scholarly journals Managerial ownership and firm performance on selected JSE listed firms

2015 ◽  
Vol 12 (3) ◽  
pp. 233-241 ◽  
Author(s):  
Sandisiwe Zondi ◽  
Mabutho Sibanda
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Agency Theory ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Managerial Ownership ◽  
Retail Sector ◽  
Regression Analyses ◽  
Listed Firms ◽  
And Performance

This paper investigates if there is a relationship between managerial ownership and firm performance in selected firms listed on the JSE, and if so, what that relationship is. The study conducts regression analyses over a sample of 23 retail sector firms, observing data stretching from 2010 to 2013. The results are found to be robust. The results suggest that the hypothesis that a positive relationship exists between managerial ownership and performance be rejected as a negative relationship is found. Instead, the results of a two-stage least squares (2SLS) analysis find that managerial ownership does not impact firm performance in any direction. Overall the results of the study do not support the agency theory, as aligning the interests of managers and shareholders does not improve firm performance, at least within the retail sector

scholarly journals The Impact of Corporate Board Size on Firm Performance: Evidence from Ghana and Nigeria

2017 ◽  
Vol 4 (2) ◽  
pp. 1 ◽  
Author(s):  
LjEbenezer Agyemang Badu ◽  
K.O. Appiah
Keyword(s):  
Firm Performance ◽  
Agency Theory ◽  
Firm Size ◽  
Positive Relationship ◽  
Empirical Support ◽  
Corporate Board ◽  
Board Size ◽  
Listed Firms ◽  
Different Types ◽  
The Impact

This paper examines the impact of corporate board size on firm performance for a sample of 137 listed firms in Ghana and Nigeria. Our findings suggest a statistically significant and positive relationship between board size and firm performance, implying that in Ghana and Nigeria allowing corporate board size to be dependent of firm size tends to improve firm performance. Our findings are consistent across different kinds of models that deal with different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that optimal corporate board size effectively advise, monitor and discipline management thereby improving firm performance.

scholarly journals Government Ownership and Value of Listed Firms in Kenya: A Panel Data Evidence

2015 ◽  
Vol 2 (2) ◽  
pp. 45-50
Author(s):  
Fredrick Onyango Odhiambo ◽  
Nixon Oduor Omindi
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Negative Relationship ◽  
Quadratic Term ◽  
Government Ownership ◽  
Policy And Practice ◽  
Listed Firms ◽  
Q Model ◽  
The Government ◽  
And Performance

This study examines the relationship between government ownership and performance of listed firms on the Nairobi Securities Exchange. The quadratic term of government ownership is included in the model to test for the effect of increasing government ownership levels on performance. We use panel data techniques on 102 firm-year observations between 2003 and 2013 for all the listed firms in which the government directly owns some shares. We find no relationship between government ownership and performance at lower levels of government ownership. We find a negative relationship between government ownership and performance at higher levels of government ownership. We estimate, through differentiation of the Tobin’s Q model, that government ownership has a negative effect on performance when government ownership exceeds 41%. The study concludes that lower government ownership levels do not affect firm performance but as the ownership rises, government ownership has a detrimental effect on firm performance. We provide implications of these results for policy and practice. JEL Classifications Code: G34

scholarly journals The Unique Nature of Chinese Corporate Governance Practices

1970 ◽  
Vol 28 (1) ◽  
pp. 23-51
Author(s):  
Yan Liu ◽  
Guclu Atinc ◽  
Mark Kroll
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Board Structure ◽  
Firm Age ◽  
Governance Practices ◽  
Broad Array ◽  
Unique Nature ◽  
And Performance

This study investigates a fairly broad array of factors which may influenceChinese corporate governance and examines the relationships between firm age, topmanagement team age, board structure, ownership structure and firm performancein publicly-listed Chinese firms. As we anticipated, owing to the unique context ofcorporate China, results support a negative relationship between firm age and firmperformance, a positive relationship between percentage of independent directorsand firm performance, and a positive relationship between the presence of foreignblockholders and firm performance. This study also found a positive relationshipbetween the percentages of shares owned by the state as a blockholder and firm performance,but found that neither private nor institutional blockholders influence firmoutcomes. Results also indicate that the relationship between top management ageand firm performance is mediated by firm size. The expected negative relationshipbetween CEO duality and performance and positive relationship between board sizeand firm performance is not supported. These results indicate that there are someunique features of Chinese governance practices that need to be considered by researchersseeking to test the applicability of western theories in the Chinese context.

scholarly journals CEO Compensation, Managerial Overconfidence and Performance of Sharia Compliant Firms and Non-Sharia Compliant Firms: Evidence from Listed GCC Firms

