scholarly journals RELATION OF NON EXECUTIVE DIRECTORS AND OWNERSHIP CONCENTRATION WITH DISCRETIONARY ACCRUAL ACCOUNTING

2011 ◽  
Vol 01 (04) ◽  
pp. 93-101
Author(s):  
Mohammadreza Abdoli
Keyword(s):  
Stock Exchange ◽  
Ownership Concentration ◽  
Earnings Manipulation ◽  
Executive Directors ◽  
Business Rule ◽  
Accrual Accounting ◽  
Discretionary Accrual ◽  
Meaningful Relationship ◽  
Private Corporations ◽  
The Relationship

In this study we consider the relationship and the effect of performance of non executive directors and ownership concentration on earnings manipulation by company's managers. On the basis of governance rule and also Iran business rule, the companies in Tehran stock exchange should abide about the combination of the board and also interrelated committee and protect minority stockholders against majority. In order to do this research, the information of the companies in financial statements and the reports of the Tehran stock exchange have been used. For the measurements of the earnings smoothing John's adjusted model has been used and for the measurement of the concentration of company's ownership "Herfindal" and "Hireshman" has been used. The choice of the companies is randomly and the confidence interval has been considered %95 .For research , observe 435 corporation- year and time period is 2005 – 2010. The results of the research reveal don't meaningful relationship of non executive directors and discretionary accrual accounting and the relationship is a positive. In companies which the concentration of ownership is high, management and earnings manipulation is also high and has a meaningful relationship and negative with these variables. The segregation of the companies into government and private causes to different the results. In private companies the concentration of the ownership is little and the statistical mean of discretionary accrual accounting items is low and non executive directors ratio is low but in governmental corporations statistical mean of discretionary accrual accounting item is high and ratio of corporations that has internal auditing is high to private corporations . Further more almost of non executive directors in Iranian corporation have nonfinancial technique and knowledge and ratio of them in board corporation is higher than executive directors.

The Determinants of Financial Ratio Disclosures and Quality: Evidence from an Emerging market

2015 ◽  
Vol 1 (1) ◽  
pp. 188 ◽  
Author(s):  
Ben k. Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Stock Exchange ◽  
Emerging Market ◽  
Negative Relationship ◽  
Ownership Concentration ◽  
Financial Ratios ◽  
Annual Reports ◽  
Executive Directors ◽  
Financial Ratio

This study investigated the influence of firm-specific characteristics which include proportion of Non-Executive Directors, ownership concentration, firm size, profitability, debt equity ratio, liquidity and leverage on the extent and quality of financial ratios disclosed by firms listed on the Ghana Stock Exchange.The research was conducted through detailed analysis of the 2012 financial statements of  the listed firms.  Descriptive analysis was performed to provide the background statistics of the variables examined.  This was followed by regression analysis which forms the main data analysis.  The results of the extent of financial ratio disclosure level, mean of 62.78%, indicate that most of the firms listed on the Ghana Stock Exchange did not overwhelmingly disclose such ratios in their annual reports.  The results of the low quality of financial ratio disclosure mean of 6.64% indicate that the disclosures failed woefully to meet the International Accounting Standards Board's qualitative characteristics of relevance, reliability, comparability and understandability.The results of the multiple regression analysis show that leverage and return on investment are associated on a statistically significant level as far as the extent of financial ratio disclosure is concerned. Board ownership concentration and proportion of (independent) non-executive directors, on the other hand were found to be statistically associated with the quality of financial ratio disclosed. There is a significant negative relationship between ownership concentration and the quality of financial ratio disclosure.  This means that under a higher level of ownership concentration less quality financial ratios are disclosed. The findings also show that there is a significant positive relationship between board composition (proportion of non-executive directors) and the quality of financial ratio disclosure.  JEL CLASSIFICATION: G3, M1, M2, M4.

scholarly journals Related Party Transactions, Family Ownership, and Earnings Management in Indonesia

2021 ◽  
Vol 25 (3) ◽  
pp. 688-700
Author(s):  
Levina Ulfa Subastian ◽  
Ari Kuncara Widagdo ◽  
Doddy Setiawan
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Management Practice ◽  
Control Variable ◽  
Family Ownership ◽  
Related Party Transactions ◽  
Discretionary Accrual ◽  
Corporate Earnings ◽  
The Relationship ◽  
Public Accountant

