2584 article(s) in Corporate Ownership and Control

Determinants Of Financial Instruments Risk Disclosure: An Empirical Analysis In The Banking Sector

this study investigates the effects of firm and country factors, considered as determinants of the financial instruments risk disclosure (fird) proxied by ifrs 7 in the european banking system. we select 582 banks-year observations based on the largest five european economies (france, germany, italy, spain and the uk) as provided by the international monetary fund (imf). our analysis covers a period of 8 years (2007-2014) and adopts an ols model. results show that both firm (the type of auditor, board size and profitability) and country factors (financing environment, regulatory environment, and organizational status) affect fird. limitations for this paper could relate to country selection, as well as on the breadth of the sample. nevertheless, these aspects could unveil possible areas of future inquiry. the contribution of the study is twofold. it enriches the literature about firm and country determinants on financial instruments risk disclosure, as combined rather than single-standing variables. yet, it draws the attention of banks’ management and investors on what the crucial factors to reach an optimal level of fird are and gain the confidence of capital markets, reducing information asymmetries. this is the first empirical investigation on the determinants of fird, using ifrs 7, in the european banking sector that adopts firm and country factors in a combined effort Show More ... ... Show Less

  • Financial Instruments
  • Risk Disclosure
  • Country Factors
  • Banking Sector
  • European Banking
Integrated Sustainable Performance Management Systems: A Case Study On Italian Benefit Corporations

today, to integrate sustainable development goals into business, an overall integrated sustainable performance management system — to implement and measure these global goals — is needed. in a short timeframe, the benefit impact assessment (bia) — elaborated by b lab, utilized by benefit corporations (a new and emerging hybrid type of prosocial business) and adopted by the united nations — became the most comprehensive indicator to evaluate company practices against sdgs. italy was the first sovereign country to insert the benefit corporation legislation after the us and analyze the effectiveness of the bia. this prompted us to address our attention to the integration of benefit-driven indicators, adopted by italian b corps into their performance management systems, and to analyze if these indicators are used by managers to support internal decision-making. to achieve this goal, cross-sector semi-structured interviews were conducted in seven italian certified benefit corporations. relevant to both researchers and practitioners, our review provides a useful snapshot of how the bia is developing as an assessment and how value-based organizations are moving toward an integrated sustainable performance management system Show More ... ... Show Less

  • Performance Management
  • Sustainable Performance
  • Benefit Corporations
  • Management Systems
Impact Of Ownership Concentration, Institutional Ownership And Earnings Management On Stock Market Liquidity

ownership structure plays a vital role in stock market liquidity. we analyze the impact of ownership concentration, institutional ownership and earnings management on stock market liquidity. we select 114 firms from manufacturing sector of pakistan, india, australia and singapore. we extract data from datastream from 2010 to 2018 of selected countries. we apply generalized method of moments (gmm) to analyze the data. we find that ownership concentration, institutional ownership and earnings management significantly affect the stock market liquidity Show More ... ... Show Less

  • Stock Market Liquidity
  • Earnings Management
  • Ownership Concentration
The Impact Of Board Diversity On Firm Performance – The Case Of Germany

numerous mergers and acquisitions, and the rise of mncs with global customer bases have exposed the german board of directors to a variety of cultures. despite the obvious relevance for corporate governance, the effect that cultural diversity of boards exerts on firm performance, germany has been a blank spot in this literature. using a sample of 101 german publicly listed companies, this empirical study answers if the level of cultural variety and cultural distance in boards of directors have an influence on firm performance. the results of this study indicate that cultural variety in boards of directors has a linear, negative influence on operational firm performance (as measured by roi and roe). this reinforces the fundamental assertion that executives’ cultural values shape their mindsets and orientations, and thus influence their decision-making. the results of this study, therefore, indicate that cultural diversity is an important diversity dimension that further on should be given careful consideration in research. based on the findings, we argue against the blindfold implementation of (political) regulations in the area of board diversity Show More ... ... Show Less

  • Firm Performance
  • Cultural Diversity
  • Boards Of Directors
  • Board Diversity
  • Blank Spot
Women On Bank Boards And Risk-Taking: A Cross-Countries Analysis On The Moderating Role Of Masculinity

this study examines the effects of board gender diversity on a bank’s risk by applying a moderate multiple regression analysis on a dataset covering the years 2008-2017 and comprising 110 banks from germany, italy, spain, and switzerland. masculinity, a country-level cultural dimension incorporating the behavioural expectations surrounding men and women in a society, is used as a moderator. results suggest that high country-level masculinity stresses the risk-aversion of a bank’s women directors, therefore compromising financial performance. to mitigate the negative effects of high country-level masculinity, this paper provides several suggestions. first, banks should change their stereotypical depiction of the “ideal worker”. second, banks should question the cultural motives underpinning the entrance of women directors in the “boy’s club”. last, banks should create a more egalitarian workplace where the distribution of rewards does not strengthen the privileges of the established elites Show More ... ... Show Less

  • Country Level
  • Women Directors
  • Moderating Role
  • The Ideal
Impacts Of Ownership Structure On The Financial Performance Of Conventional And Islamic Banks In The Agency Theory Context

according to the literature review, the analysis results of the impact of ownership structure (os) quality on financial performance (fp) within conventional and islamic financial institutions are contradictory. in our study, we performed a fine differential analysis aimed at resolving this ambiguity. the financial performance and ownership structure variables of conventional and islamic banks were collected from 16 countries located in three continents: europe, asia, and africa. two samples were collected that each of them is composed of 63 banks. by using the ols method, these panel data were compared to the impact of ownership structure on the financial performance between both types of banks in the agency theory framework during the period 2010-2018, giving us 567 bank-year observations in each sub-sample. results revealed that the ownership structure of conventional banks (cbs) has had an explained ambiguous impact on its financial performance, whereas that of islamic banks (ibs) has a positive effect. overall, the impacts of the chief executive officer (ceo) shareholding and the board’s chairman shareholding are more significant on the financial performance of conventional banks than those of impacts related to islamic banks Show More ... ... Show Less

