Corporate Ownership and Control

Journal Information
ISSN / EISSN : 1727-9232 / 1810-0368
Published by: Virtus Interpress (10.22495)
Total articles ≅ 2,707
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Latest articles in this journal

Souad Chaieb
Corporate Ownership and Control, Volume 19, pp 146-158; https://doi.org/10.22495/cocv19i1art11

Abstract:
This paper aims to highlight the cultural impact of Hofstede (1980) on the degree of compliance with International Financial Reporting Standards (IFRS) in 55 developing countries for the year 2014, based on the method adopted by Elad (2015) in order to identify IFRS Standards. Results show that culture (by means of three components, namely power distance, uncertainty avoidance, and masculinity) does not promote the degree of compliance with IFRS. However, only one significant relationship was found between individualism and the degree of compliance with IFRS Standards. This finding confirms Gray’s (1988) observation that individualism fosters a climate of transparency and professionalism
Neeraj Gupta, , Prasoon Mani Tripathi, Tarun Agarwal,
Corporate Ownership and Control, Volume 19, pp 121-145; https://doi.org/10.22495/cocv19i1art10

Abstract:
The purpose of this study is to examine the impact of board characteristics on the performance of Indian commercial banks. The study differs from the earlier studies as it analyses the impact of Government official nominee directors and Reserve Bank of India (RBI) nominee directors on the bank performance. A panel data approach has been used in this study. Particularly, the fixed effect estimation technique is used to examine the relationship between board characteristics, and bank performance during the period 2009–2010 to 2016–2017. The authors find that board size, female directors, and the average number of directorships held by outside directors are inversely related to performance. The central government official directors and RBI nominee directors negatively and significantly affect the performance of public sector banks. The results are robust across the various proxies of bank performance, and sub-samples classified on the basis of ownership, size of the bank, and bank capitalization. This study provides insights to policy regulators and policymakers who are entrusted with the appointment of the board of directors in the banks in light of the ongoing regulatory reforms
Raffaela Casciello, Marco Maffei, Fiorenza Meucci
Corporate Ownership and Control, Volume 19, pp 94-104; https://doi.org/10.22495/cocv19i1art8

Abstract:
This study investigates whether and how institutional shareholders affect the relation between unconditional conservatism and earnings management. We analyze the relation between unconditional conservatism and accrual-based earnings management and the relation between unconditional conservatism and real earnings management, focusing on the role of the institutional shareholders variable in these two relations. First, we find evidence of positive (negative) relations between unconditional conservatism and accrual-based (real) earnings management. Second, we demonstrate that the presence of institutional shareholders has a mitigating (amplifying) impact on the relation between unconditional conservatism and accrual-based (real) earnings management. This study contributes to enrich the previous literature in two ways. First, it extends the strand of research on the relation between accounting conservatism and earnings management (Garcìa Lara, García Osma, & Penalva, 2020; Chen, Hemmer, & Zhang, 2007; Gao, 2013), focusing on unconditional conservatism since it is less prevalent than conditional conservatism in previous literature (Ruch & Taylor, 2015). Second, it extends the strand of research on the impact of institutional ownership on accounting practices (Farooq & El Jai, 2012; Sakaki, Jackson, & Jory, 2017), highlighting the role of the institutional shareholders in the relation between unconditional conservatism and earnings management
Akshay Damani, Nandip Vaidya
Corporate Ownership and Control, Volume 19, pp 69-83; https://doi.org/10.22495/cocv19i1art6

Abstract:
Mutual fund performance evaluation has seen an ever-growing interest for research amongst industry and academicians alike. In this paper an attempt has been made to compare and correlate global actively managed equity mutual funds’ performance across time intervals, to evaluate and establish how predicting future performance can be made meaningful for investors using analysis of historical data based on monthly net asset values (NAVs) (March 2009–March 2021). Of the top 500 global equity mutual funds based on market-cap (on March 31, 2021), the paper evaluated 180 actively managed funds adding up to approximately USD 5 trillion of the fund assets as of March 31, 2021. The research gap which the paper aims to fill is to bring under one umbrella, prediction analysis using performance measures, downside risk measures, style factor analysis, and market timing models. For sampled equity funds various performance ratios and style attributes were computed and compared across periods for their relative performance. Relative performance was found to be stable (at 1% significance level) across periods and hence predictable. A portfolio of funds constructed optimally using historical performance was seen to be in the top quartile ex-post performance in the subsequent period. However, it was found that the market timing abilities of fund managers were unstable across periods and could not be used for predicting performance. Based on the study findings, it would be appropriate for investors to use the relative past performance of the funds and their style attribute analysis for the future allocation of investible surplus across these funds
Alberto Tron, Federico Colantoni
Published: 30 September 2021
Corporate Ownership and Control, Volume 19, pp 55-68; https://doi.org/10.22495/cocv19i1art5

