scholarly journals Effect of Ownership Structure on Company Performance: Evidence from Emerging Market

2020 ◽  
Vol 1 (1) ◽  
pp. 27-36
Author(s):  
Waleed Alahdal ◽  
Mohammed H. Alsamhi ◽  
Mohammed S. Barakat
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Empirical Studies ◽  
Listed Companies ◽  
Research Area ◽  
Company Performance ◽  
The Board Of Directors ◽  
Structure Index ◽  
The Impact

This paper uses panel data to examine the impact of ownership structure index on the financial performance of 73 listed companies of the Indian national stock exchange from 2009 to 2016. To measure the Panel Regression in this study, the FEM model was used. The different dimensions of the ownership structure index involve ten items used as the Independent variable of this study. Two measures have been adopted to estimate the firm performance that is; ROA and ROE. In contrast, the control variables are firm size and leverage. This study's empirical evidence shows that the ownership structure index has significant impact on a firm's performance measured by ROA and ROE of Indian Nifty 100 listed companies. Findings of this study support previous empirical studies performed and add some value in the research area of finance that explores different aspects of the board of directors' index and ownership structure index in Indian market by using Nifty 100 as an example.

scholarly journals The Effect of Related Party Transactions on the Performance of Indonesian Listed Companies

2021 ◽  
Vol 20 (1) ◽  
pp. 21-39
Author(s):  
Brigitta Angelica ◽  
◽  
Desya Gunawan ◽  
Jessy Christella ◽  
Yane Chandera ◽  
...  
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Company Performance ◽  
Minority Shareholders ◽  
Related Party Transactions ◽  
Direct Light ◽  
Panel Data Regression ◽  
The Impact

Abstract. The purpose of this paper is to analyze the impact of related party transactions (RPTs) on company performance using a panel data regression on 388 non-financial companies listed in Indonesia Stock Exchange during the 2015-2018 period. RPT variables used in this study are divided into several categories, namely transactions with related parties in the operational field (operational RPTs), financial field (financial RPTs), other fields (other RPTs), and total RPTs (sum of the three previous types). The study finds a significant negative relationship between financial RPTs and other RPTs on company performance. This finding is consistent with the precedent research that non-operational RPTs (i.e., financial RPTs and other RPTs) are commonly used by controlling shareholders as tunneling channels to expropriate minority shareholders. The results suggest policymakers to monitor more closely RPTs, particularly financial and other RPTs, that are more likely to be used as tunneling activities that are detrimental to firm performance. The results of this study are robust to various proxies of firm performance, providing additional empirical studies on RPTs in emerging countries with concentrated ownership structure, and shedding direct light on which type of RPTs that is mainly used as tunneling channel. Keywords: Efficient transaction hypothesis, firm performance, Indonesia, related party transactions, type II agency problem

scholarly journals THE IMPACT OF OWNERSHIP STRUCTURE IN PROMOTING CONTINUITY - APPLIED STUDY OF A SAMPLE ON LISTED COMPANIES IN IRAQI STOCK EXCHANGE

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Amer Mohamed Salman Al-Janabi ◽  
Hassnain Kadhem Ojah
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Research Problem ◽  
Listed Companies ◽  
Specific Class ◽  
Control Environment ◽  
Financial Reports ◽  
Applied Study ◽  
Corporate Governance Mechanisms ◽  
The Impact

The research aims to diagnose the property structure for a sample of listed companies shares in the Iraq Stock Exchange as well as determining the ability of the property structure in the continuity of the company, as the research problem is the effect of the structure of ownership of the corporate sample study in promoting continuity of companies? The research assumed a significant impact of the structure of ownership in enhancing the continuity of the sample of the research, the research reached that the diversity of the property structure is centralized through it is part of corporate governance mechanisms, as it is responsible for specific policies and decisions, which in turn has a solid control environment As well as the powers of the protection of shareholders, as well as the diversity of ownership structure leads to the protection of the interests of economic unity and the interests of all equity holders through that decisions do not have a specific class interests at the expense of the rest of the stock campaign, as well as non-continuity It is the results of many behaviors and non-right decisions and decisions of the ownership structure. The discovery of those factors and indicators contributes to avoiding non-continuation of the samples of the research sample. Those who have 5% stake through special statements are discriminated with financial reports to clearly identify the diversity of the property structure as well as account monitors should give an indication. The landmarks are clear in their reports and their views are clearly and impressed with regard to the imposition of continuity of economic units listed on the Iraq Stock Exchange.

scholarly journals Gender diversity and financial performance of the stock exchange listed companies

