scholarly journals The association between ownership concentration and payout behaviour: Evidence from South Africa

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Rudie Nel ◽  
Nicolene Wesson ◽  
Lee-Ann Steenkamp
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Mixed Model ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Share Repurchases ◽  
Rent Extraction ◽  
Mixed Model Analysis ◽  
Agency Conflict

Orientation: The study investigated the association between ownership concentration and different payout methods of selected companies listed on the Johannesburg Stock Exchange (JSE) in South Africa for the financial reporting periods 2012 to 2019.Research purpose: The research objective was to investigate whether payout behaviour differed when low and high ownership concentration was compared.Motivation for the study: An understanding of the association between ownership concentration and payout policies is an important corporate governance aspect that could reveal the agency conflict between majority and minority shareholders. No previous South African empirical study has considered testing or investigating the two opposing agency-based hypotheses, namely the monitoring and rent extraction hypotheses, with reference to different payout methods.Research design, approach, and method: An empirical research design was followed, which is descriptive in nature. Descriptive statistics and a mixed-model analysis of variance were employed to describe the different payout methods – that is ordinary dividends, special dividends, capital distributions, additional shares, general share repurchases, and specific share repurchases – employed by companies listed on the JSE based on a distinction between low and high ownership concentration.Main findings: High ownership concentration was found to be associated with statistically significant lower ordinary dividends and capital distributions in support of the rent extraction hypothesis. Rent extraction highlights the agency conflict between majority and minority shareholders.Practical/managerial implications: Findings of the present study revealed agency conflicts that may be informative to those charged with corporate governance to help them resolve agency conflict.Contribution/value-add: This study is the first to consider the association between ownership concentration and payout behaviour in South Africa subsequent to the introduction of the dividends tax regime in 2012. The descriptive evidence submitted can serve as a basis for further explanatory research relating to ownership concentration and payout behaviour of companies.

scholarly journals The Influence of Corporate Governance on Intellectual Capital Disclosure: Evidence from Bank on Indonesian Stock Exchange 2015-2019

2021 ◽  
pp. 1-10
Author(s):  
Indrayati Dra., Ak., MSA., CA ◽  
Erlin Melani, SE., Ak., MSA., CA ◽  
Slamet Slamet
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Annual Report ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Ownership Concentration ◽  
Concentration Variable ◽  
External Auditor ◽  
Positive Effect

The purpose of this study was to examine the effect of Corporate Governance on Intellectual Capital Disclosure. The sample used in this study consisted of 22 banking companies listed on the Indonesia Stock Exchange in 2015-2019. The data used is in the form of an annual report. The sampling technique in this study was to use purposive sampling. This study uses multiple regression analysis. The statistical analysis results show that partially the audit committee and external auditor variables have a significant positive effect on intellectual capital disclosure. Meanwhile, the independent commissioner variable has no significant effect on intellectual capital disclosure. The ownership concentration variable harms intellectual capital disclosure. Simultaneously, the variables of the independent commissioner, ownership concentration, audit committee, and external auditor have a significant effect on intellectual capital disclosure.

scholarly journals Effectiveness of Corporate Governance and Audit Quality: The Role of Ownership Concentration as Moderation

ETIKONOMI ◽  
2020 ◽  
Vol 19 (1) ◽  
pp. 131-140
Author(s):  
Natasya Adela Widani ◽  
Yustrida Bernawati
Keyword(s):  
Corporate Governance ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Manufacturing Companies ◽  
Purchasing Decisions ◽  
Financial Statement Fraud ◽  
Strategy Analysis ◽  
External Auditors

The case of corporate financial statement fraud committed by company management is a phenomenon that often occurs and occurs repeatedly. This condition is exacerbated by the involvement of external auditors to support the fraud. This study aims to determine the effect of corporate governance and audit quality and find out the ownership concentration moderating corporate governance and audit quality. This study uses moderated regression analysis and research samples on manufacturing companies listed on the Indonesia Stock Exchange in 2017-2018. The results of the study stated that corporate governance did not affect audit quality, and the presence of ownership concentration strengthened the effect of the effectiveness of corporate governance on audit quality. The implication of this research is to minimize earnings management practices. The effectiveness of corporate governance expects to run well and regulate the composition of ownership into something fundamental to implement.JEL Classification: G32, G34How to Cite:Widani, N. A., & Bernawati, Y. (2020). Competitive Strategy Analysis to Increase Consumer Purchasing Decisions on Minimarket Business. Etikonomi: Jurnal Ekonomi, 19(1), 131 – 140. https://doi.org/10.15408/etk.v19i1.14893.

scholarly journals Capital Structure and Corporate Governance Mechanisms in Kuwait Stock Exchange (KSE)

2020 ◽  
Vol 12 (6) ◽  
pp. 38
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Government Ownership ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Kuwait Stock Exchange ◽  
Corporate Capital Structure ◽  
The Impact