2021 ◽  
Vol 9 (10) ◽  
pp. 159-177
Author(s):  
Gaafar Mohamed Abdalkrim
Keyword(s):  
Firm Performance ◽  
Ceo Compensation ◽  
Positive Relationship ◽  
Positive Impact ◽  
Stock Exchange ◽  
Financial Report ◽  
Listed Firms ◽  
And Performance ◽  
Managerial Overconfidence ◽  
Exchange Data

Background: The positive relationship between managerial overconfidence and performance implies that overconfident managers overestimate their ability to create value and improve their firm’s performance, which also lead to overestimate their own firms returns by taking over other firms. Purpose: The study examines relationship between managerial overconfidence, CEO compensation, and performance of sharia compliant firms and non-sharia compliant firms for 207 GCC listed firms from 2010 to 2014. Methodology: The study sample comprised of 207 firms for the main empirical analysis. The data used in this study were collected from GCC stock exchange data-base and firms financial report provided by website argaam.com between 2010 and 2018. Findings: The study found that managerial overconfidence is positively and significantly related to firm performance. CEO compensation and managerial overconfidence is also associated positively with sharia–compliant firms’ performance. The findings supported first hypothesis that managerial overconfidence leads to better firms’ performance. Originality: The study has revealed a positive impact of sharia compliant firms’ managerial overconfidence on firm performance. Furthermore, the effect of CEO compensation is favorable in sharia compliant firms.

scholarly journals Inside and outside shareholders and monitoring: Evidence from developing country

2010 ◽  
Vol 8 (1) ◽  
pp. 62-75
Author(s):  
Mazlina Mustapha ◽  
Ayoib Che Ahmad
Keyword(s):  
Agency Theory ◽  
Ownership Structure ◽  
Negative Relationship ◽  
Social Contact ◽  
Organization Structure ◽  
Business Environment ◽  
Hierarchical Organization ◽  
Managerial Ownership ◽  
Agency Relationship ◽  
Block Holders

This paper tests the effect of managerial (inside) and block-holders (outside) ownership in relation to agency theory in Malaysian business environment. This study tests the agency relationship in different culture and social contact and provides evidence whether agency theory in non-western organizations have equal impact in Asian organizations. Consistent with agency theory and the convergence of interest hypothesis, managerial ownership (insiders) in Malaysia indicate a negative relationship with the demand for monitoring. This finding may be due to the fact that as the managers are also the owners, there is less conflict, less information asymmetry and less hierarchical organization structure in the companies, which lead to lower monitoring costs. However, another ownership structure, outside block-holders appear to demand more monitoring. This positive relationship may be explained by their effort to compensate their lack of involvement in the daily transactions and internal decisions of the company, especially in the concentrated business environment in the country.

scholarly journals Green CSR Moderated by Public Visibility and Innovation Performance at Indonesia Companies

2020 ◽  
Vol 24 (1) ◽  
pp. 1
Author(s):  
Rahmat Hidayat, Farah Margaretha Leon
Keyword(s):  
Positive Relationship ◽  
Negative Relationship ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Innovation Activities ◽  
And Performance ◽  
Relationship Of ◽  
The Relationship

This study aims to analyze the green CSR  of innovation performance  with firms approval variables  and public visibility   can support moderating the relationship of green CSR  and innovation. The research sample was 33 manufacturing companies. The results showed that the  green CSR has a positive and significant effect on innovation . Also, the company approval variable has been proven to moderate the direction of a positive relationship between green CSR and innovation . The results also prove that public visibility is proven to moderate the direction of the negative relationship between green CSR and performance. This study provide information that shows great concern for the environment; it will increase the company in making changes through innovation activities. Also, the higher the company's approval and public visibility, the company will get support from various stakeholders to run the firms. The level of company concern for CSR activities will be a misjudgment for investors.

Do Female Directors on Corporate Boards Make a Difference in Family Owned Businesses?

2019 ◽  
Vol 19 (1) ◽  
pp. 85-102 ◽  
Author(s):  
Barbara Sveva Magnanelli ◽  
Luigi Nasta ◽  
Elisa Raoli
Keyword(s):  
Firm Performance ◽  
Family Firms ◽  
Negative Impact ◽  
Gender Diversity ◽  
Family Businesses ◽  
Corporate Boards ◽  
Listed Firms ◽  
Female Directors ◽  
And Performance ◽  
Gender Quota

ABSTRACT This paper investigates how the presence of female directors on corporate boards impacts the performance of family firms. This study enriches the literature on gender diversity on corporate boards and its effects on firm performance by focusing on a country in which family businesses are dominant. The empirical analysis is conducted on a sample of 165 Italian-listed firms from 2011 to 2016, representing the period during which the mandatory gender quota law was introduced and implemented in Italy. The results show a positive relationship between the presence of women on corporate boards and firm performance, specifically in family owned businesses. These findings lead to the conclusion that female directors do not have a negative impact on firm performance. And, given the domination of family businesses and a mandatory gender quota law in Italy, this study makes a regulatory and performance assessment not previously examined in the literature. JEL Classifications: M1; M12; M48; M21.

