Corporate Ownership and Control

Journal Information
ISSN / EISSN : 17279232 / 18100368
Current Publisher: Virtus Interpress (10.22495)
Total articles ≅ 2,571
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Corporate Ownership and Control; doi:10.22495/coc

Manuela Lucchese
Corporate Ownership and Control, Volume 17, pp 166-182; doi:10.22495/cocv17i4art14

Abstract:
This study investigates the relationship between disclosure level of GRI-compliant non-financial statements, provided to conform with the Directive 2014/95/EU, and cross-country societal variables (Hofstede’s cultural dimensions, political and civil systems, legal system and level of economic development) of the European listed banks, using the political economic theory. It analyzes the banks listed in the stock markets of 18 European countries for 2016-2018. The data was collected from the BvD BankFocus database, selecting 134 bank-year observations. A disclosure index based on the GRI framework compliant to the Directive was determined to measure the non-financial reporting disclosure. The findings, partially consistent with the previous literature, show for the banks a significant negative influence of power distance, masculinity, indulgence, the legal system, and level of economic development on the non-financial disclosure. Moreover, the results evidence a significant positive association between individualism, long-term orientation, indulgence, and political and civil system on the non-financial disclosure level. This study contributes to the international debate on how the socio-cultural-economic institutional factors affect non-financial disclosure expectations in the banking sector. Furthermore, understanding the effect of cross-country societal factors on NFR disclosure under EUD might benefit managers when implementing social and environmental strategies in all socio-cultural institutional settings. It might help regulators and policy-makers when adopting new legislation and making reforms dealing with social and environmental laws.
Louis Osemeke, Nobert Osemeke, Robert O Okere
Corporate Ownership and Control, Volume 17, pp 152-165; doi:10.22495/cocv17i4art13

Abstract:
This paper focuses on the board’s influence on CSR among public liability companies (PLCs). The paper uses normative compliance theory to develop the theoretical framework thereby advocating and complementing other theories of CSR by using a balanced random effect regression model to estimate the relationship between board characteristics (such as board composition, diversity and size on CSR). This involved the use of balanced panel data of 174 PLCs from 2003 to 2009. The random effect estimator was used to test the specific effects of board composition, board size and board diversity on CSR of PLCs in Nigeria. The data was obtained from Nigerian Stock Exchange (NSE) factbook from 2003 to 2009. The paper found that NEDs and board size were positively significantly correlated with CSR, while the executive director was negative and significantly related with CSR. The testing of the theory in the context of Nigeria contributes to the body of knowledge on Sub-Sahara Africa, particularly Nigeria which offers a developing country perspective. The paper explores the relationship between board characteristics and CSR thereby contributing to the governance processes of listed companies and how good governance should be encouraged by understanding the board dynamics.
Bruno De Medeiros Teixeira, Clea Beatriz Macagnan, Davi Souza Simon, Daniel Francisco Vancin
Corporate Ownership and Control, Volume 17, pp 142-151; doi:10.22495/cocv17i4art12

Abstract:
This work is licensed under a Creative Commons Attribution 4.0 International License. Abstract The issue of conflict of interest and information
Fernando Zanella, Peter Oyelere
Corporate Ownership and Control, Volume 17, pp 129-141; doi:10.22495/cocv17i4art11

Abstract:
This work is licensed under a Creative Commons Attribution 4.0 International License. Abstract Target costing is a cross-disciplinary subject
Arnt Sveen, Ole Kristian Gresaker, Reidar Hæhre, Dag Øivind Madsen, Tonny Stenheim
Corporate Ownership and Control, Volume 17, pp 117-128; doi:10.22495/cocv17i4art10

Abstract:
Sustainability is one of the biggest buzzwords and catchphrases of the 21st century, dominating not only management discourse but also the public debate in general. Today, many large organizations have bought into the idea that sustainability is essential and have already taken steps towards implementing more sustainable business practices. While past research indicates that SMEs are typically lagging behind their larger counterparts, our knowledge about the sustainability attitudes and actions of the small and medium-sized enterprises (SMEs) is limited. This is also the case in Norway, where there is minimal research on what impact sustainability ideas have had on business practices. More knowledge about sustainability in SMEs is crucial since these firms comprise a large and crucial part of the Norwegian economy. Therefore, this paper aims to examine sustainability attitudes and actions among managers of Norwegian SMEs employing an electronic survey. Drawing on existing research, we propose a typology of managerial responses to sustainability, distinguishing between four groups of managers, which are labeled: 1) skeptics; 2) adaptors; 3) posers and 4) enthusiasts. The findings of the survey suggest that most managers can be characterized as skeptics and that adaptors are the smallest group. While there has been a general increase in sustainability commitment, sustainability initiatives tend to be lagging behind. These findings have several practical and policy related implications.
Dalenda Ben Ahmed, Zouhaira Khelil-Rhouma
Corporate Ownership and Control, Volume 17, pp 110-116; doi:10.22495/cocv17i4art9

