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Purpose – As the influence of institutional investors over managerial decision-making grows, so does the importance of understanding the effect of institutional investor ownership (IO) on firm outcomes. The authors take a comprehensive approach to studying the effect of IO on earnings management (EM). Design/methodology/approach – The authors study the relation between IO and EM using a sample of 59,503 listed U.S. firm-year observations from 1981–2019. The authors proxy EM with earnings surprises and with accrual-based and real activity measures. The authors test for nonlinear relations and analyze changes resulting from the passage of the Sarbanes–Oxley Act. Findings – The findings support a positive IO-EM relation overall, but show that the relation is dynamic and heavily context-dependent with evidence of nonlinearity. The authors also find evidence that IO positively affects accrual-based EM and real activities EM negatively. Originality/value – To the authors’ knowledge, this is the first study of the IO-EM relation to consider evidence of nonlinearity in the U.S. context, measuring changes to the relation over time, and with the use of several measures of EM. [ABSTRACT FROM AUTHOR]

Addressing financial risks draws attention from both government and academia. Current studies primarily focus on the impact of CSR on stock-price crash risk, overlooking the regulatory role of institutional ownership and internal control, and the mediating effect of analyst coverage. This paper investigates the relationship between CSR and stock price crash risk using data from A-share listed companies (2015–2021). Findings suggest that better CSR helps reduce stock-price crash risk. The mediating effect test shows that improved CSR attracts analysts' attention and enhances information transparency, thus reducing stock-price crash risk. Institutional ownership, internal control and CSR have substitution relations in inhibiting stock-price crash risk. Further research shows CSR's significant role in reducing stock-price crash risk for non-state-owned, eastern regions, and non-Big Four audited enterprises. This study enriches literature on stock-price crash risk and CSR and guide firms in reducing stock-price crash risk, promoting capital market development and enhancing enterprise evaluation systems. [ABSTRACT FROM AUTHOR]

Applying the principles of Good Corporate Governance is a major factor in building a solid and reliable corporate fundamentals to achieve sustainable corporate profitability. The aim of this research is to examine the influence of CSR and Independent Commissioners on Profitability which is moderated by Value Added Human Capital and Institutional Ownership. This study uses a quantitative method, where the data source used secondary data taken from the Indonesia Stock Exchange. The contribution of this research is the higher the proportion of independent commissioners, the more independent commissioners will carry out optimal supervision of operational activities. The board of independent commissioners greatly determines the company's success in achieving goals and improving the company's financial performance so that the company's ROA has increased. VAHC can weaken Komi's effect on ROA and is not significant. In principle, appropriate human capital activities can motivate Komi to achieve profitability. Institutional ownership affects company performance because institutional ownership can encourage more optimal supervision and monitoring mechanisms can guarantee shareholder prosperity, so institutional ownership will encourage managers to show good performance in front of shareholders. Institutional Ownership Contribution in moderating the influence of the Committee on ROA. [ABSTRACT FROM AUTHOR]

This research was aimed to determine the effects of independent commissioners, managerial ownership, institutional ownership, and audit committee, on the integrity of financial statements in manufacturing companies listed on the Indonesian stock exchange. The analysis model used is panel data regression analysis and data processing using Eviews9. The sample in this research is 33 manufacturing companies in various industry sectors and the consumer goods industry sector in the 2017-2019 research year. The type of data in this study is secondary data with a sample selection method that is purposive sampling method. The results of this study indicate that the variables of independent commissioners, institutional ownership, and audit committee affect the integrity of financial statements, while managerial ownership variables do not affect the integrity of financial statements. [ABSTRACT FROM AUTHOR]

This paper examined the relationship between ownership structures and the level of corporate disclosure (LCD) among Tanzanian listed companies. Relationships between director, government, institutional and foreign ownership and LCD were examined. The 105 firm-year observations for 21 listed companies were examined from 2016 to 2020. The agency theory was used. An explanatory research design was employed. Data were gathered through balanced panel data using a survey method. Descriptive and inferential analysis using Ordinary Least Square was used. Descriptive and inferential analysis using Ordinary Least Square was used. The study found that director, government, and foreign ownership positively affect the LCD, while institutional ownership negatively affects it. This implied that in Tanzania, ownership structures were very important in determining LCD. The study concluded that Tanzania's LCD is moderate, and companies should disclose director ownership, establish independent oversight mechanisms, collaborate with foreign investors, and engage with institutional investors to align corporate governance practices with international standards. [ABSTRACT FROM AUTHOR]