Dominant Owners and Performance of Continental European Firms

2012 ◽  
Vol 11 (1) ◽  
pp. 191-221 ◽  
Author(s):  
Victoria Krivogorsky ◽  
F. Greg Burton
Keyword(s):  
Economic Performance ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Additional Analysis ◽  
Company Performance ◽  
Ownership Type ◽  
And Performance ◽  
Actual Control

ABSTRACT We examine dominant ownership in Continental European firms to further refine the distinction between the ability to control and actual control and whether a particular distinct shareholder ownership type is associated with company performance. In addition, we empirically test whether the economic performance of the firms from different countries is consistently affected by the nature of the company's dominant owner. After disaggregating the overall sample by specific ownership type and by country, we find a positive relationship between dominant ownership and performance for firms in which banks and families/individuals are the dominant owners and a negative relationship when corporations are the dominant owners. Additional analysis discloses an even more complicated picture, suggesting that countries are not homogenous in terms of their ownership landscapes and, hence, their effects on performance.

scholarly journals The Simultaneity of Corporate Financial Decisions Under Different Levels of Managerial Ownership: A Case of Pakistani Listed Firms

2019 ◽  
Vol 10 (2) ◽  
pp. 147
Author(s):  
Mohamad Helmi bin Hidthiir ◽  
Muhammad Farhan Basheer ◽  
Saira Ghulam Hassan
Keyword(s):  
Agency Theory ◽  
Random Effect ◽  
Order Theory ◽  
Managerial Ownership ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Financial Decisions ◽  
Listed Firms ◽  
Financing Decisions ◽  
The Impact

Purpose- The prime objective of the current study is to investigate the interdepended of financial decision. In addition to that the impact of different level of managerial ownership on the interdepended of financial decisions is also examined agency theory, pecking order theory and the signaling theory are used as the theoretical lenses to draw the theocratical framework.Design/methodology/approach- The balance panel of 161 nonfinancial firm over the period of five years from 2013 to 2017 is used to achieve the research objectives. Polled OLS, Fixed effect and Random effect estimates are employed to answer the reach questions Findings- The managerial ownership with an average mean ownership of 39 is appeared at the top. Interestingly more than 75 percent firms are being controlled by mangers and in more than 60 percent firms of our sample the controlling managers hold more than 40 percent of shares. The Wu Hausman test is performed to determine the existence of the endogeneity problem.  The results indicates that the financial decisions namely cash holding decisions, financing decisions and investment decisions has significant impact on each other. Where the managerial ownership is in nonlinear relationship with financial decisions. The results of the study are also providing support to agency theory, pecking order theory and the signaling theoryResearch implications- The study will be helpful for policymakers, researchers, corporate personals and financial institutions in understanding the interrelationship between financing decisions and the role of managerial ownership in there interdepended.Originality/value- The study is among the pioneering studies on the issue and will provide policy guideline on the said issues.

scholarly journals Corporate governance and firm performance: Evidence from an emerging market

2019 ◽  
Vol 9 (1) ◽  
pp. 45-52 ◽  
Author(s):  
Ahmed S. Alanazi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Emerging Markets ◽  
Regression Models ◽  
Emerging Market ◽  
Operating Performance ◽  
Listed Firms ◽  
Developed Markets ◽  
Two Samples ◽  
And Performance

The paper investigates the link between corporate governance scores and firm performance among the largest 90 listed companies on the Saudi Stock market. The sample of 90 listed firms is split into two samples: firms with high governance scores and firms with low governance scores. The research compares and contrasts the operating performance of the two samples. In addition, regression models are used to test the link between governance scores and performance. No link between the companies’ corporate governance scores and operating performance is found. It is difficult to capture all elements of the complex corporate governance topic in corporate governance scores. It seems that corporate governance in emerging markets lags far behind that of developed markets. This is the first paper to examine the link between corporate governance scores and operating performance in the Saudi market, a new emerging market that has not been examined. The paper adds to the debate in the literature whether there is a link between corporate governance scores and performance. The evidence in the literature is inconclusive.

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