  • Financial Performance
  • Ownership Structure
  • Conventional And Islamic Banks
  • The Impact
Determinants Of Audit Fees In Developing Countries: Evidence From Egypt

the aim of this study is to examine the perceived level of importance with respect to each pre-suggested determinant of audit fees in egypt. in particular, the perceptions about auditor related attributes and client-related attributes according to external auditors and client’s representatives (auditee). this study is based on the results of a survey conducted in egypt. a questionnaire is designed to request the opinions of external auditors and client representatives about 28 audit fees determinant. the questionnaire was sent to 150 participants out of whom 63 responses are found usable. data is analyzed using spss program and mann-whitney u test is performed. the results reveal that the perception of all attributes is greater than 3, implying that all pre-suggested determinants are perceived as relatively important, important or highly important. the most three important attributes are: the good reputation of the audit firm, the fact of being one of the big four and the level of complexity of the auditee. furthermore, the results show that there is no significant difference in perceptions of both group of participants regarding the importance of each audit fees determinant. it is also evident that auditor-related attributes are perceived to be of higher importance than client-related attributes. this is the first study conducted in egypt examining the determinants of audit fees, knowing that audit fees figures are neither available nor publically disclosed. moreover, the study takes into account the egyptian revolution which started in 2011 by adding two new determinants to the questionnaire; economic and political stability. this is in order to cope with the country’s situation and to check the extent of such environmental attributes’ effect on audit pricing Show More ... ... Show Less

  • Audit Fees
  • External Auditors
  • Developing Countries
  • Political Stability
  • Significant Difference
The Effect Of Financial Performance And Corporate Governance To Stock Price In Non-Bank Financial Industry

indonesia’s financial sector is highly dominated by the banking industry than the non-bank. it controlled almost 74% of indonesia’s financial assets in 2014. after post-crisis restructuration, the banking sector has become stronger, with a higher capital adequacy ratio and profitability. while, the non-bank financial industry is expected to solve the problems in the indonesian economy, as well as becoming one of the long-term economic instruments. the purpose of this study is to test and analyse the effect of financial performance and the implementation of corporate governance on the non-bank financial industry stock prices on the indonesia stock exchange in 2012-1016. the research population includes the non-bank financial industry listed in idx, as many as 37 companies. this study found the probability, managerial ownership, institutional ownership and the composition of the independent commissioner partially and simultaneously does not significantly influence the stock price of the non-bank financial industry Show More ... ... Show Less

  • Financial Industry
  • Corporate Governance
  • Financial Performance
  • Stock Price
  • Long Term
Equity Incentives, Earnings Management And Corporate Governance: Empirical Evidence Using UK Panel Data

using a uk panel data set drawn from 1675 chief executive officer (ceo) year observations and 1540 chief financial officer (cfo) year observations, we examine the relationship between ceo and cfo equity incentives and earnings management. in addition, we examine the moderation effect of corporate governance mechanisms on the relationship between executives’ equity incentives and earnings management. we use multivariate regression models to test our hypotheses. we find that ceo equity incentives are related to higher absolute and income increasing earnings management. these results support the managerial power theory argument that ceos exploit equity-linked compensation to obtain more personal benefits without causing public anger. contrary to ceo equity incentives, we could not find any significant relationship between cfo equity incentives and any of the earnings management proxies. in addition, we find that corporate governance quality (measured by individual mechanisms and overall index) has no effect on the relationship between executives’ equity incentives and earnings management. this result indicates that whereas some corporate governance mechanisms can reduce earnings management in general, they do not affect wealth driven incentives to manipulate accruals. in total, results question the effectiveness of the corporate governance system in mitigating opportunistic behavior motivated by executives’ compensation structures Show More ... ... Show Less

  • Earnings Management
  • Equity Incentives
  • Corporate Governance
  • The Relationship
  • Panel Data
Founder Succession And Firm Performance In The Luxury Industry

top management succession may be a real threat to the long-term profitability of companies, in particular when it involves the founder whose name also identifies their brand and their products. this is extremely important in the luxury sector where loyalty, trust and the image of brands in consumers’ minds may be affected by the succession process, especially when the founder has no direct heir to ensure continuity of the family firm. through an analysis of three case studies, as well as a questionnaire distributed to active consumers of luxury products, this study aims to understand whether and how a brand can successfully survive after the death of its founder and whether the purchasing behaviour of customers changes after a founder succession takes place. our findings reveal that the lack of a clear and structured succession plan may significantly threaten the survival of companies. in addition, our evidence indicates that the purchasing intention of luxury consumers is linked more to the bond and the values that they share with the founder than to the quality of the goods purchased. accordingly, our results provide insights and suggestions concerning the optimal approach to follow when companies with heirless founders are planning a succession and highlights that the success and the survival of such entities is linked to consumers’ perceptions of the extent to which there are continuity and alignment between the values of the founder and those of their successors Show More ... ... Show Less

  • The Family
  • Management Succession
  • Succession Process
  • Purchasing Behaviour
  • Optimal Approach
Measuring Cultural Dimensions For Cross-Cultural Management: Corporate Governance Outlook

the unobservable nature of the national culture is one of the main limits of research studying the impact of values systems’ in management sciences. this is why we aim in this study to identify a measure to three cultural dimensions namely, individualism (ind), masculinity (masc) and long-term orientation (lto). our methodology is based on structural equation modeling (sem) under lisrel approach, where latent variables are economic and demographic characteristics. findings for the cross-national study over a period of 7 years including tunisia, france, and canada show that ecological indicators are able to determine studied cultural dimensions. however, due to the dynamic character of culture, some studied indicators are no longer the same as identified in prior studies Show More ... ... Show Less