Given the ubiquity of family businesses and the growing importance of ecological sustainability, it is crucial to promote family businesses to carry out green innovation activities and enhance their green innovation capability. In recent years, the prevalence of common institutional ownership in capital markets has attracted the attention of the academic community. Drawing on socioemotional wealth theory and strategic reference point theory, this paper tries to explore the impact of common institutional ownership on green innovation in family businesses. Using data from Chinese‐listed family businesses from 2009 to 2021, this paper finds that common institutional ownership can facilitate green innovation in family businesses. The higher the degree of their linkage and the greater the shareholding, the more pronounced the synergistic effect. The findings remained valid after considering the endogeneity issue and conducting robustness tests. The mechanism test suggests that common institutional ownership enhances green innovation in family businesses by improving the internal control quality and reducing financing constraints. This paper contributes to the study of how to effectively facilitate green innovation in family businesses by identifying the common institutional ownership from the perspective of external governance mechanisms. In addition, this paper enriches the research on the economic consequences of common institutional ownership. Finally, various practical implications for family businesses and policymakers may be realized, which may help family businesses to enhance their green innovation capabilities and contribute to the green transformation of society. [ABSTRACT FROM AUTHOR]

Voluntary disclosure, especially disclosure of carbon emissions in mining companies, is still low. The purpose of this study is to analyze the impact of carbon emission disclosure on financial performance and to find out whether the ownership of institutions can moderate the impact of carbon emission disclosure on financial performance. The data for this study was collected from annual reports and sustainability reports. The sample for this research is 305 mining companies and transportation companies listed on the Indonesia Stock Exchange and Malaysia Stock Exchange in 2018 - 2022. The research model used is moderated regression analysis (MRA). The research results show that carbon emission disclosure has a negative effect on financial performance and institutional ownership can moderate the effect of carbon emission disclosure on financial performance. Disclosure of carbon emissions is so expensive that some companies do not disclose it. Disclosing information about carbon would be an advantage for companies. [ABSTRACT FROM AUTHOR]

Copyright of Riwayat: Educational Journal of History & Humanities is the property of Riwayat: Educational Journal of History & Humanities 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.)

Due to the increasingly serious environmental pollution, stakeholders are paying more attention on the environmental behavior of enterprises. Our paper investigates how institutional investors affect the quality of corporate environmental information disclosure (EID). Using a sample of A-share listed firms from the heavily polluting industries in China during 2008 to 2016, we conduct correlation analysis, OLS regression, and Tobit regression methods and find that institutional investors' shareholdings are positively correlated with the quality of EID. When institutional investors increase 1% shareholdings of the firm, the EID quality improves by 0.03%. In addition, the high concentration of institutional ownership enhances the impact of institutional investors' shareholdings on the EID quality. But this positive correlation is only observed in companies in regions with a high marketization level. Our paper extends the research on the influential factors of EID and improves the understanding of the impact of institutional investors on corporate environmental behavior. [ABSTRACT FROM AUTHOR]

The present study seeks to influence the impact of stock liquidity on the excess financial leverage emphasizing the moderating role of institutional shareholders. The scope of the study includes the firms listed in the Tehran Securities Exchange over 2012-2018, among which 202 firms were selected through systematic elimination and data was analyzed using a regression model. The present study is considered among applied research and is a correlation study. Desk research has been used to collect information and data while financial statements, explanatory notes, and the stock exchange monthly have been used to collect research data. Variance heterogeneity pre-tests, the F-Limer test, the Hausman test, and the Jarque-Bra test were used first to analyze data, and a multiple regression test was then used to confirm or reject the research hypothesis (Eviews software). Results indicated that stock liquidity has a significant influence on surplus financial leverage, while institutional ownership influenced the relationship between stock liquidity and surplus financial leverage significantly. [ABSTRACT FROM AUTHOR]

We study the effect of managerial time horizon on two key operations decisions: inventory levels and capacity investment. For identification, we exploit a quasi‐natural experiment provided by the staggered adoption of constituency statutes, which alleviate managerial short‐termism by providing legal protection to executives adopting a long‐term approach in their corporate decisions. Using a staggered difference‐in‐differences design, we find that, after the reforms, firms incorporated in constituency states (treated firms) increased inventory and capacity investment by 5.2% and 15.4%, respectively, relative to firms not incorporated in constituency states (control firms). We also find that these increases are gradual and persist over time, suggesting that they are structural in nature. We further show that the effect of constituency statutes on inventory levels and capacity investment are stronger for firms with ex ante higher level of managerial short‐termism, such as firms with low institutional ownership. Performance also increases relatively more for affected firms with higher ex ante managerial short‐termism. Our results pass a battery of robustness and validity tests. Interestingly, while constituency statutes are intended to protect executives from short‐term oriented shareholder sanctions, our findings suggest that these statutes ultimately benefited not only executives, but also potentially the long‐term interest of shareholders. Even in the absence of regulation, executives facing short‐term pressure could intensify communication efforts with shareholders on how specific operational decisions and investments would be beneficial to the company. Notably, executives could use various media channels to help shape retail investors' attitude toward operational investments that may create future value. [ABSTRACT FROM AUTHOR]

