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This study investigates the influence of Islamic law on the value of cash holdings. The empirical analysis was conducted using Indonesian-listed companies from 2012 to 2020 as the research sample. It is hypothesized that companies adhering to Islamic law will increase the value of cash holdings. Considering the ownership structure, it is hypothesized that higher ownership by institutions and corporate insiders in Islamic-compliant companies will lead to higher value of cash holdings. The empirical results of this study reveal that companies adhering to Islamic principles do indeed increase the value of cash holdings. Additionally, higher institutional and insider ownership in Islamic-compliant companies increase the value of cash holdings. The empirical implications of this study suggest that religious beliefs influence managerial decision-making, leading to more cautious control over cash. Both religion and ownership structure play important roles in the efficient use of cash by managers. [ABSTRACT FROM AUTHOR]

By adapting a well‐known model in the literature, the current paper sharpens the theoretical predictions on how competition intensity and institutional ownership interact to influence corporate innovation decisions, and adopts data from Chinese listed firms to empirically test the validity of two potential mechanisms. The split‐share reform of 2004–2005, whose timing and speed were largely beyond the firms' control, is used as a quasi‐natural experiment to address the potential endogeneity of institutional share. Similar to the existing results, we find support for the career concern mechanism rather than the lazy manager mechanism. But in addition to the complementary effects between institutional share and competition intensity on corporate innovation documented in their work, our findings also imply that competition discourages innovation when the share of institutional investors is low but encourages innovation when the institutional share is high. The opposite effects of competition on innovation with or without institutional shares is accounted for by the negative correlation between competition and innovation success, which is an assumption in our theoretical model that departs from the existing literature, but fits the reality of China's economic transition. Additional evidence relating listed firms' managerial turnover to their institutional shares is also in support of the career concern mechanism. Combined with the substantial increase in innovation after the split‐share reform, these findings demonstrate the strong positive role of institutional investors in encouraging innovation, but also offer more insight into the complex process that determines corporate innovation, especially where ownership structure is still in flux. [ABSTRACT FROM AUTHOR]

We show that the post-earnings announcement drift (PEAD) is stronger for conglomerates than single-segment firms. Conglomerates, on average, are larger than single segment firms, so it is unlikely that limits-to-arbitrage drive the difference in PEAD. Rather, we hypothesize that market participants find it more costly and difficult to understand firm-specific earnings information regarding conglomerates, as they have more complicated business models than single-segment firms. This in turn slows information processing about them. In support of our hypothesis, we find that, compared to single-segment firms with similar firm characteristics, conglomerates have relatively low institutional ownership and short interest, are covered by fewer analysts, and these analysts have less industry expertise and make larger forecast errors. Finally, we find that an increase in organizational complexity leads to larger PEAD and document that more complicated conglomerates have even greater PEAD. Our results are robust to an extensive list of alternative explanations of PEAD as well as alternative measures of firm complexity. [ABSTRACT FROM AUTHOR]

Copyright of Management & Organization Review is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Management & Business Research (2521-4306) is the property of Chinese Management Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Taxpaying companies in Indonesia aim to maximize profit to increase the company's shares value so that more investors are interested in investing in the company. This practice causes companies to try to pay taxes to a minimum by carrying out tax management without violating tax laws. This study examines and analyzes the effect of institutional ownership, family ownership, and thin capitalization on tax avoidance. Data used were from the manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021, using a purposive sampling technique. In the sample of this study, 6 companies met the criteria. This research uses the panel data regression analysis method which is a combination of time series and cross data to get more informative data. The table of the coefficient regression test result shows that the significant value for Institutional Ownership is 0.0295, <0.05 (alpha 5%) with a positive beta value in accordance with the hypothesis proposed in this study. Therefore, it can be stated that institutional ownership has a significant positive effect on tax avoidance at the 95% confidence level. The significant value for family ownership is 0.2213, >0.05 (alpha 5%) with a negative beta value and is not in accordance with the hypothesis proposed in this study. So, it can be stated that family ownership has no effect on avoidance. And, the significant value for thin capitalization is 0.0103, <0.05 (alpha 5%) with a positive beta value in accordance with the hypothesis proposed in this study. So, it can be stated that thin Capitalization has a significant positive effect on tax avoidance at the 95% confidence level. The F-statistic test was used to measure the accuracy of the sample regression function in estimating the actual value (goodness of fit). The F-test analyzes whether the independent variables are able to explain the dependent variable well or whether the model used is fit or not. The F-test in this study uses a significance level of 5%. From the table, it is known that the significant value is 0.005389 <0.05, which means that institutional ownership, family ownership, and thin capitalization simultaneously affect the dependent variable tax avoidance. [ABSTRACT FROM AUTHOR]

