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The purpose of this study is to empirically investigate the relationship between ownership structure and the extent of water disclosure made by Indonesian listed companies. It is analyzed using the lens of agency theory which emphasizes the relationship between the principal and the agent. The data set comprises 673 Indonesian listed companies with 2279 firm-year observations for the period of 2018–2021. This study finds that institutional ownership has a negative and significant relationship with water disclosure. The extent of water disclosure is positively and significantly associated with government ownership and foreign ownership. Our finding indicates that companies tend to disclose less water information if the firms' shares are concentrated to a few hands of shareholders. Further analysis documents that industry sensitivity strengthens the influence of government and foreign ownership on the level of water disclosure. [ABSTRACT FROM AUTHOR]

Our study aims to investigate how information asymmetry and ownership structure affect cost of equity capital. For that purpose, we collected 246 issuers over 4 years for a total of 984 observations. By using panel data processing, we found that the information asymmetry we proxied through Price non-Synchronization and trading volume had an effect on the cost of equity capital. Our results also confirmed both Agency Theory and Pecking Order Theory. Both theories are in line with the conditions of the stock market in Indonesia. In addition, we found that institutional and foreign ownership structures also had an effect on the cost of equity capital. Furthermore, our results also confirmed Interest Alignment Theory and Entrenchment Theory. Our research is expected to contribute to the debate on the existence of information asymmetry and ownership structures in relation to the cost of equity capital. We also hope that it will be a valuable input for investors in considering their investment. Moreover, from the results of this study, investors can also consider foreign ownership or institutional ownership in determining their investment. In addition, stock market regulators in Indonesia can develop approaches to minimize information asymmetry and encourage foreign investors to invest in Indonesia. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine the effect of policy-related economic uncertainty (EPU) on the financial performance of hospitality and tourism companies. More precisely, the study aims at revealing how the performance of hospitality and tourism companies is affected at times of increasing EPU, and the role of corporate social responsibility (CSR) engagement, institutional ownership and cash holding to moderate this proposed relationship. The study's sample includes a total of 113 companies from the hotel, restaurant and airline industries for the period 2001-2018. Hypotheses are tested via two-way fixed-effect regression. The study finds that increasing EPU is detrimental to firm performance presented in declining Tobin's Q. However, the magnitude of this negative effect on firm performance becomes less pronounced as firms engage more in CSR, have larger fraction of institutional ownership and hold larger cash and cash equivalents [ABSTRACT FROM AUTHOR]

Using China's split-share structure reform, we examined the effect of stock liquidity on investment efficiency. We found that enhanced stock liquidity results in more efficient investments and the effect is much more pronounced for under-investing firms than for over-investing firms. Additionally, we found that an increase in institutional ownership and price efficiency generated by a change in stock liquidity is positively associated with a reduction in under-investment. Thus, these findings suggest that under-investing firms with liquid stocks have more informed investors and face greater pressure to select an optimal investment level in the post-reform period. • We use a Chinese reform to examine the effect of liquidity on investment efficiency. • Enhanced liquidity leads to a reduction in under-investment, not over-investment. • The increase in institutional ownership and price efficiency drives the results. • However, the change in financing constraints is unable to account for the results. • Our findings further substantiate the real effects of financial markets. [ABSTRACT FROM AUTHOR]

Sustainability goals are a new trend among corporates as they play a significant role in attracting additional investments for entities that follow sustainability practices. The relationship between a corporate board's composition and the firm's performance has been well studied in the literature. However, the relationship between a firm's ownership structure and the firm's sustainability performance remains to be empirically unidentified for firms participating in mergers and acquisitions (M&As) as M&As lead to major board restructurings. Therefore, we considered Indian listed M&A-participating firms for the period 2013–2022 and the results reveal a positive association between institutional and foreign ownership and firms' sustainability performance, whereas promoters' ownership is negatively related. This study contributes to the literature on corporate governance and M&A by demonstrating that a corporate board's attributes affect the firm's sustainability performance. [ABSTRACT FROM AUTHOR]