  • Cultural Dimensions
  • Corporate Governance
  • Structural Equation Modeling
  • Cross National
  • The Impact
A Theoretical Approach To Auditor Independence And Audit Quality

auditor independence and the quality of audit report is of growing concern to regulators, institutional investors and stakeholders as a series of accounting scandals have undermined the professionalism of auditors. the findings from this study produced an insight of how auditor’s independence improve audit quality and that abnormal audit fees is as a result of additional effort for auditor to carry out rigorous audit engagement as a result of wider audit scope; that mandatory audit firm rotation will enhance auditor independence, and that audit committee with nonexecutive independence will promote audit quality. the study also finds that in terms of auditor size, smaller audit firms that belong to professional bodies will provide higher audit quality. the main conclusion of this research is that where an auditor is fully independent in carrying out audit engagement with strong resistance to fees pressure will enhance audit quality. this research provides insight into the impact of ifrs adoption on audit fees Show More ... ... Show Less

  • Audit Quality
  • Auditor Independence
  • Audit Fees
  • Ifrs Adoption
  • Insight Into
Shareholder Composition, Corporate Governance And Their Monitoring Effects On Firm Performance

the main goal of the paper is to understand if the shareholder composition must be considered as a part of the corporate governance framework or as a monitoring factor, only. a related goal of the paper is to investigate if the shareholder composition is part of the loop connecting corporate governance and corporate performance. we analyze a sample made of 10,520 firms over the years 2006-2015, in 8 european countries having very differentiated governance frameworks, shareholder composition and corporate performance. the paper gives new insights to the current debate on the relations between governance and performance as well as the one on the components of the corporate governance framework. according to our evidence, governance contributes to corporate value by reducing agency in funding, rather than having an impact over returns. moreover, we give evidence that corporate governance should be considered as a tool contributing to the efficacy of monitoring capabilities of the shareholder composition of equity, but no clear evidence is about the composition of equity to be considered as part of the corporate governance framework Show More ... ... Show Less

  • Corporate Governance
  • Governance Framework
  • Corporate Performance
  • Firm Performance
  • Current Debate
Ownership Strategy: A Governance Mechanism For Collective Action And Responsible Ownership

a new strand of corporate governance literature on ownership is developing the next generation of the concept of active ownership: responsible ownership. this paper aims to contribute to this strand of literature by addressing an inchoate element of responsible ownership: collective action by owners. we introduce an ownership strategy as a governance mechanism for collective action and responsible ownership and ask how an ownership strategy improves corporate governance. using data from semi-structured interviews with owner representatives, board members, and non-executive insiders, together with observation and documentary analysis, we find support for the theoretical construction and an answer to the research question. specifically, we find that the ownership strategy functions as a collaboration pact, which cultivates long-termism, and that the outcome is improved agency, i.e. that both the relationship between owners and directors and between directors and management is improved due to better alignment. the findings indicate that an ownership strategy establishes a much-needed long-term focus and commitment of owners while creating a sense of security and understanding among the members of the board of directors, i.e. that they are working with the will of their owners. as such, it suggests new avenues of research for corporate governance literature Show More ... ... Show Less

  • Ownership Strategy
  • Responsible Ownership
  • Corporate Governance
  • Collective Action
  • Governance Mechanism
Corporate Failure: Bankruptcy Prediction For Italian Smes Based On A Longitudinal Case Study From 2000 To 2011

we investigate the case of small-medium enterprises (smes) in italy trying to understand if key performance indicators obtained from the financial statement are able to predict possible distress in a company with enough time to take some corrective actions. in order to test the hypotheses, a nonparametric supervised classification algorithm has been applied to a random sample of 100 non-listed smes, considering 50 companies that filed for bankruptcy during the period 2000-2011 and 50 companies still active on the market at the end of 2011. results describe the italian picture for smes during an economic crisis period. they show that, for the italian case, it is possible to predict with enough time (4-5 years prior to failure) a distress situation in a firm through classification methods. anyway, these methods are not predicting the health of a company but the possibility of the firm to access the credit system. the results are limited to the italian smes context which is quite particular if compared with other countries in europe. the dataset is limited in size but has been chosen to be representative of non-listed italian companies Show More ... ... Show Less

  • A Company
  • Case Study
  • Random Sample
  • Economic Crisis
  • Supervised Classification
The Effectiveness Of Governance Mechanisms In Emerging Markets: A Review

corporate governance has advanced hugely in the last two decades and many governance best practices have emerged that focuses on measures companies should take in order to improve their governance. these suggested mechanisms are effective in developed markets because they are a remedy for problems that occur in those markets. but are these mechanisms also effective in emerging markets? by reviewing the literature, this paper critically discusses and compares the effectiveness of governance mechanisms (both internal and external) in emerging and developed markets and finds that while the classic mechanisms such as board structure and independence are not effective in emerging markets, there exist some alternative mechanisms such as external audit or dividend policy that are more effective Show More ... ... Show Less

  • Emerging Markets
  • Governance Mechanisms
  • Developed Markets
  • Corporate Governance
  • Best Practices
Accounting And Smart Cities: New Evidence For Governmentality And Politics

the concept of a smart city has attracted the attention of many scholars and policymakers in many countries worldwide. the role of accounting as a tool of governance in smart city politics, however, has so far been largely overlooked, especially in less developed countries (ldcs). this paper sets off to fill this research gap and hitherto unexplored linkages between accounting and smart cities. drawing on the concept of governmentality, the authors conducted a case study based on document analysis, meetings observation, and 42 semi-structured interviews at a branch of a hybrid electricity company owned by new cairo city in egypt, during 2018. findings show that the case company has implemented smart distribution networks of electricity in which new management accounting technology (enterprise resource planning (erp) system) is used to trace costs, revenues, client complaints and feedback in a timely manner. the new network (of infrastructure and technologies) has represented timely accounting information as a major political power to influence accurate governance decision-making, such as smart electricity pricing and control, and to challenge governance decisions that are not sound. this paper is one of the first studies to explore the socio-political dynamics of accounting in smart city governance in the context of ldcs Show More ... ... Show Less