This study has the objective of examining how internal corporate governance mechanisms are related to earnings manipulation, measured by real-based earnings manipulation (REM) and accrual-based earnings manipulation (AEM). The internal corporate governance mechanisms discussed in this study signify two main kinds of board characteristics (board size and board independence) and three main kinds of ownership structure (institutional ownership, foreign ownership and business group affiliation). The study models were examined from eight countries selected from the Middle East and North Africa (MENA) region. A total of 480 non-financial firms listed between 2012 and 2019 were examined. Based on panel data-based generalised methods of moments (GMM) estimation, the findings showed that institutional ownership in MENA nations limits the use of REM and AEM. Additionally, we found that larger boards are more likely to participate in REM practices. Board independence has a positive association with REM and AEM. The results also reveal that business group affiliation has a significant effect on both methods of earnings manipulation. Foreign ownership does not seem to significantly impact either of the two manipulation methods. Finally, these results help regulators and policymakers pursue reforms to enhance national governance quality in the MENA region. [ABSTRACT FROM AUTHOR]

Purpose: The authors empirically investigate the impact of the existence of a stand-alone risk committee (RC) and its characteristics on the likelihood of stock price crash risk in listed financial firms on the Bursa Malaysia. The authors also test whether the effect of RC on crash risk is attenuating or amplifying by the level of institutional ownership. Design/methodology/approach: The authors use a principal components analysis (PCA) to aggregate and derive a factor score for risk committee characteristics (i.e. independence, qualification, and size) as a proxy for the effectiveness of RC. The study also employs two distinct stock price crash risk measurements to corroborate the findings and partition institutional ownership into dedicated and transient to examine the potential impact of institutional shareholding on RC-stock price crash risk association. Findings: Regression analysis reveals that only RC qualification has a significant negative impact on stock price crash risk. However, when RC characteristics are aggregated into one composite factor, the authors find that firms with effective RCs exhibit lower risk of stock price crash. The authors also find that firms with high level of institutional shareholdings and effective RCs are less likely to experience crash risk likelihood. The additional analyses indicate that the complementary moderating effect of institutional ownership on RC-crash risk nexus is likely to be driven by dedicated institutional ownership. The results are robust across two measures of stock price crash risk and regression specifications for a longer run window. Originality/value: The study, to the best of the researchers' knowledge, is the first to provide evidence in an emerging market financial sector companies' perspective suggesting that effective RCs are individually and aggregately associated with lower stock price crash risk, which is further strengthened by dedicated institutional investors. These findings are unique and contribute to a small but growing body of literature documenting the need for effective RCs and specific institutional investors and their consequences of improvements in stock price crash risk environment. Results of our research in this area provide important insights to financial and capital market participants, investors, regulators, and policymakers in Malaysia. [ABSTRACT FROM AUTHOR]

Institutional owners frequently invest in a diversified portfolio of firms to avoid firm-specific risks. I investigate the particular scenario in which the institutional owners have shares in both the acquiring and the acquired target firms of an M&A deal. Using a quasi-experimental approach, I find that the acquirer pays less premium and performs better after the M&A effectiveness when the ratio between the value owned by common institutional shareholders in the acquirer and the value held by the same shareholders in the target firm is higher. The value paid is higher, and the performance worsens when this ratio is lower. The results suggest the common institutional owners can obtain benefits from promoting and implementing such M&A deals as a secondary compensation for their lack of control, usually at the expense of the controlling shareholders. [ABSTRACT FROM AUTHOR]

This study investigates the potential impact of corporate governance on environmental, social, and governance (ESG) disclosure by differentiating between financial and non‐financial companies. Panel data regressions were applied to estimate these impacts using a sample of UAE‐listed firms during the period 2010–2019. In the estimations, different subsamples of financial and non‐financial companies were considered. The empirical results vary across financial and non‐financial companies but provide overall evidence of the positive impacts of institutional ownership, foreign ownership, board independence, and board diversity on ESG disclosure for both financial and non‐financial companies. Managerial ownership, blockholder ownership, and board size are negatively associated with non‐financial companies' ESG disclosure. This study is the first to provide a better understanding of the most effective UAE corporate governance mechanisms and the important role of ownership structure and board of directors in increasing ESG disclosure by differentiating between financial and non‐financial companies. [ABSTRACT FROM AUTHOR]

The primary goal of this study was to investigate the effects of changes in corporate governance elements on a company's valuable resources (such as intellectual capital and its components). Previous studies have examined the impacts of some corporate governance characteristics on intellectual capital performance as a whole and they have produced inconclusive and different results. This paper examines the effects of some corporate governance characteristics (i.e., the change in CEO, the evolution of auditor, the change in board independence, and the change in institutional ownership) on intellectual capital and its components (i.e., capital employed, human capital, and structural capital). This research is based on a quantitative study and the selected sample contains 1170 observations from 220 companies listed on the Middle East Stock Exchange from 2011 to 2018. The research findings show a positive and significant relationship between an increase in institutional ownership and intellectual capital and its two components (human capital and structural capital). The results support the relationship between a change in auditor and intellectual capital and human capital efficiency. Further, a positive and significant association was found between an increase in board independence and human capital. However, no relationship was found between a change of CEO and intellectual capital or any of its components. This study extends the research field of corporate governance by studying the effects of changes in corporate governance characteristics on intellectual capital for the first time. Given the significant role of intellectual capital in the performance of firms, this study provides essential information to organisations' decision makers. [ABSTRACT FROM AUTHOR]