The "homemade leverage" conjecture by Modigliani and Miller (1958) implies that firm leverage and investors' leverage are substitutes. Using the data of margin loans by Chinese stock investors, we find that investors take significantly fewer margin loans on a stock when the company announces new bank loans. This effect is entirely driven by investors' margin loan repayment upon announcements, and is stronger for firms with higher institutional ownership or lower leverage. The findings suggest that investors undo the change in firm leverage by adjusting margin loans usage, supporting the "homemade leverage" conjecture. • Investors reduce the use of margin loans after a firm'sannouncement of new bank loans. • The findings support the "homemade leverage" conjecture by Modigliani and Miller (1958). • This effect is stronger for firms with higher institutional ownership and lower leverage. [ABSTRACT FROM AUTHOR]

Project owners are important. They shall support the project manager and provide senior backing to a project. However, there are some different aspects of project ownership, which are discussed in this paper. The main research questions addressed in the paper are; how is the project owner role described in the literature, and how is the role in practice? The paper is mainly a theory review of the topic project ownership. We present a simple model for the relation between project owner, project manager and operation of the project delivery. The basis for the model and discussion is a theoretical review, but we also test the proposed model on a sample of projects. As we will see, this testing creates the need for a distinction between two types of project owners; one that is mainly concerned with supporting the project manager and enabling project delivery, the other being focused on the business case and having responsibility for both project delivery and benefit realization. There has been a development where the importance of the role as project owner has been highlighted. It is our impression that this development has had two ambitions. One is to strengthen project execution. The other ambition is to emphasize the business case perspective. These two perspectives call for different organizational positions of the persons called project owners. We urge future researchers and practitioners to clarify what type of project owner role that is referred to in different contexts. We also call for an awareness of the fact that different project owners will have different set of incentives and priorities. [ABSTRACT FROM AUTHOR]

This paper enriches the celebrated Grossman–Hart–Moore (GHM) property rights model with employment relationships. By combining the GHM view of the firm as a bundle of asset ownerships with that of Alchian and Demsetz (1972) , who viewed the firm as a nexus of contracts, the model yields, in some cases, optimal asset ownership different from the implications of the GHM model. We show that the nexus of contracts is a meaningful instrument to govern transactions even in the presence of asset ownership. The optimal contractual network structure depends on the relationship-specificity of investments, unlike the GHM model where the asset ownership depends solely on the asset specificity of investments. [ABSTRACT FROM AUTHOR]

In this study, we examine the impact of environmental performance on corporate innovation based on a sample of 11,014 Chinese A-share firm-year observations during the period from 2010 to 2017. Also, we investigate the moderating impact of firm ownership on the above relation. Our results suggest a significant positive association between environmental performance and corporate innovation. By analyzing the moderating effect of ownership structure, our findings suggest that institutional ownership strengthened the positive relation between environmental performance and corporate innovation, while state ownership played a partial role. Our findings are robust for using advanced techniques, such as reverse causality, omitted variable bias, two-stage least square, and propensity score matching. This study contributes to the literature by shedding light on the stakeholder and resource dependence perspectives on the relation between environmental performance and corporate innovation. • The impact of environmental performance on corporate innovation is examined. • A sample of 11,014 Chinese observations during the period from 2010 to 2017 is employed. • Results suggest a significant positive association between environmental performance and corporate innovation. • Results show that institutional ownership strengthened the positive relation between environmental performance and corporate innovation. • This study sheds light on the stakeholder and resource dependence perspectives on the relation between environmental performance and corporate innovation. [ABSTRACT FROM AUTHOR]

Existing studies on modeling immovable ownership have not explored the internal structure and internal semantic relations of the ownership of condominium units in depth. This paper suggests extending CityGML with legal concepts from the Land Administration Domain Model (LADM) via the application domain extension (ADE) mechanism of the CityGML as a feasible approach for describing the ownership structure of condominium units. Based on legislation in China, a CityGML–LADM ADE model is proposed to precisely present the ownership structure of a condominium unit, which reflects the interrelations of legal objects and their physical counterparts. Finally, the proposed model is validated by two case studies. [ABSTRACT FROM AUTHOR]