This study examines the impact of heterogeneous foreign institutional investors on innovation in Chinese listed firms from 2009 to 2020. Empirical results indicate that foreign institutional investors from regions with high cultural distance are associated with a significant increase in corporate innovation of Chinese firms. Moreover, the results remain robust to alternative cultural distance measures and methods that address endogeneity. This research provides novel evidence regarding the role of foreign institutional investors in China. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to collect new empirical evidence to determine how different forms of ownership structure responded to the recent COVID-19 crisis. In light of this tragedy, it explores the relationship between ownership structure forms (i.e. block-holders, foreign, institutional and family ownerships) and audit quality (proxied by audit fees). Design/methodology/approach: In total, 3,200 firm-year observations for Jordanian enterprises covering the years 2005 through 2020 are used in an ordinary least squares regression with firm-clustered standard error to assess the hypotheses. Findings: The regression results showed that COVID-19 strengthens the association between each type of ownership (i.e. block-holders, foreign, institutional ownership forms) and audit quality. This result reflects the need for high-quality audit services during the pandemic by such owners to improve their business decisions and limit agency-conflict issues. However, the analysis failed to find any effect of COVID-19 when it comes to family ownership. Family-controlled firms may react faster in crisis situations, and correspondingly, they do not bear high audit costs. The extended analysis covering the years 2005–2022 came to the same results. Practical implications: The results aid authorities in their control and management of the auditing business. The findings have important consequences for policymakers, lawmakers, regulators and the audit profession as they assess the growing issues in an uncertain economic environment. Evidence is provided that may be used to reassure investors and aid authorities as they devise appropriate remedies to the pandemic-triggered economic crisis. The findings may aid in the improvement of legislation that governs Jordan's auditing industry. Furthermore, the results can be generalized to other Middle Eastern countries. Originality/value: To the best of the authors' knowledge, this is the first study to empirically evaluate how different types of ownership affect audit quality in response to a dramatic shift in auditors' working conditions brought on by the global health calamity. In emerging economies like Jordan, this type of analysis allows for preliminary assumptions to be established about ownership status during the COVID-19 outbreak. It adds to the body of auditing knowledge by shedding light on how various kinds of ownership affect responses to adverse events. This assessment is intended to serve as the definitive testimony in the field of accounting regarding the effects of the coronavirus across various corporations' portfolios. [ABSTRACT FROM AUTHOR]

This study aims to determine the effect of corporate governance on tax avoidance, the effect of sales growth and the effect of capital intensity on tax avoidance in pharmaceutical manufacturing companies in the consumer goods sector listed on the IDX in 2020-2022. This study uses quantitative methods and focuses on hypothesis testing by using numerical variable analysis and statistical data analysis in manufacturing companies in the pharmaceutical consumer goods subsector listed on the Indonesian Stock Exchange (IDX). The type of research data used in this study is secondary data. The analysis method uses descriptive analysis, classical assumption test, and research hypothesis testing with a sample population of 10 companies. The results showed that corporate governance proxy independent board of commissioners has a positive impact on tax evasion, proxy institutional ownership has a negative influence on tax evasion, sales growth has a positive impact on tax avoidance, and capital intensity has a positive influence on tax avoidance from manufacturing companies in the pharmaceutical sector consumer goods sector in 2020-2022. [ABSTRACT FROM AUTHOR]

This research explores the role of corporate governance, audit quality, and fiscal loss compensation in influencing tax avoidance strategies within firms in the Indonesian banking sector. Using financial statements and annual reports of companies listed on the Indonesia Stock Exchange (IDX) from 2017-2021, we employed panel data regression analysis to investigate these relationships. The selection of companies was based on specific criteria, which are detailed within the paper. Our findings revealed that while independent commissioners and audit committees negatively affect tax avoidance, institutional ownership and audit quality had no significant impact. Interestingly, fiscal loss compensation was found to positively influence tax avoidance. Our study indicates that not all corporate governance mechanisms are effective in curbing tax avoidance in the banking sector. Additionally, we highlight the unintended consequences of fiscal loss compensation policies, which may facilitate tax avoidance. These findings have important implications for policy and governance in the banking sector. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting 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.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting 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.)

