Research on the Relationship between Controlling Shareholder and Accounting Conservatism in China

2011 ◽  
Vol 65 ◽  
pp. 579-584 ◽  
Author(s):  
Ya Ling Wu
Keyword(s):  
Accounting Conservatism ◽  
Stock Exchanges ◽  
Controlling Shareholder ◽  
Controlling Shareholders ◽  
Listed Firms ◽  
Business Transactions ◽  
Growth Opportunity ◽  
Negative Effect ◽  
Aggressive Accounting ◽  
The Relationship

In this paper, we examined the relationship between controlling shareholders and accounting conservatism in China. Using 5762 firm-years data about listed firms in China stock exchanges from 2001 to 2005, we find that the percentage of the largest shareholder ownership has significantly negative effect on accounting conservatism. After controlled by size, leverage and growth opportunity, the result is still robust. We thus provide evidence of an entrenchment effect, where the largest shareholder may influence firms to adopt aggressive accounting policies that reflect the wishes of the largest shareholder rather than reflect the economic substance of the business transactions.

scholarly journals The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

2019 ◽  
Vol 9 (4) ◽  
pp. 385
Author(s):  
Walid Shehata Soliman
Keyword(s):  
Firm Growth ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Moderating Effect ◽  
Accounting Conservatism ◽  
Firm Characteristics ◽  
Listed Firms ◽  
Growth Opportunity ◽  
Negative Effect ◽  
Egyptian Stock Exchange

Recent studies are interested in the determinants of cash holdings (CASH), some of these studies focus on conservatism, as one of these determinants. In light of a debate on the nature of the association between conservatism and CASH, this paper discusses and investigates the answers for three questions, the first question about the direct association between conservatism and CASH, the second question about the moderating effect of firm characteristics on this association, the third question about the effect of adopting Egyptian Accounting Standards (EAS) since 2016 on the last association. This paper focuses on Egyptian listed firms in Egyptian Stock Exchange (EGX), especially EGX 100, for six years period from 2013 to 2018 for 11 main sectors, 125 firms and 703 unbalances panel data observations. The findings indicate that (1) conservatism has a negative effect on CASH, (2) only firm size has a moderating and positive effect on the association between conservatism and CASH, (3) firm leverage, firm growth opportunity, and firm managerial ownership do not have a moderating effect on the last association. (4) Adopting EAS in 2016 by Egyptian listed firms gives the management of these firms' suitable chances to control CASH using its association with conservatism.

Controlling shareholders' stock pledges and strategic change: the moderating effects of corporate governance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Zhong ◽  
He Wan ◽  
Qiuping Peng
Keyword(s):  
Fixed Effects ◽  
Family Firms ◽  
Strategic Change ◽  
Balance Of Power ◽  
Controlling Shareholder ◽  
Analyst Coverage ◽  
Content Type ◽  
Controlling Shareholders ◽  
Change Behavior ◽  
Negative Effect

PurposeThe authors analyze the effects of controlling shareholders' stock pledging on firms' strategic change behavior, and investigate how the balance of power between shareholders and analyst coverage moderates those effects.Design/methodology/approachEmploying fixed effects models, the authors test hypotheses based on Chinese listed company data from 2011 to 2017.FindingsControlling shareholders' stock pledges has a negative effect on strategic change. As the balance of power among shareholders and/or analyst coverage increases, it mitigates the effect of controlling shareholder stock pledges on strategic change. In particular, the balance of power between shareholders and analyst coverage weakened the relationship between controlling shareholder stock pledges and strategic change. Lastly, after distinguishing family from nonfamily firms, the authors discovered that these findings only held for family firms.Originality/valueThis study makes important contributions to strategic change, stock pledge and family firm literature, and also provides guidance on firms' strategic change practices.

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.

Negative media coverage, law environment and tunneling of controlling shareholder

2015 ◽  
Vol 5 (1) ◽  
pp. 3-18 ◽  
Author(s):  
Yong Ye ◽  
Lei Huang ◽  
Ming Li
Keyword(s):  
Media Coverage ◽  
Active Role ◽  
Listed Companies ◽  
Company Performance ◽  
Controlling Shareholder ◽  
Content Type ◽  
Controlling Shareholders ◽  
Effects Of Media ◽  
First Time ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship among negative media coverage, law environment and tunneling of controlling shareholders. Design/methodology/approach – Under the Chinese especial institutional background, this paper empirically test the relationship among negative media coverage, law environment and tunneling of controlling shareholders with the sample of 2009-2011 Chinese listed companies. Findings – The empirical results demonstrate that negative media coverage can reduce tunneling of controlling shareholder, and compared with state-owned listed companies, negative media coverage have a greater effect on tunneling in non-state-owned listed companies; and negative media coverage have a greater effect on tunneling in areas with better law environment. Further study shows that the reduction of controlling shareholder’s behavior of tunneling can improve company performance, and the improvement is more significant in non-state-owned listed companies and areas with better law environment. The research results indicate that media coverage play a very active role on restraining stakeholder’s behavior and perfecting corporate governing. Originality/value – First, this paper will study of tunneling from the perspective of media coverage for the first time. Second, this paper further analyzes how the decrease of tunneling improves corporate performance following the research of how media coverage influence tunneling. Third, this study enrich literatures about the effects of media coverage on corporate governance in Chinese capital market.