Abstract:
The present study scrutinizes the factors affecting the practice of employee stock ownership. This work sheds light on the role and contribution of this practice to enhance the corporate governance systems. Our study uses a sample of 216 listed French companies in 2010. The empirical approach is a linear regression used to examine the relation between the dependent variable and the independent variables. The results show that the large companies are the most likely to practice the ESO and this is developed by a reduction in debt, the dividend distribution, and the tax rate. The focal point of this work is to go beyond the simple scope of the existence of the employee stock ownership and is interested in the conditions of its development in the French companies.
Maria João Guedes, Alice Galamba Monteiro
Corporate Ownership and Control, Volume 17, pp 100-109; doi:10.22495/cocv17i4art8

Abstract:
This study applies a qualitative comparative analysis (fsQCA) to test how configurations of gender equality, masculinity, highly educated women, and happiness, alone or in different combinations, explain the presence or absence of women on the board of directors (WoB). The global solution has considerable explanatory coverage and presents four alternative combinations conducive to both the presence and absence of WoB. Overall, the results show that the absence of gender equality is almost a necessary condition for the absence of WoB. The other conditions, per se, are not enough to explain the presence or absence of WoB, but in different combinations they are. For example, the combination of highly educated women, gender equality, and happiness is the solution with a higher consistent value to explain the presence of WoB. In this study, we sought to contribute with a novel, and far-reaching way of considering the determinants of the presence of WoB, moving past the typical determinants of WoB such as board size and board independence, or board members characteristics (such as experience or age) and shifting the focus solely from the corporate context to broader social, cultural and political contexts. The study presents recommendations for academics, practitioners, and policymakers, particularly to consider different determinants of underrepresentation of WoB and how new initiatives shall be implemented to advance the field and transition to economies and societies with greater social justice and gender equality.
Hadfi Bilel, Kouki Mondher
Corporate Ownership and Control, Volume 17, pp 86-99; doi:10.22495/cocv17i4art7

Abstract:
According to the catering theory of dividends, a company decides to distribute its dividends according to investor demand related by a dividend premium that results in this request. This study focuses on the impact of the catering theory of dividends of the 600 MENA companies in the financial industry listed in different stock exchanges of Tunisia, Morocco, Egypt, UAE, Saudi Arabia, and Kuwait during the period 2004-2010. The study employs an event study methodology in examining the effect of investor demand for dividends on the managers’ decision to distribute and change the amount of dividends. Research result indicates that companies pay dividends when demand is strong, i.e. when investors value companies that pay in a “depressed” or “bearish” market environment. Furthermore, catering persists even after controlling for the effect of some variables like tax and risk. The results confirm that the decision to change the amount of the payments depends on investor demand and the market premium resulting from the payment of dividends. Even though the result is not strong, it can be the evidence supporting the catering theory of dividend, not only in well-developed markets but also in emerging markets characterized with civil law characterized by low governance index and investor protection such as our MENA zone countries.
H. Kent Baker, Harit Satt, Fadi Atmounia, Basma El Fadel
Corporate Ownership and Control, Volume 17, pp 72-85; doi:10.22495/cocv17i4art6

Abstract:
This study examines the potential predictive power of changes in deferred revenues on future profitability based on evidence from the region of the Middle East and North Africa (MENA). It examines whether financial analysts should consider deferred revenues as useful information when evaluating a firm’s future profitability. A pooled OLS regression is used to test the relation. The observations of different companies from various periods are combined into a pooled sample of observations consisting of data from the 500 largest companies in the MENA in terms of market share. Aligned with the existing literature, the findings reveal that changes in deferred revenues are a predictive tool for future financial performance as proven by the positive correlation with the growth of future annual sales, gross profit margin, net profit margin, return on asset, and Tobin’s Q. Testing for this impact adds to the literature given various robustness tests under different circumstances and economic conditions.
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