Voluntary Disclosure and Ownership Structure: An Analysis of Dual Class Firms

2009 ◽  
Author(s):  
Surjit Tinaikar
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Dual Class

Voluntary disclosure and ownership structure: an analysis of dual class firms

2012 ◽  
Vol 18 (2) ◽  
pp. 373-417 ◽  
Author(s):  
Surjit Tinaikar
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Dual Class

scholarly journals Ownership structure and voluntary disclosure in corporate annual reports of Malaysian listed firms

2011 ◽  
Vol 8 (2) ◽  
pp. 296-312 ◽  
Author(s):  
Poh-Ling Ho ◽  
Gregory Tower
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Positive Association ◽  
Institutional Ownership ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Policy Makers ◽  
Listed Firms ◽  
Ownership Structures ◽  
The Impact

This paper examines the impact of ownership structure on the voluntary disclosure in the annual reports of Malaysian listed firms. The result shows that there is an increase in the extent of voluntary disclosure in Malaysian listed firms over the eleven-year period from 1996 to 2006. Ownership concentration consistently shows positive association with voluntary disclosure. Firms with higher foreign and institutional ownership have a significantly positive association with voluntary disclosure levels while firms with family ownership exhibit lower voluntary disclosure. Consistent with agency theory, different ownership structures have varied monitoring effects on agency costs and clearly influence firm’s disclosure practices. The findings provide insights to policy makers and regulators in their desire to increase transparency and accountability amidst the continual enhancement of corporate governance. The findings provide evidence that optimized ownership structure in any jurisdiction should be considered in any regulatory process that seeks to improve transparency.

Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Firm Characteristics ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Social ◽  
The Impact ◽  
Ifrs Implementation

Purpose This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms. Design/methodology/approach The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines. Findings Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD. Originality/value Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.

What values more? Agency costs or accrual quality

2017 ◽  
Vol 15 (1) ◽  
pp. 22-38 ◽  
Author(s):  
Jagjit S. Saini ◽  
Onur Arugaslan ◽  
James DeMello
Keyword(s):  
Ownership Structure ◽  
Agency Costs ◽  
Single Class ◽  
Accrual Quality ◽  
Content Type ◽  
Earnings Response Coefficients ◽  
Earnings Informativeness ◽  
Earnings Response ◽  
Dual Class

Purpose The purpose of this paper is to examine what is weighted more by the investors when valuing a dual-class firm’s stock – greater agency costs or better accrual quality of the dual-class firm in contrast to the single-class firm. Design/methodology/approach Using the financial data of firms issuing multiple classes of stock (hereafter dual-class firms) and firms issuing single class of stock (hereafter single-class firms), the authors measure the effect of firm’s ownership structure (dual class versus single class) on the earnings response coefficients (ERCs) of prior, current and future period earnings. Findings The authors find that investors care more about agency costs than the quality of accruals in evaluating the earnings of dual-class firms. Specifically, the authors find that current annual returns of the firm are negatively associated with dual-class ownership structure and that earnings informativeness and predictability are decreasing in dual-class ownership of the firm as reflected in decreasing ERCs. Originality/value This study adds to prior literature on dual-class ownership which reports greater agency costs and better accrual quality at dual-class firms in contrast to single-class firms. This study contributes to the literature on earnings informativeness and predictability by evaluating the effect of ownership structure on the ERCs of the firm. Investors should be careful when valuing a dual-class firm and should consider agency costs in addition to accrual quality of reported earnings at such firms.

scholarly journals Dividend policy and ownership structure: A study of Russian dual-class stock companies.

2017 ◽  
Vol 15 (1) ◽  
pp. 199-212 ◽  
Author(s):  
Irina Berezinets ◽  
Yulia Ilina ◽  
Liudmila Alekseeva
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Negative Relationship ◽  
Trading System ◽  
Public Companies ◽  
Dividend Payout ◽  
Dividend Payments ◽  
Dual Class Shares ◽  
Dual Class ◽  
The Relationship

This paper explores the relationship between ownership structure and dividend policy in Russian public companies with dual-class shares. The sample includes all companies issuing both ordinary (voting) and preferred (non-voting) shares traded on the Russian Trading System (RTS) in the period of 2003-2009. Using panel data and employing both linear and nonlinear regression modeling approach, we tested the relationship between ownership structure and dividend payout. One of the major conclusions is the existence of a negative relationship between the dividend payout on ordinary shares and institutional ownership, as well as between dividend payout on ordinary shares and offshore ownership. Unlike for ordinary shares, ownership structure is not related to dividend payments on preferred shares. Dividend policy on preferred shares is, instead, essentially related to a company’s performance.

