scholarly journals Effect of corporate governance on expropriation practices with family ownership as moderation variable

2021 ◽  
Vol 8 (3) ◽  
Author(s):  
Gladys Bella Novenna Rettob ◽  
Imam Subekti ◽  
Endang Mardiati
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Research Data ◽  
Family Ownership ◽  
Control Rights ◽  
Controlling Shareholders ◽  
The Family ◽  
Governance Practices ◽  
Cash Flow Rights

The practice of expropriation is one of the accounting frauds committed by controlling shareholders because of their control rights that exceed cash flow rights. This study aims to examine and analyze the effect of corporate governance on the practice of expropriation and the existence of family ownership as a moderating variable. This research was conducted at companies in all sectors of the Indonesia Stock Exchange. Based on the purposive sampling method, the sample of this study was 78 companies with 312 observations. The research data were analyzed using multiple regression analysis. The results of this study indicate that the practice of expropriation in Indonesia can be minimized by implementing adequate corporate governance. The results of this study also prove that companies whose shareholding structures are dominated by the family will maintain control in the company through their management so that they have an impact on limiting governance practices in reducing expropriation practices.

scholarly journals Pengaruh Kepemilikan Keluarga dan Likuiditas terhadap Agresivitas Pajak dengan Pemoderasi Corporate Governance

2020 ◽  
Vol 3 (2) ◽  
pp. 85-107
Author(s):  
Anggi Aditya Fahmi ◽  
Priyo Hari Adi
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Audit Committees ◽  
Family Ownership ◽  
Manufacturing Companies ◽  
Tax Aggressiveness ◽  
Analysis Technique ◽  
Positive Effect

The purpose of this study is to find out how the influence of companies with family ownership and liquidity on tax aggressiveness which is moderated by corporate governance in manufacturing companies listed on the Indonesia Stock Exchange from 2013 to 2016. Corporate governance is proxied using independent commissioners and audit committees. The sample used in this study amounted to 212 selected using the purposive sampling method. The data analysis technique used are moderated regression analysis (MRA). The results showed that family ownership did not affect the tax aggressiveness, this means that companies with family ownership do not determine the company's actions in conducting tax aggressiveness. Liquidity has a significant positive effect on tax aggressiveness. The moderating variable of independent commissioners can moderate the influence of family ownership and liquidity on tax aggressiveness, while the moderating variable of the audit committee can moderate liquidity but cannot moderate family ownership against tax aggressiveness.    

scholarly journals Finance Impact of corporate governance on the valuation of IPOs in Pakistan stock exchange listed Firms. A moderating role of the family Ownership.

2021 ◽  
Vol 2 (1) ◽  
pp. 101-112
Author(s):  
Muhammad Waris ◽  
Dr. Badariah Haji Din
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Moderating Effect ◽  
Family Ownership ◽  
Board Independence ◽  
Ipo Performance ◽  
The Family ◽  
The Impact

The objective of our study is to investigate the impact of the corporate governance on the IPO performance with moderating impact of the family ownership. To investigate that relationship, we used the data of IPOs registered from 2008 to 2017 in Pakistan Stock exchange. We used the OLS methods to analysis of the data. Our findings shows that Board independence (BIND) has positive significant relationship with IPO return, it means that independent directors have the more technical knowledge and experience in maintaining the IPO return and making the strong policy for the organizations. CEO duality has the significant negative relationship with IPO return with (P=0.0833), it means that when CEO has the combine rule then decisions are not distributed, and monopoly existed in decisions that leads to the negative impact on the IPO performance. Board diligence, Board size, ownership concentration and gender diversity have no impact are being seen in our analysis. In the moderating effect of the family ownership in reference to board diligence (BD) the results changed to significant positive relationship, it means that with the family-owned firms when board meetings increased then increased in the IPO return due to some factors. With the moderation of the family ownership the results of the Board independence also improved that shows the role of the family-owned firm in between them. Women in the board that means the gender diversity has no impact but with the moderating effect of the family ownership women in the board has significant positive impact. This study is helpful for the financial managers, investors, and the finance students and also for the government, in maintaining the code of the corporate governance.

scholarly journals Pyramid of Structure, Pengungkapan Transaksi Pihak Berelasi, dan Tata Kelola Perusahan : Indikasi Ekspropriasi

