scholarly journals ESG Disclosure in an Emerging Market: An Empirical Analysis of the Influence of Board Characteristics and Ownership Structure

2021 ◽  
Vol 13 (19) ◽  
pp. 10498
Author(s):  
Jaime F. Lavin ◽  
Alejandro A. Montecinos-Pearce
Keyword(s):  
Latin American ◽  
Ownership Structure ◽  
Developing Economies ◽  
Emerging Market ◽  
Gender Diversity ◽  
Integrated Reporting ◽  
Listed Firms ◽  
Corporate Transparency ◽  
Corporate Decisions ◽  
And Gender

In the context of greater demand for corporate transparency, there is a growing pressure on boards to produce and communicate information to their investors and stakeholders. The current literature on integrated reporting shows that the provision of ESG information is a crucial factor that improves corporate governance by reducing agency problems. This issue is also critical in emerging economies, and particularly among Latin American firms. The concentration, opacity, and lack of evidence about ESG disclosure in less developed financial markets provide a promising environment to study the implications of board heterogeneity and ownership structure on strategic corporate decisions such as the disclosure of ESG indicators in developing economies. Using Tobit panel data models, we study how these factors affect the extent of ESG disclosure by Chilean listed firms. Our main results suggest that a board’s independence and gender diversity positively influence the extent of disclosure of ESG indicators. Our evidence helps firms concerned with strengthening their board’s features, investors that require screening firms’ ESG risk factors, and supports regulators’ decisions on setting norms regarding the extent of disclosure of ESG information by firms.

Financial Performance and Gender Diversity: The Moderating and Mediating Effect of CSR Disclosure and Expenditure of Listed Firms in India

2021 ◽  
pp. 097226292110019
Author(s):  
Kofi Mintah Oware ◽  
T. Mallikarjunappa
Keyword(s):  
Financial Performance ◽  
Emerging Market ◽  
Gender Diversity ◽  
Negative Association ◽  
Mediating Effect ◽  
Financial Leverage ◽  
Return On Assets ◽  
Listed Firms ◽  
And Gender ◽  
Csr Disclosure

The study examines the moderating and mediating effect of corporate social responsibility (CSR) disclosure and CSR expenditure on the association between listed firms’ financial performance and gender diversity. There are 80 listed firms with 800 firm-year observations from 2010 to 2019 that qualified for the study using the Indian stock market. The first finding shows a negative association between financial leverage and gender diversity. The second finding shows that the implementation of CSR disclosure hurts the improvement of gender diversity. The third finding shows that CSR expenditure improves gender diversity of listed firms in an emerging market. The fouth finding shows that CSR expenditure positively mediates the negative association between financial leverage and gender diversity. The fifth finding shows that CSR disclosure does not mediate the association between financial performance (return on assets, price to book ratio and financial leverage). The sixth finding shows that CSR expenditure negatively moderates the negative association between return on assets and gender diversity.

scholarly journals The structure of corporate ownership and firm performance: Sri Lankan evidence

2013 ◽  
Vol 11 (1) ◽  
pp. 723-734 ◽  
Author(s):  
Athula Manawaduge ◽  
Anura De Zoysa
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Ownership Structure ◽  
Emerging Market ◽  
Ownership Concentration ◽  
Sri Lankan ◽  
Accounting Performance ◽  
Listed Firms ◽  
Strong Positive Relationship ◽  
The Impact

This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.

Financial performance and gender diversity. The effect of family management after a decade attempt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kofi Mintah Oware ◽  
Thathaiah Mallikarjunappa
Keyword(s):  
Stock Market ◽  
Financial Performance ◽  
Role Theory ◽  
Social Role ◽  
Gender Diversity ◽  
Family Management ◽  
Social Role Theory ◽  
Content Type ◽  
Listed Firms ◽  
And Gender

Purpose The purpose of this study is to investigate family management, financial performance and gender diversity of listed firms. Design/methodology/approach Using the India stock market as a testing ground, this paper used descriptive statistics and panel regression with random effect assumptions in the analysis of 800 firm-year observations between 2010 and 2019. Findings The findings show that an improvement in stock price returns leads to a corresponding increase in women employment. Also, the study shows that an increase in family-managed firms leads to a decrease in the number of women employed in listed firms. This paper speculates using the social role theory that family involvement may see women as the weaker vessel and with a role to concentrate on raising children and handling house affairs. The consequence is a decrease in women employment. The study also shows that the interactive variable of financial performance (return on assets and return on equity) × family-managed firms still causes a decrease in women employment. This paper perceives that managers in family-managed firms see women as weaker vessels and home managers which is consistent with the Indian culture. The results are robust after controlling for endogeneity. Research limitations/implications The research study is limited to large firms on the Indian stock market that submit sustainability reports and also used a single country data that can potentially limit the generalisation of the study. Originality/value No studies have combined social role theory in examining the effect of family management on gender diversity in the emerging markets.

