scholarly journals Family Ownership and Dividend Policy: Empirical Evidence from Malaysia

2018 ◽  
Vol 13 (5) ◽  
pp. 112 ◽  
Author(s):  
Vasanthan Subramaniam
Keyword(s):  
Family Firms ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Structure ◽  
Listed Firms ◽  
Ordinary Least Square ◽  
Regression Methods ◽  
Agency Conflict ◽  
The Family ◽  
The Relationship

The objective of this study is to investigate the relationship between family ownership and dividend in Malaysian publicly listed firms. Malaysia served as a distinctive country to conduct this research as the corporate structure is largely characterised as family owned and the corporate firms are highly involved in high and stable dividends. The study uses data from 712 firms over the period of five (5) years from the year 2010 to 2014. Adjusted ordinary least square (OLS) regression methods are employed to analyse the data used in the study. Based on the results, family ownership is seen to have a significant positive relationship with dividends in Malaysia, especially in family firms. The finding has supported the reputational view of dividend, mitigation of agency conflict and dividends as the source of income for the family shareholders. However, the expropriation motive of the controlling family shareholders can still be relevant as high dividends were certainly paid to themselves as they are the majority shareholders in the firm. The contribution of the study lies in the behaviour of the controlling family shareholders in both family and non-family firms in Malaysia. The actual motives of them in relation to the enhancement of the shareholders’ wealth can be revealed through the findings of this study.

scholarly journals The Role of Political Connections on Family Firms’ Performance: Evidence from Indonesia

2019 ◽  
Vol 7 (4) ◽  
pp. 55 ◽  
Author(s):  
Iman Harymawan ◽  
Mohammad Nasih ◽  
Muhammad Madyan ◽  
Diarany Sucahyati
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Least Square ◽  
Political Connections ◽  
Family Ownership ◽  
Ols Regression ◽  
Ordinary Least Square ◽  
Relationship Of ◽  
The Relationship

The purpose of this study is to investigate the relationship of firms with family ownership and their performance in Indonesia and further examine on how political connections affect this relationship. This study used 933 samples from 413 companies listed on the Indonesia Stock Exchange (IDX) in the period between 2014 and 2016. Using ordinary least square (OLS) regression, the results shows that firms without family ownership (non-family firms) have better performance than firms with family ownership (family firms) in Indonesia. Furthermore, the findings also show that the performance of family firms significantly improve when the firms are affiliated with political connections. Our findings imply that establishing political connections in family firms will increase the performance of the firms.

Board independence and firm performance: evidence from Kuwait

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Firm Performance ◽  
Least Square ◽  
Independent Directors ◽  
Board Independence ◽  
Content Type ◽  
Listed Firms ◽  
Ordinary Least Square ◽  
Large Shareholders ◽  
The Relationship

Purpose This paper aims to reduce the knowledge gap by using a large sample and different regressions while controlling the endogeneity and causality issues. Design/methodology/approach This study used the ordinary least square (OLS) and two stage least squares (2SLS) regressions to control the endogeneity and causality problems; this estimation strategy allows for comparison of both estimates to identify any inconsistency and biases in the parameters. Findings General speaking, this study found that board independence negatively affected firm performance based on Tobin’s Q only and the relationship between the two variables ran from board independence to firm performance but not vice versa. Originality/value The current independent directors are not adding value to Kuwait’s listed firms. Some directors who represent large shareholders and the conflict between large shareholders and small shareholders could affect the role of independent directors in Kuwait. To best of the researchers’ knowledge, this study is the first to consider board independent after controlling the issues of endogeneity and causality in Kuwait; thus, the results could be useful for Kuwaiti firms, regulators and policymakers.

scholarly journals Boardroom gender diversity and intellectual capital efficiency: evidence from China

2017 ◽  
Vol 29 (4) ◽  
pp. 590-615 ◽  
Author(s):  
Muhammad Nadeem ◽  
Tracy-Anne De Silva ◽  
Christopher Gan ◽  
Rashid Zaman
Keyword(s):  
Intellectual Capital ◽  
Unobserved Heterogeneity ◽  
Gender Diversity ◽  
Value Added ◽  
Least Square ◽  
Method Of Moment ◽  
Corporate Structure ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship

Purpose This paper aims to investigate the relationship between boardroom gender diversity and intellectual capital (IC) efficiency in China – while the previous literature focuses only on traditional accounting-based performance measures such as return on assets or Tobin’s Q. Design/methodology/approach A well-developed Arrelano–Bond generalised method of moment (GMM) is applied to account for endogeneity – mainly because of simultaneity and unobserved heterogeneity. Moreover, this study uses an adjusted-value added intellectual coefficient (VAIC) model to measure the IC efficiency of 906 Chinese listed firms for 2010-2014. Findings The empirical analysis shows a significant relationship between gender diversity and IC efficiency, in static ordinary least square estimation, but this disappears when endogeneity is accounted for using dynamic GMM. This insignificant relationship remains consistent, even when two alternative proxies of gender diversity, i.e. the Blau index and the women dummy, are used. Practical implications This study provides some useful insights into the traditional Chinese corporate structure where females cannot use their powers to bring corporate changes in firms. The findings show that gender-related stereotypical attitudes continue to exist in China. The regulators, therefore, should look into strengthening gender related regulations – which are currently non-existent in China. Originality/value This is the first study of its kind to investigate the relationship between gender diversity and IC efficiency in China using the A-VAIC model and GMM to mitigate endogeneity.

Does family ownership affect the profitability of construction and real estate firms? Evidence from India

2020 ◽  
Vol 25 (1) ◽  
pp. 107-124
Author(s):  
Harish Kumar Singla
Keyword(s):  
Real Estate ◽  
Design Methodology ◽  
Family Firms ◽  
Stock Exchange ◽  
Family Ownership ◽  
Unequal Variance ◽  
Content Type ◽  
Agency Conflict ◽  
The Family ◽  
Firm Profitability

Purpose The study aims to find if family-owned construction and real estate firms in India are more profitable compared to non-family-owned construction and real estate firms. The study also examines if family ownership and institutional ownership are drivers of the firm profitability. Design/methodology/approach The study uses data of 199 construction and real estate firms listed on the National Stock Exchange (NSE), India. The data pertains to a period of 13 years (2006-2018). The family firm is defined on the basis on ownership criteria, and the sample is divided into two groups, namely, family firms and non-family firms. The data is analyzed using a two-sample t-test assuming unequal variance and Prais–Winsten panel regression using correlated panels with corrected standard errors (PCSEs) procedure. Findings The findings suggest that family-owned construction and real estate firms are slightly more profitable compared to non-family-owned construction and real estate firms; however, family firms command lesser valuation in the market. The reason for this lower valuation is the mismatch between family holding and institutional holding. A family firm’s profitability is primarily driven by institutional holding that acts as mitigation against the agency conflict. Originality/value The paper is the first attempt to analyze the profitability of construction and real estate family firms, and compare it with non-family-owned construction and real estate firms.

scholarly journals Market liquidity and capital structure: Does it really matter for Vietnam’s family ownership?

2021 ◽  
Author(s):  
Kien Son Nguyen ◽  
Van Thi Hong Nguyen ◽  
Hang Thu Le
Keyword(s):  
Capital Structure ◽  
Dynamic Structure ◽  
Market Liquidity ◽  
Family Ownership ◽  
Stock Liquidity ◽  
Listed Firms ◽  
The Family ◽  
Dual Class ◽  
The Relationship ◽  
Negative Link

Abstract This study analyzes the moderating effect of different kinds of family ownership on the relationship between market liquidity and capital structure. Using a new sample of 315 Vietnam listed firms for five years, we figured out a significant negative link between stock market liquidity and capital structure. However, it is well noted that there is an adverse reaction from family ownership where the higher the dual-class control and dynamic structure mechanism, the more control-enhancement the family ownership will be, which leads to a higher risk aversion regarding debt-bankruptcy. In this sense, corporate leverage had responded positively to an increase in stock liquidity in the case of family ownership intervention.

Does a second-generation returnee make the family firm more entrepreneurial?

2018 ◽  
Vol 12 (2) ◽  
pp. 287-304 ◽  
Author(s):  
Ying Fu ◽  
Steven Si
Keyword(s):  
Family Firms ◽  
Second Generation ◽  
Corporate Entrepreneurship ◽  
Family Ownership ◽  
Content Type ◽  
The Family ◽  
Impact On Family ◽  
Industry And Commerce ◽  
Short Time ◽  
The Relationship

Purpose This paper aims to focus on a special group of people in family firms in China, the second generation who are returnees, and to study their impact on family ownership and corporate entrepreneurship. Design/methodology/approach Survey data from China’s private enterprises in 2015 were used to test the hypotheses. Data were collected through a joint effort by the China Federation of Industry and Commerce and the School of Management of Zhejiang University. The authors used a stratified sampling method, and questionnaires were distributed to 12 provinces in East, Central and West China. Two sets of questionnaires were distributed and answered. Findings Compared with those family firms without second-generation returnees, the relationship between family ownership and corporate entrepreneurship is significantly enhanced in family firms that have second-generation returnees. Furthermore, compared with the second-generation returnees who stay overseas for a short time, returnees who stay overseas longer are more likely to promote corporate entrepreneurship. Originality/value This study explores the unique characteristics of second-generation returnees and explores these returnees’ impact on family ownership and corporate entrepreneurship in the Chinese context. This could generate a new value to the family entrepreneurship literature.

scholarly journals Earning quality in listed firms: How much an active family governance is desirable?