2018 ◽  
Vol 14 (1) ◽  
pp. 1-15
Author(s):  
Fadli Fendi Malawat ◽  
Sutrisno Sutrisno ◽  
Imam Subekti
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Hierarchical Regression ◽  
Controlling Shareholders ◽  
Analytical Technique ◽  
Related Party Transaction ◽  
Pyramid Structure ◽  
Research Population

The objective of this study is to analyze the effect of company’s ownership through pyramid structure, and related party transaction disclousure, on expropriation practices, with corporate governance as moderating variable. Analytical technique used is hierarchical  regression  analysis for testing hypotheses developed in this study. Research population is a manufacturing company listed in Indonesia Stock Exchange (IDX) during years 2014-2016, and the sample is selected using purposive sampling method. The results of this study fails to prove effect of company’s ownership through pyramid structure, and related party transaction disclousure on expropriation practices. Furthermore, this study indicates the corporate governance can to increase the level of related party transactions disclosure, but has not been to reduce the expropriation practices caused by company’s ownership through pyramid structure. This  study  contributes  to  the  theory  of agency  type  II  which  discusses  conflict of interest between  controlling  and  non-controlling shareholders, and especially the problem of information asymmetry,  which can be minimized by the role of corporate governance.

Agency Costs of Controlling Shareholders' Share Collateral with Taiwan Evidence

2007 ◽  
Vol 10 (02) ◽  
pp. 173-191 ◽  
Author(s):  
Anlin Chen ◽  
Lanfeng Kao ◽  
Yi-Kai Chen
Keyword(s):  
Corporate Governance ◽  
Agency Costs ◽  
Legal Regulation ◽  
Governance Mechanism ◽  
Minority Shareholders ◽  
Control Rights ◽  
Controlling Shareholders ◽  
Corporate Governance Mechanism ◽  
Cash Flow Rights ◽  
And Control

Controlling shareholders' share collateral is a new source of the deviation of cash flow rights and control rights leading to minority shareholder expropriation. However, controlling shareholders' share collateral is not forbidden and has not received particular restriction leading to its popularity in the capital markets. Neglecting the potential agency costs resulting from controlling shareholders' share collateral would hurt the interests of creditors and minority shareholders. We need legal regulation on controlling shareholders' share collateral to reinforce corporate governance mechanism to protect the interests of creditors and minority shareholders.

scholarly journals Pengaruh Pyramid of Structure dan Pengungkapan Transaksi Pihak Berelasi terhadap Tindakan Ekspropriasi dengan Tata Kelola sebagai Variabel Moderasi

2017 ◽  
Vol 12 (2) ◽  
pp. 153-170
Author(s):  
Fadli Fendi Malawat ◽  
Sutrisno Sutrisno ◽  
Imam Subekti
Keyword(s):  
Corporate Governance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Hierarchical Regression ◽  
Controlling Shareholders ◽  
Analytical Technique ◽  
Related Party Transaction ◽  
Pyramid Structure ◽  
Research Population

The objective of this study is to analyze the effect of company’s  ownership through pyramid structure, and related party transaction disclousure, on expropriation practices, with corporate governance as moderating variable. The concept of expropriation in this study is measured by related party transaction assets, liabilities (RPT AL) and related party transaction sales, expenses (RPT SE). Analytical  technique  used  is  hierarchical  regression  analysis for testing hypotheses developed in this study. Research population is a manufacturing company listed in Indonesia Stock Exchange (IDX) during  years 2014-2016, and the sample is selected using purposive sampling method. The results of this study fails to prove effect of company’s  ownership through pyramid structure, and related party transaction disclousure on expropriation practices. Furthermore, this study indicates the corporate governance can to increase the level of related party transactions disclosure, but has not been to reduce the expropriation practices caused by company’s ownership through pyramid structure. This  study  contributes  to  the  theory  of agency  type  II  which  discusses  conflict of interest between  controlling  and  non-controlling shareholders, especially the problem of information asymmetry,  which can be minimized by the role of corporate governance.

scholarly journals PRÁTICAS DE GOVERNANÇA CORPORATIVA EM EMPRESA FAMILIAR DE CAPITAL FECHADO: UM ESTUDO DE CASO

2007 ◽  
Vol 12 (2) ◽  
pp. 03 ◽  
Author(s):  
Fabio Matuoka Mizumoto ◽  
Claudio Pinheiro Machado Filho
Keyword(s):  
Corporate Governance ◽  
Family Ownership ◽  
Private Companies ◽  
Corporate Governance Mechanisms ◽  
General Rules ◽  
The Family ◽  
Governance Practices ◽  
The Empirical Analysis ◽  
Management Council