scholarly journals Does board structure drive dividends payout? Evidence from the Sultanate of Oman

2021 ◽  
Vol 18 (4) ◽  
pp. 218-230
Author(s):  
Badar Alshabibi ◽  
Shanmuga Pria ◽  
Khaled Hussainey
Keyword(s):  
Institutional Environment ◽  
Gender Diversity ◽  
Board Structure ◽  
Corporate Board ◽  
Listed Firms ◽  
Board Characteristics ◽  
Oil Crisis ◽  
And Gender ◽  
The Impact ◽  
New Evidence

The study investigates whether corporate board characteristics influence dividends policy in Omani listed firms. It also examines whether this relationship is determined by the recent global oil crisis. Using a sample of 109 listed firms in Muscat Securities Exchange between 2009 and 2019, we find that dividends payout is positively associated with board independence, board activity, and board nationality diversity. Though, no evidence is found that board size and gender diversity have an impact on dividends payout. Interestingly, when controlling for the global oil crisis, none of the corporate board attributes influence dividends payout. This study presents new evidence on the influence of board structure on dividends policy. The findings suggest that the impact of corporate board characteristics on dividends policy is contingent on the surrounding institutional environment (i.e., the recent global oil crisis).

scholarly journals ESG Reporting: Empirical Analysis of the Influence of Board Heterogeneity from an Emerging Market

2021 ◽  
Vol 13 (6) ◽  
pp. 3090
Author(s):  
Jaime F. Lavin ◽  
Alejandro A. Montecinos-Pearce
Keyword(s):  
Decision Making ◽  
Social Networks ◽  
Latin American ◽  
Institutional Investors ◽  
Emerging Market ◽  
Panel Data Models ◽  
Investment Strategies ◽  
Controlling Shareholders ◽  
Negative Relation ◽  
Listed Firms

Firms are facing pressure to convincingly communicate to stakeholders their environment, society, and corporate governance (ESG) disclosure. In developing countries, where frictions among controlling and non-controlling shareholders are pervasive, the possible dissensus inside boards regarding ESG disclosure remains understudied. We investigate the ways in which boards’ heterogeneity between the interests of controlling groups and the interests of institutional investors influences ESG disclosure of firms in the Latin American context. Using social networks and logit panel data models, we analyze for 2015-17 the probability of ESG disclosure by 124 Chilean listed firms. Our evidence suggests that the influence of controlling shareholders through directorate interlocking has a negative relation with ESG disclosure. Additionally, we observe that the influence of institutional investors on ESG disclosure is not yet critical. Moreover, we find partial evidence of the presence of tension within the boards regarding ESG reporting between the directors that represent controlling shareholders and institutional investors. Considering the importance of institutional investors and the ubiquity directorate interlocking among Latin American’ firms, our results are relevant for regulators involved in advancing the rules of ESG disclosure practices, institutional investors focused on enhancing their ESG investment strategies, and firms engaged in improving the ESG decision-making within their boards.

scholarly journals Ownership structure and corporate diversification decision: a study of Vietnamese listed firms

2016 ◽  
Vol 13 (3) ◽  
pp. 226-233 ◽  
Author(s):  
Duc Nam Phung ◽  
Thi Bich Nguyet Phan ◽  
Thi Lien Hoa Nguyen ◽  
Thi Phuong Vy Le
Keyword(s):  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Emerging Market ◽  
Foreign Ownership ◽  
State Ownership ◽  
Corporate Diversification ◽  
Diversification Strategy ◽  
Listed Firms ◽  
The Impact

This research examines the impact of the ownership structure on corporate diversification decision of listed firms in Vietnam over the period of 2007 and 2012. The empirical results from logit model show that while state ownership has positive impact on corporate diversification decisions of the firms, foreign ownership has negative impact on corporate diversification decision of the firms. This implies that government ownership tends to encourage corporate diversification strategy, while foreign ownership may plays monitoring role and discourage corporate diversification strategy in emerging market context.