The nexus between corporate governance and intellectual capital in Vietnam

2020 ◽  
Vol 14 (5) ◽  
pp. 637-650 ◽  
Author(s):  
Ngoc Phu Tran ◽  
Loan Thi-Hong Van ◽  
Duc Hong Vo
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Emerging Market ◽  
Value Added ◽  
Content Type ◽  
Listed Firms ◽  
Manufacturing Enterprises ◽  
Data Limitations ◽  
Negative Effect ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate governance and intellectual capital in the context of Vietnam. In this paper, corporate governance is proxied by various characteristics, including board size, a number of independent members in the board, board remuneration, major shareholder holding more than 20 per cent of the outstanding shares and duality of the CEO. In addition, intellectual capital is measured using the modified value-added intellectual coefficient model (MVAIC). Design/methodology/approach The study uses data of 45 Vietnamese listed firms during 2011-2018. The MVAIC model is used incorporating four components, namely, human capital, structural capital, capital used and relational capital. In addition, GMM regression technique is used in this paper. Findings Empirical findings from this paper indicate that key characteristics of corporate governance, except for board remuneration, may provide a negative effect on the efficient use of intellectual capital. Research limitations/implications Intellectual capital emerges as a new field of research that has not been widely examined in emerging countries such as Vietnam. As such, there have not been many studies focusing on understanding intellectual capital and its role in the performance of enterprises. Further studies can evaluate the relationship between intellectual capital and corporate performance, capital structure, corporate value and social responsibility. This study is limited to listed companies in Vietnam because of data limitations in an emerging market. Studies in the future should extend the sample and/or compare differences between manufacturing enterprises and financial institutions, or between countries. Practical implications Findings from this paper provide a valuable framework for executives, managers and policymakers in managing corporate governance and intellectual capital within the Vietnamese context. Originality/value To the best of the authors’ knowledge, this is the first empirical study that has been conducted to examine the relationship between corporate governance and intellectual capital in the context of Vietnam.

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 PROFITABILTAS MEMODERASI LIKUIDITAS DAN GROWTH OPPORTUNITY TERHADAP NILAI PERUSAHAAN

2021 ◽  
Vol 12 (1) ◽  
pp. 32-41
Author(s):  
Ati Retnasari ◽  
Supami Wahyu Setiyowati ◽  
Mochamad Fariz Irianto
Keyword(s):  
Firm Value ◽  
The Public ◽  
Data Analyst ◽  
A Value ◽  
Growth Opportunity ◽  
Negative Effect ◽  
Relationship Of ◽  
The Relationship

This study aims to determine whether provitability is able to moderate the relationship of liquidity and growth to the value of the company. The value of the company is a value that reflects the credibility of the company in the eyes of the public, especially investors and prospective investors. The sample of this research is 58. This study uses multiple analyst regressions in the data analyst. The results showed that liquidity and growth had a negative effect on firm value. Profitability moderates the relationship of liquidity and growth to the value of the company.

scholarly journals The Effect of Institutional Ownership, Debt Covenant and Growth Opportunity on Accounting Conservatism

2021 ◽  
Vol 1 (8) ◽  
pp. 784-793
Author(s):  
Gracela Mayaniputri Tamur
Keyword(s):  
Ownership Structure ◽  
Sampling Method ◽  
Institutional Ownership ◽  
Accounting Conservatism ◽  
The Internet ◽  
Collection Method ◽  
Growth Opportunity ◽  
Negative Effect ◽  
Debt Covenant ◽  
Positive Effect

This study aims to analyze the positive effect of institutional ownership on accounting conservatism, analyze the negative effect of debt covenants on accounting conservatism, and analyze the effect of growth opportunities on accounting conservatism.The population in this study are companies listed in BUMN in the 2016 – 2018 financial year. All BUMN companies listed on the IDX are used. Sampling was carried out using purposive sampling method and had certain criteria. The data collection method used is the documentation method from electronic media. The data was obtained from the internet (www.idx.go.id and company website). Data analysis using multiple linear regressionanalysis. The discussion that has been stated, the following conclusions can be drawn; 1). Institutional ownership structure has no effect on accounting conservatism. 2). Debtcovenants have no effect onbaccounting conservatism. 3). Gross opportunity has a significant positive effect on accounting conservatism

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