scholarly journals DOES SIZE OF THE FIRM MATTER IN THE RELATIONSHIP BETWEEN FOREIGN OWNERSHIP AND DIVIDEND POLICY?

2020 ◽  
Vol 24 ◽  
Author(s):  
Adamu ‪Idris Adamu ◽  
Oyindamola Ekundayo ◽  
Hussaini Bala
Keyword(s):  
Dividend Policy ◽  
Foreign Ownership ◽  
Great Tendency ◽  
Cash Dividend ◽  
Data Set ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Relationship ◽  
Moderating Role

Prior studies have revealed that foreign shareholders have a greater influence on dividend policy. However, it is unclear how foreign owners in large firms affect the propensity to pay dividends. This paper is aimed at exploring the relationship between the propensity to pay dividends and foreign ownership. It also examined the moderating role of firm size on the relationship between the decision to pay cash dividend and foreign ownership. The study uses pooled logistic regression on a data set of non-financial listed firms on the Nigerian Stock Market from 2011 to 2015. The results showed that foreign ownership has a great tendency to influence the propensity of a firm to pay a cash dividend. The effect is more pronounced in larger firms, thus, indicating that in larger firms, foreign owners mitigate agency problems using dividends. Based on the findings, firms should be encouraged to pay a dividend to attract foreign investors and in return will help the firms to acquire the expertise of foreign owners.  

scholarly journals Debt financing and firm performance: The moderating role of board independence

2020 ◽  
Vol 45 (3) ◽  
pp. 141-151
Author(s):  
Hanh Song Thi Pham ◽  
Duy Thanh Nguyen
Keyword(s):  
Emerging Market ◽  
Debt Financing ◽  
Board Independence ◽  
Data Set ◽  
Listed Firms ◽  
Negative Effect ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

This article investigates the moderating role of board independence in the relationship between debt financing and performance of emerging market firms. We have used an empirical model in which the firm’s accounting profitability is a dependent variable and the independent variables are debt financing, board independence, the interaction variable made of debt financing and board independence as well as various control variables. Our analysis is based on a panel data set of 300 listed firms in Vietnam between 2013 and 2017. Our study finds that debt financing has a significantly negative effect and that board independence reduces the adverse impact of debt financing on accounting profitability. Our results are consistent across different estimation models and methods.

scholarly journals Differentiation Strategy, CSR, And Real Activities Earnings Management: Evidence From Korea

2017 ◽  
Vol 33 (4) ◽  
pp. 667 ◽  
Author(s):  
Sungbin Chun ◽  
Eunho Cho
Keyword(s):  
Earnings Management ◽  
Negative Relationship ◽  
Synergy Effect ◽  
Listed Firms ◽  
Differentiation Strategy ◽  
Sensitivity Tests ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

We empirically investigate whether a differentiation strategy constrains real activities earnings management (RAEM). Further, considering corporate social responsibility (CSR) activities are a popular tool of differentiation strategy, we examine whether interactive synergy between CSR activities and the differentiation strategy strengthens the negative relationship between differentiation strategy and RAEM. Using a sample of 659 firm-year observations of Korean manufacturing listed firms during 2005-2010, we find that differentiation strategy is negatively associated with RAEM, suggesting that firms pursuing a differentiation strategy are likely to refrain from managing earnings using RAEM that goes against their strategy. We also observe that interactive synergy between differentiation and CSR strengthens the negative relationship between differentiation strategy and RAEM, implying that synergy effect between CSR and differentiation strategy even more constrains RAEM that is in conflict with both CSR and differentiation strategy. These findings are robust after we perform sensitivity tests. This study contributes to the literature by providing the first evidence on the relationship between differentiation strategy and RAEM and the moderating role of CSR activities on the relationship.

scholarly journals Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya

2019 ◽  
Vol 2 (5) ◽  
pp. 29-46
Author(s):  
Peninah Jepkogei Tanui ◽  
Josephat Cheboi Yegon ◽  
Ronald Bonuke
Keyword(s):  
Capital Structure ◽  
Institutional Ownership ◽  
Target Population ◽  
Foreign Ownership ◽  
Moderating Effect ◽  
Corporate Diversification ◽  
Listed Firms ◽  
Low Levels ◽  
The Relationship

Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.

scholarly journals CEO Temporal Focus and Corporate Philanthropy: The Moderating Role of Ownership

SAGE Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 215824402110041
Author(s):  
Luu Thi Nguyen ◽  
Shouming Chen ◽  
Ho Kwong Kwan
Keyword(s):  
Corporate Philanthropy ◽  
Private Firms ◽  
Public And Private ◽  
Listed Firms ◽  
Upper Echelons Theory ◽  
Negative Effect ◽  
Temporal Focus ◽  
The Relationship ◽  
Moderating Role

This study examines the association between CEO temporal focus and corporate engagement in philanthropy, and considers the moderating role of ownership. This association is investigated based on upper echelons theory and the conceptual framework of temporal focus. Using a sample of 2,285 observations of Chinese listed firms from 2010 to 2015, our results show that the relationship between CEO past focus and corporate philanthropy is positive in state-owned firms but negative in private firms. In addition, CEO future focus is negatively associated with charitable activities in state-owned firms, but positively associated with such activities in private companies. For present-oriented CEOs, the relationship between temporal focus and philanthropy is negative in both public and private firms, but the negative effect is stronger in private firms. The findings of this study show how CEOs’ time perspectives shape their decisions on company engagement in philanthropic projects.

scholarly journals Active family control and company performance: the role of foreign investment moderation and bank debt

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Perminas Pengeran
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
Company Performance ◽  
Bank Debt ◽  
Family Control ◽  
The Family ◽  
The Relationship ◽  
Moderating Role

This study was to examine the moderating role of foreign ownership and Bank debt on the influence of active family control toward the family firm performance. Based on purposive sampling techniques, this study used 18 family firms listed in Indonesia Stock Exchange (IDX), during the period of 2006-2011. The results of this study showed several important findings. Firstly, foreign ownership positively moderated the effect of active family control on profitability. Secondly, likewise, bank debt negatively moderated the effect of active family control on profitability. Thirdly, foreign ownership negatively moderated the effect of active family control on dividends payment. Finally, bank debt positively moderated the influence of active family control on dividends payment. These results revealed that the foreign ownership and bank debt serves as moderator on the relationship between active family control and financial performance.

scholarly journals Credit Redistribution by Listed Manufacturing Firms in Pakistan and the Moderating Role of Financial Depth

2020 ◽  
Vol 12 (4) ◽  
pp. 1-20
Author(s):  
Nisar Ahmad ◽  
Bilal Nafees ◽  
Abdul Rasheed
Keyword(s):  
Trade Credit ◽  
Negative Impact ◽  
Manufacturing Firms ◽  
Future Research ◽  
Data Set ◽  
Listed Firms ◽  
Financial Depth ◽  
The Impact ◽  
Moderating Role

An enhancement in the financial depth (FD) increases the availability of formal credit to firms. Resultantly credit redistribution (CR) by firms is likely to be reduced as they require less trade credit (TC). To provide evidence, how do managers respond to changes in financial depth while making adjustments in their trade credit policy, this paper aims to study the impact of financial depth on credit redistribution by listed manufacturing firms (LMFs). For the firm-level variables, we used a data set of 327 firms listed on PSX for the period 2005 to 2018. Private credit to GDP ratio and market capitalization to GDP ratio are used as proxies for financial depth. Unlike earlier studies, we applied a two-step System GMM estimator to control the endogeneity. The results of the regression analysis display a positive relationship between the use and the supply of trade credit by LMFs. It reveals that LMFs redistribute credit to their customers through trade credit channel. We found a significant and negative impact of FD on the supply of TC by LMFs. Further, we established that financial depth as a moderator has a buffering impact on the credit redistribution by listed firms. The study highlights the moderating role of FD and suggests the financial policymakers of firms to modify their credit policies in response to changes in financial depth. For future research, we suggest the investigation of the effect of financial policy interventions on credit redistribution by small and non-listed firms.

