foreign ownership
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The objective of this study is to appraise the effect of the ownership structure on the quality of financial reporting in Nigeria. The study used data from 41 non-financial firms listed on the Nigerian Stock Exchange (NSE) for the 2011 to 2019 period. The Generalised Method of Moments (GMM) technique was adopted for the study which is vigorous to the threat of heteroskedasticity and endogeneity. The study findings revealed that institutional and foreign ownership has a significant negative relationship with earnings management, thereby, improving the reporting quality. However, the results show that managerial ownership has an insignificant negative relationship with earnings management. The finding of this study is also robust in scope concerning the issue of unobserved heterogeneity which prior studies have failed to address. Thus, future corporate governance reforms should recognize and sustain these efforts. The study recommends that Firms should expand their institutional and foreign ownership by providing sufficient shares to them. This is important because they frequently deploy their professionalism and wealth of experience to the firms towards meeting corporate goals and agitation of good reporting practice. On the other hand, Firms should ensure that the shareholding of the insider managers is not too high in such a way that the proportion of their shareholding should be minimal. Their shares should not exceed 10% of the total shareholding in the company as it was found to be among the variables that reduce firms' performance.


2021 ◽  
Author(s):  
鬼谷 子

In recent years investors tend to divert their investment to emerging economies in the Association of Southeast Asian Nations (ASEAN), especially during the U.S.-China trade war. The present study adopts the Weighted Least Square (WLS) and PROCESS macro tool to examine the effects of foreign ownership and growth opportunity on financial performance of Vietnamese listed firms over the period 2011-2018. Our findings show that foreign ownership plays as moderator variable in the relationship between short-term and long-term performance of firms. Empirical results also reveal that mediating effects of growth opportunity on short-term and long-term performance are different before and after the trade war. These findings have important implications for investors and managers in the ASEAN countries.


2021 ◽  
pp. 002218562110560
Author(s):  
Uwe Jirjahn

Using firm-level data from Germany, this study examines the link between foreign ownership and the coverage by centralized (multi-employer) bargaining agreements. Conforming to theoretical considerations, the empirical analysis shows that it is important to distinguish between a direct and an indirect influence of foreign ownership on centralized collective bargaining. The direct influence of foreign ownership lowers the probability that a firm is covered by a centralized agreement. The indirect influence works through the unionization of the workforce. If the size of the firm does not exceed a critical level, the indirect influence counteracts the direct influence. Foreign ownership leads to a higher share of union members which, in turn, has a positive influence on the coverage by a centralized agreement. However, in very large firms the indirect influence appears to be negative. Foreign ownership is associated with a lower share of union members.


2021 ◽  
Vol 29 (4) ◽  
Author(s):  
Grygorii Kravchenko

Purpose: The article evaluates the associative relationship between international supervisory board experts and foreign ownership, along with the experts’ influence on the financial and operating performance of firms. The study was based on data collected for 257 companies listed on the Warsaw Stock Exchange in 2010–2015. Methodology: The dataset was built as a panel, and then generalized least squares regression models with a fixed or random effect were employed to test hypotheses. Findings: The findings of the study clearly show that the presence of investigated firms in foreign markets positively affects company performance. Moreover, models with dependent variables ROA and ROS show that supervisory board members with foreign experience positively affect profitability indicators of firms that do not operate on foreign markets. The data analyses reveal that international experts are more effective advisors for companies that conduct no business activities on foreign markets. Furthermore, the results show a positive moderate association between the share of international experts in supervisory boards and the share of foreign ownership in the company. Originality: The article contributes to the understanding of determinants and consequences of the presence of international experts in supervisory boards and company internationalization.


2021 ◽  
Vol 9 (3) ◽  
Author(s):  
Jessica Yeo ◽  
Meiliana Suparman

The objective of this study is to demonstrate that characteristics of the board of directors and ownership structure influence the level of voluntary disclosure. Board of directors’ characteristics include the board's size, composition, frequency of meetings, gender, expertise, and compensation. These attributes reflect the ownership structure, which includes foreign ownership, institutional ownership, and director ownership. Control variables include company size, firm age, leverage, profitability, and liquidity. This study utilized secondary data from 52 consumer goods companies listed on the Indonesia Stock Exchange for the period 2016 to 2020. In total, 228 observations were tested for hypotheses, after 32 outliers were removed from the data. The hypotheses were tested using panel regression with a Fixed Effect Model (FEM). The study found that all independent variables simultaneously have a significant impact on voluntary disclosures. According to the partial test (t-test), only the remuneration of directors and institutional ownership had a significant and positive effect on voluntary disclosures, while other variables had no significant impact. In addition, the foreign ownership variable had a significant affect on voluntary disclosure, however the direction is negative.