Using Internet search volume for lottery to capture gambling sentiment shifts, we show that when the overall gambling sentiment is strong, investor demand for lottery stocks increases, these stocks earn positive short-run abnormal returns, managers are more likely to split stocks to cater to the increased demand for low-priced lottery stocks, and initial public offerings (IPOs) earn higher first day returns. Further, the sentiment-return relation is stronger among low institutional ownership firms, headquartered in regions where gambling is more acceptable and local bias is stronger. These results suggest that gambling sentiment has a spillover effect on the stock market. [ABSTRACT FROM AUTHOR]

Using the Plain Writing Act (PWA) of October 2010 as a source of exogenous variation in 10-K readability, we examine whether improvements in 10-K reports enhance institutional investors' monitoring of firm risk management. The results indicate that the negative association between monitoring institutional ownership and systematic risk is stronger when firms provide more readable 10-K reports. The impact of readability improvement on the relation between institutional monitoring and risk is more pronounced after the PWA. This finding confirms our hypothesis that improved readability provides institutional investors with more complete firm information with which to conduct their monitoring efforts, thus inducing more effective risk management. [ABSTRACT FROM AUTHOR]

This research delves into the multifaceted relationships between Transfer Pricing, Leverage, Profitability, Profit Management, and Tax Avoidance, with the moderating influence of Institutional Ownership in manufacturing companies listed on the Indonesia Stock Exchange (BEI). The study employs a descriptive research design with a quantitative approach, utilizing a multiple linear regression-based method through EViews. The research population comprises manufacturing companies listed on the Indonesia Stock Exchange (BEI) between 2020 and 2021. The purposive sampling method was employed, resulting in a sample of 81 manufacturing companies, totaling 162 observations. Secondary data were collected from the official IDX website www.idx.co.id and www.yahoofinance.com. The findings indicate that Transfer Pricing and Leverage exhibit a significant positive influence on Tax Avoidance in manufacturing companies, while Profitability demonstrates a significant negative effect on Tax Avoidance. Conversely, Profit Management does not exhibit a significant impact on Tax Avoidance. Moreover, Institutional Ownership is identified as a moderator, strengthening the influence of Transfer Pricing and Leverage on Tax Avoidance. However, Institutional Ownership does not reinforce the influence of Profitability and Profit Management on Tax Avoidance. This research contributes valuable insights for policymakers, tax authorities, and corporate practitioners, highlighting the nuanced dynamics of Transfer Pricing, Leverage, Profitability, and Profit Management in shaping tax avoidance strategies, particularly in the context of manufacturing companies in Indonesia. [ABSTRACT FROM AUTHOR]

This study aims to analyze the impact of ownership structure on corporate capital structure, moderated by product market maturity. It employs a sample of 19950 firm-year observations for 1995 firms, which are listed companies on the A-Shares Board in Shanghai and Shenzhen stock exchange markets for the year 2011 to 2020. The data were analyzed using fixed effect regression. A two-step system GMM was used for the robustness test. Results suggested that state and institutional ownership negatively affect the firm's leverage, which supports the resource-based theory. Furthermore, this study revealed that the negative effect of state ownership and institutional ownership on leverage diminished when firms are located in provinces with more matured product markets. These findings have important implications for the Chinese government in terms of developing and enforcing capital structure regulations to promote de-leverage. Plain Language Summary: This study aims to analyze the impact of ownership structure on corporate capital structure, moderated by product market maturity. It employs a sample of 19950 firm-year observations for 1995 firms, which are listed companies on the A-Shares Board in Shanghai and Shenzhen stock exchange markets for the year 2011 to 2020. The data were analyzed using fixed effect regression. A two-step system GMM was used for the robustness test. Results suggested that state and institutional ownership negatively affect the firm's leverage, which supports the resource-based theory. Furthermore, this study revealed that the negative effect of state ownership and institutional ownership on leverage diminished when firms are located in provinces with more matured product markets. These findings have important implications for the Chinese government in terms of developing and enforcing capital structure regulations to promote de-leverage. [ABSTRACT FROM AUTHOR]

Management in the banking industry is not solely focused on financial performance but also on the sustainability of their portfolios. To achieve this, banks need to incorporate sustainable finance into their balance sheet. In addition, a global phenomenon has emerged where investors have demanded the inclusion of sustainable finance in portfolios. This financial instrument served to support the global agreement on climate change, which they were committed to making a reality. The impact of sustainable finance on firm value remains a question. Therefore, this study aimed to examine the effect of sustainable finance and capital on firm value within the banking industry, focusing on entities listed on the ASEAN stock market from 2015 to 2021. To assess investor demand for involvement in sustainable finance, a moderating variable was included in the model. Furthermore, this study used a quantitative design and a purposive sampling technique with panel data regression analysis for the hypothesis testing. The results showed that sustainable finance and capital had a significant effect on firm value. Institutional ownership moderated the relationship between sustainable finance and firm value, although it did not moderate the link between capital and firm value. This indicated that banks prioritized sustainable finance due to its positive impact on their operations, ultimately leading to an improvement in firm value. Furthermore, institutional ownership influenced the relationship between sustainable finance and firm value, as banks strived to comply with international society or enhance firm value. This study incorporated profitability ratios and firm size as the control variables. [ABSTRACT FROM AUTHOR]