We examine the influence of institutional investor ownership in a firm on their investment in R&D. We find partial support for managerial myopia in that at a higher level of institutional ownership, we find managers cut back R&D investment. We find a positive relation between institutional holdings in a firm and their investment in R&D till the institutional holdings in the firm reaches a threshold. Our results are consistent with the notion that managerial myopia sets in as the managers yield to institutional pressure when the institutional ownership level exceeds a threshold. Our results suggest that managers become sensitive to the pressure from institutional investors when the institutional ownership crosses a threshold. We find the greater the stock undervaluation, the lower the investment in R&D. We find stronger negative relation between institutional ownership and R&D when the firm's stock is more undervalued, consistent with the notion that managerial myopia worsens when the firm is more likely to be a takeover target as their stock becomes undervalued. We find banks, insurance companies, and public pension funds have a positive influence on the firm's R&D, but mutual funds and hedge funds have a negative influence on R&D. We find positive influence of dedicated institutional investors but negative influence of transient investors and quasi-indexers on corporate R&D. [ABSTRACT FROM AUTHOR]

Abstract: This study examines the relative importance of three influential factors (stakeholder pressure, economic opportunities, and top managers’ personal environmental concern) in shaping managerial attitudes toward adoption of green programs in the hotel industry. The results, based on a sample of 235 top managers of hotels affiliated with three U.S. state hotel associations, suggest that stakeholder pressure is the most dominant predictor of managerial attitudes toward adoption of green programs followed by economic benefits and top managers’ personal environmental concern. In addition, the relationship between managerial attitudes toward adoption of environmental programs and organizational environmental commitment is found to be moderated by the ownership style. The relationship is stronger for independent hotels than for chain-affiliated hotels, indicating a more significant role of managerial discretion in implementing environmental strategies at the independent hotel setting than the chain hotel setting. [Copyright &y& Elsevier]

Abstract: This study focuses on common-law Malaysia, which is classified as an advanced emerging market. It assesses the association between environmental disclosure and environmental performance and examines the financial attributes of companies with different environmental disclosure scores. It investigates the relation between environmental disclosure quality and corporate governance, and also examines the extent to which effective environmental disclosures are value relevant and how they influence investor perceptions. The findings of the study show that environmental disclosure is positively linked to environmental performance. Company attributes, such as large size, the need for capital, profitability and capital spending, are positively associated with environmental disclosure quality. High quality environmental disclosers display effective corporate governance and would tend to face less difficulties in accessing capital markets. They generally are audited by a big 4 auditor or cross-listed on foreign stock exchanges and display significant levels of managerial and institutional ownership. High quality environmental disclosures are value relevant and improve investor perceptions. High quality disclosers overall belong to beverages, chemicals, food producers, forestry and paper, and industrial metals and mining. [Copyright &y& Elsevier]

Abstract: The community structure of two real-world financial networks, namely the board network and the ownership network of the firms of the Italian Stock Exchange, is analyzed by means of the maximum modularity approach. The main result is that both networks exhibit a strong community structure and, moreover, that the two structures overlap significantly. This is due to a number of reasons, including the existence of pyramidal groups and directors serving in several boards. Overall, this means that the “small world” of listed companies is actually split into well identifiable “continents” (i.e., the communities). [ABSTRACT FROM AUTHOR]

Abstract: This study documents that the stability of institutional ownership plays an important role in determining the cost of debt. After controlling for other determinants of the cost of debt, and correcting for the endogeneity of institutional ownership stability, three major results are uncovered. First, there is a robust negative relationship between the cost of debt and institutional ownership stability. Second, institutional ownership stability plays a bigger role in determining the cost of debt, than the institutional ownership level commonly used in the literature. Third, institutional ownership stability affects the cost of debt to a greater extent for firms that are subject to more severe information asymmetry and greater agency costs of debt. [ABSTRACT FROM AUTHOR]

Abstract: This paper empirically tests the transaction cost theory of managerial ownership in the settings of seasoned equity offerings (SEOs) and repurchases. SEOs and repurchases result in changes of managerial ownership due to non-contracting reasons. We use a benchmark specification to obtain the measures of optimal CEO ownership and deviations from the optimum. We find that SEOs and repurchases are associated with a higher (lower) abnormal return if they move CEO ownership towards (away from) the optimal level. The findings are consistent with the transaction cost theory of managerial ownership. [Copyright &y& Elsevier]