The purpose of earnings management practice is to reach the profit goals the company wants to achieve. Therefore, this study aims to determine the relationship between related party transactions and earnings management in Indonesia by balanced panel data from consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. The number of samples used in this study was 102 firm-year observations. The results showed that related party transactions positively and significantly improved corporate earnings management, with discretionary accrual as a proxy. The presence of family ownership strengthens the relationship between related party transactions and earnings management. Also, it shows that the control variable: public accountant from BIG4, company size, company losses, and ROA affect accrual earnings management. The leverage does not affect accrual earnings management. The study result indicates that family business ownership encourages an entrenchment effect that is detrimental to the company. It is carried out through related party transactions then manipulated by using accrual earnings management practices.DOI: 10.26905/jkdp.v25i3.5778

scholarly journals The Relationship between Conditional Conservatism and Financial Crisis

2016 ◽  
Vol 12 (6) ◽  
pp. 47
Author(s):  
Behnam Aminpour Mamaghani ◽  
Roya Darabi
Keyword(s):  
Financial Crisis ◽  
Stock Exchange ◽  
Great Influence ◽  
Conditional Conservatism ◽  
Time Period ◽  
Meaningful Relationship ◽  
Growth Opportunity ◽  
Sale Growth ◽  
Information Item ◽  
The Relationship

<p>Profit and loss invoice is the main accounting information. Investors pay the priority attention to net profit as the latest information item of profit and loss invoice. Conservatism has a great influence on investment and companies’ financial crisis. The main purpose of this research is studying the relationship between conditional conservatism and financial crisis in accepted companies in Tehran Stock Exchange during time period of 2009 up to 2014. Statistical society is used by screening (omissive) model for selecting a sample which is studied in 122 companies. Current research methodology is applicative by aiming, its type is correlated, its model is panel data and for analysis by software of EVIEWS8. Also, obtained result by first subsidiary hypotheses represent a straight relationship between firm size and companies’ financial crisis and second subsidiary hypotheses represent a straight relationship between financial leverage and companies’ financial crisis. There is not a meaningful relationship between reserved cash fund and financial crisis in third subsidiary hypotheses. There is a meaningful relationship between sale growth and financial crisis in forth subsidiary hypotheses. There is a straight and meaningful relationship between tangible properties and financial crisis in fifth subsidiary hypotheses. In sixth subsidiary hypotheses, there is a negative and meaningful relationship between growth opportunity and financial crisis.</p>

scholarly journals Does the presence of independent directors reduce the practices of earnings management? The moderating role of family ownership concentration

2019 ◽  
Vol 69 (6) ◽  
pp. 638-654
Author(s):  
Deaa Al-Deen Al-Sraheen ◽  
Khaldoon Ahmad Al Daoud
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Future Research ◽  
Family Ownership ◽  
Board Independence ◽  
New Ideas ◽  
The Relationship ◽  
Moderating Role

While often criticized, the independence of directors remains a crucial criterion for evaluating the effectiveness of the monitoring role of boards. This study examines the relationship between board independence and earnings management, paying attention to moderation role of family ownership concentration on this relationship using a sample of services companies listed on Amman Stock Exchange ASE. This study documented a significant and negative association between board independence and earnings management. In addition, the moderating role of family ownership concentration on this relationship was also negative. Thus, the board’s monitoring function was inefficient due to the concentration of ownership. These results were obtained through using multiple and sequential regression analysis for the research data from 2013 to 2016. This study provides new ideas for future research such as examining the impacts of the migration of capitals and investors from neighbouring countries such as Syria and Iraq.

scholarly journals The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange

2019 ◽  
Vol 8 (2) ◽  
pp. 131-146
Author(s):  
Thi Xuan Anh Tran ◽  
Quoc Tuan Le
Keyword(s):  
Ownership Structure ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Payout Policy ◽  
Ownership Concentration ◽  
H Index ◽  
Dividend Payout ◽  
Listed Firms ◽  
Ownership Composition ◽  
The Relationship

Abstract This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.