  • Smart City
  • Smart Cities
  • Political Dynamics
  • Research Gap
The Impact Of Artificial Intelligence On Corporate Control

this paper investigates the relationship between artificial intelligence (ai) and corporate control in the united arab emirates (uae) emerging market. an explanatory study was conducted using the deductive research approach. the nonprobability purposive sampling technique was implemented to select 10 highly experienced interviewees. in-depth primary data was collected through semi-structured interviews during 2019. qualitative content analysis was used to test the study hypotheses. empirical results show a significant positive impact of ai on firm performance, the auditing process and accounting information systems. more specifically, ai intervention increases firm productivity, creates new jobs and speeds up work processes. however, current ai technology is less likely to redefine auditing roles and still insufficient for developing accounting information systems. human integration with ai systems will lead to more efficient results. this paper increases our understanding of how ai techniques can improve corporate control practices and the importance of selecting appropriate accounting professionals to decrease ai operation risks Show More ... ... Show Less

  • Corporate Control
  • Artificial Intelligence
  • Accounting Information Systems
Editorial: An Empirical Contribution To Corporate Governance Issues

the new issue of corporate ownership and control journal is composed by 15 articles focussing on a variety of topics in the field. five papers present empirical evidence from banks and financial institutions, three focus on firm finances, four on governance and responsibility and a further three on the role of technology in terms of contextualising various business management activities Show More ... ... Show Less

  • Corporate Governance
  • Empirical Evidence
  • Financial Institutions
  • Empirical Contribution
Risk Relevance And Volatility Of Other Comprehensive Income In The Banking Sector: Evidence From European Countries

the aim of this study is to examine the relationship between the risk measures and the volatility of total comprehensive income (tci), other comprehensive income (oci), and single oci components in the european context. previous studies only cover reporting jurisdictions such as the united states and canada but never the eu. based on these premises, this research uses a sample of 166 listed banks, selected from 15 european countries. the results show that there is a significant positive association between the stock return volatility and the volatility of tci, of oci, and some of the single oci components. this study contributes to the international debate on the risk relevance of tci and its components, observing, in addition to previous research, the association not only between the risk measures and the volatility of tci and oci but also between the risk measures and the volatility of single oci components Show More ... ... Show Less

  • Risk Measures
  • European Countries
  • Other Comprehensive Income
  • The Eu
Earnings Management And Debt Maturity: Evidence From Italy

in this work, we examine whether earnings management affects the debt maturity structure of italian non-smes. we employ accruals quality as a proxy for earnings management. we measure the accrual quality as the absolute value of residual reflects the accruals that are not related to cash flow realized in the current, following or previous year. we measure the debt maturity in two ways. first, we consider it as a dummy variable that takes the value equal to 1 if some of the debt is long-term (exceeding one year), and 0 otherwise. second, we compute the debt maturity as the ratio of long-term debt to total debt. we employ a quantitative approach, carrying out several regressions (probit, logit, and tobit) analyses to investigate the effect earnings management on debt maturity structure, using financial statement data of 1,001 italian non-smes sampled over the period 2011-2017. this paper provides theoretical and practical findings that support the literature on earnings management. first, the study confirms that accrual quality can use as a proxy of earnings management by the academic community. then the findings show that earnings management is negatively associated with the possibility to access to long-term debt, and with a proportion of long-term debt in total debt. this evidence may support the managers when they have to plan the financial structure, the lenders and the creditors in their decision-making processes, and the policymakers when they have to set programs aimed to make easier the access to external financial resources Show More ... ... Show Less

  • Earnings Management
  • Long Term
  • Debt Maturity Structure
  • Total Debt
CSR Reporting And Ownership Structure: Evidence From Italian Listed Companies

the paper empirically explores how firms’ corporate social responsibility (csr) disclosure varies according to their ownership structure. three different kinds of ownership structures are considered: family firms (ffs), state-owned firms (sofs) and firms with dispersed ownership (dofs). it is the first study examining the relationship between csr disclosure and ownership structure, which includes in the analysis also ffs and sofs. the analysis is provided on a sample of 192 listed firms with reference to italy, a suitable setting for the purpose of the study due to the considerable presence of both ffs and sofs. firstly, a content analysis on the csr documents disclosed by the 192 firms is provided and then data are empirically analysed to test whether the ownership structure influences a firm’s csr disclosure. results show that ffs and sofs disclose less csr information and the explanation can be found in the lower level of agency problems they have to face. the paper contributes to the stream of literature about csr disclosure, because it argues that the contents of csr disclosure vary according to firm’s ownership structure and also to those about ffs and sofs because it shows that the presence of a concentrated ownership lowers the level of csr information disclosed Show More ... ... Show Less

  • Csr Disclosure
  • Corporate Social Responsibility
  • Ownership Structures
  • Dispersed Ownership
The Impact Of Deposit Guarantee Scheme On Operation Of Australian Financial Institutions

during the global financial crisis (gfc), the australian government introduced a deposit guarantee scheme to all the deposit accounts with financial institutions. the scheme is very similar to a deposit insurance scheme to a certain extent, though the premium is not paid by the financial institutions or the depositors. this study adopts data envelopment analysis (dea) and malmquist productivity index (mpi) to investigate the impact of the funding scheme on australian financial institutions during and after the gfc. the study measures the productivity and efficiency gains of large financial institutions, regional banks, credit unions and building societies for its analysis. this data spans the period from 2000 to 2014 and uses financial institutions’ input and output variables. the study finds evidence that an ex-ante insurance scheme has a profound impact on the structure and funding of australia’s current insurance scheme. the research contributes to the body of knowledge of the current literature on the deposit guarantee scheme and the practical understanding of a deposit insurance scheme from an australian perspective Show More ... ... Show Less

  • Financial Institutions
  • Insurance Scheme
  • Deposit Insurance
  • The Impact
  • Funding Scheme
Impact Of Ownership Structure On Risk-Taking Behavior Of South Asian Banks

the implementation of an effective risk management policy is necessary for the survival and success of banks. ownership structure changes the risk-taking behavior of banks. therefore, we analyze the impact of the ownership structure on risk-taking behavior of banks in emerging markets (i.e., pakistan, india, and bangladesh). we take public, private and foreign ownership of banks in this study. we collect the data from 64 banks of selected countries from 2011 to 2018. we measure risk-taking as capital adequacy, leverage coverage ratio, non-performing loan ratio, and return volatility. we use two-step system dynamic panel estimation for analyzing the results. we find that public and private banks have significant relationship with the risk-taking of banks. furthermore, public and private banks show more risk-taking behavior as compared to foreign banks in all selected countries Show More ... ... Show Less