2021 ◽  
Vol 4 (2) ◽  
pp. 229-245
Author(s):  
Astian Yosi Meilani ◽  
Siti Nur Azizah ◽  
Hadi Pramono ◽  
Bima Cinintya Pratama

This study aims to show empirical evidence of the effect of managerial ownership, institutional ownership, foreign ownership and government ownership on intellectual capital performance as the dependent variable. This study relates the influence between these variables by expanding the concept and understanding of Resource-Based Theory, Agency Theory and Stakeholder Theory. The sample in this study is the mining sector companies listed on the Indonesia Stock Exchange in 2016-2019 using purposive sampling technique, namely selecting samples with certain criteria to get more valid results. The data analysis technique used is the classical assumption test, then the results are analyzed using multiple regression analysis to prove the influence between variables by utilizing an accurate SPSS application. The results of this study indicate that institutional ownership and foreign ownership have a positive effect on intellectual capital performance in mining companies, while managerial ownership and government ownership do not show any effect on intellectual capital performance in mining companies in Indonesia. This research contributes to the theory and practice of companies in the conduct of business. However, this study has not been able to prove the influence of managerial and government ownership on intellectual capital performance, so that further research can consider other corporate sectors whose managerial and government ownership is quite dominant.


2021 ◽  
Vol 25 (7) ◽  
pp. 19-40
Author(s):  
Sang-Lyul Ryu ◽  
Yeong-wha Sawng ◽  
Seunglak Park ◽  
Jayoun Won

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Le ◽  
Paula Hearn Moore

Purpose The purpose of this paper is to examine the joint effects of state ownership and tax rate cuts on accounting conservatism, considering the different levels of foreign ownership in the context of Vietnam. Design/methodology/approach The paper uses ordinary least squares regressions and a data set of 405 firms covering the period 2007 to 2019. The manuscript uses three measures of accounting conservatism: Basu’s 1997 timeliness of earnings, Basu’s 1997 earnings persistence and the book-to-market ratio. Findings State-owned enterprises (SOEs) adopt less accounting conservatism than non-SOEs; however, the result is only robust in firms with foreign ownership being lower than the foreign ownership median. Firms increase accounting conservatism in the year immediately prior to the year that the tax rate cuts become effective. An SOE possesses an unusual conflict both as a taxpayer and in having its controlling interest held by the government, which is both a tax creator and a tax collector. Interestingly, the increase in accounting conservatism prior to the year of the tax rate cuts is more pronounced for non-SOEs than SOEs. Practical implications This research is beneficial to investors and policymakers where the government is both the taxpayer and tax collector and in emerging markets where foreign investment is local firms’ important financing. Originality/value To the best knowledge, this study is the first in examining the joint effects of state control and tax rate cuts on accounting conservatism.


Author(s):  
Solomon Oriakhi ◽  
Emma .I. Okoye ◽  
Segun Idowu Adeniyi

This study investigated the implications of board independence and foreign ownership on audit quality of manufacturing firms in Nigeria. The specific objectives of the study are to examine the effects of board independence as well as foreign ownership on audit quality of manufacturing firms quoted in Nigeria. Secondary data were carefully collected from a total of fifty eight (58) quoted manufacturing firms in Nigeria for the period (2010 – 2018) and the binary model of regression (logit, probit and gombit) was properly used for hypotheses testing. The outcome reveals that board independence had a positive and insignificant influence on audit quality while foreign ownership had a positive and significant influence on audit quality. The study therefore recommends that composition of the board should be such that its function is not undermined and one of such ways is to have an appropriate mixture with non-executive directors. Also having foreign ownership could enhance audit quality given the different corporate cultures they may possess.


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