This paper analyses corporate governance practices adopted by family-owned business to identify its influence on the management model and on the family and business relationship. The corporate governance mechanisms are originally established to public held companies, but those practices may also minimize agency problems faced by family-owned companies once it establishes rules to relationships among family, ownership and management. It is notable the importance of family owned firms on national private companies. Many challenges faced by family companies are recurrent, but there are no general rules and solutions. Therefore, the empirical analysis was conducted on a case study about the challenges and benefits from practices of corporate governance at Grupo Orsa Company. It was investigated the hole of Board of Directors, Family Council, Management Council, considered integrative structures to the model of family ? ownership ? management sub-systems. Key words: Family business. Corporate governance. Management

scholarly journals The Moderating Role of Family Control on the Relationship between Audit Committee Financial Expertise and Earnings Management

2018 ◽  
Vol 13 (12) ◽  
pp. 31 ◽  
Author(s):  
Yousef Abu Siam ◽  
Mohammed Idris ◽  
Saleh Al- Okdeh
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Family Ownership ◽  
Positive Interaction ◽  
Family Control ◽  
Financial Expertise ◽  
The Family ◽  
Governance Practices ◽  
Regulatory Bodies

The current study offers empirical evidence on the way the family ownership moderates the association that exists between the financial experience of the audit committee and earnings management based on a sample of 44 manufacturing firms that are registered with the Amman Stock Exchange (ASE) from 2012 to 2016. From the results of the study, there is a significant negative association between the financial experience of the audit committee and earnings management. In addition, the study shows a positive interaction of the financial experience of the audit committee and the family ownership on earnings management. This indicates that an increase in the percentage of audit committee members having financial expertise, in order to restrict earnings management, is less likely to be influential in the case of family controlled firms. These results have implications for policy makers and regulatory bodies in Jordan since they highlight the need to improve the good corporate governance practices and attempt to constrain the incidence of earnings management in Jordanian firms.

Pengaruh Kinerja Keuangan dan Good Corporate Governance (GCG) Terhadap Nilai Perusahaan

MBIA ◽  
2019 ◽  
Vol 17 (2) ◽  
pp. 1-10
Author(s):  
Rolia Wahasusmiah
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Sampling Method ◽  
Total Population ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Positive Influence ◽  
Manufacturing Companies ◽  
Good Corporate Governance

This study aims to determine the effect of financial performance and good corporate governance (GCG) on the value of companies in manufacturing companies listed on the stock exchange Indonesia. The type of data used is secondary data in the form of annual report 2016. Population used in this study are all companies listed on the Indonesia Stock Exchange (BEI). This research uses purposive sampling method with total population of 144 companies and sample of 31 companies. The results show that simultaneously ROA, OPM, NPM, KM, and KI have a positive influence on firm value. While partially ROA  have a positive influence on firm value. While OPM, NPM, KM, and KI have no positive influence on firm value).

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

scholarly journals Short-run price performance of IPOs and corporate governance practices: Evidence from a frontier market

2018 ◽  
Vol 2 (1) ◽  
pp. 34-42 ◽  
Author(s):  
SMRK Samarakoon ◽  
KLW Perera
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Negative Impact ◽  
Stock Exchange ◽  
Sri Lankan ◽  
Governance System ◽  
Public Offerings ◽  
Price Performance ◽  
Governance Practices ◽  
Short Run

The short-run price performance of Initial Public Offerings (IPOs) indicates that the prices are often underpriced which is widely documented as a universal phenomenon. Corporate governance refers to the set of systems, principles and processes by which a company is governed. Establishing good corporate governance system in an IPO company makes good decisions which attract more outside investors. Therefore, this study examines whether there is any impact of corporate governance practices on short-run price performance of Sri Lankan IPOs. Study examined 44 fixed price IPOs which were listed on the Colombo Stock Exchange (CSE) during the period of 2003 – January to 2015- December. The study found that Sri Lankan IPOs underprice by 30% on AR, which is statistically significant at 5% level. Further, it found that block holder ownership (ownership concentration), CEO duality and existence of the non-executive directors in the board are positively related to the short-run underpricing, which are statistically significant at 5%. But, the board size has a significant negative impact on underpricing. These relationships are in line with the international literature which confirms that the corporate governance practices have significant impact on short-run price performance of IPOs in Sri Lanka. These findings also support the agency and signaling theories.

Sign in / Sign up

Export Citation Format

Share Document