scholarly journals Tunneling Related Party Lending Phenomenon: Empirical Study on Family Business in Indonesia

2021 ◽  
Vol 11 (1) ◽  
pp. 39-49
Author(s):  
Ign.Novie Endi Nugroho ◽  
Rahmawati Rahmawati ◽  
Bandi Bandi ◽  
Agung Nur Probohudono
Keyword(s):  
Empirical Study ◽  
Empirical Evidence ◽  
Family Business ◽  
Internal Control ◽  
Control Mechanism ◽  
Stock Exchange ◽  
Public Companies ◽  
Internal Auditors ◽  
Pyramid Structure ◽  
The Family

This study examines the effect of family end control with a pyramid structure, RPTs disclosure, internal auditors and independent commissioners on related loan tunneling in Indonesia. This study used a sample of 258 public companies listed on the Indonesia Stock Exchange from 2016-2018. This study provides empirical evidence that the final controller of the family with a pyramid structure is proven to practice tunneling through related loans. The next finding of this study is that the level of disclosure of related transactions can reduce the potential for the practice of tunneling related loans. Another important finding is the failure of the internal control mechanism by internal auditors and independent commissioners which is not able to reduce the potential for related loan tunneling practices in family companies in Indonesia.

“We are a family firm”

2018 ◽  
Vol 8 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Claudia Binz Astrachan ◽  
Isabel C. Botero
Keyword(s):  
Family Business ◽  
Family Firms ◽  
Family Firm ◽  
Business Owners ◽  
Public Companies ◽  
Content Type ◽  
Brand Building ◽  
Depth Interview ◽  
The Family ◽  
Family Associations

Purpose Evidence suggests that some stakeholders perceive family firms as more trustworthy, responsible, and customer-oriented than public companies. To capitalize on these positive perceptions, owning families can use references about their family nature in their organizational branding and marketing efforts. However, not all family firms actively communicate their family business brand. With this in mind, the purpose of this paper is to investigate why family firms decide to promote their “family business brand” in their communication efforts toward different stakeholders. Design/methodology/approach Data for this study were collected using an in-depth interview approach from 11 Swiss and German family business owners. Interviews were transcribed and coded to identify different themes that help explain the different motives and constraints that drive their decisions to promote the “family business brand.” Findings The analyses indicate that promoting family associations in branding efforts is driven by both identity-related (i.e. pride, identification) and outcome-related (e.g. reputational advantages) motives. However, there are several constraints that may negatively affect the promotion of the family business brand in corporate communication efforts. Originality/value This paper is one of the first to explore why family businesses decide to communicate their “family business brand.” Building on the findings, the authors present a conceptual framework identifying the antecedents and possible consequences of promoting a family firm brand. This framework can help researchers and practitioners better understand how the family business nature of the brand can influence decisions about the company’s branding and marketing practices.

Revisiting the Study of Family Businesses: Methodological Challenges, Dilemmas, and Alternative Approaches

1998 ◽  
Vol 11 (3) ◽  
pp. 239-252 ◽  
Author(s):  
Mary Winter ◽  
Margaret A. Fitzgerald ◽  
Ramona K. Z. Heck ◽  
George W. Haynes ◽  
Sharon M. Danes
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Methodological Approach ◽  
Family Businesses ◽  
Business Research ◽  
Internal Dynamics ◽  
Methodological Challenges ◽  
The Family ◽  
Alternative Approaches ◽  
Social Units

Family businesses are vital but understudied economic and social units. Previous family business research is limited relative to its definitions, sampling, and resulting empirical evidence. This paper presents an alternative methodological approach to the study of family businesses with the potential for allowing multiperspective and detailed analyses of the nature and internal dynamics of both the family and the business and the interaction between the two.

scholarly journals EMPIRICAL EVIDENCE OF THE ROLE OF ACCOUNTING POLICY ON BOND RATING TO FINANCIAL COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

2018 ◽  
Vol 18 (1) ◽  
pp. 35
Author(s):  
Steacy Chaterine Tan
Keyword(s):  
Empirical Study ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Bond Rating ◽  
Accounting Policy

