scholarly journals The Role of Corporate Diversification, Capital Structure Determinant, And Structure of Ownership on Earning Management with Information Asymmetry as Moderating Variable

2019 ◽  
Keyword(s):  
Capital Structure ◽  
Information Asymmetry ◽  
Earning Management ◽  
Corporate Diversification

scholarly journals Effect of Ownership Structure on Corporate Diversification of Listed Firms in Kenya

2019 ◽  
Vol 2 (5) ◽  
pp. 29-46
Author(s):  
Peninah Jepkogei Tanui ◽  
Josephat Cheboi Yegon ◽  
Ronald Bonuke
Keyword(s):  
Capital Structure ◽  
Institutional Ownership ◽  
Target Population ◽  
Foreign Ownership ◽  
Moderating Effect ◽  
Corporate Diversification ◽  
Listed Firms ◽  
Low Levels ◽  
The Relationship

Purpose - This paper aimed to examine the moderating role of capital structure in the relationship between institutional and foreign ownerships on corporate diversification of listed firms at the Nairobi Securities Exchange, Kenya. Design/Methodology - The target population comprised of all the 65 listed firms at Nairobi Securities Exchange in Kenya. However, the inclusion criteria were based on all firms listed at the NSE from 2003 to 2017. Findings - Capital structure significantly moderated the relationship between institutional ownership and corporate diversification. However, there was a statistically insignificant moderating effect of capital structure in the relationship between foreign ownership and corporate diversification. Practical Implications - As to increase diversification, listed firms are suggested to have low levels of capital structure and institutional ownership. Furthermore, low levels of foreign ownership and high capital structure is vital in attaining high diversification levels. Originality - The study contribution is the moderating effect of capital structure in institutional ownership - corporate diversification linkage.

Implementasi Asas Keterbukaan pada Pengadaan Tanah bagi Pembangunan untuk Kepentingan Umum: Antara Harapan dan Kenyataan

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Priyo Katon Prasetyo ◽  
Rosye Villanova Christine ◽  
Sudibyanung Sudibyanung
Keyword(s):  
Information Asymmetry ◽  
Case Studies ◽  
Public Interest ◽  
Economic Inequality ◽  
Land Acquisition ◽  
The Public ◽  
Land Scarcity ◽  
Library Research ◽  
Role Of Information

Abstract: Based on Law Number 2 of 2012 concerning Land Acquisition for Development in the Public Interest, the Openness Principle is one of the ten principles as the basis of the implementation of development. This principle is significant because its complex role can lead to conflicts and disputes. In this paper, discussions are divided into two parts: 1) how the implementation is expected to be applied according to the acquisition procedure in theory; and 2) the reality that occurs in the field. The first discussion was conducted by reviewing the applicable regulations and the methods or concepts of development of the openness principle. Meanwhile, the second discussion about the reality on the field was conducted by elaborating case studies regarding problems in land acquisition. The results of this study indicate that there are gaps in the implementation of the openness principle between theory and reality in regards of land scarcity, economic inequality, and information asymmetry among the involved parties. In conclusion, the implementation of the openness principle is significant with the role of information in land acquisition.Intisari: Berdasarkan Undang Undang Nomor 2 Tahun 2012 tentang Pengadaan Tanah Bagi Pembangunan Untuk Kepentingan Umum, Asas Keterbukaan adalah salah satu dari sepuluh asas yang menjadi dasar pelaksanaannya. Asas ini menjadi signifikan karena perannya yang kompleks dapat menimbulkan konflik dan sengketa. Artikel ini akan membagi pembahasan menjadi dua bagian: pertama, bagaimana implementasi yang seharusnya diterapkan pada prosedur pengadaan secara harapan, dan kedua, membahas mengenai realita yang terjadi di lapangan. Secara harapan pembahasan dilakukan dengan melakukan library research atau studi terhadap peraturan yang berlaku dan metode-metode atau prinsip perkembangan dari asas keterbukaan. Realitas di lapangan akan dielaborasi dari studi kasus mengenai permasalahan dalam pengadaan tanah. Hasil dari penelitian ini menunjukkan ada gap dalam implementasi asas keterbukaan antara harapan dan realitas di lapangan yang bersumber dari kelangkaan sumber daya/tanah, ketimpangan ekonomi dan asimetri informasi di antara para pihak yang terlibat. Tulisan ini menyimpulkan bahwa implementasi asas keterbukaan signifikan dengan peran informasi dalam pengadaan tanah. 

