Do Ownership Structure Characteristics Affect Italian Private Companies’ Propensity to Engage in the Practices of “Earnings Minimization” and “Earnings Change Minimization”?

Abstract This paper investigates empirically whether firm ownership structures contribute to varying levels of legal compliance, which ultimately influence the likelihood of winning a lawsuit. I hypothesize that private companies are more likely to lose employment lawsuits because the rule of law within the company is rarely established. Using collected 2756 employment judgments decided by district courts in Beijing between 2014 and 2018, I test this hypothesis against three other types of ownership structures in China: state-owned enterprises, wholly foreign-funded companies, and partly foreign-funded companies. The statistical result confirms that private companies are more likely to lose cases, thus supporting the proposed hypothesis. In addition, the company’s scale and the company’s life span also have a significant influence on the employment lawsuit result.

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How Do Politicians Capture a State? Evidence from State-Owned Enterprises

East European Politics and Societies and Cultures ◽

10.1177/0888325420953485 ◽

2020 ◽

pp. 088832542095348

Author(s):

Katarzyna Szarzec ◽

Bartosz Totleben ◽

Dawid Piątek

Keyword(s):

Corporate Governance ◽

Interest Group ◽

Ownership Structure ◽

Supervisory Board ◽

Board Members ◽

Private Companies ◽

Government Administration ◽

State Capture ◽

Supervisory Boards ◽

The Government

This article discusses political state capture in the context of party patronage. Evidence of this is delivered from state-owned enterprises (SOEs) and the rotations of members of their management and supervisory boards. In this case, it is deemed that an interest group, which consists of politicians and representatives in the government administration, decides about the appointment and dismissal of board members through the corporate governance of SOEs and ownership policy of the state. We analyzed the scale and intensity of rotations in Poland of about twelve thousand joint-stock companies in the years 2001–2017 according to their ownership structure. We show that changes of managers and supervisory board members in state-owned enterprises are higher than in private companies and are related to political elections. We estimated that on average three months after a new government is formed, a peak of changes in the composition of boards is observed, though they are earlier in the case of a supervisory board. We conclude that this can be regarded as an example of state capture by politicians.

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EFFECT OF OWNERSHIP STRUCTURE TO DIVIDEND POLICY IN COMPANIES IN INDONESIA

Business and Entrepreneurial Review ◽

10.25105/ber.v13i2.1849 ◽

2017 ◽

Vol 13 (2) ◽

pp. 199

Author(s):

Farah Margaretha

Keyword(s):

Ownership Structure ◽

Stock Exchange ◽

Payout Policy ◽

Family Ownership ◽

Private Ownership ◽

Government Ownership ◽

Private Companies ◽

Dividend Payout ◽

Ownership Structures ◽

Study Results

The purpose of this study is to analyze the effect of ownership structure on dividend payout policy in companies listed in Indonesia Stock Exchange. In this study, there are 4 kinds of ownership structures that will be discussed, namely private ownership structure, government ownership structure, foreign ownerships structure and family ownership structure. Dividend payout policy uses DividndPayout Ratio (DPR) indicator Population of this study is all the companies listed in Indonesia Stock Exchange (IDX) 009-2011. Total samples in this study are 85 companies listed in Indonesia Stock Exchange determined by purposive sampling. Based on the study results, from the four ownership structures, only the private ownership structure influence Parliament. The implication for investors in doing this research, the investor can choose the private ownership structure of companies. for financial managers, this study provides information specifically on private companies that one way the companies reduce the agency problem could use dividend payout policy

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

Corporate Ownership and Control ◽

10.22495/cocv13i2p10 ◽

2016 ◽

Vol 13 (2) ◽

pp. 93-100 ◽

Cited By ~ 2

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.