<p>The objective of the empirical study is to examine the effect of leverage, liquidity, profitability and accounting policies on bond rating. The sample of this empirical study is financial companies that listed in Indonesia Stock Exchange during 2012-2016. The results of this empirical study shows that leverage affects negatively on bonds rating. While, liquidity, profitability, and accounting policy affect positively on bonds rating.</p><p> </p>

scholarly journals Cash Holdings and Investment Levels: An Empirical Study from Listed Companies on Viet Nam’s Stock Exchange

2019 ◽  
Vol 14 (3) ◽  
pp. 98
Author(s):  
Hoang Thi Thuy ◽  
Duong Thi Nhan ◽  
Chen MiaoJian
Keyword(s):  
Empirical Study ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Policy Formulation ◽  
Viet Nam ◽  
Investment Level ◽  
Strategic Policy ◽  
The Relationship ◽  
Positive Effect

The study selected 410 companies on Viet Nam&rsquo;s Stock Exchange during the period from 2012 to 2016, with 2050 observations as a sample of research, to analyze the relationship between cash holdings and investment levels. The findings show that cash holdings has a positive effect on investment levels: the higher cash holdings, the greater investment level. Also, the results show that investment levels are affected by the return on total assets but not affected by the size of the company. The research is empirical evidence that contributes to the limited investment in research in Vietnam and is a reference for those interested in investing in Vietnam and managers in strategic policy formulation.

Is Destira My Destiny? Whether, When, and How to Join One's Small Family Business

2018 ◽  
pp. 1-8
Author(s):  
John L. Ward ◽  
Carol Zsolnay
Keyword(s):  
Family Business ◽  
Public Companies ◽  
Small Family ◽  
Family Enterprise ◽  
Retail Business ◽  
The Family ◽  
Individual Family ◽  
Small Family Business ◽  
The Individual ◽  
Internal Accounting

In mid-2012, after successful years in large public companies and obtaining an MBA, middle daughter Jen, 32, is trying to decide whether the time is right for her to enter her mother and sister's small family business to grow it further. Destira, Inc. was a designer/manufacturer of gymnastics wear for girls, headquartered in California. Donna Levy founded the company in 1990, after years of making leotards for her three daughters, who were competitive youth gymnasts, and getting requests from other parents to make the garments for their own children. In 2005, when Donna's oldest daughter, Jodi, joined Destira, Donna gave her a 50 percent equity stake. Between then and year-end 2011, the pair grew the revenues from $550,000 to $1.06 million, increased the number of outlets carrying the brand, upgraded the internal accounting/operations software, and added an online direct-to-customer retail business. The case shows realistic considerations for the individual, family, and business when evaluating whether or not to commit to join the family enterprise.

Integrating the Daughter into Family Business Management

1992 ◽  
Vol 16 (4) ◽  
pp. 41-56 ◽  
Author(s):  
Colette Dumas
Keyword(s):  
Empirical Study ◽  
Family Business ◽  
Business Management ◽  
Family Firm ◽  
The Family ◽  
Firm Management ◽  
Key Aspects ◽  
Untapped Resource

This paper presents guidelines for integrating daughters into family business management. Based upon the results of an empirical study of daughters working with their founder/fathers in 18 family-owned firms, this paper indicates that the daughter represents an often untapped resource within the family firm and may be particularly suited for working in collaboration with the father/founder to manage the family firm. Key aspects of the daughter's particular strengths in working with the father to manage the family firm are stressed, and steps for integrating the daughter into family firm management are proposed.

A resource dependency framework for innovation and internationalization of family businesses

2017 ◽  
Vol 9 (2) ◽  
pp. 207-231 ◽  
Author(s):  
Ramanjeet Singh ◽  
Hima Bindu Kota
Keyword(s):  
Family Business ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Internal Resistance ◽  
Conclusive Evidence ◽  
Family Businesses ◽  
Fixed Effects Model ◽  
Content Type ◽  
Net Worth ◽  
The Family

