scholarly journals The Association of Board Composition, Intellectual Capital and Firm Performance in a High Ownership Concentration Context: Evidence from Italy

2016 ◽  
Vol 11 (10) ◽  
pp. 317 ◽  
Author(s):  
Stefania Veltri ◽  
Romilda Mazzotta
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Capital Market ◽  
Ownership Concentration ◽  
Board Composition ◽  
Firm Efficiency ◽  
Management Literature ◽  
Sophisticated Model ◽  
The Relationship

<p>The association of Corporate Governance (CG) with Firm Performance (FP) has always been an issue relevant to management literature. Nevertheless, the notable heterogeneity of studies and their mixed results highlight the opportuneness of continuing to investigate the association of CG with FP. The article aims to contribute to this research by building and employing a sophisticated model to take into account beyond the  board composition ownership structure and firm efficiency in using its intellectual capital (as measured by VAIC<sup>TM</sup>). The findings provide evidence that the board composition, the ownership concentration and the efficiency of intellectual capital increases firm efficiency in producing profits (as measured by ROA). Furthermore, our findings add knowledge to the relationship between CG and FP, by confirming a positive relationship in Italy, a continental European capital market under-investigated on this issue.</p>

A cross-country comparison of the relationship between ownership concentration and firm performance: does judicial system efficiency matter?

2017 ◽  
Vol 17 (2) ◽  
pp. 321-340 ◽  
Author(s):  
Luigi Lepore ◽  
Francesco Paolone ◽  
Sabrina Pisano ◽  
Federico Alvino
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Investor Protection ◽  
Legal Protection ◽  
Judicial System ◽  
Ownership Concentration ◽  
System Efficiency ◽  
Content Type ◽  
Judicial Efficiency ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between ownership structure and firm performance, including judicial system efficiency as a moderator to investigate the joint effects of both explanatory variables. Although prior studies have considered judicial system efficiency by examining de jure investor protection, this study identifies another useful proxy and explores de facto legal protection. Design/methodology/approach Ordinary least square multiple regression models were used to examine the influence of judicial efficiency, which was measured using the disposition time (DT) and legal origin, as a moderator of the relationship between ownership concentration and firm performance for a sample of 565 non-financial companies listed in Italy, France, Germany and Spain in 2013. Findings This paper shows that de facto investor protection ensured by an efficient judicial system is relevant to the relationship between firm performance and ownership structure. As a moderator variable, DT strengthens the intensity of this relationship in countries with low judicial efficiency, showing that ownership concentration leads to a better enhancement of firm performance and is, therefore, a more efficient governance mechanism in countries in which investor protection is weak. Originality/value The evidence presented expands the understanding of the link between firm performance and ownership structure. The institutional deficiencies suggest that internal governance mechanisms may substitute for external mechanisms in facilitating efficient governance. This study corroborates policymakers’ concerns regarding the efficiency of judicial systems and their role in protecting the rights of minority shareholders. The results suggest a need for more efficient external mechanisms of investor protection to facilitate investment in equity capital. Moreover, this study shows that DT is a more accurate measure of investor protection than the traditional measure of de jure legal protection.

scholarly journals Corporate Governance Quality, Ownership Structure, Agency Costs and Firm Performance. Evidence from an Emerging Economy

2020 ◽  
Vol 13 (7) ◽  
pp. 154
Author(s):  
Haroon ur Rashid Khan ◽  
Waqas Bin Khidmat ◽  
Osama Al Hares ◽  
Naeem Muhammad ◽  
Kashif Saleem
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Agency Cost ◽  
State Ownership ◽  
Ownership Concentration ◽  
Listed Firms ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

The purpose of this paper is to investigate the effect of corporate governance quality and ownership structure on the relationship between the agency cost and firm performance. Both the fixed-effects model and a more robust dynamic panel generalized method of moment estimation are applied to Chinese A-listed firms for the years 2008 to 2016. The results show that the agency–performance relationship is positively moderated by (1) corporate governance quality, (2) ownership concentration, and (3) non-state ownership. State ownership has a negative effect on the agency–performance relationship. Various robust tests of an alternative measure of agency cost confirm our main conclusions. The analysis adds to the empirical literature on agency theory by providing useful insights into how corporate governance and ownership concentration can help mitigate agency–performance relationship. It also highlights the impact of ownership type on the relationship between agency cost and firm performance. Our study supports the literature that agency cost and firm performance are negatively related to the Chinese listed firms. The investors should keep in mind the proxies of agency cost while choosing a specific stock. Secondly; the abuse of managerial appropriation is higher in state-held firms as compared to non-state firms. Policymakers can use these results to devise the investor protection rules so that managerial appropriation can be minimized.