This study examined the relationship between institutional ownership and firm performance in the casino industry from 1999–2003. Given the evidence of the endogeneity of institutional ownership in the casino industry, institutional ownership was found to be a significant and positive determinant of casino firm performance as measured by a proxy for Tobin''s Q in a simultaneous equations system. This study reveals that investing institutionally in casino firms may help casino industry investors mitigate the agency problem caused by the separation of management from ownership. In addition, financial institutions tend to invest in larger casino firms with lower financial leverage. [Copyright &y& Elsevier]

This article examines the nexus between corporate social responsibility disclosures (CSRD) and dividend payout decisions in the context of emerging markets. Using hand-collected sample of listed firms from India, China, Indonesia, Pakistan, Malaysia, Korea, Turkey, and Russia over the period 2010–2018, our results show that CSR disclosures exert a negative impact on corporate dividend payments. Further, this effect is more prevalent for firms having higher institutional ownership. However, the results remain unaffected by the differences in legal origin i.e. civil law or common law, of the sample countries. Further, our main results are supported by a number of sensitivity tests, including reduced sample size, alternative dividend payment measures, and estimation techniques. • The relationship between CSR disclosures and dividend policy is examined in the context of emerging economies. • Results show the negative impact of CSR disclosures on corporate dividend payments. • This effect is stronger for firms having higher institutional ownership. • However, the results remain unaffected by the differences in legal origin, common law or civil law, of the sample countries. [ABSTRACT FROM AUTHOR]

• Institutional investors have a positive influence on the market value of shipping firms. • This valuation effect is driven by institutions with a short-term investment horizon. • Short-term investors, through the threat of exit, mitigate agency conflicts and improve corporate governance. • Shipping firms dominated by short-term investors are better able to exploit growth opportunities. We examine the effect of institutional investors on the valuation of listed shipping firms. Institutional investors have a positive influence on the market value of shipping firms, confirming that institutional ownership is a "universal" corporate governance mechanism. This valuation effect is more pronounced in firms dominated by institutional investors with a short-term investment horizon. It is also stronger in firms with high stock liquidity, suggesting that short-term investors, through the threat of exit, are able to mitigate agency conflicts and improve corporate governance. Investment regressions indicate that shipping firms with a larger fraction of short-term investors are better able to exploit growth opportunities. [ABSTRACT FROM AUTHOR]

The discourse of corporate sustainability performance (CSP) has created an increasing motivation for companies to improve their competitive advantage. This study examines the drivers leading to a high level of CSP within non-financial Turkish companies listed in the Borsa Istanbul Sustainability Index. Drawing on both stakeholder and agency theories, we formulate a set of hypotheses that link CSP with ownership structure, board diversity, and firm-specific characteristics. Based on logit and probit models, the empirical results tend to confirm the positive influence of foreign and institutional ownerships in shaping CSP and indicate that CSP is positively linked with board size and the proportion of independent board members. Further, the findings show that companies with a leading level of CSP have a lower return than companies with mediocre CSP based on a market-based measure, Tobin's Q. [ABSTRACT FROM AUTHOR]

• This study examines the relationship between board diversity and firm performance in the U.S. tourism sector. • The moderating effect of institutional ownership is explored as a contingency that might affect the proposed relationship. • Models are estimated via two-way fixed-effects regression analysis using a panel data set of 279 firm-year observations. • A positive association is found between board diversity and firm performance as proxied by Tobin's Q. • The positive effect of board diversity on tourism firms' performance is stronger when institutional ownership is weak. This study examines the relationship between board diversity and firm performance in the U.S. tourism sector by using institutional ownership as a contingency that moderates this relationship. The study's sample includes publicly-traded companies from the U.S. restaurant, hotel and airline industries. The hypotheses are tested via two-way fixed-effects regression, and the findings of the study indicate that board diversity is positively associated with financial performance (Tobin's Q), and the effect of board diversity on performance is contingent on the degree of institutional ownership. More precisely, the study finds that board diversity has a larger effect on financial performance when institutional ownership is low on a tourism firm's ownership structure. Overall, the findings suggest that boards' internal control and monitoring on management is important to derive higher financial performance, and even yet it is more important when external monitoring by institutional owners, proxied by percentage of institutional ownership, is weak. [ABSTRACT FROM AUTHOR]