Abstract:
It is an empirical question whether the use of derivatives hedging among firms actually contributes to enhancing firm performances. Despite the increasing use of derivatives by non-financial firms, existing literature still debates about their effect, especially in countries with peculiar corporate governance mechanisms. By using a sample of non-financial Italian firms listed from 2007 to 2018, this paper investigates if the use of several types (currency, interest rate, and commodity) of financial derivatives can affect the value of a company. For measuring the impact of the derivatives and in order to address any possible endogeneity problem, besides using the conventional methodologies applied by previous literature (fixed-effect regression models and system GMM estimators), we run a random forest model, a machine learning technique not yet applied before in this field, and calculate the relative importance of each independent and control variable. Differently from other European countries, findings show that the use of derivatives does not affect the firm value in the Italian market. Therefore, our results confirm the role of corporate governance mechanisms on the relationship between firm value and the use of derivatives and that their impact is country-specific.
Jean Claude Mutiganda
Published: 23 September 2021
Corporate Ownership and Control, Volume 19, pp 29-41; https://doi.org/10.22495/cocv19i1art3

Abstract:
This paper investigates the ways in which dissensus has influenced governmentality during a longitudinal process of competitive tendering of public services. Data are from a field study conducted in the field of public care for the elderly from 2007 to 2015 in Finland. Public elderly care in Finland is under the responsibility of each municipality. Municipalities have local autonomy; including municipal taxation right. In addition to municipal tax revenues, the central government finances each municipality on a per capita basis annually. Every municipality is run by democratically elected local politicians. The elected politicians have the power to appoint leading public managers in charge of each public service sector. Findings showed that political dissensus arose from a lack of appropriate policies of governing for performance during a new and international competitive tendering process. Managerial dissensus arose from a low-level professional experience and a lack of appropriate technologies to deal with highly advanced profit-making companies competing for entry and expansion into a prestigious public elderly care market. In consequence, costs of outsourced services continued to increase. As time passed, however, political and managerial dissensus improved the process of governing for performance; key decision-makers took reactive measures to limit procurement risks in future competitive tendering processes. The potential contribution is to show the relevance of dissensus when it motivates public managers and political decision-makers to improve specific programs, techniques, and strategies used to manage public services
Mounira Hamed-Sidhom,
Published: 21 September 2021
Corporate Ownership and Control, Volume 19, pp 17-28; https://doi.org/10.22495/cocv19i1art2

Abstract:
The paper aims to examine the relationship between International Public Sector Accounting Standards (IPSAS) adoption and the perceived level of corruption in developing countries. It also attempts to inspect the mediating effect of political stability on this relationship. We follow the methodology used by the International Federation of Accountants (IFAC) to assess country adoption status and we apply a panel regression analysis to 57 developing countries over the 2016–2019 period. Our findings suggest that country’s decision to adopt IPSAS cannot shortly lead to a reduction of its corruption perceived level. In addition, we make evidence that the level of corruption does not matter on the relationship between the IPSAS adoption and the corruption perceived level. We find also that political stability, while decreases corruption, doesn’t contribute to enhance the effect of IPSAS adoption on the perceived corruption level. This paper provides insights into the role of IPSAS adoption to countries’ corruption levels. It will be of interest to accounting standard-setters, regulators, and policymakers in countries that are transitioning to or considering International Public Sector Accounting Standards. It will also be of interest to regulators and policymakers, multilateral institutions in their effort to fight corruption
Published: 20 September 2021
Corporate Ownership and Control, Volume 19, pp 8-16; https://doi.org/10.22495/cocv19i1art1

Abstract:
Corporate governance of companies is a hot topic for both researchers and practitioners since the last decades. The investigations on this theme revealed the presence of many different approaches and practices in the decision-making process and managing companies among different countries. This paper is focused on Italy, where distinctive features of corporate governance can be identified (i.e., with regard to the ownership structure of companies) due to the peculiar legal and industrial framework in which Italian companies operate. The contribution of the paper is to further shed light on the historical background of the Italian industrial sector that made the Italian industrial system slightly different from the other countries and to give a comprehensive, but synthetic, view of the corporate governance of Italian listed companies. Current and further researches needed are also commented on and suggested
Mohamed A. K. Basuony
Published: 10 September 2021
Corporate Ownership and Control, Volume 19, pp 84-93; https://doi.org/10.22495/cocv19i1art7

Abstract:
This paper reports on the nature, extent, and determinants of online corporate social responsibility (CSR) disclosure practices among the top 350 companies listed in the London Stock Exchange (FTSE 350). This has been done through two-fold. First, the paper investigates the relationship between firm characteristics, board structure, and ownership structure with CSR information dissemination via social media. The results indicate that the company that has a high number of females on board has a significant effect on CSR and the product and service as a component of CSR. Moreover, the results reveal that the company with a high level of ownership concentration has an effect on community involvement, product and service, and environment. In addition, a company that has a high level of institutional ownership has an effect on the product and service. Finally, the company that has a high percentage of director ownership has an effect on the product and service. Second, the paper studies the effect of board structure and other control variables on the online CSR for the top listed UK firms. The dependent variables consist of a comprehensive index of disclosure and another four sub-indices which namely employees, community involvement, products & services, and environment. The results show that online CSR disclosure through the firms’ websites has been affected by board size, board diversity, audit type, profitability, leverage, firm age, and the sector in which the firm operates
Published: 10 September 2021
Corporate Ownership and Control, Volume 18, pp 4-6; https://doi.org/10.22495/cocv18i4editorial

Abstract:
The recent issue of Corporate Ownership and Control journal contains both empirical and review papers describing the wide variety of corporate governance issues from the board of directors and executive compensation to mergers and acquisitions, stock market and institutional investors. The geographical representation of the papers provides an excellent opportunity for international comparison.
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