Author investigates whether firms with institutional ownership limit classification shifting. Classification shifting is new technique of earnings management wherein managers misclassify line items of income statement to present favorable operating performance. Core earnings expectation model (McVay in Account Rev 81:501–531, 2006) is adopted for measuring expense shifting. Regression model is employed to analyze whether ownership structure affects expense classification shifting in Indian Firms. It is found that firms with institutional ownership are engaged in expense misclassification to inflate core earnings of the firms. Investors should be more observant for the ownership structure of the firm. Regulators and Accounting Professional Bodies should provide for more mandatory disclosure in order to eliminate such misclassification practices. Auditors should also look in detail in financial statements for detecting CS activity, which is less likely to be detected as it does not impact bottom-line earnings of the firm. The paper provides the literature on expenses misclassification and presents the evidence that firms with institutional ownership are engaged in classification shifting. [ABSTRACT FROM AUTHOR]

This research applies the dynamic slack-based measure (DSBM) model to evaluate the dynamic efficiency of manufacturing companies in the long run and uses the Censored Least Absolute Deviations (CLAD) model to analyze the effect of corporate governance on their overall efficiency and the efficiency of each input factor. We find the following main results. First, overall efficiency of the manufacturing industry listed companies is low. 2) Debt efficiency is lower than the efficiency of shareholders' equity and exhibits a downward trend. 3) Labor efficiency is the lowest among all inputs. 4) The efficiency of the medicine and bio-products industry is the highest, while the efficiency of the paper and printing industry (which causes serious pollution) is the lowest. 5) Companies with low export intensity and high capital intensity are the most efficient, while companies with high export intensity and low capital intensity are the least efficient. 6) Ownership concentration and efficiency have a significantly positive U-shape relationship. 7) Board size and efficiency have a significantly inverted U-shape relationship. 8) An actual controller with a state-owned nature has a significantly negative impact on efficiency. 9) Executive compensation, equity incentive, and institutional ownership have a significantly positive impact on efficiency. [ABSTRACT FROM AUTHOR]

Based on the microdata of Chinese listed enterprises from 2012 to 2017, we empirically examine the nonlinear relationship between institutional ownership and enterprise innovation. We find that institutional ownership has an inverted-U nonlinear relationship with enterprise patenting when enterprise characteristics and fixed effects such as time, region, industry type and ownership type of enterprises (SOE or NSOE) are controlled and the endogeneity is considered. This nonlinear relationship significantly varies among active, passive, pressure-resistant and pressure-sensitive groupings of institutional investors. Employing the mediation model proposed by Hayes and Preacher (2010) [Quantifying and testing indirect effects in simple mediation models when the constituent paths are nonlinear. Multivariate Behavioral Research, 45(4), 627–660], we further investigate the mediating effects of financing constraints and R&D manipulation. The results show that institutional ownership linearly drives enterprise innovation by alleviating financing constraints but nonlinearly affects the enterprise innovation by manipulating R&D activities. [ABSTRACT FROM AUTHOR]

Purpose: Within the theoretical framework of corporate governance, the article aims to examine the impact of ownership structure on the level of disclosure of financial and non-financial information in integrated reporting (IR), and the effect is sensitive to national legal systems. Design/methodology/approach: Regressions on panel data are used to study the impact of ownership structure on IR. The present empirical study was based on a sample of 431 European firms belonging to common or civil law for the period spanning 2012 and 2019. Findings: The results of the linear regressions corroborate the existence of relationships between the ownership concentration, institutional ownership as well as managerial ownership and IR. Research limitations/implications: The study have limitations as follows: the role of the ownership structure studied here, the model should incorporate other internal and external control mechanisms to represent reality more fully. The mechanisms include board characteristics, financial market, labor market, the goods and services market, etc. that affect managerial latitude and, therefore, the adoption of IR. Finally, the authors will consider future theoretical and empirical improvement. For example, it would be interesting to extend the theoretical framework to the contributions of cognitive governance and to empirically examine the modeling with a larger sample of firms, including an international comparison. Originality/value: The study provides evidence as to the disclosure of IR and ownership structure. The originality/value chapter highlights the global need for a generally accepted set of standards for sustainability and IR practices. [ABSTRACT FROM AUTHOR]