  • Risk Taking Behavior
  • Ownership Structure
  • Public And Private
  • Private Banks
Related Party Transactions, Disclosure And Ownership Structure In Brazil

this article investigates the association between rpts, disclosure, ownership structure, and performance in brazil and uses a hand-collected sample of 3,790 brazilian rpt contracts obtained from corporate filings of a representative and randomly drawn sample of public companies from 2010 through 2012. firms with greater conflicts of interest potential may employ less rpts to signal that there will be no abuse. there is a negative and significant relationship between rpt values and accounting performance, but the same is not true for market value. the evidence in this article contrasts with that presented in national surveys by matos and galdi (2014) and silveira, prado, and sasso (2009a), which may reflect different methodological choices. companies and market participants may realize that some types of rpts are beneficial and others harmful to minority shareholders and their short and long term impacts on performance are not the same. the evidence suggests that both the hypothesis of efficient economic transactions and of the conflict of interest may have merit depending on the type of rpt and the performance metrics Show More ... ... Show Less

  • Ownership Structure
  • Conflict Of Interest
  • Significant Relationship
  • Long Term
  • Market Value
The Relation Between Cash Flows And Economic Performance In The Digital Age: An Empirical Analysis

cash flows analysis plays an increasingly important role in the study of business dynamics since cash flows play a key role in the company's economic performance, not only from a standpoint but also in predictive terms. the literature on the subject is poor in number and depth of research, the samples analyzed so far are limited and the statistical tools are weak. retracing the steps of past research, we studied the relationships between cash flows of several management areas and economic performance, using a complete sample of italian listed companies in the 2008-2017 period with more solid statistical tools compared to previous studies. the database used to collect all the balance sheet data necessary to conduct our research is amadeus of the bureau van dijk platform, which already shows reclassified and easily comparable financial statements. correlation and multiple regression analysis were used to assess if our cash flow proxies could be strong predictors of future cash flow and, consequently, of business performance. the flows for investments and the ability to generate cash, where the latter is positively correlated with future profitability, manage to explain, together with the net cash generation of the company, a large part of the variability of the operating income produced in subsequent periods. the flows from investments seem to be the most suitable for correctly classifying the most profitable companies in the medium-long term, while cash generation, deriving from the characteristic activity, contributes to providing answers, about corporate profitability, on shorter time horizons Show More ... ... Show Less

  • Cash Flows
  • Economic Performance
  • Statistical Tools
  • Business Dynamics
The Impact Of Digitalization On The Internationalization Propensity Of Italian Family Firms

although the role of innovation and digitalization represents critical factors to succeed in the international context, there is a lack of empirical evidence on how they impact on the international propensity of family firms. we address this gap investigating to which extent family firms adopt digitalization tools and their effect on export-orientation, as well as whether the innovation can play a boosting role for family decision makers. based on a survey of 2,500 italian firms carried out in 2015 by italian chambers of commerce, we find that family firms face more difficulties in undertaking digital transformation decisions, since they can weaken family sew endowment but digitalization solutions enable the international propensity of family firms, bridging the gap with their non-family counterparts. theses results advance the current debate on risk preferences of family firms, taking into account firm conditions, in terms of digitalization and innovation equipment, under which family owners make strategic decisions Show More ... ... Show Less

  • Family Firms
  • Empirical Evidence
  • Family Decision
  • The Impact
New Financial Regulatory Philosophy: A Paradigm Shift In Securities Market Supervision

the objective of this paper is to identify the changes in the financial regulatory philosophy in the securities market supervision after the 2008 global financial crisis. the mix-methodology researches are concluded by interviewing 101 securities regulators to investigate the impacts of the crisis on securities market supervision philosophy. evidence is found to support the hypothesis that the 2008 global financial crisis has created a paradigm shift from standard finance to behavioural finance in securities supervision. however, regulators are still in a philosophical crisis when the theoretical ground they once believed turned out to be not suitable for the securities supervision. the analysis undertaken in this paper contributes to apprehend the theoretical aspects of the paradigm shift and constructs a pertinent financial regulatory philosophy, which observes the nature of securities markets, responds to the problems revealed by the 2008 global financial crisis, and takes into consideration the nature of emerging markets. consequently, this paper proposes a multi-fold theoretical ground within the keynesian regulation framework to be adopted for the construction of a securities market supervision philosophy in order to efficiently cope with market developments and be resilient to financial crises Show More ... ... Show Less

  • Securities Market
  • Paradigm Shift
  • Global Financial Crisis
  • Financial Regulatory
Independent Directors: Exploring The Heterogeneous Nature Of Multiple Directorships

we examine the effect of independent directors’ (ids’) heterogeneous directorships on performance and diversification of high growth firms in a sample of 1152 firm-year australian listed company observations over the period 2007 to 2010. we find a positive association between some measures of ids’ heterogeneous directorships and the firm performance of high-growth firms as measured by return on assets. we also find a positive association between ids’ heterogeneous board ties and firm diversification. this study highlights that decisions concerning the appointment of ids to corporate boards should be based on the strategic context of their other directorships. we extend the literature on multiple directorships by showing that it is not a narrow focus on the number of directorships as a proxy for reputation or busyness that matters. instead, it is the precise nature of these directorships Show More ... ... Show Less