2020 ◽  
Vol 17 (4, Special Issue) ◽  
pp. 257-267
Author(s):  
Yasmina Jaber
Keyword(s):  
Stock Exchange ◽  
Critical Mass ◽  
Gender Diversity ◽  
Listed Companies ◽  
Least Square ◽  
Bivariate Analysis ◽  
Explanatory Variables ◽  
Muslim Countries ◽  
The Board Of Directors ◽  
The Impact

Tunisia is considered one of the first Arab Muslim countries to have the freedom of women and their participation in the economic sphere. Despite these advancements in women’s freedom, Tunisia still has a few women in positions of responsibility in the business. Our reflection on gender diversity will, therefore, be studied from the angle of the contribution of women to the performance of the company. Our research uses different gender diversity proxies such as the percentage of women on the board, a binary variable, and two additional indices of the diversity the Blau and Shannon indices. In order to properly study this impact, we have mainly used bivariate analysis by studying the association between endogenous and explanatory variables and multivariate analysis by applying double least square regression (2SLS). Using the panel data methodology and controlling for endogeneity, the results show that gender diversity on the board of directors does not have an impact on the performance of listed companies measured by Tobin’s Q. However, if critical mass is reached, the impact on gender diversity becomes positive and significant.

scholarly journals Board diversity and structure: What implications for investments in innovation? Empirical evidence from Italian context

2012 ◽  
Vol 10 (1) ◽  
pp. 9-25 ◽  
Author(s):  
Silvio Bianchi Martini ◽  
Antonio Corvino ◽  
Alessandra Rigolini
Keyword(s):  
Stock Exchange ◽  
Empirical Studies ◽  
Minority Shareholder ◽  
The Other ◽  
Outside Directors ◽  
Board Diversity ◽  
Independent Variables ◽  
The Board Of Directors ◽  
Italian Context ◽  
The Impact

The aim of this paper is to investigate the relationship between the board diversity and the investments in innovation in a sample of companies listed on the Italian Stock Exchange (named Borsa Italiana) and operating in the consumer goods and in the consumer services industry. This sample covers the period from 2006 to 2010 and contains 345 observations. Drawing on the literature review, we pinpointed six hypotheses related to the impact on the investments in innovation of the following independent variables: 1. presence of outside directors; 2. average number of the other positions held by the members of the board; 3. minority shareholder representatives on the board; 4. presence of women on the board of directors; 5. number of committees; 6. frequency of board meetings. Furthermore, on the basis of the previous empirical studies, to measure the investments in innovation (the dependent variable), we chose these accounting ratios: total intangible assets divided by total assets and total R&D costs divided by total sales. From the methodology standpoint, we used both the bivariate statistic (i.e. Pearson Correlations and Anova one way) and the multivariate one (i.e. OLS regression analysis with robust standard errors calculated by the Newey-West, HAC method). Our findings confirm the previous studies and show that, also for the Italian listed companies operating in the industries mentioned earlier, the outsiders as well as the frequency of meetings held by the Strategy Committee assume a relevant role in supporting the investments in innovation. Conversely, the other independent variables concerning board diversity (i.e. women, minority shareholder representatives etc.) are not statistically significant and, as a result, do not influence the investments in innovation.

scholarly journals Remuneration, risk and performance in Italian companies: An empirical analysis on systems of remuneration in the board of Italian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 294-304
Author(s):  
Marco Artiaco
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Company Performance ◽  
Global Regulators ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Recent Financial Crisis ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The recent financial crisis highlighted the issue of Board of Directors compensation, which had been analyzed by many authors. In fact, there is a vast academic literature on the impact of the compensation of Board of Directors on corporations characterized by the separation of ownership from control. The compensation of Board of Directors has been a subject of debate, also by global regulators like OECD, FSB, Central Bank of Italy and European Commission and many are pushing for an international uniform regulation. This paper aims to investigate the relationship between the board of Directors compensation, the company performance and the risks decided by the Board. The article analyses a sample of Italian listed companies in order to test wether or not the Board of Directors compensation structure could turn into a performance incentive, given the risk taken.

The impact of ownership structure and the board of directors’ composition on tax avoidance strategies: empirical evidence from Jordan

2020 ◽  
Vol 18 (4) ◽  
pp. 795-812
Author(s):  
Amneh Alkurdi ◽  
Ghassan H. Mardini
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Policy Implications ◽  
Content Type ◽  
Amman Stock Exchange ◽  
Avoidance Strategies ◽  
The Board Of Directors ◽  
The Impact