Financial distress refers to the inability of firms to fulfill their debt obligations. This paper studies the impact of certain corporate governance measures or board characteristics on the probability of financial distress in various corporate sectors (manufacturing and non-manufacturing) in India. The higher the institutional ownership, the lower is the financial distress for the majority of the sectors, except telecom where firms having higher institutional ownership are found to be more financially distressed. Higher managerial ownership leads to less financial distress in the consumer and transport equipment sector. Measures like board size, number of board meetings, and commissioner's proportion are found to have a different impact on the probability of financial distress in diverse sectors. It has been observed that they have a positive influence on some sectors and a negative influence on others. So overall, a sectoral difference was observed in the impact of various board characteristics on the financial distress of firms in India. [ABSTRACT FROM AUTHOR]

We study how geographic proximity to financial centers affects price efficiency. Using high‐speed railway connections between firm cities and their nearest financial centers in China as exogenous shocks, we find stocks of connected firms are more efficiently priced than those of firms that are not connected. Consistent with our hypothesis, ease of travel has a stronger effect on firms that are closer to financial centers, smaller, have less institutional ownership and financial analyst coverage, and are not on the short sales list. Our paper highlights the importance of the geographic proximity of firms to financial centers on financial market efficiency. [ABSTRACT FROM AUTHOR]

Beginning with classical theories on finance, such as the capital structure theory, the trade-off theory of capital structure, and the pecking order theory, the literature shows a negative correlation between tax avoidance and institutional ownership with respect to the business cost of debt. However, the impact of tax avoidance and institutional ownership on corporate debt policy in Vietnam is an under-researched topic. The aim of the study is to identify the effect of those mentioned factors on business borrowing policy, using data on 207 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) in Vietnam from 2008 to 2016. The study employs model proposed by Lim in 2009 to achieve mentioned research object with Feasible Generalized Least Squares (FGLS) method to overcome for any defection. The study results show no conclusive empirical evidence of a relationship between business's cost of debt and tax avoidance and institutional ownership. This result contrasts with the conclusion in previous studies and can be explained by the characteristics of the funding market in Vietnam where financial organizations often focus on business results and management efficiency in making lending decisions and this characteristic is at no sign of change soon. [ABSTRACT FROM AUTHOR]

Purpose : The company’s existence can be maintained by increasing the firms value every period, which will affect the welfare of investors. This study aims to examine and analyze the effect of tax avoidance, corporate social responsibility disclosure on firm value with managerial ownership as a moderating variable. Method : This study uses a sample of mining companies listed on the Indonesia Stock Exchange for 2016-2019. In this study, tax avoidance uses the Effective Tax Rate proxy, and corporate social responsibility disclosure uses the Corporate Social Responsibility Index. Firm value is measured using Tobin’s Q, and ownership structure as a moderating variable is measured by managerial and institutional ownership proxies. Findings : The results showed that tax avoidance and corporate social responsibility disclosure had no effect on firm value with firm size and capital intensity as control variables. Managerial ownership and institutional ownership significantly impact the relationship between tax avoidance and firm value with firm size and capital intensity as control variables. Managerial ownership and institutional ownership have no significant effect in moderating the relationship between corporate social responsibility disclosure and firm value with firm size and capital intensity as control variables. Novelty : The research used institutional ownership and managerial ownership as part of ownership structures to moderate the relationship between tax avoidance, corporate social responsibility disclosure, and firm value. [ABSTRACT FROM AUTHOR]

Existing literature shows that monitoring the effect of concentrated ownership has a positive impact on firm value. However, the economic channel of such a positive impact has not been examined. This study offers a possible economic channel and tests it empirically using a panel of Indian firms. The hypothesis of the paper is that concentrated ownership increases the competitiveness of the firms, through efficient monitoring of their activities, in their product markets, thus increasing the growth rate of firms. The results show that both institutional and promoter ownership have a positive impact on firm competitiveness. However, foreign concentration has an insignificant impact. Moreover, for business group-affiliated firms, only institutional concentration has a positive impact. The results remain robust for different specifications and endogeneity issue. [ABSTRACT FROM AUTHOR]

This study develops a "comply or explain" index which captures compliance and quality of explanations given for non‐compliance with the corporate governance codes in UK and Germany. In particular, we explain, how compliance and quality of explanations provided in non‐compliance disclosures, and various other internal corporate governance mechanisms, affect the market valuation of firms in the two countries. A dynamic generalised method of moments (GMM) estimator is employed as the research technique for our analysis, which enabled us to control for the potential effects of endogeneity in our models. The findings of our content analysis suggest that firms exhibit significant differences in compliance, board independence and ownership structure in both countries. The "comply or explain" index is positively associated with the market valuation of UK firms suggesting that compliance and quality governance disclosure are value relevant in the UK. Institutional blockholders' ownership is, however, negatively associated with the market value of firms, which raises questions about the monitoring role of institutional shareholders in both countries. We argue that both compliance and explanations given for non‐compliance are equally important, as long as valid reasons and justifications for non‐compliance are provided by the reporting companies. These findings thus imply that the "comply or explain" principle is working well and that UK and German companies could benefit from the flexibility offered by this principle. With respect to the role of board size, board independence, ownership structure, and institutional ownership of firms, this study offers policy implications. [ABSTRACT FROM AUTHOR]