The study investigated the impact of corporate governance mechanisms on the corporate capital structure of the Kuwait Stock Exchange (KSE). Specifically, this study linked five corporate governance mechanisms—large shareholder ownership concentration, government ownership concentration, board size, board independence, and family directors—with capital structure for 81 non-financial listed firms between 2017 and 2018. The data indicated that only government ownership concentration and family directors affect capital structure.

scholarly journals The repurchase by a holding company of treasury shares held by subsidiaries: A South African perspective

2012 ◽  
Vol 43 (4) ◽  
pp. 33-44 ◽  
Author(s):  
N. Wesson ◽  
W. D. Hamman
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Annual Reports ◽  
Share Repurchases ◽  
Share Repurchase ◽  
Financial Reporting Standards ◽  
Holding Company ◽  
Johannesburg Stock Exchange ◽  
The Uk

This study aims to establish whether the repurchasing of treasury shares by a holding company is a regular occurrence for companies listed on the Johannesburg Stock Exchange (JSE); whether these repurchasing companies have complied with the relevant legal and reporting requirements; and what their stated motivations were for these repurchases.In a sample of 251 companies listed on the JSE from 1999 till their 2009 financial year-end, 120 (47,8%) companies executed share repurchases. Thirty-six (30%) of the 120 companies repurchased treasury shares from their subsidiaries in 55 different transactions, representing 22% of the total number of shares repurchased.Companies which repurchase treasury shares do not always comply with the legal requirements (such as obligatory Security News Agency (SENS) announcements and circulars); and the accounting requirements of International Financial Reporting Standards (IFRS) (relevant to the disclosure of the reconciliation of the number of shares in issue) are applied in an inconsistent manner in annual reports. The most common reason for the repurchase of treasury shares was that the 10% limit (on treasury shares held by subsidiaries) had nearly been reached. Various business purposes were also given. Income tax implications did not seem to be a conclusive motivation for repurchasing treasury shares.The repurchase of treasury shares by the holding company is not allowed in most other countries, like the UK, and presents unique challenges to the South African share repurchase environment. More stringent application of the JSE Listing Requirements, as well as better guidance on the IFRS disclosure requirement on the reconciliation of the number of shares in issue, is needed in South Africa. This will enable stakeholders to make better-informed decisions and will also assist research on share repurchases.This material is based upon work supported financially by the National Research Foundation. However, any opinions, findings, conclusions and recommendations expressed in this article are those of the authors alone, and the NRF does not accept any liability in regard thereto.

scholarly journals Public ‘say on pay’ activism in South Africa: Targets, challengers, themes and impact

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Suzette Viviers ◽  
Nadia Mans-Kemp ◽  
Linda Kallis ◽  
Kristen Mckenzie
Keyword(s):  
South Africa ◽  
Trade Unions ◽  
Mixed Model ◽  
Wage Gap ◽  
African State ◽  
Minority Shareholders ◽  
Mixed Model Analysis ◽  
Say On Pay ◽  
Executive Remuneration ◽  
The Impact

Background: Shareholders and other stakeholders in South Africa are increasingly raising their concerns in public about seemingly excessive executive remuneration. Most of their criticism is rooted in the large and growing wage gap in the country.Aim: The authors investigated the nature of the entities whose executive remuneration policies and practices were publicly criticised, the types of challengers involved in this social movement, key issues raised and the impact that the challengers had on the targeted executives’ remuneration.Setting: Public activism involving five South African state-owned enterprises and 38 companies listed on the Johannesburg Stock Exchange.Methods: Executives and entities that were targeted in public were identified from three online financial newspapers published between 01 January 2010 and 31 December 2016. A total of 92 events were recorded involving 65 executives. Data on these executives’ emolument and three control variables were sourced from Bloomberg. Descriptive statistics and mixed-model analysis of variance tests were employed to evaluate the quantitative secondary data.Results: In line with the extant literature, most of the targets were large, well-known companies. Individual and minority shareholders represented the largest category of challengers, followed by asset managers and trade unions. The vast majority of concerns centred on the size and composition of executives’ packages and insufficient justifications provided by remuneration committees. The total pay, bonuses and other performance-based incentives decreased significantly in the year after the companies were publicly targeted.Conclusion: The findings suggest that public ‘say on pay’ activism can be an effective mechanism in addressing seemingly excessive executive emolument.

scholarly journals Pengaruh Mekanisme Corporate Governance Terhadap Ketepatan Waktu Pelaporan Keuangan (Studi Empiris Pada Perusahaan Perbankan Milik Pemerintah Pusat)

2018 ◽  
Vol 19 (1) ◽  
pp. 1
Author(s):  
Muhammad Rivandi ◽  
Maria Magdalena Gea
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Central Banking ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Multiple Regression Models ◽  
Corporate Governance Mechanism