  • High Growth
  • Positive Association
  • Independent Directors
  • Multiple Directorships
  • Growth Firms
Attitudes And Actions Towards Sustainability: A Survey Of Norwegian Smes

sustainability is one of the biggest buzzwords and catchphrases of the 21st century, dominating not only management discourse but also the public debate in general. today, many large organizations have bought into the idea that sustainability is essential and have already taken steps towards implementing more sustainable business practices. while past research indicates that smes are typically lagging behind their larger counterparts, our knowledge about the sustainability attitudes and actions of the small and medium-sized enterprises (smes) is limited. this is also the case in norway, where there is minimal research on what impact sustainability ideas have had on business practices. more knowledge about sustainability in smes is crucial since these firms comprise a large and crucial part of the norwegian economy. therefore, this paper aims to examine sustainability attitudes and actions among managers of norwegian smes employing an electronic survey. drawing on existing research, we propose a typology of managerial responses to sustainability, distinguishing between four groups of managers, which are labeled: 1) skeptics; 2) adaptors; 3) posers and 4) enthusiasts. the findings of the survey suggest that most managers can be characterized as skeptics and that adaptors are the smallest group. while there has been a general increase in sustainability commitment, sustainability initiatives tend to be lagging behind. these findings have several practical and policy related implications Show More ... ... Show Less

  • Business Practices
  • 21St Century
  • General Increase
  • Minimal Research
  • Crucial Part
The Determinants Of Employee Stock Ownership: French Case

the present study scrutinizes the factors affecting the practice of employee stock ownership. this work sheds light on the role and contribution of this practice to enhance the corporate governance systems. our study uses a sample of 216 listed french companies in 2010. the empirical approach is a linear regression used to examine the relation between the dependent variable and the independent variables. the results show that the large companies are the most likely to practice the eso and this is developed by a reduction in debt, the dividend distribution, and the tax rate. the focal point of this work is to go beyond the simple scope of the existence of the employee stock ownership and is interested in the conditions of its development in the french companies Show More ... ... Show Less

  • Employee Stock Ownership
  • Corporate Governance
  • Linear Regression
  • Focal Point
A Configurational Approach To The Determinants Of Women On Boards

this study applies a qualitative comparative analysis (fsqca) to test how configurations of gender equality, masculinity, highly educated women, and happiness, alone or in different combinations, explain the presence or absence of women on the board of directors (wob). the global solution has considerable explanatory coverage and presents four alternative combinations conducive to both the presence and absence of wob. overall, the results show that the absence of gender equality is almost a necessary condition for the absence of wob. the other conditions, per se, are not enough to explain the presence or absence of wob, but in different combinations they are. for example, the combination of highly educated women, gender equality, and happiness is the solution with a higher consistent value to explain the presence of wob. in this study, we sought to contribute with a novel, and far-reaching way of considering the determinants of the presence of wob, moving past the typical determinants of wob such as board size and board independence, or board members characteristics (such as experience or age) and shifting the focus solely from the corporate context to broader social, cultural and political contexts. the study presents recommendations for academics, practitioners, and policymakers, particularly to consider different determinants of underrepresentation of wob and how new initiatives shall be implemented to advance the field and transition to economies and societies with greater social justice and gender equality Show More ... ... Show Less

  • Gender Equality
  • Highly Educated
  • Board Members
  • Corporate Context
  • Per Se
Editorial: Corporate Governance Through A Prism Of Multi-Disciplinary Research

this volume of the journal “corporate ownership and control” is focused on corporate governance, corporate social responsibility, earnings and performance management, ownership concentration, institutional ownership, audit fees, audit quality and independence, cross-cultural management and cultural dimensions, financial instruments risk disclosure, equity incentives, firm performance, shareholder composition and monitoring effects, etc. the topics addressed in this issue highlight the continuing need for knowledge present in academic and non-academic research. the papers published in this issue offer an additional point of view with regard to the most important corporate governance issues Show More ... ... Show Less

  • Corporate Governance
  • Corporate Social Responsibility
  • Equity Incentives
  • Management Ownership
  • Additional Point
Catering Theory And Dividend Policy: A Study Of MENA Region

according to the catering theory of dividends, a company decides to distribute its dividends according to investor demand related by a dividend premium that results in this request. this study focuses on the impact of the catering theory of dividends of the 600 mena companies in the financial industry listed in different stock exchanges of tunisia, morocco, egypt, uae, saudi arabia, and kuwait during the period 2004-2010. the study employs an event study methodology in examining the effect of investor demand for dividends on the managers’ decision to distribute and change the amount of dividends. research result indicates that companies pay dividends when demand is strong, i.e. when investors value companies that pay in a “depressed” or “bearish” market environment. furthermore, catering persists even after controlling for the effect of some variables like tax and risk. the results confirm that the decision to change the amount of the payments depends on investor demand and the market premium resulting from the payment of dividends. even though the result is not strong, it can be the evidence supporting the catering theory of dividend, not only in well-developed markets but also in emerging markets characterized with civil law characterized by low governance index and investor protection such as our mena zone countries Show More ... ... Show Less

  • Saudi Arabia
  • Financial Industry
  • Developed Markets
  • Event Study Methodology
  • The Impact
How Deferred Revenue Changes Impact Future Financial Performance

this study examines the potential predictive power of changes in deferred revenues on future profitability based on evidence from the region of the middle east and north africa (mena). it examines whether financial analysts should consider deferred revenues as useful information when evaluating a firm’s future profitability. a pooled ols regression is used to test the relation. the observations of different companies from various periods are combined into a pooled sample of observations consisting of data from the 500 largest companies in the mena in terms of market share. aligned with the existing literature, the findings reveal that changes in deferred revenues are a predictive tool for future financial performance as proven by the positive correlation with the growth of future annual sales, gross profit margin, net profit margin, return on asset, and tobin’s q. testing for this impact adds to the literature given various robustness tests under different circumstances and economic conditions Show More ... ... Show Less