This study finds that firms with major government customers have better information quality and, therefore, lower future stock price crash risks. Our main findings are robust to various tests accounting for endogeneity concerns, including propensity score matching analysis and entropy balancing method. We also conduct a difference‐in‐differences analysis based on a quasi‐natural experiment that exogenously enhances government procurement contracts' disclosure quality. Further analysis shows that the effects of government customers are more pronounced when traditional information intermediaries are weaker (i.e., firms with lower institutional ownership and analyst coverage, of smaller size, and audited by non‐industry‐specialized auditors). Consistent with government customers improving the information quality, we also find that firms with major government customers are less likely to have SEC‐attributed restatements. [ABSTRACT FROM AUTHOR]

This study examines the impact of ownership structures on dividend policy for 89 firms listed on the Johannesburg Stock Exchange All Share Index (ALSI) from 2010 to 2019. To achieve this objective, three ownership structures were examined; the study employs a panel regression model to investigate this relationship incorporating both the fixed effects (FE) and random effects (RE) models. First, our result revealed that ownership is concentrated with institutional shareholders. Second, our FE model results show that managerial and foreign ownership structure has no relationship with firms' dividend policy. In contrast, the result shows a negative relationship between institutional ownership and dividend policy of firms in South Africa. Additionally, firm size and profitability have a positive relationship with the dividend policy. The South African ownership structure context is contrary to the agency theory where large shareholders use increase in dividend pay-out to reduce available earnings for the benefit of managers. It is evident from the results that institutional investors are active monitors of managers' performances. This study is the first in South Africa to the author's knowledge. Lastly, this study proffers key insight into the impact of ownership structures on dividend pay-out for investors seeking to invest in JSE stocks. [ABSTRACT FROM AUTHOR]

The study was set to investigate the diagnostic correlative link between ownership structure and earnings performance of quoted Consumer Goods Companies in Nigeria. The study correlatively diagnose causal link of the two constructs' relationship - the Institutional and Managerial Ownership Structures - with earnings yield. A quantitative technique was adopted for the study using the panel data obtained from the studied companies listed on the Stock Exchange from 2010 to 2019. A total of 21 consumer goods companies were studied for 10 years (2010 to 2019), giving a total of 210 observations. Structural Equation Model (SEM) was used to estimate the structural relationship between ownership structures constructs on earnings yield. The analysis was aided by AMOS software version 23. The results showed that institutional ownership structure has a significant positive effect on earnings yield of quoted consumer goods companies studied. Also, the study found out that managerial ownership structure has a significant positive effect on earnings yield of quoted consumer goods companies. Therefore, the paper recommended that management of consumer goods companies should ensure adequate reform of ownership structures and put in place an effective internal control mechanism that will enhance the performance of the firm and improve earnings yield. Equally, an adequate institutional ownership structure should be encouraged to improve the companies' earnings yield. [ABSTRACT FROM AUTHOR]

Our study examines the non-linear relationship between institutional investors and capital structure of the Indian firms, to understand its applicability in an emerging economy. We find the applicability of a quadratic relationship between leverage and institutional ownership. We notice that at a lower level of institutional ownership, the relationship is negative, because it initially reduces the debt level of the firms; however, as ownership increases, it is more lucrative to increase the leverage in order to magnify the gains. We also classify the institutional investors into two categories - pressure sensitive and pressure insensitive investors. The behaviour of pressure-sensitive investors and pressure-insensitive investors are different from each other. The behaviour of pressure-insensitive investors is similar to aggregate institutional investors, whereas we found contrasting behaviour for pressure-sensitive investors in our study. Investors should understand that simply having more proportion of institutional investors in a firm's equity is not going to resolve agency conflicts. It is the presence of pressure-insensitive investors that will help mitigate the agency. [ABSTRACT FROM AUTHOR]

We find that firms in the growth and maturity stage generally have higher levels of institutional ownership, higher Tobin's Q ratios, and are more likely to remain in their life cycle stage over the subsequent six-year period. Further analysis indicates a feedback effect between domestic and foreign institutional ownership. Finally, we find that the impact information transmission of foreign institutional ownership is faster than that of domestic institutional ownership. We conclude that Taiwan's government has been successful in its efforts over the last 20 years to increase economic growth, strengthen corporate governance, and improve the country's capital markets. [ABSTRACT FROM AUTHOR]