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OWNERSHIP STRUCTURE OF FAMILY BUSINESS GROUPS

Revista Visão Gestão Organizacional ◽

10.33362/visao.v9i2.2470 ◽

2020 ◽

Vol 9 (2) ◽

pp. 240-253

Author(s):

Wlamir Xavier ◽

Silvio Parodi Camilo ◽

Rosilene Marcon ◽

Frederick Greene

Keyword(s):

Family Business ◽

Ownership Structure ◽

Institutional Environment ◽

Business Groups ◽

Organizational Structures ◽

Institutional Reforms ◽

Private Companies ◽

Family Business Groups ◽

Trade Perspective ◽

The Relationship

This study seeks to analyze the relationship between the ownership structure of Family Business Groups and the institutional environment. Family Business Groups prevail in emerging countries as diverse organizational structures that aggregate various companies under the control of a family or a reduced number of people. This economically relevant structure is responsible for a significant share of countries' Gross Domestic Product and frequently congregates the largest private companies in their respective countries. Institutional reforms have been implemented in emerging economies in order to support the integration of other nations from a trade perspective. This paper contributes to the literature by developing propositions on the effect of institutional reforms on the ownership structure of Family Business Groups.

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State-owned enterprisesin the Russian market: Ownership structure and their role in the economy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2016-12-61-87 ◽

2016 ◽

pp. 61-87 ◽

Cited By ~ 2

Author(s):

A. Abramov ◽

A. Radygin ◽

M. Chernova

Keyword(s):

Ownership Structure ◽

State Ownership ◽

Distinct Advantage ◽

State Control ◽

Stock Selection ◽

Private Companies ◽

Russian Economy ◽

Indirect Control ◽

State Participation ◽

Russian Stock Market

This article analyzes the ownership structure of companies with state participation and their role in the Russian economy. Using a sample of 114 largest companies we have estimated direct and indirect state participation as percentage of shareholdings which are in direct and indirect federal property in 2006-2014. We have used two methods for estimating the role of state-owned enterprises (SOEs), which allowed us to compare our results with those of OECD and Rosstat statistics for the broader sample of Russian companies in the public sector. This article reveals the decline of SOEs’ share in the capitalization of the Russian stock market as well as a slight increase of their share in total revenue and employment. The results show that public SOEs, demonstrate significantly higher productivity compared to non-public SOEs and private companies have a distinct advantage in productivity compared with public SOEs. Despite the significant advantages in productivity of private companies over the SOEs, over 9-year period we observed a reduction of this gap. This may be due to the fact that in conditions of high financial volatility and stagnation of the economy SOEs had certain advantages in terms of access to sources of long-term funding and other forms of state support. However, SOEs with indirect state control had a rapid growth in revenue and productivity in comparison with the rest of them. This may indicate the presence of a specific stock selection mechanism for transferring more effective SOEs from direct state ownership to indirect control as an alternative to privatization.

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Does ownership structure matter? Evidence from Malaysian equity market

Corporate Ownership and Control ◽

10.22495/cocv4i1p6 ◽

2006 ◽

Vol 4 (1) ◽

pp. 77-90 ◽

Cited By ~ 7

Author(s):

Ei Yet Chu ◽

Kooi Guan Cheah

Keyword(s):

Asymmetric Information ◽

Ownership Structure ◽

Stock Exchange ◽

Governance Structure ◽

Equity Market ◽

Three Dimensions ◽

Ownership Concentration ◽

Agency Conflicts ◽

Kuala Lumpur ◽

Structure Characteristics

The paper examines the determinants of ownership structure characteristics of the 147 firms listed on main board of the Kuala Lumpur Stock Exchange (KLSE). Three dimensions of governance issues in firm theory:- asymmetric information, agency conflicts and risk as discussed in Putterman (1993) are used to assess the effects of ownership concentration. Ownership concentration is divided into dispersed, dominant minority, and majority controlled firms, while ownership identities are classified as family controlled, conglomerate, others institution, state, foreign and dispersed firms in explaining the above determinants of firm’s ownership. With the exception of leverage and year effects, we prove that ownership structure is able to extract cost and benefits from governance structure. We further provide evidence that ownership identities influence asymmetric information and risk

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Wpływ procesów transformacji na rozwój małych firm prywatnych w Polsce