The study empirically investigates how the sustainability performance affects corporate performance through Leverage which is moderated by managerial and institutional ownership. This research employs verification analysis and data analysis techniques based on conditional process analysis. Financial Sector Companies, especially Banks listed on the Indonesia Stock Exchange from 2018 to 2021, constitute the study population. The study's findings indicate that: Leverage mediates the impact of Sustainability Performance on Corporate Performance which is moderated by Institutional Ownership, Managerial Ownership moderates the impact of Sustainability Performance on Corporate Performance and moderating the impact of Leverage on Corporate Performance, Institutional Ownership moderates the impact of Sustainability Performance on Corporate Performance and Institutional Ownership moderates the impact of Leverage on Corporate Performance. This conclusion is crucial for decision-makers who want to maximize sustainability performance to boost business performance. [ABSTRACT FROM AUTHOR]

We systematically examine the relationship between a bank's characteristics and its exposure to systemic risk. We find that tier 1 requirements are negatively associated with a bank's exposure, while size has a positive association. This association is nonlinear because larger banks contribute more than their smaller competitors. Banks with greater financial constraints are less exposed to systemic risk. We find evidence that geographic distance between banks has a negative relationship with systemic risk and that institutional ownership has a positive one. Finally, we find that the risk-taking attributes of the board and the CEO have a positive association with systemic risk. [ABSTRACT FROM AUTHOR]

We examine the peer effects of accounting conservatism in a common dedicated institutional blockholder (CDIB) setting. We find a positive correlation in accounting conservatism between focal firms and their CDIB peers. To corroborate our main findings, we document that the peer effect is stronger for firms connected through CDIBs that are activists or that have more active shares, for firms with larger CDIB ownership and for firms with weaker corporate governance mechanisms and higher information asymmetry. The results suggest that managers view following peer firms' conservatism as a way of pleasing CDIBs. We also find that in proxy voting, firms receive less support from their investors when their conservatism deviates more from their CDIB peers. Finally, we find that the CDIB peer effect remains significant after controlling for the effect of industry and local peers. Overall, our paper presents evidence consistent with firms adapting their accounting conservatism in response to their incumbent dedicated institutional investors' preference. [ABSTRACT FROM AUTHOR]

We examine the impact of the threat of takeovers on default risk. Using a sample of 50,189 firm‐year observations for US firms over the period 1990–2015, we find that the threat of takeovers has a negative relation with default risk. We use difference‐in‐difference analysis to address potential endogeneity concerns and propensity score matching to control for self‐selection bias. The results are robust to alternative measures of default risk and exclusion of the dot com and financial crisis periods. Our results also hold after controlling for Governance Index and Entrenchment Index. We identify improvement in performance and earnings quality in response to the threat of takeovers as channels underlying our main result. The effect of the threat of takeovers on default risk is more pronounced for firms with opaque information environment and low institutional ownership. Our findings provide important insights for the market for corporate control as a disciplining mechanism in reducing default risk. [ABSTRACT FROM AUTHOR]

Over the past decade, single-family rentals have emerged as a commercial real estate sector in their own right. Once the purview of small investors, this asset class has increasingly become institutionalized, leading to concerns regarding the potential crowding-out of homeowners as an individual institutional operator can own upward of 10,000 homes in a metro area. REITs and private equity firms, among other institutional owners, have expanded their interest in single-family rentals beyond properties found in the existing housing market to also include build-to-rent communities, the latter of which are perceived to divert construction resources away from new supply for the single-family purchase market. However, while single-family rentals in markets in which large corporate owners operate do command higher rents, there is no evidence that institutional operators are impacting homeownership at the national level. [ABSTRACT FROM AUTHOR]

Focusing on a sample of 9387 observations in China over the period 2016−2019, this paper empirically examines whether the presentation reform of R&D expenses that is changed from notes to income statements, mitigates corporate financial constraints of Chinese listed companies. Findings offer evidence that the financial constraints of firms decrease after the policy change, which is owing to the alleviation of information asymmetry. Further analysis reveals that the effect of the presentation reform on financial constraints is less prominent among companies that are state‐owned, audited by the "Big four" and of higher institutional ownership. Overall, our study provides evidence supporting the influences of the format reform of financial reports and has implications for information users, regulators, and standard setters. [ABSTRACT FROM AUTHOR]