  • Financial Performance
  • Profit Margin
  • Middle East
  • Market Share
  • Pooled Sample
Corporate Governance, Boards Of Directors And Corporate Social Responsibility: The Australian Context

the challenge of corporate governance in australian corporations is similar to those faced by the majority of corporations operating globally albeit the manner in which corporate governance is structured in australia represents a strong reflection of the island continent’s people, egalitarian culture, and legislative framework. this article considers the legal framework in which australian corporations operate within, which includes a discussion of corporate governance principles, the role of directors and ownership structures of companies in australia. australian board of director practices are discussed in detailed and this article outlines how these practices are heavily influenced by the australian commonwealth corporations law (which sets out mandatory legal requirements that all australian companies must adhere to). the article continues to explore briefly directors’ remuneration practices, recent shareholder’s rights protection and activism, the importance of corporate governance and the link to firm performance, and finally the importance of corporate social responsibility in the australian context Show More ... ... Show Less

  • Corporate Governance
  • Corporate Social Responsibility
  • Australian Context
The US University Governance: Challenges And Opportunities For The Board Of Directors

this study investigated the differences between the distribution of international and non-international students across majors at a southern private american university located in the southeast united states as well as issues related to decisions and selection of majors by these two groups and the implications of those decisions on the u.s. educational system. for this purpose, a database that included 3001 full-time undergraduates at this southern american university was used. chi-square tests and logit regressions were used to analyze the data. the results of the study showed that there was a major difference between international and non-international students regarding the selection of majors. international students were less likely to be in a major that requires certification as a condition of employment in the united states. this study can help u.s. colleges and universities understand the needs of both american and international students and their patterns of enrollment at the undergraduate level. an improved understanding of the students’ patterns of enrollment will help american colleges and universities, educational leaders, educational board members, and policymakers, to better allocate their human, financial, and physical resources in order to meet students’ needs. if we consider the income from foreign students as international trade, education can be regarded as a major export with great potential for growth. this article examines some of the factors which may affect the attractiveness that american education holds for international students. it is one of the first research studies to explore the fields of study by international and non-international students Show More ... ... Show Less

  • International Students
  • United States
  • Colleges And Universities
  • American University
The Sensitivity Of GCC Firms’ Stock Returns To Exchange Rate, Interest Rate, And Oil Price Volatility

this study seeks to investigate the sensitivity of stock returns to exchange rate, interest rate and oil price volatility in the gulf cooperation council (gcc) countries. it employs both the multivariate ordinary least square (ols) regression and the exponential generalized autoregressive conditional heteroscedastic in mean (egarch-m) models to analyse the data collected from bloomberg and datastream on the gcc countries (bahrain, kuwait, oman, qatar, saudi arabia and the united arab emirates) for the period january 2007 to june 2012. the study shows that stock returns in gcc countries are influenced by the exchange rate risk, interest rate risk and oil price risk. however, the exposure is highest for exchange rate risk and lowest for interest rate risk. while the effects of these risks were mixed, overall, exchange rate risk and oil price risk showed a positive and significant relationship as compared to the interest rate risk that showed a negative significant effect on firm values. the level of the effect of these risks also differed from country to country. further, foreign operations and firm size had a significant influence on the extent of the firms’ exposure to all three risks. the study findings suggest that the volatility of stock returns affected by changes in the risk factors could indicate non-prioritisation of risk management by firms. this has implications in terms of consideration of the long-term exposure of firms to these three risks and thus, the need for effective risk management strategies Show More ... ... Show Less

  • Rate Risk
  • Exchange Rate
  • Interest Rate
  • Stock Returns
  • Oil Price
Pension Funds And Governance: The Effect Of Government Sponsorship

the issue of conflict of interest and information asymmetry underlies the relationship between management, sponsors, and pension fund participants. the governance system aimed at mitigating the conflict of interest and information asymmetry appears as practices that, even with the cost, could contribute to the effectiveness of the pension fund investments. in this context, the present study aimed to investigate empirically how the extent of brazilian pension funds governance practices is affected by the nature of the sponsoring entity. with a sample of 208 observations collected manually, representing 104 pension funds, from 2013 and 2017, we analyzed the impact of the sponsorship on the governance of the brazilian pension funds. we measured governance using a governance index composed of 34 indicators, built on the brazilian pension fund legislation, guidelines and recommendations issued by public bodies, and the governance literature. the result of this study indicates that, contrary to the initial expectations of the survey, a state-controlled company sponsorship explains a better level of governance. this study contributes to a better understanding of how the adoption of governance practices works, especially with the reported cases of corruption in brazilian pension funds Show More ... ... Show Less

  • Pension Funds
  • Information Asymmetry
  • Conflict Of Interest
  • Governance Practices
Competitive Environment And Corporate Constructs Of Price And Costs In The UAE

target costing is a cross-disciplinary subject with several unexplored academic dimensions besides having applied business practices and economic policy implications. in this paper, we use a unique combination of mixed methods research approach to investigate the adoption of target costing by manufacturing firms in the united arab emirates (uae). the first employed method is the new dumitrescu-hurlin (d-h) granger non-causality test for heterogeneous panel data, while the second is a survey. the d-h test with annual data indicates the adoption of target costing by the publicly listed manufacturing firms. when using quarterly data, but with a smaller sample of firms, the results show bi causality between costs and sales revenues; thus target costing is possibly corroborated but within a feedback mechanism. survey results, based on self-reported data and again on a smaller sample, show mixed results. the relationship between target costing and the intensity of competition seems moderately corroborated by the survey results. this paper contributes to the literature by employing a unique mixed methods research approach, to the best of our knowledge not found previously in the literature, and by its findings on the adoption of target costing by manufacturing firms in a relatively open and dynamic economy such as the uae Show More ... ... Show Less