Purpose To compete and to survive in this era of globalization, organizations, including family businesses, need to have competitive advantage, and innovation and internationalization are some of the ways to achieve this. This paper aims to analyze whether family businesses innovate and internationalize more than non-family businesses and further analyses the type of family businesses “age-wise” and “size-wise” that innovate and internationalize more. Design/methodology/approach The study is empirical in nature. The period of study is 11 years, from 2005 to 2015 (both years inclusive). The sample is chosen from Bombay Stock Exchange (BSE) 500 index, a broad-based index in India, covering about 20 industries of the economy. The present study uses multiple regression models to find the innovativeness and internationalization of family businesses. The dependent variables are R&D (proxy for innovativeness) and FXINC (proxy for internationalization). The independent variables are FB (variable that defines whether a business is family business or non-family business); FBAGE (variable that defines the age of the family business); and FBSIZE (variable that defines the size of the family business). The other control variables used in in the study are TA (total assets), REV (revenue), CR (current ratio), QR (quick ratio), DER (debt-equity ratio) and RONW (return on net worth). Fixed effects model was used to understand the innovativeness and internationalization of family businesses. Both industry and year fixed effects were used. SPSS 20.0 version is used for the analysis. All results are heteroscedastic consistent using Breusch–Pagan test. Findings It is found that family businesses are more innovative and internationalized when compared to non-family businesses. The results are consistent with the resource-based theory where it is found that family businesses are entrepreneurial in nature (Salvato, 2004; Zahra et al., 2004; Kellermanns and Eddleston, 2006) which makes them more innovative. It was also found that within the family businesses, younger firms were more innovative and internationalized than older firms. This can be explained by the theory of “learning advantages of newness”, according to which younger firms are more flexible, eager to learn, have less internal resistance and are able to adapt to the changing environment much faster. Originality/value During the studies, the authors have found that there is no conclusive evidence on the innovativeness and internationalization of family businesses. Further, there are apparently negligible studies that analyze what type of family businesses, age wise (younger or older firms) and size wise (smaller or larger firms) use the strategy of innovation and internationalization to grow. The present study analyses the innovativeness and internationalization of family businesses when compared to non-family businesses and also studies the type of family businesses (age wise and size wise) that are more innovative and internationalized.

scholarly journals Owners’ integrity, customers’ relation, and focused attitude as strategiies as family business sustainability and growth: an empirical study

2018 ◽  
Vol 21 (2) ◽  
Author(s):  
John Tampil Purba ◽  
Jacob Donald Tan
Keyword(s):  
Empirical Study ◽  
Family Business ◽  
Small And Medium Enterprises ◽  
Family Businesses ◽  
Development Bank ◽  
Total Employment ◽  
Business Sustainability ◽  
The Family ◽  
Business Cases ◽  
Medium Enterprises

Asian Development Bank Institute reported that the contribution of Micro, Small and Medium Enterprises (MSMEs) to the Indonesian GDP is 57.8% and the contribution to total employment is 97.2%. MSMEs in Indonesia are almost owned by families. According to Family Firm Institute in 2016, 72% of all businesses in Indonesia’s private sector are run by family businesses, and while most of the MSMEs started out as family businesses, many successful entrepreneurs come from family business background.  This empirical study is based on 3 family business cases that have been expanding in terms of its sales and operations throughout more than 10 years. The method used in this study is qualitative research by exploring the strategic management to sustain the family businesses through owners’ integrity, customers’ relations, and focused attitude in their vocations.  As the family businesses are currently in transition of passing the torch to the next generation, their sustaining strategies have to be extended.

scholarly journals Global Mapping of Risks in Family Businesses

2021 ◽  
Vol 16 (8) ◽  
pp. 122
Author(s):  
Ilyass Taki ◽  
Badr Habba ◽  
Taib Berrada El Azizi
Keyword(s):  
Family Business ◽  
Internal Control ◽  
Family Businesses ◽  
Risk Mapping ◽  
Extensive Literature ◽  
Global Risk ◽  
The Family ◽  
Global Mapping ◽  
Potential Risks

This study aims to approach the potential risks of the family businesses, on the basis of extensive literature and theoretical researches. This paper first provides a global overview that summarize the key literature of the family business risks, categorized according to their specificities. Subsequently, the risk mapping framework proposed is inspired by the internal control objectives (Note 1) suggested by the COSO 1 and 2 standards. This helped draw a global mapping of risks that therefore constitutes a first global risk mapping in literature, which are likely specific to this type of business. The result of our paper aims to enrich the theory and help managers to anticipate and manage family business risks.

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