Corporate Ownership and Control
ISSN / EISSN : 17279232 / 18100368
Current Publisher: Virtus Interpress (10.22495)
Total articles ≅ 2,548
Latest articles in this journal
Corporate Ownership and Control; doi:10.22495/coc
Corporate Ownership and Control, Volume 17, pp 134-145; doi:10.22495/cocv17i3art10
This article investigates the association between RPTs, disclosure, ownership structure, and performance in Brazil and uses a hand-collected sample of 3,790 Brazilian RPT contracts obtained from corporate filings of a representative and randomly drawn sample of public companies from 2010 through 2012. Firms with greater conflicts of interest potential may employ less RPTs to signal that there will be no abuse. There is a negative and significant relationship between RPT values and accounting performance, but the same is not true for market value. The evidence in this article contrasts with that presented in national surveys by Matos and Galdi (2014) and Silveira, Prado, and Sasso (2009a), which may reflect different methodological choices. Companies and market participants may realize that some types of RPTs are beneficial and others harmful to minority shareholders and their short and long term impacts on performance are not the same. The evidence suggests that both the hypothesis of efficient economic transactions and of the conflict of interest may have merit depending on the type of RPT and the performance metrics.
Corporate Ownership and Control, Volume 17, pp 121-133; doi:10.22495/cocv17i3art9
During the global financial crisis (GFC), the Australian government introduced a deposit guarantee scheme to all the deposit accounts with financial institutions. The scheme is very similar to a deposit insurance scheme to a certain extent, though the premium is not paid by the financial institutions or the depositors. This study adopts Data Envelopment Analysis (DEA) and Malmquist productivity index (MPI) to investigate the impact of the funding scheme on Australian financial institutions during and after the GFC. The study measures the productivity and efficiency gains of large financial institutions, regional banks, credit unions and building societies for its analysis. This data spans the period from 2000 to 2014 and uses financial institutions’ input and output variables. The study finds evidence that an ex-ante insurance scheme has a profound impact on the structure and funding of Australia’s current insurance scheme. The research contributes to the body of knowledge of the current literature on the deposit guarantee scheme and the practical understanding of a deposit insurance scheme from an Australian perspective.
Corporate Ownership and Control, Volume 17, pp 108-120; doi:10.22495/cocv17i3art8
The implementation of an effective risk management policy is necessary for the survival and success of banks. Ownership structure changes the risk-taking behavior of banks. Therefore, we analyze the impact of the ownership structure on risk-taking behavior of banks in emerging markets (i.e., Pakistan, India, and Bangladesh). We take public, private and foreign ownership of banks in this study. We collect the data from 64 banks of selected countries from 2011 to 2018. We measure risk-taking as capital adequacy, leverage coverage ratio, non-performing loan ratio, and return volatility. We use two-step system dynamic panel estimation for analyzing the results. We find that public and private banks have significant relationship with the risk-taking of banks. Furthermore, public and private banks show more risk-taking behavior as compared to foreign banks in all selected countries.
Corporate Ownership and Control, Volume 17, pp 92-107; doi:10.22495/cocv17i3art7
Although the role of innovation and digitalization represents critical factors to succeed in the international context, there is a lack of empirical evidence on how they impact on the international propensity of family firms. We address this gap investigating to which extent family firms adopt digitalization tools and their effect on export-orientation, as well as whether the innovation can play a boosting role for family decision makers. Based on a survey of 2,500 Italian firms carried out in 2015 by Italian Chambers of Commerce, we find that family firms face more difficulties in undertaking digital transformation decisions, since they can weaken family SEW endowment but digitalization solutions enable the international propensity of family firms, bridging the gap with their non-family counterparts. Theses results advance the current debate on risk preferences of family firms, taking into account firm conditions, in terms of digitalization and innovation equipment, under which family owners make strategic decisions.