Przedsiębiorczość - Edukacja ◽

10.24917/20833296.2.6 ◽

2006 ◽

Vol 2 ◽

pp. 55-64

Author(s):

Wioletta Kamińska

Keyword(s):

Spatial Structure ◽

Ownership Structure ◽

National Economy ◽

Social Economic ◽

Small Companies ◽

Private Companies ◽

Market Growth ◽

Socioeconomic System ◽

Business Entities ◽

Transformation Period

The transformation of socioeconomic system in Poland started at the end of eighties of the 20th century. Already existing political, social, economic and regional structures in the course of this process had changed. Changes in size and ownership structure of the business entities had been particularly extensive, what resulted in dynamic development of small companies and their significant market growth in the structure of the employed in the national economy from: 7,9% in the year 1988, to 23,8% in 2004. The process of changes in size and the ownership structure of the business entities had taken place upon various intensity of the time and place. The goal of this article is to answer the following questions:. 1. What are the regularities of development and transformation of spatial structure of small companies in the period of transformation in Poland?. 2. What are the regularities of transformation of genre structure of small private companies during the transformation period in Poland?. 3. What are the factors that influence upon the development of small private companies during the transformation period in Poland?.

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The Ownership Structure of Corporations: Political Connections from the Resource Dependence Perspective – A Theorical Essay

Revista Ibero-Americana de Estratégia ◽

10.5585/ijsm.v10i3.1791 ◽

2011 ◽

Vol 10 (3) ◽

pp. 126-146

Author(s):

Nathanael Kusch Brey ◽

Silvio Parodi Oliveira Camilo ◽

Rosilene Marcon ◽

Anete Alberton

Keyword(s):

Ownership Structure ◽

Resource Dependence ◽

Political Connections ◽

Private Companies ◽

Political Interference ◽

The Government ◽

Resource Dependence Perspective ◽

A Company

After the 90s, which heralded the era of privatization in Brazil, the government became a shareholder in various private companies. Government participation can interfere in the objectives, strategies and ultimately in the performance and survival of corporations. This paper aims to discuss this phenomenon and the importance of political connections in terms of ownership structure for an organization's survival. The objectives of governments as owners tend to conflict with those of other shareholders, because their goals tend to have more of a social and political element, which can lead to organizational deficiency in the performance of the company. One may come to believe that when a company has the government as a shareholder, its survival is ensured, as suggested by the theory of resource dependence, but this participation may in fact negatively affect the company's performance due to government objectives. This work proposes a way to mitigate the problem while ensuring the benefits of this connection with the government by reducing the stake of government in companies to minimum levels, which would reduce the risk of political interference.

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How Do Italian Private Companies Respond to a Reduction in the Corporate Standard Tax Rate? A Focus on the Ownership Gender Diversity Effect

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v9i4.15692 ◽

2019 ◽

Vol 9 (4) ◽

pp. 205

Author(s):

Simone Poli

Keyword(s):

Earnings Management ◽

Ownership Structure ◽

Management Practices ◽

Gender Diversity ◽

Fiscal Year ◽

Knowledge Gap ◽

Private Companies ◽

Tax Rate ◽

Diversity Effect ◽

The World

Cuts in the corporate standard tax rate can encourage companies to manage their earnings in order to save on taxes by shifting earnings from the fiscal year in which it is higher to the fiscal year in which it is lower. This phenomenon has been very little explored for private companies, despite their importance in many countries around the world. Moreover, no previous study has verified whether certain features of private companies’ ownership structure may affect the aforementioned phenomenon. In order to contribute to filling this knowledge gap, this study aims to verify whether the gender of the owners has any impact. Focusing on Italian private companies, this study shows that they responded to the cut in the corporate standard tax rate that came into force in fiscal year 2017 by putting in place earnings management practices that shifted profits from FY 2016 to FY 2017. At the same time, it shows that the gender of owners has not had any impact on the phenomenon; in other words, Italian female-owned and male-owned private companies do not behave in statistically different ways.

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