This research examines the relationship between board independence and earnings stability in Indian companies. The study focuses on the BSE-500 index constituents, which represent 4,044 firm-years from 2011 to 2022, and aims to fill gaps in the literature by providing insights into how various board characteristics affect earnings stability. The study employs a novel non-linear approach that integrates Resource Dependency Theory (RDT) and Stewardship Theory to assess the impact of board independence on earnings stability. The study uses a quadratic regression model to examine the relationship between board independence and earnings stability, with earnings stability measured using the Return on Assets Consistency Ratio (ROACR). The findings indicate an inverted U-shaped relationship between board independence and earnings stability, suggesting there is an optimal level of board independence that maximizes stability in earnings. The study also explores other factors such as asset turnover ratio, institutional ownership, leverage, promoter holdings, and firm size. This research highlights the importance of balanced board composition and provides valuable insights for policymakers and practitioners aiming to optimize corporate governance structures for sustainable firm performance. [ABSTRACT FROM AUTHOR]

The paper examines the relationship between financial fraud and a firm's implied equity cost. Using a U.S. sample of 15,552 firm‐year observations, we find a positive relationship between a firm's financial fraud and implied equity cost. Consistent with the monitoring channel, financial fraud increases a firm's equity cost in the presence of higher external and internal monitoring in terms of higher analyst coverage and institutional ownership. Our results are robust to alternate specifications and tests, including alternate definitions of equity cost, financial fraud, and other endogeneity concerns. The findings negate the business case of financial fraud by showing that financial fraud tends to enhance equity cost, thereby lowering the firm's value. [ABSTRACT FROM AUTHOR]

We examined the sophisticated institutional investors' preference for sustainable investing. Precisely, we examine the link between financial reporting quality and investment behaviour of institutional investors in the context of relatively high level of information asymmetry. The results suggest that sophisticated (i.e. institutional) investors tend to shy away from firms with poor quality of information in financial statements. Our analysis also suggest that an aggregate institutional ownership reduces by 1.2% for every unit decrease in financial reporting quality, and foreign institutional ownership decreases by 1%. Foreign ownership in firms with influential block holders decreases by 3% for every unit decrease in financial reporting quality. Overall, we find that institutional investors avoid relying on trading strategies that enhance returns based on information discovery in markets with high information acquisition costs and liquidity constraints, such as emerging markets. [ABSTRACT FROM AUTHOR]

This paper investigates: (i) the effect of environmental, social, and governance (ESG) engagement and ownership attributes on firm performance and (ii) whether different ownership attributes (institutional, foreign, and state ownership) moderate the association between ESG engagement and firm performance. Employing an extensive sample from 22 emerging countries worldwide, we provide cross-country evidence that ESG engagement and its three pillars, i.e. environmental, social, and governance pillars, enhance firm performance, proxied with ROA and Tobin's Q. Moreover, institutional and foreign ownership positively impact firm performance. We present novel evidence that the positive impact of superior ESG engagement on firm performance is lower for higher institutional ownership companies than lower institutional ownership companies, but greater for higher foreign ownership companies than lower foreign ownership companies. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Application Business & Management / Jurnal Aplikasi Bisnis dan Manajemen is the property of IPB University 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.)

By proxying 'awe culture' (i.e., reverence for life and ethical behaviour) with regional induced abortion rates, we examine the impact of awe culture on corporate social responsibility (CSR) in a sample of Chinese firms. We find that firms located in areas with higher induced abortion rates spend less funds on CSR activities and obtain lower CSR scores. The findings remain intact after an array of robustness tests. Further analysis shows that the effect of awe culture on CSR is more pronounced in areas with weaker law enforcement and where the local government emphasises economic growth targets. However, the effect becomes insignificant when firms are well‐represented by top executives with overseas experience, foreign directors, and a high proportion of female board members. The significance of the effect also diminishes for non‐state‐owned firms, and firms with higher institutional ownership and higher cash holdings. Moreover, the lack of awe culture attenuates the positive impact of CSR on firm value. Overall, we document that awe culture, as an informal institution, shapes CSR behaviours. [ABSTRACT FROM AUTHOR]

Copyright of Revue du Financier is the property of Societe Cybel 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.)