Corporate Ownership and Control, Volume 17, pp 84-91; doi:10.22495/cocv17i3art6
Corporate Ownership and Control, Volume 17, pp 71-83; doi:10.22495/cocv17i3art5
This study examines the effects of board gender diversity on a bank’s risk by applying a moderate multiple regression analysis on a dataset covering the years 2008-2017 and comprising 110 banks from Germany, Italy, Spain, and Switzerland. Masculinity, a country-level cultural dimension incorporating the behavioural expectations surrounding men and women in a society, is used as a moderator. Results suggest that high country-level masculinity stresses the risk-aversion of a bank’s women directors, therefore compromising financial performance. To mitigate the negative effects of high country-level masculinity, this paper provides several suggestions. First, banks should change their stereotypical depiction of the “ideal worker”. Second, banks should question the cultural motives underpinning the entrance of women directors in the “boy’s club”. Last, banks should create a more egalitarian workplace where the distribution of rewards does not strengthen the privileges of the established elites.
Corporate Ownership and Control, Volume 17, pp 46-70; doi:10.22495/cocv17i3art4
According to the literature review, the analysis results of the impact of ownership structure quality on financial performance within conventional and Islamic financial institutions are contradictory. In our study, we performed a fine differential analysis aimed at resolving this ambiguity. The financial performance and ownership structure variables of conventional and Islamic banks were collected from 16 countries located in three continents: Europe, Asia, and Africa. Two samples were collected that each of them is composed of 63 banks. By using the OLS method, these panel data were compared to the impact of ownership structure on the financial performance between both types of banks in the agency theory framework during the period 2010-2018, giving us 567 bank-year observations in each sub-sample. Results revealed that the ownership structure of conventional banks has had an explained ambiguous impact on its financial performance, whereas that of Islamic banks has a positive effect. Overall, the impacts of the Chief Executive Officer (CEO) shareholding and the board’s chairman shareholding are more significant on the financial performance of conventional banks than those of impacts related to Islamic banks.
Corporate Ownership and Control, Volume 17, pp 34-45; doi:10.22495/cocv17i3art3
A new strand of corporate governance literature on ownership is developing the next generation of the concept of active ownership: responsible ownership. This paper aims to contribute to this strand of literature by addressing an inchoate element of responsible ownership: collective action by owners. We introduce an ownership strategy as a governance mechanism for collective action and responsible ownership and ask how an ownership strategy improves corporate governance. Using data from semi-structured interviews with owner representatives, board members, and non-executive insiders, together with observation and documentary analysis, we find support for the theoretical construction and an answer to the research question. Specifically, we find that the ownership strategy functions as a collaboration pact, which cultivates long-termism, and that the outcome is improved agency, i.e. that both the relationship between owners and directors and between directors and management is improved due to better alignment. The findings indicate that an ownership strategy establishes a much-needed long-term focus and commitment of owners while creating a sense of security and understanding among the members of the board of directors, i.e. that they are working with the will of their owners. As such, it suggests new avenues of research for corporate governance literature.
Corporate Ownership and Control, Volume 17, pp 27-33; doi:10.22495/cocv17i3art2
We investigate the case of Small-Medium Enterprises (SMEs) in Italy trying to understand if key performance indicators obtained from the financial statement are able to predict possible distress in a company with enough time to take some corrective actions. In order to test the hypotheses, a nonparametric supervised classification algorithm has been applied to a random sample of 100 non-listed SMEs, considering 50 companies that filed for bankruptcy during the period 2000-2011 and 50 companies still active on the market at the end of 2011. Results describe the Italian picture for SMEs during an economic crisis period. They show that, for the Italian case, it is possible to predict with enough time (4-5 years prior to failure) a distress situation in a firm through classification methods. Anyway, these methods are not predicting the health of a company but the possibility of the firm to access the credit system. The results are limited to the Italian SMEs context which is quite particular if compared with other countries in Europe. The dataset is limited in size but has been chosen to be representative of non-listed Italian companies.