This study aims to examine the effect of corporate governance mechanism on the timeliness of financial reporting. The sample of this study are four central banking companies listed in Indonesia Stock Exchange (IDX) selected based on purposive sampling method. The method of data analysis used in this study is multiple regression models. Based on the hypotheses testing result, that the managerial ownership and audit committee have a positive and significant effect on the timeliness of financial reporting, while independent commissioner has no effect on the timeliness of financial reporting

scholarly journals Discretionary disclosures: reactivity and proactivity in the chairpersons’ statements of JSE-listed companies in South Africa

2016 ◽  
Vol 14 (3) ◽  
pp. 512-521
Author(s):  
Nthabeleng Mmako
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Environmental Factors ◽  
Stock Exchange ◽  
Jel Classification ◽  
Review Of The Literature ◽  
Corporate Reporting ◽  
Johannesburg Stock Exchange ◽  
Starting Point ◽  
Good Starting Point

A review of the literature on corporate governance and narrative disclosures highlights the need for assessment of the formulation of the chairperson’s statement. This research is justified as corporate reporting today is more integrated. The significance of the study may be that even though only the chairperson’s statement is investigated, it may be a good starting point for understanding how change is ushered into an organization and from what perspective this takes place. Findings of content analysis of 100 Johannesburg Stock Exchange (JSE)-listed chairperson’s statements suggest that as part of the communication intended mainly for investors and other stakeholders of the company, the chairperson’s statement is written as a reactive statement to environmental factors or as a proactive statement to counter environmental factors that may affect or have affected the company’s performance. This study will be useful in helping readers to improve their understanding of a company’s efforts to communicate with them, from the chairperson’s perspective. Keywords: chairperson’s statement, JSE, disclosures, reactivity, proactivity. JEL Classification: G3, G30

scholarly journals The impact of good corporate governance practices on financial reporting quality: Empirical evidence from Jordanian listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 178-186 ◽  
Author(s):  
Khaled Erieg Abu-Risheh ◽  
Mo’taz Amin Al-Sa’eed
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Audit Committees ◽  
Financial Reporting Quality ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Relationship

The main objective of this paper is to analyze the relationship between the good corporate governance practices on the financial reporting quality of Jordanian listed companies. Specifically, we focus on the board’s independence, board’s transparency, and separate audit committee. A listing of Share -Traded Jordanian Companies was available from the Amman Stock Exchange as of 31 December 2011. A total of (167) company shares were traded as of 31 of December 2011. It was decided to distribute (160) questionnaires to the related external auditors, the expertise members of the Audit Committees, and the Jordanian regulatory bodies that oversight the corporate reporting of those companies, which include the Jordanian Securities Commission, Insurance Commission, and Central Bank of Jordan. The empirical study is realized based on a sample of the companies listed on the Amman Stock Exchange. Our research results shows that the good corporate governance practices impact the financial reporting quality, were Independence is considered one of the determinants of the success of financial reporting quality (T = 3.709, 008) and (R= 0.676), in addition to that; the independent variables are able to explain the variance in the dependent variable, a multiple regression test was carried out to test the relationship between board of directors’ transparency, board of directors’ independence, and audit committees, and financial reporting quality (FRQ), they are able to explain nearly 0.805% (R=0.805% P< 0.000) of the variance in financial reporting quality. The correlation analysis allows testing the strength of relationships between several independent variables and one dependent variable, which is the case in this study. The results of correlation analysis shows that the relationships between boards of directors’ transparency, board of directors’ independence, and separate audit committees, and the dependent variable which is financial reporting quality (FRQ), are significant.

scholarly journals Earnings management, corporate governance, and ownership structure of Philippine initial public offerings

2021 ◽  
Vol 18 (4) ◽  
pp. 175-191
Author(s):  
Angelo O. Burdeos
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Initial Public Offerings ◽  
Ownership Structure ◽  
Stock Exchange ◽  
The Philippines ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Ceo Duality ◽  
Public Offerings

Prior studies examined the effect of corporate governance variables on discretionary current accrual, the most widely used measurement of earnings management. The principal-agent conflict implies that the size of the board, the percent of independent directors, CEO duality, and auditor prestige limit discretionary current accruals (DCA). This paper extends past studies by examining the effect of ownership structure on discretionary current accruals. The study determines the level of income-increasing earnings management of initial public offerings (IPOs) in the Philippines and the factors that explain it. Particularly, the paper examines the effect of ownership concentration and largest shareholder ownership on discretionary current accruals. The study uses a final sample of 105 IPO firms in Philippine Stock Exchange (PSE) from 2008 to 2018. Employing the modified Jones’s (1991) model to measure discretionary current accrual and multiple regression analysis, the study finds -4.19% discretionary current accrual on the average. It also reveals that the 2002 Philippine Code of Corporate Governance (PCCG) is ineffective in curbing earnings management. In addition, there is an insignificant relationship between the size of the board, CEO duality, ownership concentration, largest shareholder ownership and auditor prestige, and earnings management. Furthermore, the paper finds a significant relationship between the percent of independent directors, industry sector, return on assets (ROA) and cash flow from operations and earnings management.

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