inequalities.

Corporate Ownership Structure and Its Effect on Capital Structure: Evidence from BSE Listed Manufacturing Companies in India

2021 ◽  
pp. 227797522096830
Author(s):  
Palaniappan Gurusamy
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Fixed Effects ◽  
Random Effect ◽  
Corporate Ownership ◽  
Manufacturing Companies ◽  
Hausman Test ◽  
Lm Test ◽  
Corporate Ownership Structure ◽  
The Capital Structure

The study aims to examine the relationship between corporate ownership structure and capital structure of BSE listed manufacturing firms in India. The study has included the sample of 357 companies which covers 16 major sectors during the period of 2006–2015. Considering the dynamic panel nature of the data relating to the capital structure and the ownership structure variables. The analysis undertakes a novel approach of examining the determinants both single equation and reduced equation models. In order to determine the most appropriate model, based on the F test, the Breusch Pagan LM test and finally the Hausman Test is conducted. The Hausman test result has been estimated by the fixed effect model is better than the other two models such as pooled OLS and random effect estimation. Based on the fixed effects results, size, risk and profitability have a highly significant relationship with leverage. Meanwhile, the growth opportunities and tangibility represent insignificant values. The study found that the explanatory variables of the promoters’ ownership and the institutional ownership have a negative impact on leverage, while the corporate ownership has a positive influence on the capital structure decision. The individual or public ownership has a negative and significantly related to the capital structure, whereas the effect of the foreign ownership inversely related to the firm’s leverage.

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