scholarly journals The effect of the ownership structure characteristics on firm performance in Oman: Empirical study

2016 ◽  
Vol 13 (2) ◽  
pp. 93-100 ◽  
Author(s):  
Ebrahim Mohammed Al-Matari ◽  
Ali Saleh Al_arussi
Keyword(s):  
Regression Analysis ◽  
Firm Performance ◽  
Ownership Structure ◽  
Annual Report ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Government Ownership ◽  
Structure Characteristics ◽  
Independent Variables ◽  
The Relationship

This study attempts to investigate the effect of the ownership structure characteristics (ownership concentration, managerial ownership and government ownership) on firm performance (ROA) among non-financial Omani companies during 2012-2014. For achieving the objective of this study, 81 firms were taken as a sample to test the above relations. The sampling was obtained from annual report of the companies for three years with a total sampling equal to 243 firms. Multiple regression analysis was employed to test the relationship between independent variables and dependent variable. In addition, this study tried to fill the gap in the existing literature concerning the relationship between ownership structure and firm performance in the developing countries such as Oman. This study found a positive and significant association between ownership concentration and government ownership to firm performance (ROA). The study provides some suggestions for future researchers before the conclusion.

scholarly journals Ownership Structure and Firm Performance: An Empirical Analysis of Chinese Companies

2016 ◽  
Vol 4 (2) ◽  
pp. 57 ◽  
Author(s):  
Hui Zhang ◽  
Khine Kyaw
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Institutional Ownership ◽  
State Ownership ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Panel Model ◽  
Chinese Companies ◽  
The Relationship

This study examines the relationship between ownership structure and firm performance in Chinese companies. We hand collected ownership data on 1178 non-financial companies with a total of 5815 firm-years from annual reports. Through fixed-effect panel model, this study has the following findings. First, there is a positive relationship between firm performance and institutional ownership in Chinese companies. Second, the proportion of tradable shares negatively affects firm performance. Third, ownership concentration and state ownership appear to not affect firm performance.

scholarly journals Board composition, ownership structure and voluntary disclosure: An empirical study of the listed companies in Egypt

2014 ◽  
Vol 11 (2) ◽  
pp. 415-426 ◽  
Author(s):  
Mohammed Moustafa Soliman ◽  
Aiman A. Ragab ◽  
Mohammed B. Eldin
Keyword(s):  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Institutional Ownership ◽  
Ownership Concentration ◽  
Board Composition ◽  
Board Independence ◽  
Managerial Ownership ◽  
Voluntary Disclosures ◽  
Board Size ◽  
The Relationship

The aim of this study is to examine the relationship between board composition and ownership structure variables on the level of voluntary information disclosures of companies listed on the Egyptian Stock Exchange. Board composition is examined in terms of board independence; board size; and CEO duality; also, ownership structure is examined in terms of ownership concentration; institutional ownership; and managerial ownership. The results show that there is a significant negative relationship between CEO duality and voluntary disclosures. However, board independence; board size; ownership concentration; institutional ownership; and managerial ownership are not associated with voluntary disclosures. Also, the results of the regression analyses show that size and leverage of firms are significantly and positively associated with the level of voluntary information disclosures. Profitability of a firm is not significantly associated with voluntary disclosures. Finally, this paper indicates the relationship among board composition, ownership structure and corporate voluntary disclosure, and provides evidence for Egyptian regulators to improve corporate governance and optimize ownership structure.

scholarly journals Firm performance and the ownership of the largest shareholder

2007 ◽  
Vol 4 (3) ◽  
pp. 126-138 ◽  
Author(s):  
Xiaoyue Chen ◽  
Jeong-Bon Kim ◽  
Steven Shuye Wang ◽  
Xiaodong Xu
Keyword(s):  
Firm Performance ◽  
Cash Flow ◽  
Ownership Structure ◽  
Capital Market ◽  
Chinese Firms ◽  
Cash Flow Rights ◽  
The Relationship ◽  
A Share