Purpose Adopting agency theory, the purpose of this study is to explore the impact of ownership structure and board of directors’ composition on the extent of tax avoidance strategies. Design/methodology/approach The sample included all of the Jordanian first market companies listed on the Amman Stock Exchange from 2012 to 2017, comprising 348 observations. Findings The main finding of the paper is that tax avoidance is negatively related to managerial and institution ownership structures, which reduces the usage of tax avoidance strategies. Foreign ownership, however, has a positive relation that increases the likelihood of adopting tax avoidance strategies. Practical implications This study has policy implications for policymakers in relation to designing future tax systems to reduce the possibility of engaging in tax avoidance practices. Originality/value To the best of the authors’ knowledge, this study is the first of its kind that investigates the effects of the managerial, foreign and institutional ownership classes and board composition on tax avoidance for Jordanian listed companies.

scholarly journals Ownership Structure and Dividends Policy: Emerging Market Evidence

2018 ◽  
Vol 11 (6) ◽  
pp. 65
Author(s):  
Ahmad N. Obaidat
Keyword(s):  
Board Of Directors ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Firms ◽  
Amman Stock Exchange ◽  
The Board Of Directors

This study investigated the effect of ownership structure on the dividend policy of the financial firms listed on Amman Stock Exchange (ASE) for the period 2014-2016. The results indicated a positive relationship between dividend and institutional, managerial, and foreign ownership, and negative relationship between dividend and ownership concentration. The result also indicated that a large portion of the ownership is in the hand of the instructions and the board of directors, and the ownership is not highly concentrated.

scholarly journals The impact of corporate governance on firm performance in Egyptian listed companies

2013 ◽  
Vol 11 (1) ◽  
pp. 691-705 ◽  
Author(s):  
Ehab K. A. Mohamed ◽  
Mohamed A. Basuony ◽  
Ahmed A. Badawi
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Independence ◽  
Board Structure ◽  
Cross Sectional ◽  
Book Value ◽  
The Impact

This paper examines the impact of corporate governance on firm performance using cross sectional data from non-financial companies listed in the Egyptian Stock Exchange. The 88 non-financial companies on EGX100 index of listed companies on the Egyptian Stock Market are studied to examine the relationship between ownership structure, board structure, audit function, control variables and firm performance by using OLS regression analysis. The results show that ownership structure has no significant effect on firm performance. The only board structure variable that has an effect on firm market performance is board independence. Firm book value performance is affected by both board independence and CEO duality. Firm size and leverage have varying effects on both market and book value performance of firms

scholarly journals CHARACTERISTICS OF BOARD OF DIRECTORS AND PERFORMANCE OF GEM LISTED COMPANIES FROM THE PERSPECTIVE OF VENTURE CAPITAL PARTICIPATION

2019 ◽  
Vol 22 (3) ◽  
pp. 311-350
Author(s):  
Yuan Yang ◽  
Yi Pan ◽  
Binku Yang ◽  
Wenli Huang
Keyword(s):  
Venture Capital ◽  
Board Of Directors ◽  
Stock Exchange ◽  
Chief Executive ◽  
Listed Companies ◽  
Independent Directors ◽  
Company Performance ◽  
Ceo Duality ◽  
Board Characteristics ◽  
The Impact

Using the difference-in-differences (DID) model and taking the sample of companies listed from 2009 to 2014 on the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange in China, this paper studies the impact of Venture Capital (VC) participation on board characteristics, which is measured by the chief executive officer (CEO) duality, the scale of the board of directors and the proportion of independent directors, and it also studies how the board characteristics influence the company performance. The findings are as follows: VC-backed GEM listed companies are more inclined to choose the mode of CEO duality and to have a larger board of directors and a higher proportion of independent directors, all of which are conducive to improving company performance.

scholarly journals The Impact of COVID-19 on Stock Market Returns in Vietnam

2021 ◽  
Vol 14 (9) ◽  
pp. 441
Author(s):  
Dao Van Hung ◽  
Nguyen Thi Minh Hue ◽  
Vu Thuy Duong
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Exchange ◽  
Emerging Market ◽  
Random Effect Model ◽  
Financial Sector ◽  
Listed Companies ◽  
Government Control ◽  
Stock Market Returns ◽  
The Impact

This paper studies the impacts of COVID-19 on the performance of the Vietnamese Stock Market—a rapidly growing emerging market in a country that has to date successfully controlled the disease outbreak. The study uses a random-effect model (REM) on panel data of stock returns of 733 listed companies on both HOSE (the Ho Chi Minh Stock Exchange) and HNX (the Hanoi Stock Exchange) from 2 January 2020 to 13 December 2020. The study shows that the number of daily COVID-19 confirmed cases in Vietnam has a negative impact on stock returns of listed companies in the market. The impacts were more severe for the pre-lockdown and second-wave period, compared to impact for the lockdown period. The impacts also differed across sectors, with the financial sector being the most affected. With significant government control and influence over the bank-dominated financial system, the financial sector was expected to absorb some of the negative shocks hitting the real sector. Such expectations were reflected in the stock market movement during the pandemic.

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