  • Target Costing
  • Manufacturing Firms
  • Mixed Methods Research
  • Research Approach
Country-Specific Institutional Effects On Non-Financial Disclosure Level: Evidence From European Listed Banks

this study investigates the relationship between disclosure level of gri-compliant non-financial statements, provided to conform with the directive 2014/95/eu, and cross-country societal variables (hofstede’s cultural dimensions, political and civil systems, legal system and level of economic development) of the european listed banks, using the political economic theory. it analyzes the banks listed in the stock markets of 18 european countries for 2016-2018. the data was collected from the bvd bankfocus database, selecting 134 bank-year observations. a disclosure index based on the gri framework compliant to the directive was determined to measure the non-financial reporting disclosure. the findings, partially consistent with the previous literature, show for the banks a significant negative influence of power distance, masculinity, indulgence, the legal system, and level of economic development on the non-financial disclosure. moreover, the results evidence a significant positive association between individualism, long-term orientation, indulgence, and political and civil system on the non-financial disclosure level. this study contributes to the international debate on how the socio-cultural-economic institutional factors affect non-financial disclosure expectations in the banking sector. furthermore, understanding the effect of cross-country societal factors on nfr disclosure under eud might benefit managers when implementing social and environmental strategies in all socio-cultural institutional settings. it might help regulators and policy-makers when adopting new legislation and making reforms dealing with social and environmental laws Show More ... ... Show Less

  • Financial Disclosure
  • Legal System
  • Cross Country
  • Level Of Economic Development
The Role Of Board In Corporate Social Responsibility: A Normative Compliance Perspective

this paper focuses on the board’s influence on csr among public liability companies (plcs). the paper uses normative compliance theory to develop the theoretical framework thereby advocating and complementing other theories of csr by using a balanced random effect regression model to estimate the relationship between board characteristics (such as board composition, diversity and size on csr). this involved the use of balanced panel data of 174 plcs from 2003 to 2009. the random effect estimator was used to test the specific effects of board composition, board size and board diversity on csr of plcs in nigeria. the data was obtained from nigerian stock exchange (nse) factbook from 2003 to 2009. the paper found that neds and board size were positively significantly correlated with csr, while the executive director was negative and significantly related with csr. the testing of the theory in the context of nigeria contributes to the body of knowledge on sub-sahara africa, particularly nigeria which offers a developing country perspective. the paper explores the relationship between board characteristics and csr thereby contributing to the governance processes of listed companies and how good governance should be encouraged by understanding the board dynamics Show More ... ... Show Less

  • Random Effect
  • Board Composition
  • Board Size
  • Board Characteristics
  • The Relationship
Socio-Cultural Milieu’S Effect On Prejudicial Related-Party Transactions: Evidence From Within The Corporate Governance Setting In China

this paper re-visits the topic of self-serving, controlling shareholders seeking to perpetuate their financial and power advantage over minority shareholders, a topic known as the secondary agency problem. this topic has been widely examined using theories of controlling shareholder’s concern for rent protection and the market for ownership control. this paper uses evidence of tunnelling and propping practices through related-party transactions that prejudice decisions against the interest of minority shareholders and focuses on identifying financial and voting control conditions that drive such practices. this paper aims to fill a gap in such extant literature by an examination of the socio-cultural factors influencing governance and managerial behaviour towards the enabling of tunnelling and propping practices. it does so in the context of the socio-cultural milieu within the corporate governance framework in china. theories of transitional markets, agency bonding, and the cultural phenomenon of ‘guanxi’ are considered, together with corporate governance practices in china, in order to develop measures of factors enabling tunnelling and propping. secondary data is drawn from a database of listed companies in china. results reveal that directors and ceos who were senior cadres from the former state ownership regime, as well as the guanxi based path dependence of chairs and ceos, affect the extent of prejudicial related-party transactions in the forms of tunnelling and propping, respectively. the implication of the findings is that securities regulations in china will need widening if adequate protection of minority shareholders’ rights is to be assured Show More ... ... Show Less

  • Corporate Governance
  • Minority Shareholders
  • Related Party Transactions
  • Controlling Shareholders
  • Cultural Milieu
Gender-Diverse Boards Get Better Performance On Mergers And Acquisitions

in recent years, the composition of boards, particularly the appointment of female directors to the boardroom has attracted significant political and social debate. despite several studies that have examined links between the representation of women on boards and the corporate performance, research on the board gender diversity in merger contexts is limited. we assess whether the presence of women on corporate boards affects merger and acquisition (m&a) performance. using acquisition bids by public canadian companies during 2012-2017, we find that an increasing number of female directors in acquiring companies is associated with an enhanced merger performance and a reduced bid premium. after controlling for gender diversity on executive teams, the value added by having women on boards is particularly noticeable when acquiring firms have few women in the executive teams, and where overconfidence is prevalent. thus, there is a substitutive relation between gender diversity on the board and gender diversity on the executive team Show More ... ... Show Less

  • Gender Diversity
  • Female Directors
  • Women On Boards
  • Executive Teams
  • Women On Corporate Boards
Editorial: An International Outlook Of Corporate Governance Research

this issue of the journal “corporate ownership and control” is absolutely unique from the point of view of the geodiversity of the research. thus, having published 16 papers in this issue of the journal we can count the research on corporate governance in the usa, the uk, norway, australia, italy, germany, netherlands, portugal, spain, belgium, sweden, finland, austria, greece, ireland, poland, france, brazil, tunisia, morocco, egypt, the uae, saudi arabia, kuwait, and others. this provides a very solid vision of the corporate governance national practices worldwide. this issue of the journal proves once again that corporate governance became a global subject for research during the last decade. scholars from all the countries of the world try to deliver the new research results related to the national markets providing room for further comparison and research and we hope that the readers will enjoy the results of the recently published papers Show More ... ... Show Less

  • Corporate Governance
  • Saudi Arabia
  • Point Of View
  • Research Results
  • The World
Top Management Teams And Investment Decisions: A Study Of Executive Experience And Cultural Diversity

we employ an empirical study of mining companies in sub saharan africa (ssa) using the upper echelons theory (uet) to explore how the top management team (tmt) perceptions and experiences influence investment decisions. uet is used as it is consistent with the uppsala internationalization model, which best fits mining companies. we assess past international experiences, nationality diversity, age, and education levels of the tmt in order to determine if these demographics impact the decision to invest in ssa countries. this study also assists in closing the gaps in the literature on how executive experiences impact the investment decision process in an international setting as well as how the cultural composition of the tmt influences corporate decisions Show More ... ... Show Less

  • Investment Decisions
  • Top Management
  • Mining Companies
  • Ssa Countries
  • Nationality Diversity