scholarly journals Ownership structure and corporate performance: Australian evidence

2008 ◽  
Vol 6 (2) ◽  
pp. 114-131
Author(s):  
Julian Fishman ◽  
Gerard Gannon ◽  
Russell Vinning
Keyword(s):  
Least Squares ◽  
Ownership Structure ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Equation Model ◽  
Management Entrenchment ◽  
Prior Literature ◽  
And Performance ◽  
The Relationship

This paper seeks to analyse the relationship between ownership structure and corporate performance for fifty firms listed on the Australian Stock Exchange during 2002-2003. The study initially tests a two equation model similar to that in the existing literature, but is distinguished from prior literature by subsequently reclassifying leverage. By categorising leverage as an endogenous variable, an examination of the relationship between ownership and performance is undertaken through ordinary least squares and two stage least squares analysis of a three equation econometric model. Interestingly, empirical results illustrate the fact that managerial ownership impacts negatively on firm performance which is consistent with the management entrenchment hypothesis

scholarly journals The effect of creative corporate culture and intangibility on the performance of foreign firms traded on the NYSE

2018 ◽  
Vol 15 (4) ◽  
pp. 356-372 ◽  
Author(s):  
Marcia Martins Mendes De Luca ◽  
Paulo Henrique Nobre Parente ◽  
Emanoel Mamede Sousa Silva ◽  
Ravena Rodrigues Sousa
Keyword(s):  
New York ◽  
Least Squares ◽  
Corporate Culture ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Ordinary Least Squares ◽  
Foreign Firms ◽  
Content Type ◽  
Negative Effect

Purpose Following the tenets of resource-based view, the present study aims to investigate the effect of creative corporate culture according to the competing values framework model at the level of corporate intangibility and its respective repercussions on performance. Design/methodology/approach The sample included 117 non-USA foreign firms traded on the New York Stock Exchange (NYSE), which issued annual financial reports between 2009 and 2014 using the 20-F form. To meet the study objectives, in addition to the descriptive and comparative analyses, the authors performed regression analyses with panel data, estimating generalized least-squares, two-stage least-squares and ordinary least-squares. Findings Creative culture had a negative effect on the level of intangibility and corporate performance, while the level of intangibility did not appear to influence corporate performance. When combined, creative culture and intangibility had a potentially negative effect on corporate results. In conclusion, creative corporate culture had a negative effect on performance, even in firms with higher levels of intangibility, characterized by elements like experimentation and innovation. Originality/value Although the study hypotheses were eventually rejected, the analyses are relevant to both the academic setting and the market because of the organizational and institutional aspects evaluated, especially in relation to intangibility and creative culture and in view of the unique cross-cultural approach adopted. Within the corporate setting, the study provides a spectrum of stakeholders with tools to identify the profile of foreign firms traded on the NYSE.

scholarly journals The Relationship between Corporate Performance and Ownership Structure: Evidence from Turkey

2015 ◽  
Vol 5 (2) ◽  
pp. 9-18
Author(s):  
Hicabi Ersoy ◽  
Ayben Koy
Keyword(s):  
Ownership Structure ◽  
Significant Relationship ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Listed Companies ◽  
Main Hypothesis ◽  
Statistical Population ◽  
Istanbul Stock Exchange ◽  
Negative Effect ◽  
The Relationship

This study investigates the effects of ownership structure on the performance of the listed companies in Borsa Istanbul Stock Exchange 30 Firms (BIST 30). The main hypothesis of our study is that there is a significant relationship between companies' performances and their ownership structures.The statistical population includes 19 non-financial companies in the period of years between 2008 and 2013. The results show that the concentration of the large shares of companies one or a few share holders has a negative effect on related firm’s performance.

scholarly journals The Relationship between the Ownership Structure, Capital Structure and Performance

2018 ◽  
Vol 1 (25) ◽  
pp. 1 ◽  
Author(s):  
Ali Al-Thuneibat
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Assets ◽  
Service Companies ◽  
Concentrated Ownership ◽  
And Performance ◽  
The Relationship

This paper aims at providing an empirical evidence concerning the relationship between the ownership structure, capital structure and financial performance of the shareholding companies listed in Amman Stock Exchange (ASE). To measure the ownership structure, the researcher used four variables including foreign, institutional, managerial and concentrated ownership. The capital structure is measured by using the leverage, and the performance is measured by using the return on assets (ROA). To achieve the objectives of the study, a sample of 86 firms from the industrial and service companies listed in ASE during the period 2010 and 2014 is used. The results of the study showed that the relationship between ownership structure in general, and performance is positive and statistically significant, however, the results showed that the various types of ownership structure have different types of relationships with performance. More specifically, there is a negative impact of institutional and foreign ownerships on the performance and positive impact of concentrated and managerial ownerships. The results also revealed that there is a positive impact of the financial leverage on the relationship between ownership structure and firm performance. The findings of the study provide implications to the regulators, investors and managers in Jordan to take into consideration the environment-specific factors when developing corporate regulations and encourage concentrated and managerial ownership because they have positive impact on performance.

