Implications of Ownership Identity and Insider's Supremacy on the Economic Performance of the Listed Companies PDF Download

Author: Qaiser Rafique Yasser
Publisher:
ISBN:
Category :
Languages : en
Pages : 13

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Book Description
We adopt a multi-theoretic approach to investigate a previously unexplored phenomenon in extant literature, namely the differential impact of ownership identity and director dominate shareholding on the performance of emerging market firms. The main research question addressed is, whether the impact of this relationship is conditional on the identity of the block investor. First, the relationship between overall block ownership and firm performance is tested by employing multiple regressions on 500 firm-year observations for the period from 2007 to 2011. Then, the block ownership is classified as the state, individuals, insiders, financial institutions, corporate and foreign investors and the influence of these identities on firm performance is examined. It was found that only the ownership categories such as the government, institutions and foreign ownership have positive influence on the firm performance. The results also indicate that high level of insider ownership also negatively associated with the firm performance. The main contribution of this paper is the examination of the relationship between block ownership and firm performance from the perspective of the identity of investors.

Author: Krishna Reddy
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
China restructured its state assets management system through the establishment of the State-owned Assets Supervision and Administration Commission (SASAC) in 2003. In consequence, de facto ownership rights to local state-owned enterprises (lo-cal SOEs) were granted to local governments. Chinese policymakers assumed that the split of state ownership between central government and local authorities would in-crease government's fiscal incentives for improving SOEs' economic efficiency. This study investigates whether the redefined state-owned firms have improved their performance and whether this performance is better than that of local government SOEs and privately owned firms. We have traced the identity of the largest shareholder among publicly listed firms and have classified it as the central government (SOECG), local government (SOELG), or privately owned (PRIVATE). Using panel data com-prising 13,273 firm-year observations for the period 2005-2012 and OLS, 2SLS, difference, and difference-in-difference regression, we report that the identity of the largest shareholder does matter. Our results show that the listed, central government owned SOEs' operating costs are similar to those of local government owned SOEs and privately owned firms. The fact that the performance of central government owned SOEs is inferior to that of local government owned SOEs and privately owned firms suggests that helping-hand and protectionist policies have been an important contributing factor to SOECGs' performance. This result is also supported by empirical analysis which suggests that central government shareholding is an important determinant for SOECGs' performance. The policy implication of this study is that helping-hand and protectionist policies have been a barrier to fully realizing the benefits of ownership reform of listed companies in the absence of a competitive market and an effective legal infrastructure in China.

Author: Katinka Wölfer
Publisher: Europäische Hochschulschriften / European University Studies / Publications Universitaires Européennes
ISBN: 9783631667156
Category : Corporations
Languages : en
Pages : 0

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Book Description
The book illustrates that the impact of ownership on firm value depends not only on the concentration of ownership but also on the identity of blockholders. Large shareholders can use their power to influence corporate performance. However, owners are no homogenous group and have different motivations and abilities.

Author: Alqatan, Ahmad
Publisher: IGI Global
ISBN: 1799848531
Category : Business & Economics
Languages : en
Pages : 425

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Book Description
After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.

Author: Ayele Mamo Tesfaye
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659171475
Category :
Languages : en
Pages : 152

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Book Description
According to the study privatization has significant negative impact on firms profitability but positive impact on firms' efficiency in terms of net income, sales and cost efficiency. Liquidity and capital spending are show an increase but not significantly. Total debts and employment show reduction after privatization. From post-privatization ownership identities, foreign ownership has large negative impact on firms' profitability but large positive impact on efficiency and liquidity than domestic ownership. And also foreign ownership largely increase capital spending and largely reduce financial leverage and employment than domestic ownership. Finally, the study suggested that the privatized enterprises further focus on employee training, cost control and employ relevant technology to improve their financial and operating performance and further reform measures should be initiated to import new machinery, equipments' and raw materials for companies their machines' and equipments obsolete and dysfunctional and import raw materials and also effort should be directed to establish and develop domestic financial market to attract foreign and domestic private investors.