The Effect of Corporate Governance on Bank's Dividend Policy: Evidence from Jordan

2013 ◽  
Vol 03 (01) ◽  
pp. 30-39
Author(s):  
Demeh Ahmad Daradkah ◽  
Moh'd Mahmoud Ajlouni
Keyword(s):  
Growth Rate ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Market Valuation ◽  
Ownership Concentration ◽  
Stock Valuation ◽  
Book Value ◽  
Amman Stock Exchange ◽  
The Relationship

This study aims at investigating the relationship between corporate governance measures and dividends policy, along with other control variables, such as tax charges, growth rate, market valuation of the bank’s book value and profitability. Using all banks listed in Amman Stock Exchange during the period 2001-2009, the analysis is performed by employing each of the institutional ownership and top shareholders, separately, as a proxy of corporate governance (GC) and dividends payout ratio (DPR) as a proxy for the dividends. The empirical results show strong evidence on the importance of one simple CG measure, i.e. institutional ownership concentration or top shareholders, on bank’s DPR. Similarly, there were evidences on the effect of tax charges, total assets growth rate, market valuation (MVBV) and profitability (ROE) on dividends policy. Thus, banks with more institutional investors or top shareholders have higher DPR, which is consistent with agency models of dividends. In addition, taxes, market valuation and profitability are negatively associated with DPR, which is consistent with stock valuation models.

scholarly journals Ownership, control and performance in the most actively traded companies on Stockholm stock exchange. A comparison between 1999 and 2001

2006 ◽  
Vol 4 (1) ◽  
pp. 146-155 ◽  
Author(s):  
Per-Olof Bjuggren ◽  
Helena Bohman
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Inside Ownership ◽  
The Subject ◽  
And Performance ◽  
The Relationship ◽  
Ownership Control

The relationship between ownership, control and firm value is the subject matter studied. The study is essentially empirical. Data about the most actively traded non-financial companies on the Stockholm Stock Exchange is used. A comparison is made between the years 1999 and 2001. What do the relationships between firm value and different ownership characteristics like ownership concentration, foreign ownership and inside ownership look like? Do these characteristics differ between the booming year of 1999 and the recession year of 2001? Is there a relation between stock price and ownership structure? These are the three main questions addressed in the study.

scholarly journals Ownership concentration, political connection and audit fees: Some evidence from Malaysian capital market

2012 ◽  
Vol 9 (2) ◽  
pp. 400-409
Author(s):  
Balachandran Muniandy ◽  
Muhammad Jahangir Ali
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Audit Fees ◽  
Ownership Concentration ◽  
Political Connection ◽  
Cross Sectional ◽  
Share Ownership ◽  
Audit Fee ◽  
The Relationship ◽  
High Share

The purpose of our study is to examine how share ownership concentration and political connection determine audit fees in Malaysia. These two determinants, ownership concentration and political connection, are very important, especially, in the context of Malaysia where many companies have very high share ownership concentration and are politically connected. We examine 162 companies listed on the Malaysian Stock Exchange and employ cross-sectional regression analysis to determine the relationship between ownership concentration, political connection and audit fees. We observe that highly concentrated share ownership firms are able to influence priorities of the board to focus on the provision of resources rather than monitoring. Our results suggest a negative association between audit fees and politically connected firms. We also find that higher proportion of independent directors on the audit committee of politically connected firms demand auditors to put additional efforts on the politically connected firms which leads to an increment in the audit fee charged. This suggests that regulators should encourage companies to form an effective audit committee for high quality audit services to ensure that firm is able to minimize the risk exposure. The findings of the study are appealing to literature of political connection and audit fees.

scholarly journals Effects of ownership concentration on firm performance: Pakistani evidence

2015 ◽  
Vol 9 (2) ◽  
pp. 162-176 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Stock Exchange ◽  
Emerging Market ◽  
Positive Association ◽  
Ownership Concentration ◽  
Content Type ◽  
Concentrated Ownership ◽  
Concentration Degree ◽  
The Relationship

Purpose – This paper aims to present an analysis of the association between five categories of concentrated ownership and firm performance in Pakistan. The connection between high ownership concentration and firm performance has attracted much attention, especially in emerging market, yet yielded many inconsistent empirical results. Design/methodology/approach – Karachi Stock Exchange (KSE)-100 Indexed companies listed in KSE from 2007 to 2011 were selected as the sample, and correlation coefficient and regression model were used to inspect the relationship between ownership concentration degree and corporate performance. Findings – It was found that there is no significant association with ownership concentration and accounting-based performance, market-based performance measures and economic profit, in general. Originality/value – The first demonstration that the shareholding proportion of the single largest shareholder is the only variable having positive association with market-based performance measures.

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