Ownership structure and analysts’ forecast properties: a study of Chinese listed firms

2016 ◽  
Vol 16 (1) ◽  
pp. 54-78 ◽  
Author(s):  
Sun Liu
Keyword(s):  
Ownership Structure ◽  
Emerging Market ◽  
Forecast Accuracy ◽  
State Ownership ◽  
Managerial Ownership ◽  
Content Type ◽  
Listed Firms ◽  
Pyramidal Ownership ◽  
And Control ◽  
The Relationship

Purpose The purpose of this paper is to investigate the association between ownership structure and the properties of analysts’ forecasts in China’s unique corporate setting. Design/methodology/approach Multiple regression models were used to examine the influence of ownership structure mechanisms on analysts’ forecast properties for listed Chinese firms during the period 2008-2012. Findings The paper finds that analysts’ forecast accuracy is higher for listed firms with high levels of foreign ownership and managerial ownership. However, the complex pyramidal ownership structure could make corporate information less transparent and then increase the complexity of forecasting; hence, it results in less precise analysts’ forecasts. Interestingly, the relationship between state ownership and analysts’ forecast properties appears to be non-linear (an inverted U-shape), and the inflection point at which the relationship becomes negative occurs at state ownership over 45 per cent. Originality/value To the best of the author’s knowledge, this paper is the first to investigate the influence of ownership structure mechanisms on the properties of analysts’ forecasts in an emerging market, and the findings provide some insight on how the properties of analysts’ forecast might be shaped by certain ownership and control features in the context of concentrated state ownership and complex pyramidal ownership structure.

Latin American local bond markets prove resilient

2015 ◽  
Keyword(s):  
Local Government ◽  
Latin American ◽  
Foreign Investment ◽  
Developing Economies ◽  
Emerging Market ◽  
Insurance Companies ◽  
Bond Markets ◽  
Government Bond ◽  
Content Type ◽  
Government Bond Markets

Subject Foreign investment in local government bond markets. Significance In stark contrast to the sharp declines in emerging market (EM) equity markets, down by 9.3% in dollar terms this year, the domestic government bond markets of developing economies remain relatively resilient, despite the dramatic falls in EM currencies. Latin America's main local debt markets have attracted the largest inflows of foreign investment among the main EM regions, with non-resident investors even increasing their holdings of Brazilian and Colombian domestic bonds this year in the face of declines of 46% and 23% in their respective currencies. Impacts China's latest interest rate cut on October 23 will put more pressure on many commodity-dependent EM economies. EM local government bond markets are underpinned by domestic institutional investors, such as pension funds and insurance companies. EM dollar-denominated government debt will prove more resilient than local currency bonds. However, companies with large external debts are vulnerable because of sharp falls in local currencies.

scholarly journals Ownership structure and profitability of listed firms in an emerging market

Accounting ◽  
2020 ◽  
pp. 51-66 ◽  
Author(s):  
Richard Angelous Kotey ◽  
Baah Kusi ◽  
Richard Akomatey
Keyword(s):  
Ownership Structure ◽  
Emerging Market ◽  
Listed Firms

Impact of firm performance and corporate governance mechanisms on intellectual capital disclosures in CEO statements

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ghassan H. Mardini ◽  
Fathia Elleuch Lahyani
Keyword(s):  
Corporate Governance ◽  
Impression Management ◽  
Intellectual Capital ◽  
Gender Diversity ◽  
Vital Role ◽  
Content Type ◽  
Listed Firms ◽  
And Gender ◽  
The Impact ◽  
Three Components

PurposeUsing agency theory and impression management theory, this study examines the impact of financial performance (FP) and corporate governance (CG) mechanisms on the extent of intellectual capital disclosures (ICDs) and the three components within the CEO statement – human capital (HC), structural capital (SC) and relational capital (RC).Design/methodology/approachThis study employs a sample of non-financial SPF-120 French listed firms to capture the relevant variables; it collects data for 2010–2017, using a panel data technique to run the random effects regressions.FindingsThe study finds that FP, measured using both market (Tobin's q) and accounting (return on equity and return on assets) indicators, plays a vital role in the extent of ICDs and the three components in the CEO statement published by SPF-120 companies. This confirms its impact on the decision-making needs of stakeholders. Among the CG mechanisms, this study finds that cultural diversity and gender diversity affect some ICD components. Moreover, CEO characteristics such as age, education and role duality affect ICD, while institutional ownership drives the extent of such disclosures.Practical implicationsOur findings have comprehensive implications for managers of French listed firms, the Autorité des Marchés Financiers, and stakeholders in general.Originality/valueThis study provides significant insights by investigating the impact of FP, CG and company characteristics on the extent of the ICDs published in CEO statements.

Sign in / Sign up

Export Citation Format

Share Document