Agency theory predicts that institutional ownership plays an important role in monitoring corporate risk-taking. This study examines this ownership-risk taking linkage in Japan over the period 2007 and 2019. We proxy risk through measures of idiosyncratic risk, total risk, and market beta. We show that (relational) foreign institutional shareholdings (do not) induce corporate risk-taking, thereby mitigating (preserving) the managerial 'quiet life' in Japanese corporations. Using 2SLS analysis, the roles of institutional shareholders are robust to endogeneity concerns. Finally, we also confirm robustness using alternative accounting-based risk proxies such as the standard deviation of Tobin's Q and ROA. Our study implies that the monitoring of institutional shareholders is important in Japanese corporations whose top executives might be prone to seek a 'quiet life'. [ABSTRACT FROM AUTHOR]

This study aims to evaluate the application of good corporate governance to the stock prices of Indonesian manufacturing companies. It is used a descriptive method with a quantitative approach. The population in this study is the manufacturing companies in Indonesia from 2016 to 2018. The research data uses secondary information, and financial statements of the companies. The results of the study indicate that the Independent Commissioner and Managerial Ownership have an impact on stock prices, while the Institutional Ownership does not have an impact. [ABSTRACT FROM AUTHOR]

Copyright of Ekonomika is the property of Society of Economists 'Ekonomika' and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose of the article: The study is undertaken to establish whether there is a relationship between financial reporting quality and the firm size, board independence, board size, institutional ownership, and growth opportunity in manufacturing firms quoted on the Nigerian Security Exchange. Methodology/methods: The research employs ex-post facto design; the population of the study is made up of fifty-four (54) manufacturing firms quoted on the Nigerian Stock Exchange (NSE); the judgmental sampling technique was utilized to select forty eighty (48) manufacturing firms as the study sample, while the Jarque Bera normality test, correlation and ordinary least squares (OLS) were used in the data analysis. Scientific aim: To ascertain the determinants of financial reporting quality in quoted manufacturing firms listed on the Nigeria Stock Exchange. Findings: The study revealed a significant positive relationship between the board size and firm financial reporting quality. Equally, the study further revealed that the firm size, board independence, institutional ownership and growth opportunity as financial reporting quality indicators have no significant effect on financial reporting quality. Conclusions: The study concludes that the board size is positively associated with firm financial reporting quality and that large boards are associated with better firm financial reporting quality, possibly through closely monitored management and robust decision-making. The implication is that larger boards can increase the quality of collective control and decision-making by utilizing the diversities of knowledge and expertise in the board, hence increasing financial reporting quality. [ABSTRACT FROM AUTHOR]

The aim of this research is to test the relation between institutional ownership and firm value. To accomplish this aim, data from 104 firms listed in the BIST (i.e. Borsa Istanbul) industrial index between 2006 and 2018 have been used. Studies on the structure of ownership have problems with endogeneity. In order to avoid these problems, this study adopted Durbin-Wu-Hausman test with advanced econometric techniques, Ordinary Least Squares (i.e. OLS), and Two-Stage Least Squares (i.e. 2SLS). As a result of the simultaneous equation system improved in this study, a positive relation between institutional ownership as an endogenous variable, and firm value has been located. Besides, it has been found that institutional investors are more interested in the firms that have a higher market performance. [ABSTRACT FROM AUTHOR]

Objective - This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique - Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings - It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty - Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firmspecific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. [ABSTRACT FROM AUTHOR]

Enterprise information systems (EIS) improve access to information, process optimization and system integration. Such enhanced information processing capabilities have varying effects on firm financial performance under different corporate governance aspects. We examine such interacting effects with data of Chinese listed companies during 2008 and 2013. Our empirical study shows that EIS implementation is associated with higher financial performance when the firm's ownership is more concentrated or the CEO assumes a dual role as the chair of the board of directors. EIS implementation is associated with lower financial performance when the firm is a state-owned enterprise or within a business group. This study contributes to literature in IT business value in general and research in enterprise systems in particular by expanding our understandings about the varying impacts of EIS under different corporate governance aspects. [ABSTRACT FROM AUTHOR]

In this article, we examine commonality in liquidity of firms headquartered in the same states and how the local liquidity commonality is influenced by firm‐ and state‐level characteristics. We document strong liquidity comovement of nearby firms. Moreover, firms that change headquarters location experience a decrease in their liquidity commonality with firms in the old states and an increase in their liquidity commonality with firms in the new states. Our findings show that both firm‐ and state‐level characteristics determine local liquidity comovement. Local liquidity commonality is stronger for firms with smaller size and lower level of institutional ownership. Our results also suggest that state‐level volatility, state personal income, state investment income, and state turnover commonality explain the local component of liquidity commonality. We further document that the four state‐level factors perform differently during volatile market periods. [ABSTRACT FROM AUTHOR]