scholarly journals The Effect of Corporate Governance and Ownership Structure on Financial Performance of Listed Companies in Nepal

2019 ◽  
Vol 12 (1) ◽  
pp. 1-18
Author(s):  
Surya Bahadur G. C. ◽  
Ravindra Prasad Baral
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Least Squares ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Ownership Concentration ◽  
Data Set ◽  
Listed Firms ◽  
And Performance

The paper attempts to analyze relationships among corporate governance, ownership structure and firm performance in Nepal. The study comprises of panel data set of 25 firms listed at Nepal Stock Exchange (NEPSE) covering a period of five years from 2012 to 2016. The econometric methodology for the study consists primarily of least squares dummy variable (LSDV) model, fixed and random effects panel data models and two-stage least squares (2SLS) model. The study finds bi-directional relationship between corporate governance and performance. Among corporate governance internal mechanisms; smaller board size, higher proportion of independent directors, reducing ownership concentration, improving standards of transparency and disclosure, and designing appropriate director compensation package are important dimensions that listed firms and regulators in Nepal should focus on. Ownership concentration is found to have positive effect on performance; however, it affects corporate governance negatively. This study raises understanding and provides empirical evidence for endogenous relationship between corporate governance and performance and offers support for principal-principal agency relationship. The results of this study lead to several practical implications for listed firms as well as policymakers of Nepal in promoting sound corporate governance practices and codes. For listed companies, the improvement in compliance with a code of corporate governance or voluntary adoption of best practices can provide a means of achieving improved performance.

scholarly journals Pessimistic Tone in Earnings Announcement and CSR Disclosure: Exploring the Interacting Role of CEO Busyness

2021 ◽  
Vol 13 (24) ◽  
pp. 13645
Author(s):  
Sri Ningsih ◽  
Iman Harymawan ◽  
Nurul Fitriani ◽  
Brian Lam
Keyword(s):  
Least Squares ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Global Reporting Initiative ◽  
Income Statement ◽  
Csr Disclosure ◽  
The Relationship ◽  
Sustainability Report ◽  
Insight Into

This study analyzes the relationship between the pessimistic tone in earnings announcements and CSR disclosures interacted by CEO busyness. This study used 191 observations from 74 firms listed on the Indonesia Stock Exchange and the Global Reporting Initiative (GRI) database from 2016–2019. Grounded in signaling theory, we hypothesize that a pessimistic tone in earning announcements will increase CSR disclosure. We also hypothesize that busy CEOs strengthen this relationship. We use the ordinary least squares to analyze and answer our hypotheses. This study showed that the use of a pessimistic tone in the income statement in the discussion report and management analysis (MD&A) is related positively and significantly to CSR disclosure. This study also found that busy CEOs strengthen those relationships. Our implication is that CSR disclosure in our sample is only measured based on the information presented in the sustainability report. To the best of the authors’ knowledge, this study is the first to investigate the relationship between the pessimistic tone in earning announcements and CSR disclosures interacted by CEO busyness. In addition, this study provides insight into current performance disclosure practices in MD&A reports and CSR reports that managers can use to safeguard the firm’s reputation.

scholarly journals Does ownership structure affect firm performance? Evidence from Nigerian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 503-513
Author(s):  
Ioraver N. Tsegba ◽  
Joseph K. Achua
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Insider Ownership ◽  
Ownership Structures ◽  
Concentrated Ownership ◽  
The Relationship

This paper examines the relationship between ownership structure and firm performance from the perspective of listed Nigerian companies. The sample comprises 73 companies listed on the Nigerian Stock Exchange for which relevant financial data is available for the period 2001 to 2007. The empirical results obtained through ordinary least squares (OLS) analysis provide evidence which suggests that dominant shareholding, ownership concentration, and foreign ownership structures have no significant effect on firm performance. However, insider ownership is inversely related to firm performance. Two major policy implications emerge from the results of this study. First, since ownership structures such as, dominant shareholding, concentrated ownership, and foreign ownership have no significant effect on firm performance, government emphasis on them is misplaced. Second, insider ownership of Nigerian firms is to be monitored closely by shareholders due to the adverse effect of this ownership structure on firm performance.

scholarly journals Ownership, control and performance in the most actively traded companies on Stockholm stock exchange. A comparison between 1999 and 2001