Research Question/Issue: This study shows how investors assessed the informativeness of earnings announcements during the Covid‐19 pandemic. Prior studies suggest that earnings announcements are more likely to provide value to investors during periods of heightened uncertainty. However, the massive regulatory intervention that took place during the pandemic is likely to have led investors to seek alternative sources of information and to have reduced their reliance on earnings to price stocks. Moreover, the uncertainty brought by Covid‐19 directly challenged firms' value drivers and business models, potentially inhibiting the ability to map earnings onto stock prices. Research Findings/Insights: The empirical findings show that earnings announcements lost part of their information content during the Covid‐19 crisis. Cross‐sectional tests document that geographic dispersion of operations and the degree of institutional ownership significantly affected the relationship under study. We also find that the loss of earnings announcements' informativeness was driven by exposure to the pandemic. Theoretical/Academic Implications: The recent accounting literature investigates the role of accounting information in supporting public policy during systemic crises. Our results highlight the firm‐specific attributes that affect investors' perceptions of the informativeness of earnings announcements by showing how geographic dispersion and ownership structure affect it in periods of uncertainty. Practitioner/Policy Implications: In a context in which earnings announcements' informativeness decreases, regulators and standard‐setters should consider taking corrective action to restore its informativeness, such as by strengthening disclosure requirements. The documented decrease in the informativeness of earnings announcements could be partially offset by heightening disclosure requirements to complement financial statements. [ABSTRACT FROM AUTHOR]

The purpose of this study was to examine the effect of the ownership structure, deferred tax expense, current tax expense and tax planning on earnings management. This study used 112 manufacturing companies which were used as research samples which were analyzed using quantitative methods. The sample in this study was tested using multiple linear regression analysis using SPSS version 24. Through the research that has been tested, the researchers obtained the results that: institutional ownership has a significant negative effect on earnings management, managerial ownership has a significant negative effect on earnings management, current tax expense has a significant positive effect on earnings management, deferred tax expense has a negative effect on earnings management, and tax planning has no effect on earnings management. [ABSTRACT FROM AUTHOR]

I find a strong positive association between firms' implied cost of equity capital and firm‐level political risk. This effect is above and beyond the firm‐level cost of equity implications of economywide political risk. Firm‐level political risk contributes to elevating stock illiquidity, increases dispersion of analyst forecasts and dampens analyst coverage and these attributes, in turn, have positive cost of equity capital implications. Overall, the findings of this study suggest firm‐level political risk has a non‐trivial effect on increasing equity market illiquidity, increasing dispersion of earnings forecasts and decreasing analyst coverage thus increasing financing costs. [ABSTRACT FROM AUTHOR]

Using a sample of mergers and acquisitions (M&As) from 26 countries over 2000–2018, we find that domestic institutional investors facilitate both domestic and cross‐border M&As. The facilitation effect is more pronounced for domestic than cross‐border M&As. When the acquirer country has greater financial freedom or better investor protection than the target country, domestic institutional investors facilitate cross‐border M&As more effectively. As Ordinary Least Squares regressions are not the best approach regarding cross‐border M&As, we confirm that the main results are robust to Zero‐inflated Poisson regressions. Foreign institutional investors' influence on cross‐border M&As is stronger when the sample excludes the United States. [ABSTRACT FROM AUTHOR]

We propose a conceptual framework to illustrate that when three conditions hold, institutional investors moderate a positive relation between corporate financial performance and corporate environmental performance. We explore heterogeneities across institution types to demonstrate the importance of each condition. The moderating effect works through the channels of expert consulting and effective monitoring. Our results have important policy and practical implications given the global trend of ownership concentration in institutional investors and the projection that by 2025, one out of three dollars under professional management will be invested in corporate social responsibility assets. [ABSTRACT FROM AUTHOR]

The media milieu in India is predominantly commercialized, with increasing concentration of media ownership and institutional political alliances. Nonetheless, there are media in India that operate within a framework distinct from the dominant media system. This paper presents a case study of one these media, the People's Archive of Rural India (PARI), a multi-media digital platform on rural India founded in 2014 by a veteran Indian journalist, P. Sainath. This paper examines how PARI's ideological stance, organizational structure, content ownership, production, and distribution practices set it apart from corporate news organizations. In doing so, this study presents PARI as an alternative media that challenges the primarily capitalist values and practices of India's dominant media. However, PARI also incorporates the institutionalized practices of legacy media, exhibiting hybridity in its organizational form, production, and distribution. The paper also highlights PARI's limitations and challenges. The author concludes by discussing the need for alternative media to build bridges within and beyond the field of media, to be reflexive and adaptable in navigating its identity, and to respond to the dominant conceptions of journalism. [ABSTRACT FROM AUTHOR]

We show that intensified competition changes the location of business activity and, in turn, affects supply chain relationships. Using establishment-level data, we find that, when upstream product markets become more competitive, suppliers are more likely to relocate their establishments closer to customers. Following the supplier's relocation, its sales to the customer increase, its relationship with the customer is less likely to be terminated, and its innovation is more aligned with the customer's innovation. The relocated supplier also experiences more analyst following and institutional ownership that are in common with the customer and is more likely to issue equity than debt. However, the improved relationship, by causing the supplier to engage more in innovation dedicated to the customer, adversely affects creative innovation, which is known to drive growth. This paper was accepted by Gustavo Manso, finance. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2022.4586. [ABSTRACT FROM AUTHOR]