2012 ◽  
Vol 10 (1) ◽  
pp. 681-691 ◽  
Author(s):  
Riccardo Tiscini ◽  
Francesca di Donato
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Earnings Quality ◽  
Listed Firms ◽  
Family Governance ◽  
The Family ◽  
Governance Practices ◽  
Earning Quality ◽  
Italian Context ◽  
The Relationship

The study investigates the relationship between family involvement in the governance of Italian listed companies and earnings quality (EQ). Family firms set incentives to extract private benefits (‘entrenchment’ effect), but, they also contribute to higher alignment between owners and managers (‘alignment’ effect). The literature shows mixed results about the relationship between EQ and family firms. We argue that family involvement in the governance affects EQ. The empirical evidence shows that in the Italian context, there is higher EQ in case of higher family involvement in the board, but only if the CEO is not belonging to the controlling family. On the contrary, in case of a family CEO, the higher family involvement in the board increases his entrenchment, reducing EQ. The results are valuable because we find that EQ in family firms is affected both by family ownership and by the attitude of the family toward governance practices.

scholarly journals Ownership structure and market valuation of family groups in Chile

2006 ◽  
Vol 3 (2) ◽  
pp. 90-105 ◽  
Author(s):  
Fernando Lefort
Keyword(s):  
Ownership Structure ◽  
Market Valuation ◽  
Family Management ◽  
Family Ownership ◽  
Control Mechanisms ◽  
Corporate Structure ◽  
Listed Firms ◽  
And Control ◽  
The Relationship ◽  
A Company

In this paper I provide a summary description of corporate structure in Chilean firms and explain the evolution of conglomerates and capital markets in the Chilean economy. Specifically, I look at the control mechanisms and the identity of controllers of listed non-financial companies in Chile. Using a database developed by Lefort and Walker (2000, 2003b), I look at the relationship between family ownership and control and market valuation of listed firms in Chile. The evidence provided in this paper indicates that in the case of the highly concentrated Chilean companies, family management of a company is associated to a market discount. This evidence is consistent with the hypothesis of imperfect correlation of talent across generations. However, as I explained earlier in the paper, most Chilean groups have less than 30 years of existence and therefore, the succession problem is not likely to be very important in Chile

The Impact of Competitive Quasi-Market on Service Delivery in Benue State University, Makurdi Nigeria

GIS Business ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 85-98
Author(s):  
Idoko Peter
Keyword(s):  
Service Delivery ◽  
A Priori ◽  
Least Square ◽  
Secondary Source ◽  
State University ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

This research the impact of competitive quasi market on service delivery in Benue State University, Makurdi Nigeria. Both primary and secondary source of data and information were used for the study and questionnaire was used to extract information from the purposively selected respondents. The population for this study is one hundred and seventy three (173) administrative staff of Benue State University selected at random. The statistical tools employed was the classical ordinary least square (OLS) and the probability value of the estimates was used to tests hypotheses of the study. The result of the study indicates that a positive relationship exist between Competitive quasi marketing in Benue State University, Makurdi Nigeria (CQM) and Transparency in the service delivery (TRSP) and the relationship is statistically significant (p<0.05). Competitive quasi marketing (CQM) has a negative effect on Observe Competence in Benue State University, Makurdi Nigeria (OBCP) and the relationship is not statistically significant (p>0.05). Competitive quasi marketing (CQM) has a positive effect on Innovation in Benue State University, Makurdi Nigeria (INVO) and the relationship is statistically significant (p<0.05) and in line with a priori expectation. This means that a unit increases in Competitive quasi marketing (CQM) will result to a corresponding increase in innovation in Benue State University, Makurdi Nigeria (INVO) by a margin of 22.5%. It was concluded that government monopoly in the provision of certain types of services has greatly affected the quality of service experience in the institution. It was recommended among others that the stakeholders in the market has to be transparent so that the system will be productive to serve the society effectively

Family Firms, Social Responsibility, and Non-Family Member Employees Identification

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 10-19
Author(s):  
Ang Bao
Keyword(s):  
Resource Allocation ◽  
Social Responsibility ◽  
Family Member ◽  
Program Implementation ◽  
Social Identity Theory ◽  
Family Firms ◽  
The Family ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

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