2006 ◽  
Vol 4 (1) ◽  
pp. 146-155 ◽  
Author(s):  
Per-Olof Bjuggren ◽  
Helena Bohman
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Inside Ownership ◽  
The Subject ◽  
And Performance ◽  
The Relationship ◽  
Ownership Control

The relationship between ownership, control and firm value is the subject matter studied. The study is essentially empirical. Data about the most actively traded non-financial companies on the Stockholm Stock Exchange is used. A comparison is made between the years 1999 and 2001. What do the relationships between firm value and different ownership characteristics like ownership concentration, foreign ownership and inside ownership look like? Do these characteristics differ between the booming year of 1999 and the recession year of 2001? Is there a relation between stock price and ownership structure? These are the three main questions addressed in the study.

scholarly journals MACROECONOMIC VARIABLES AND VOLUME OF TRANSACTIONS ON TEHRAN STOCK EXCHANGE

2021 ◽  
Vol 33 (2) ◽  
pp. 163-173
Author(s):  
Farzaneh Haghighat Nia ◽  
Naser Shams Gharneh
Keyword(s):  
Exchange Rate ◽  
Least Squares ◽  
Analytical Method ◽  
Inflation Rate ◽  
Least Squares Method ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Macroeconomic Variables ◽  
The Relationship ◽  
Ordinary Least Squares Method

This paper examines the relationship between the volume of transactions and macroeconomic variables on the Tehran Stock Exchange. We are collect data for variables such as liquidity, inflation, exchange rate, the total value of imports and GDP for ten years period of 2009-2019. For analysis of data, have been used regression analytical method and ordinary least squares method (OLS) model. The results indicate that there are relationships between the macroeconomic variables of liquidity, inflation rate, and GDP with the volume of transactions. Therefore, the relationship between the volume of transactions with liquidity and GDP is positive and significant and with inflation is negative.

scholarly journals Corporate governance and ownership structure in Brazil: causes and consequences

2008 ◽  
Vol 5 (2) ◽  
pp. 36-54 ◽  
Author(s):  
Pablo Rogers ◽  
Anamélia Borges Tannús Dami ◽  
Kárem Cristina de Sousa Ribeiro ◽  
Almir Ferreira de Sousa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Ordinary Least Squares ◽  
Public Companies ◽  
Main Determinant ◽  
Internal Mechanism ◽  
Market Instability ◽  
And Performance

The literature indicates that, mainly in countries with high stock concentration, the ownership structure is an important internal mechanism of control of the corporate governance, with effects in the companies’ value and performance. In Brazil, the existing relationship among corporate governance - ownership structure - performance is still not conclusive. The present study investigates if there is any relationship among ownership structure, financial performance and value in the Brazilian nonfinancial public companies with stocks negotiated in the São Paulo Stock Exchange, between the period of 1997 to 2001, as well as the determinant of the level of concentration of the ownership in these companies. In the empiric investigation it was used a multiple regression analysis through the estimators of the Ordinary Least Squares with heteroscedasticity in accordance with White (1980). Concerning the used methodology, the results indicate that the variables of ownership structure as defined do not have influence on the financial performance and value of the companies. Remaining to the determinant of the ownership structure of the Brazilian non-financial public companies, the results indicate that the ownership structure can be explained by the size of the firm, market instability and regulation, being the latter the main determinant of the ownership structure.

scholarly journals THE INTERNATIONAL TRADE IN THE RELATIONSHIP BETWEEN FINANCIAL LEVERAGE AND PERFORMANCE: A CASE IN VIETNAM

2020 ◽  
Vol 37 (01) ◽  
Author(s):  
NGUYEN HOANG THUY BICH TRAM ◽  
TRAN THI THUY LINH ◽  
TON NU NHAT MINH
Keyword(s):  
International Trade ◽  
Least Squares ◽  
Large Scale ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Financial Leverage ◽  
And Performance ◽  
The Impact ◽  
The Relationship

This paper considers the international trade effect in the relationship between financial leverage and firm performance. It find out the answer to whether the impact of the financial leverage on internationally - oriented firms are stronger than on domestically – oriented ones. The paper use ordinary least squares, two - stage least squares and generalized method of moments to analyze data sample consisting of 107 enterprises in the period 2007-2015. Research results show that the international trade affects negatively the relationship between financial leverage and performance in Vietnamese firms. The effect of financial leverage in internationally - oriented firms are more than in domestically – oriented firms. Besides, other factors such as Vietnam’s interest rate, firm age, and firm size also affect negatively on firms’ performance. However, economic growth factor has a positive impact on the increase of assets’ return. In addition, the research points out that the large scale of business will offset the negative effects of financial leverage on performance.

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