• This study investigates the impact of asset-light strategies on the dividend payout ratio of large international hotel and restaurant firms. • The results show that adopting an asset-light strategy only impacts dividend policy for firms with high growth. • The asset-light strategy is positively associated to the dividend payout only for firms with substantial growth if institutional ownership is low. • We contribute to the literature by examining the combined effect of growth and ownership structure on dividend policy in the hospitality industry worldwide. This study investigates the impact of the asset-light strategy on dividend policy using a sample of large international publicly-listed companies (399 firm-year observations) operating in the hotel and restaurant industry over the 2006–2018 period. Taking the perspective of agency theory, we posit that the asset-light strategy in conjunction with significant growth is a context in which high agency conflicts arise. Using Tobit and OLS models, our results indicate that adopting an asset-light strategy only impacts dividend policy for firms with high growth. More interestingly, the positive impact of the asset-light strategy on dividend payouts occurs for firms with substantial growth if institutional ownership is low. In such situations, significant potential agency conflicts (due to high free cash flows) coupled with the lack of monitoring from institutional investors lead firms to use dividends as a monitoring tool. Finally, a change analysis supports our main findings. [ABSTRACT FROM AUTHOR]

The purpose of this study is to test the free cash flow agency theory hypothesis; namely, (a) whether differences in industrial sector affect a company's propensity to pay dividends, and (b) whether institutional ownership is able to substitute for the propensity to pay dividends as a bonding mechanism. The analysis uses logistic regression to explore the existence of institutional ownership as a substitute for paying cash dividends in companies belonging to different industrial sectors. The results show that companies in the manufacturing sector have a greater propensity to pay dividends compared to those in non-manufacturing sectors. The results also indicate that low institutional ownership, as an external monitoring mechanism, can substitute for increasing the propensity to pay dividends. Overall, the results are consistent with implications in dividend policy. The results support the notion that the propensity to pay dividends accommodates different behavioral factors, considering sectoral differences. In addition, the results illustrate the relevance of alternative theories in explaining dividend policy from the perspective of agency theory. The results show that sectoral comparisons, in addition to institutional ownership factors, play important roles in the propensity of Indonesian companies to pay dividends. This study shows that each industry sector has different income characteristics, which affect the differences in propensity to pay dividends. [ABSTRACT FROM AUTHOR]

• Institutional ownership has a positive effect on eco-innovation. • There are divergences between institutional investors in relation to eco-innovation. • Ownership dispersion corrects the prevalence of investors' short-term objectives. This paper aims to determine the role that the different institutional investors play in promoting eco-innovation, focusing on the analysis of the corrective or enhancing effect that can be derived from ownership dispersion related to the participation in a company's stock capital of institutional investors with different time horizons. The results obtained for a sample of 6,454 companies for the period 2002–2017 show the convergence of the short-term institutional investors' interests with the long-term institutional investors' demands, which has a positive effect on the implementation of proactive environmental strategies, such as eco-innovation. Additionally, this positive effect is enhanced by disperse ownership structures associated with the participation in a company's stock capital of both types of institutional investors, thereby increasing the firm's commitment to environmental sustainability. Although financial institutions and pension funds diverge from this long-term orientation, seeking an immediate economic return, ownership dispersion allows for correcting their individual negative effect on eco-innovation. [ABSTRACT FROM AUTHOR]

Inconsistent with prior literature on the US stock market, our evidence shows the negative role of institutional investors who exacerbate subsequent crash risk in China. This is because institutional ownership amplifies the selling pressure in response to firm's bad news, which in turn leads to higher stock price crash risk. The positive relation between institutional ownership and crash risk is more (less) pronounced for transient (dedicated) institutional investors, suggesting the selling pressure of short-term investors is heavier. Additionally, competition of institutional investors strengthens institutional selling pressure and hence exacerbates the effect of institutional ownership on crash risk. • Institutional ownership exacerbates stock price crash risk in China. • The positive relation is stronger when short-termism and competition is more serious. • Higher institutional ownership is associated with heavier selling pressure. [ABSTRACT FROM AUTHOR]