scholarly journals Estrutura Piramidal de Controle, Emissão de Duas Classes de Ações e Desempenho Financeiro das Empresas Brasileiras

2014 ◽  
Vol 12 (4) ◽  
pp. 555 ◽  
Author(s):  
Lelis Pedro Andrade ◽  
Aureliano Angel Bressan ◽  
Robert Aldo Iquiapaza
Keyword(s):  
Financial Performance ◽  
Ownership Structure ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Controlling Shareholder ◽  
Pyramidal Structure ◽  
Positive Effects ◽  
Pyramidal Ownership ◽  
Dual Class Shares ◽  
Dual Class

This study aims to identify whether there is a relationship between dual class shares issuance, pyramidal ownership structure and firms’ financial performance in the Brazilian market. To this end, univariate tests and panel data analysis were applied in a sample for the 2000 to 2012 period. The results indicate that there is a significant and negative relationship between dual class shares issuance and firm’s financial performance, regardless of whether there is a pyramidal ownership structure in firm. In other hand, we find positive effects from pyramidal structure on the firm’s financial performance, conditioned that there is no dual class shares issuance, and also on the absence of an excessive number of levels until the ultimate controlling shareholder in the pyramidal structure. These evidences suggest that the voting power matters to improve firms’ financial performance; and that there are benefits and costs from pyramidal ownership structure in Brazilian firms.

scholarly journals Peranan Karakteristik Dewan Direksi dan Struktur Kepemilikan dalam Pengungkapan Sukarela Perusahaan Publik Indonesia

2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Jessica Yeo ◽  
Meiliana Suparman
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Size Composition ◽  
Fixed Effect Model ◽  
Foreign Ownership ◽  
Voluntary Disclosures

The objective of this study is to demonstrate that characteristics of the board of directors and ownership structure influence the level of voluntary disclosure. Board of directors’ characteristics include the board's size, composition, frequency of meetings, gender, expertise, and compensation. These attributes reflect the ownership structure, which includes foreign ownership, institutional ownership, and director ownership. Control variables include company size, firm age, leverage, profitability, and liquidity. This study utilized secondary data from 52 consumer goods companies listed on the Indonesia Stock Exchange for the period 2016 to 2020. In total, 228 observations were tested for hypotheses, after 32 outliers were removed from the data. The hypotheses were tested using panel regression with a Fixed Effect Model (FEM). The study found that all independent variables simultaneously have a significant impact on voluntary disclosures. According to the partial test (t-test), only the remuneration of directors and institutional ownership had a significant and positive effect on voluntary disclosures, while other variables had no significant impact. In addition, the foreign ownership variable had a significant affect on voluntary disclosure, however the direction is negative.

Impact of ownership structure on the level of voluntary disclosure: a study of listed family-controlled companies in Malaysia

2019 ◽  
Vol 44 (1) ◽  
pp. 1-34 ◽  
Author(s):  
Syeliya Md Zaini ◽  
Umesh Sharma ◽  
Grant Samkin ◽  
Howard Davey
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure

Ownership Structure and Voluntary Disclosure of Intellectual Capital

2013 ◽  
pp. 390-404 ◽  
Author(s):  
Kin Gan ◽  
Zakiah Saleh ◽  
Massoud Abessi
Keyword(s):  
Content Analysis ◽  
Longitudinal Study ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Reporting Framework ◽  
Speed Up ◽  
Regulatory Bodies ◽  
The Relationship

The objective of this study is to investigate the relationship between ownership structure and voluntary disclosure of intellectual capital (IC). Ownership structure examined is family-owned (FAMC), government-linked companies (GLC) and diffused ownership (OWNDIFF). Using content analysis, a longitudinal study was carried out from years 2006 to 2008 on 162 top companies listed in Bursa Malaysia. Results show that GLCs and OWNDIFFs voluntarily disclose information on IC. In contrast, FAMCs strictly adheres to their secrecy of not disclosing more details than those stipulated by law. This study differs from prior IC disclosure studies in that it discusses voluntary disclosure from agency as well as institutional theory in explaining the relationship between ownership structure and voluntary disclosure of IC. This study may be of interest to various stakeholders such as governmental and regulatory bodies, owners and institutional investors, analysts, as well as policymakers in meeting the growing demand for intangible information to be incorporated in annual reports. It will also facilitate further calls for them to speed up their efforts in producing guidelines for a more consistent IC reporting framework.

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