scholarly journals Does Structural Power Matter? Board Attributes and Firm Performance

2020 ◽  
Vol 3 (5) ◽  
pp. 54-64
Author(s):  
Fiona Jepkosgei Korir ◽  
Joel K Tenai
Keyword(s):  
Firm Performance ◽  
Longitudinal Research ◽  
Chief Executive ◽  
Listed Firms ◽  
Longitudinal Research Design ◽  
Regulatory Bodies ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

Purpose- The study investigates the moderating role of Chief Executive Officer Duality onboard attributes and firm performance of companies listed in Kenya. Design/Methodology- The research used a longitudinal research design. Panel data were derived from published accounts for sixteen years that is from 2002-2017. IGLS regression models were used to test the hypothesis. Findings- The empirical results indicated that the independence of the board, the size of the board, and the duration in which the board member served the organization positively influence the firm performance. However, CEO duality does not moderate the relationship. Practical Implications- Regulatory bodies such as NSE and CMA in Kenya should ensure that listed firms have more independent directors serving a board, ensure a reasonable size of the board and increase the board tenure to enhance firm performance. Further, the combined roles of the CEO and chairman may not influence the efficiency of the board in the Kenyan context.

scholarly journals WOMEN IN A DUAL BOARD SYSTEM AND DIVIDEND POLICY

2021 ◽  
Vol 24 ◽  
pp. 129-150
Author(s):  
Tastaftiyan Risfandy ◽  
Timotius Radika ◽  
Leo Indra Wardhana
Keyword(s):  
Board Of Directors ◽  
Dividend Policy ◽  
Gender Diversity ◽  
Cash Dividend ◽  
Listed Firms ◽  
Dividend Payments ◽  
Board Gender Diversity ◽  
And Behavior ◽  
Board System

We investigate whether firms with the presence of female on its board of commissioners and board of directors are associated with higher dividend policy. This paper uses Indonesian setting as a country with a dual board system implying that the role of board of commissioners and board of directors is explicitly separated. Using panel data on 525 publicly listed firms in Indonesia between 2011 and 2018, we find that the women's presence has different impacts on the dividend policy depending on their role as an executive or non-executive on the board. Female directors are negatively associated with cash dividend payments, while female commissioners positively impact dividend payment in the case of family-controlled firms only. Our results contribute to the literature on board gender diversity by showing different roles and behavior of boards in each tier in the corporate dividend policy, thus providing insights on corporate governance in a two-tiered board system in developing countries.

scholarly journals Evaluation of Managerial Overconfidence, Cash Holding, and Investment Efficiency in Companies

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Abdorreza Asadia ◽  
Maryam Oladia ◽  
Mohammad Ghasem Aghela
Keyword(s):  
Fixed Effects ◽  
Stock Exchange ◽  
Financial Statements ◽  
Investment Efficiency ◽  
Cash Holding ◽  
Data Set ◽  
Listed Firms ◽  
Managerial Overconfidence ◽  
Moderating Role

Managers’ overconfidence leads to overestimating their ability to manage cash sources. Holding more cash may result in overinvestment in projects and investment inefficiency consequently. The present study aims to investigate the effect of cash holding on investment efficiency with the moderating role of managerial overconfidence in Iranian companies. All listed firms in Tehran Stock Exchange, excluding banks, insurance, pension funds, and financial intermediaries, are included in the research. We have used data from financial statements of 91 companies over the period from 2010 to 2018 and conducted multiple regression models to test the hypotheses based on pooled and panel data set with fixed effects. The results indicate a positive relationship between managerial overconfidence and cash holding. The effect of cash holding on investment efficiency turns out to be significantly negative. Furthermore, managerial overconfidence has a significant moderating effect on the relation of the variables. This study is almost the first one, which has been done in emerging markets, so the study’s findings not only contribute to the existing literature on managerial overconfidence and investment efficiency but also assist policymakers, managers, and investors in making effective decisions.

Sign in / Sign up

Export Citation Format

Share Document