scholarly journals Institutional quality and the capital structure of microfinance institutions: the moderating role of board gender diversity

2021 ◽  
pp. 1-21
Author(s):  
Michael Adusei ◽  
Beatrice Sarpong-Danquah
Keyword(s):  
Capital Structure ◽  
Institutional Environment ◽  
Gender Diversity ◽  
Institutional Quality ◽  
Microfinance Institutions ◽  
Female Representation ◽  
Long Run ◽  
Board Gender Diversity ◽  
The Relationship

Abstract We test the effect of institutional quality on capital structure in the microfinance setting. In doing this, we rely on data from 532 microfinance institutions (MFIs) located in 73 countries dotted across the six microfinance regions in the world. We observe that institutional quality exhibits a robust negative and statistically significant relationship with capital structure in both the short and long run, implying that MFIs in countries with a better institutional environment are less likely to utilize more debt. Our moderation analysis furnishes us with evidence that the presence of women on the board of an MFI significantly moderates the relationship between institutional quality and its capital structure. We show that in the presence of more female representation on the boards of MFIs, the tendency of MFIs using less debt is higher.

Do corporate diversification and earnings management practices affect capital structure?

2015 ◽  
Vol 7 (4) ◽  
pp. 360-378 ◽  
Author(s):  
Ranjitha Ajay ◽  
R Madhumathi
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Management Practices ◽  
Negative Relationship ◽  
Corporate Diversification ◽  
Content Type ◽  
Diversification Strategies ◽  
Market Product ◽  
Diversified Firms ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the impact of earnings management on capital structure across firm diversification strategies. Design/methodology/approach – The study focuses on firms operating in the manufacturing sector (diversified and focused). Panel data methodology compares diversification strategies and identifies the impact of diversification strategy with earnings management practices on capital structure decision. Findings – International and product diversified firms have lower levels of leverage than focused firms in their capital structure. Asset-based earnings management is positive for diversified (market/product) firms. Earnings management using discretionary expenditure (project based) is found to be higher for market diversified but product-focused firms. Earning smoothing method is found to be significant for focused firms and shows a negative relationship with capital structure. Originality/value – This study offers an insight into the relationship between corporate diversification, earnings management and capital structure decisions of manufacturing firms. The results provide an important contribution to accounting and strategy literature. A distinction is made between market- and product-diversified firms and influence of earnings management practices (asset-based, project-based and earnings smoothing (ESM)) on capital structure decisions. Diversified firms (market/product) tend to have lower levels of leverage than focused firms and earnings management practices within firm groups significantly influence the capital structure decisions.

Does Financial Reporting Conservatism Mitigate Underinvestment?

2017 ◽  
Vol 34 (2) ◽  
pp. 258-283 ◽  
Author(s):  
Hyun A. Hong ◽  
Yongtae Kim ◽  
Gerald J. Lobo
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Financial Reporting ◽  
Cash Flows ◽  
Agency Conflicts ◽  
Negative Relation ◽  
Investment Projects ◽  
External Capital ◽  
Cash Flow Volatility

This study examines the role of financial reporting conservatism in mitigating underinvestment problems. Recognizing that volatile cash flows increase the need to access external capital markets and that agency conflicts and information asymmetry make external capital costlier than internal capital, which leads managers to forgo valuable investment projects, Minton and Schrand document a negative relation between cash flow volatility and investment. We draw on Minton and Schrand’s framework to isolate underinvestment problems and hypothesize and document that conservatism mitigates the negative relation between cash flow volatility and investment and that this mitigative effect is more pronounced for firms with ex ante more severe agency conflicts. We also document that conservatism mitigates the sensitivity of investment to cash flow volatility by facilitating access to external capital.

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