Conveyance of information associated with REIT FFO announcements is investigated by decomposing stock returns into three components: firm-specific, industry-level and market-wide. The relative importance of firm-specific and industry information is evaluated around and following FFO announcements. The initial market reaction to REIT FFO announcements is primarily driven by the firm-specific return component. The underreaction to firm-specific information appears in drift after the announcement, especially for negative FFO surprises. FFO surprises explain the firm-specific return component, but not the industry-level return component which further suggests that FFO announcements only convey firm-specific information. [ABSTRACT FROM AUTHOR]

The empirical evidence from the extant literature has been equivocal regarding the influence exerted by different ownership types on corporate social responsibility (CSR), especially in developing countries such as India characterized by institutional voids. We use a longitudinal panel dataset of 500 large Indian companies to test a model of corporate ownership forms as key determinants of CSR engagement in India. Based on neo-institutional theory, our model of CSR determinants investigates the roles of three salient aspects of ownership namely multinational ownership/affiliation, state ownership and family ownership and control, after controlling for the influence of firm size, firm age, leverage, the availability of slack resources, profitability and various governance attributes. Our ordered logit regressions indicate strong support for the role of multinational ownership and family control and management in promoting higher levels of CSR engagement. Contrary to expectations, public sector ownership appeared to negatively impact CSR engagement. We offer our conjectures on this anomalous finding and the research possibilities it opens up. [ABSTRACT FROM AUTHOR]

This paper tests whether item 7.01 of the Form 8-K filing, which is subject to the regulation FD, mitigates stock crash risk. The regulation FD forces the firm to communicate private information using information channel with broad coverage. Such communications may mitigate the firm's stock crash risk by revealing the negative news in a more timely manner. Consistently, I find a negative association between the frequency of item 7.01 disclosures with the negative news (measured by market reaction surrounding the Form 8-K filing date) and subsequent stock crash risk. On the contrary, the results show that there is no association between the frequency of item 7.01 disclosures with the positive news and subsequent stock crash risk. Such association is more pronounced when the firm's is not followed by equity analysts or do not have high percentage of institutional ownership. I also find that item 7.01 disclosures provide incremental information over other voluntary items or mandatory items of the Form 8-K filing. Finally, I use tone of the item 7.01 disclosures to identify whether the news is positive or negative, and find consistent results to the main findings. Overall, these findings suggest that communications subject to the regulation FD, especially the negative ones, are an important mechanism that mitigate stock crash risk. [ABSTRACT FROM AUTHOR]

In this study, we hypothesize that institutions invest more heavily in companies with strong corporate social performance. Analysis indicated a significant, positive relationship between social performance and the number of institutions holding the shares of a company and a positive but insignificant relationship between social performance and the percentage of shares held by institutions. We conclude that improving a company's corporate social performance invokes no penalty in institutional ownership. [ABSTRACT FROM AUTHOR]

This study developed and tested a model that attempts to describe the influence of ownership structure on productivity differences between firms. We theorized that diversification, investment in R&D, capital intensity, and ownership structure all determine firm productivity. Ownership structure was proposed to affect productivity both directly and indirectly through the mediators of diversification strategy, R&D expenditure, and capital intensity. Results based on data from a cross- sectional set of 122 Fortune 500 firms suggested that ownership affects a firm's posture toward diversification and investment in R&D. Those factors and capital intensity in turn explain differences in productivity between firms. [ABSTRACT FROM AUTHOR]

This study investigates whether the education level of a firm's directors significantly influences R&D investment, dependent on the moderating effects of institutional ownership, family involvement and control type. Based on a longitudinal sample of 437 Taiwanese listed firms over the period 2006e2012, we conclude that the education of directors does affect on a firm's R&D investment, and suggest that higher education of directors leads a firm to invest more in R&D. Moreover, internal corporate governance plays a moderating role in the relation between education of directors and R&D investment. Professional management strengthens the positive effect of education of directors on R&D investment, but institutional ownership or family involvement undermines this relationship. Finally, this study further reveals that cross-sectional heterogeneity in R&D investment depends on industry and control type. [ABSTRACT FROM AUTHOR]

Copyright of Revista Ibero-Americana de Estratégia (RIAE) is the property of Revista Ibero-Americana de Estrategia/UNINOVE and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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]

Copyright of Polish Journal of Management Studies is the property of Czestochowa University of Technology, Faculty of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We study the link between institutional shareholdings and the quality of the credit ratings of the firms they hold in their investment portfolio. The study of the overall impact of institutional investor ownership yields mixed results while more consistent results are obtained when we take into account the heterogeneity of institutional investors. When we classify the institutional investors based on their degree of intervention and activism levels, we find that passive/inactive investors are associated with better-rated firms while active ones are associated with lower-rated firms. Thus, activist institutional investors believe that there is more value to be found at lowly rated firms. They are more likely to find cheap stocks among these firms that require both their financial and managerial inputs to progress. Passive investors, instead, tend to track market indices that consist of mostly highly rated firms. [ABSTRACT FROM AUTHOR]