We examine the relationship between cash-flow rights held by the largest shareholders and firm performance in Chinese capital market. Using a sample of all listed A-share firms between 2000 and 2003, we find that there are “region effects” with an “M” shape in the relationship between cash flow rights held by the largest shareholder and firm performance. The non-monotonic variations of firm performance associated with changes of the largest shareholdings suggest that there may be an optimal ownership structure existed in listed Chinese firms. We also find that firms under the control of largest state shareholders have poorer performance than that under the control of largest non-state shareholders

scholarly journals An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 248 ◽  
Author(s):  
Sohail Ahmad Javeed ◽  
Lin Lefen
Keyword(s):  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Ownership Structure ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Ceo Power ◽  
Moderating Effects ◽  
Corporate Social ◽  
The Relationship

Corporate social responsibility (CSR) are the activities of firms that are not only considered for economic profit but also include the social welfare returns. To find the key drivers that affect the relationship between corporate social responsibility (CSR) and firm performance, we investigated the moderating effects of CEO power and ownership structure. Ownership structure is classified into two parts: managerial ownership and ownership concentration. We selected a sample of firms from eight manufacturing sectors of the Pakistani economy for the analysis. We collected data from the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX), and companies’ annual reports over the period 2008 to 2017. We employed the Fixed Effects model and Generalized Method of Moment (GMM) to investigate the association between CSR and firm performance. The empirical analysis of this study highlights the following conclusions: First, CSR has a significant positive association with firm performance. Second, the relationship between CSR and firm performance shows the same results with the interaction of CEO power. Thirdly, interaction of the managerial ownership with CSR has a significant positive relationship with firm performance. Fourth, the interaction of the ownership concentration with CSR has a positive effect on firm performance.

scholarly journals Ownership composition and intellectual capital disclosure: Indonesia as a case study

2021 ◽  
Vol 18 (2) ◽  
pp. 37-47
Author(s):  
Yana Ulfah ◽  
Rizky Yudaruddin ◽  
Yanzil Azizil Yudaruddin
Keyword(s):  
Intellectual Capital ◽  
Ownership Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Ordinary Least Squares ◽  
Ownership Concentration ◽  
Public Firms ◽  
Ownership Composition ◽  
The Impact

This study explores whether ownership structure (comprising ownership concentration, foreign, managerial, and institutional ownership) affects intellectual capital disclosure (ICD) in Southeast Asia’s largest stock market and Indonesia’s emerging economy. The sample includes 323 public firms listed on the Indonesia Stock Exchange (IDX) from seven industries between 2008 and 2017, or 2,634 firm-year observations. Data were analyzed using the ordinary least squares (OLS) regression with robust standard errors. The results show that ICD is positively related to ownership concentration. A negative and substantial relationship was found for both foreign and managerial ownerships, while the institutional ownership variable had a negative and insignificant impact. Overall, the results show robust conclusions regarding the impact of the ownership structure on ICD. The findings of this investigation could be taken into account by capital market authorities such as the Indonesia Stock Exchange (IDX) to raise awareness of intellectual capital and improve ICD practices. Acknowledgment The researchers are grateful for the valuable responses from two unnamed reviewers and discussion respondents at Mulawarman University. We also thank the Indonesia Stock Exchanges (IDX) and The Indonesia Capital Market Institute for providing the annual report.

scholarly journals Levels of ownership structure, board composition and board size seem unimportant in New Zealand

2004 ◽  
Vol 2 (1) ◽  
pp. 119-128 ◽  
Author(s):  
Trevor Chin ◽  
Ed Vos ◽  
Quin Casey
Keyword(s):  
New Zealand ◽  
Firm Performance ◽  
Ownership Structure ◽  
Board Composition ◽  
Endogenous Factors ◽  
Significant Relationships ◽  
Cast Doubt ◽  
Equity Ownership ◽  
Equity Ownership Structure ◽  
The Relationship

The relationship between firm performance and board composition, size and equity ownership structure are investigated in this paper for a sample of 426 annual observations of New Zealand firms across a five-year period. No statistically significant relationships could be found. These results are consistent with several previous studies and cast doubt on agency explanations used to relate board ownership to corporate performance. This may be due to endogenous factors or due to the small size of the New Zealand pool of corporate directors.

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