Author: Hoang N. Pham
Publisher: Routledge
ISBN: 1000540332
Category : Business & Economics
Languages : en
Pages : 132

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Book Description
The relationship between ownership structure and firm performance has been studied extensively in corporate finance and corporate governance literature. Nevertheless, the mediation (path) analysis to examine the issue can be adopted as a new approach to explain why and how ownership structure is related to firm performance and vice versa. This approach calls for full recognition of the roles of agency costs and corporate risk-taking as essential mediating variables in the bi-directional and mediated relationship between ownership structure and firm performance. Based on the agency theory, corporate risk management theory and accounting for the dynamic endogeneity in the ownership–performance relationship, this book develops two-mediator mediation models, including recursive and non-recursive mediation models, to investigate the ownership structure–firm performance relationship. It is demonstrated that agency costs and corporate risk-taking are the ‘missing links’ in the ownership structure–firm performance relationship. Hence, this book brings into attention the mediation and dynamic approach to this issue and enhances the knowledge of the mechanisms for improving firm’s financial performance. This book will be of interest to corporate finance, management and economics researchers and policy makers. Post-graduate research students in corporate governance and corporate finance will also find this book beneficial to the application of econometrics into multi-dimensional and complex issues of the firm, including ownership structure, agency problems, corporate risk management and financial performance.

Author: Anna Bottasso
Publisher:
ISBN:
Category : Environmental policy
Languages : en
Pages : 27

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Book Description

Author: Jeffrey N. Gordon
Publisher: Cambridge University Press
ISBN: 9780521536011
Category : Business & Economics
Languages : en
Pages : 396

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Book Description
Corporate governance is on the reform agenda all over the world. How will global economic integration affect the different systems of corporate ownership and governance? Is the Anglo-American model of shareholder capitalism destined to become the template for a converging global corporate governance standard or will the differences persist? This reader contains classic work from leading scholars addressing this question as well as several new essays. In a sophisticated political economy analysis that is also attuned to the legal framework, the authors bring to bear efficiency arguments, politics, institutional economics, international relations, industrial organization, and property rights. These questions have become even more important in light of the post-Enron corporate governance crisis in the United States and the European Union's repeated efforts at corporate integration. This will become a key text for postgraduates and academics.

Author: Bruce Alan Seaman
Publisher: Edward Elgar Publishing
ISBN: 1849803528
Category : Business & Economics
Languages : en
Pages : 371

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Book Description
Nonprofit organizations are arguably the fastest growing and most dynamic part of modern market economies in democratic countries. This book explores the frontiers of knowledge at the intersection of economics and the management of these entities. The authors review the role, structure and behavior of private, nonprofit organizations as economic units and their participation in markets and systems of public service delivery, assess the implications of this knowledge for the efficient management of nonprofit organizations and the formulation of effective public policy, and identify cutting-edge questions for future research. Chapters address five broad categories of scholarship: development and management of the diverse economic resources supporting nonprofit organizations; market behavior of nonprofits; strategic economic decision-making; evaluation and performance of them; and impacts and implications of public policies affecting nonprofit organizations. Topics include: income diversification and crowd-out among income sources, paid and volunteer labor markets, competition and collaboration among nonprofits and for-profits, pricing and diversification of nonprofit products and services, performance measurement and regulation, contracting, franchising and federation practices, and government taxation and funding. The book will help nonprofit scholars identify new areas of productive research, help practicing managers understand the underlying economics of their decision-making, and offer teachers and students a concise and penetrating view of key economic dimensions to managing nonprofit organizations.

Author: Mohammed Omran
Publisher:
ISBN:
Category :
Languages : en
Pages : 16

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Book Description
We examine and analyze the post-privatization corporate governance of a sample of 52 newly privatized firms from Egypt over the 1995-2005 period. We look at the ownership structure that results from privatization and its evolution; the determinants of private ownership concentration; and the impact of private ownership concentration, identity and board composition on firm performance. We find that the state gives up control over time to the private sector, but still controls, on average, more than 35 percent of these firms. We also document a trend in private ownership concentration over time, mostly for the benefit of foreign investors. Firm size, sales growth, industry affiliation, and timing and method of privatization seem to play a key role in determining private ownership concentration. Ownership concentration and ownership identity, in particular foreign investors, prove to have a positive impact on firm performance, while employees ownership concentration has a negative ones. The higher proportion of outside directors and the change in the board composition following privatization affect firm performance positively. These results could have some important policy implications; in which private ownership by foreign investors seem to add more value to firms; while selling state-owned enterprises (SOEs) to employees is not recommended. Also, the state is highly advised to relinquishes control and allow for changes in the board of director following privatization as changing ownership, per se, might not have an impact on firm performance unless it is coupled with new management style.