This article suggests that larger, better-governed, and lower ownership concentration companies have less homogeneous and passive boards, but pay more to their senior managers and directors. These companies probably need better-paid professionals to cope with more complex compliance and business environments. We create two categorical variables named homogeneity and passivity scores that aggregate hand collected board member characteristics. More homogeneous and passive boards may grant larger director and senior management compensations under the managerial power hypothesis. On the other hand, larger and value increasing companies may pay more to their senior managers. Our findings suggest that less homogeneous and passive boards grant larger compensations in univariate tests. These results, however, do not transpire in multivariate tests. More homogeneous and passive boards are more frequent in smaller and higher ownership concentration companies, with poorer corporate governance and disclosure practices. It is possible that financial disclosure practices are more important then board characteristics. These results highlight the importance of disclosure and transparency efforts to improve investor relations and reduce the cost of capital in a high ownership concentration country. [ABSTRACT FROM AUTHOR]

The role of institutional investors in corporate governance is widely recognized. This study investigates whether institutional investors are active monitors or passive investors by examining the relationship between institutional ownership and firm performance for a sample of 11,136 firm-year observations from 1,392 non-financial firms listed on the BSE from 2007 to 2014. It employs panel data regression models and instrumental variables regression using generalized method of moments to control for unobserved heterogeneity and possible endogeneity of ownership variables. The results reveal that institutional ownership has a positive impact on firm performance. Institutional ownership is disaggregated into domestic and foreign institutional ownership and it is observed that both the categories positively affect the firm performance. The findings suggest that institutional investors, whether domestic or foreign, are able to monitor managements' actions and decisions effectively and help to improve firm performance. It also finds the relationship between institutional ownership and firm performance to be endogenous. [ABSTRACT FROM AUTHOR]

We investigate two under-explored factors in mitigating the risk of corporate fraud and regulatory enforcement against fraud, namely institutional investors and political connections. The role of institutional investors in the effective monitoring of a firm's management is well established in the literature. We further observe that firms that have a large proportion of their shares held by institutional investors have a lower incidence of enforcement actions against corporate fraud. The importance of political connections for enterprises, whether in a developed market such as the United States or an emerging market such as China, has been established by previous studies. However, we find evidence of another positive effect of political connections: they may reduce the incidence of enforcement action against corporate fraud. We also find that political connections play a more significant role in reducing regulatory enforcement incidents against non-state-owned enterprises and firms in weaker legal environments, whereas institutional ownership plays a more important role in reducing regulatory enforcement incidents against state-owned enterprises. [ABSTRACT FROM AUTHOR]

The purpose of this paper is the conceptualisation of the notion of enterprises' structural power. It allows to draw the attention to the process of diversification of enterprises and building of complex andmultidimensional ownership structures as possible sources of the increase in the companies' power and the possibility of its use and abuse in order to limit the competition and perform better on the market. The concept of structural power is a part of the scientific discussion on the sources and possibilities of using enterprises' market power, and fits into the current research on one of the fundamental problems of economic theory: how to protect competition internationally and, therefore, determine the limit when the natural and desirable behaviour of enterprises aimed at increasing their international competitiveness begins to distort competition and adversely affect economic development. The analysis shows that the potential influence on other market participants may arise not only from the firm's position on the relevant market and other factors related to its specificity, but also from the various types of linkages between firms. [ABSTRACT FROM AUTHOR]

This paper uses panel data between 2000 and 2010 to explore how firm ownership and regional industrial structures contribute to regional innovation performance in Chinese provinces. Specifically, we explore how the extent of specialisation and diversification in regional industrial structures at the province level fosters both Marshall–Arrow–Romer and Jacobs spillovers, as well as how foreign and state ownership influence regional innovation. We find: (i) China's regional innovation systems benefit from Jacobs but not MAR externalities, with the former spurring higher quality innovation in the form of increased invention patenting; (ii) state-owned enterprises and foreign-invested enterprises advance local innovation, with the latter again fostering higher quality innovation; and (iii) a convergence towards a combination of low specialisation and high diversity in provincial industrial structure is taking place between China's more developed inland coastal provinces and less developed inland provinces. Implications and suggestions for policy-making and future research are discussed. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between private benefits and institutional ownership change in markets characterized by different investors' sentiments. High-sentiment markets tend to overvalue a firm and thereby offer institutional investors a chance to sell shares and profit from overvaluation by forgoing the private benefits otherwise obtainable. Empirical analysis of ownership data from 1990 to 2008 reveals that, in high-sentiment markets, institutional investors sell more shares low in private benefits (dual-class firm share) than shares high in private benefits (non-dual-class firm share). In contrast, firm insiders, who consume significant private benefits in both dual-class and non-dual class firms, sell more dual-class firm shares in both high- and low-sentiment markets. Their ownership disposition is more likely driven by the need for diversification. Subsample analyses show that public pension funds drive the market-sentiment-related change of institutional ownership. [ABSTRACT FROM AUTHOR]