The position of Islamic banking in Indonesia still needs improvement because currently the market share of Islamic banking is only 6.52% of the entire proportion of national banking. So that the government seeks to improve by launching the Roadmap for the Development of Indonesian Sharia Banking (RP2SI) 2020-2025. However, there are things that hinder the accelerated growth of the sharia banking business, including the absence of significant business model differentiation, sub-optimal quality and quantity of human resources. So that GCG analysis is needed to increase the value of Islamic banks. The purpose of this study is to see how much influence the GCG has on firm value using PBV theory. The research method used in this study is multiple linear regression analysis with secondary data of 13 Islamic Commercial Banks in Indonesia in 2017-2021. The results show that the Audit Committee, Corporate Governance Committee, and Risk Management Committee have a significant effect on firm value. Meanwhile, the Board of Commissioners, Remuneration and Nomination Committee, Risk Monitoring Committee and Institutional Ownership have no effect on company value. [ABSTRACT FROM AUTHOR]

We hypothesise that societal norms cause institutional investors to discriminate against polluters. Consistent with this hypothesis, we document relatively lower institutional ownership for the most polluting firms in the United States. Institutional discrimination against polluters increases over 1987–2018, in line with increasing environmental awareness. Institutions are primarily averse to investments in dioxin emitters. Institutions that prioritize portfolio performance are less sensitive to societal norms against polluters, as are institutions with shorter investment horizons and more aggressive trading strategies. Lastly, we test whether investor discrimination affects polluter equity valuations and creates systematic trading opportunities, but find no convincing evidence of a polluter return premium. [ABSTRACT FROM AUTHOR]

We examine whether and how options trading activity curtails real activities manipulation. Using a large sample of U.S. firms suspected of earnings manipulation, we document that an active options trading market significantly reduces real activities manipulation. We confirm our findings by using 2SLS analyses and alternative research designs. Our findings are also robust to using alternative proxies for options trading activity. Further, we find that the deterring impact of options trading on real activities manipulation is more pronounced among firms with low institutional ownership, among firms in highly competitive industries, and among small and young firms. Overall, our findings show that an active options market discourages managers from engaging in real activities manipulation, as informed options trading helps stock prices better reflect adverse consequences of real activities manipulation. Our findings highlight the benefits of options market development in reducing value-destroying activities and thus provide policy, practice, and research implications. [ABSTRACT FROM AUTHOR]

This study aims to empirically explore company size and corporate governance as determinants of risk management disclosure by investigating the effect of a combination of determinants on risk management disclosure practices in manufacturing companies. This study used a random sampling method. The sample for this research is 189 manufacturing companies (3 years of observation) listed on the Indonesia Stock Exchange for the 2019-2021 period. The COSO 2017 spreadsheet was used to measure the level of risk management disclosure. Panel data regression analysis using the Eviews program version 10 was used to examine the effect of company size and corporate governance on risk management disclosure. The results showed that company size, institutional ownership, and audit committee had a positive effect. In contrast, the size of the board of commissioners hurt risk management. The independent board of commissioners with managerial ownership shows results that do not affect risk management in manufacturing companies in Indonesia. [ABSTRACT FROM AUTHOR]

The purpose of the study is to obtain knowledge about the effect of sales growth and fixed asset intensity on tax avoidance and see the role of institutional ownership in strengthening or weakening the two independent variables on tax avoidance as the dependent variable in this study. The data used in this study is secondary data derived from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2018-2020. The method used in this study is a qualitative approach method, with samples in this study selected using the purposive sampling method. The results showed that institutional ownership was unable to weaken the effect of sales growth on tax avoidance, so the third hypothesis was rejected. In addition, institutional ownership is also unable to weaken the effect of fixed asset intensity on tax avoidance, so the fourth hypothesis is also rejected. Overall, the study concluded that sales growth did not have a significant effect on tax avoidance, while fixed asset intensity had a significant effect only on non-conforming tax. In addition, institutional ownership is unable to moderate the effect of sales growth and fixed asset intensity on tax avoidance. These findings provide an important understanding of the factors influencing tax avoidance practices in the context of sales growth, fixed asset intensity, and institutional ownership. [ABSTRACT FROM AUTHOR]

We exploit the merger between BlackRock and Barclays Global Investors to study how changes in expected ownership concentration affect the investment behavior of funds and the cross-section of stocks worldwide. We find that funds with open-end structures and large exposure to commonly held stocks begin avoiding these stocks following the merger announcement. This leads to a permanent change in the composition of institutional ownership and a negative price and liquidity impact. We confirm these results in a large sample of global asset management mergers. Our findings suggest that market participants behave strategically in response to changes in expected financial fragility. [ABSTRACT FROM AUTHOR]