Ownership concentration and board features as determinants of related party transactions - evidence from GCC countries

2020 ◽  
Vol 12 (3/4) ◽  
pp. 304
Author(s):  
Abdelmohsen M. Desoky ◽  
Gehan A. Mousa ◽  
Mohamed Yassin ◽  
Rania AbuRaya
Keyword(s):  
Ownership Concentration ◽  
Related Party Transactions ◽  
Gcc Countries

Deposits structure, ownership concentration and corporate governance disclosure in GCC Islamic banks

2018 ◽  
Vol 9 (4) ◽  
pp. 587-606 ◽  
Author(s):  
Rihab Grassa
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Far East ◽  
Policy Implications ◽  
Ownership Concentration ◽  
Islamic Banks ◽  
Content Type ◽  
Gcc Countries ◽  
Transparency And Disclosure ◽  
Governance Disclosure

Purpose This paper aims to assess the effects of deposits structure and ownership structure on the GCC Islamic banks’ corporate governance disclosure (CGD) practices. Design/methodology/approach The study is based on a sample of 38 Islamic banks operating in five Gulf Cooperation Council (GCC) countries, and the authors observed them over the period from 2006 to 2011. The authors used the transparency and disclosure score, developed by Standard & Poor’s (S&P), to identify the sample’s CGD scores. Findings This paper’s findings suggest that the level of CGD is lower for Islamic banks with higher ownership concentration, for levered Islamic banks and for Islamic banks with greater concentration of nonprofit-sharing investment accounts (PSIA) and is higher for Islamic banks with greater concentrations of PSIA; the Islamic bank size; the bank age; listed bank and the country transparency index. By disaggregating the total CGD into the three sub-categories, the authors are able to specify, also, the components of corporate governance (CG) impacted by various determinants. Research limitations/implications This paper is subject to a number of limitations. First, there is manual scoring of annual reports (subjectivity). Second, the research focuses exclusively on the GCC context and excludes the other Middle East, Southeast Asia and Far East countries, where ownership structure and deposits structure might affect CGD differently. Third, the governance score, which is used in this research, is developed by S&P and does not take into account the characteristics of Islamic banks. Practical implications The findings of this paper suggest many policy implications. First, through the optimization of ownership structure, GCC countries’ regulators have to improve the Islamic banking system’s CG mechanisms through the optimization of ownership structure (dispersed ownership) to promote transparency and disclosure. Second, regulators and policymakers should revise guidelines with the main purpose of protecting PSIA’ holders (considered to be minor shareholders without voting power) through promoting disclosure and transparency. Third, the findings can be useful for many international supervisory bodies, like the Islamic Financial Services Board (IFSB) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), in evaluating transparency and disclosure standards. Originality/value This study is expected to be useful for all market participants, namely, investors, financial analysts, managers, marker regulators and many international Islamic supervisory bodies, such as the IFSB and AAOIFI, by providing new requirements on CGD in the GCC region and in better understanding its determinants for Islamic banks in this region.

scholarly journals Konsentrasi Kepemilikan, Transaksi Pihak Berelasi, dan Kinerja Perusahaan

2019 ◽  
Vol 29 (2) ◽  
pp. 592
Author(s):  
Nitami Galih Pangesti ◽  
Widi Hidayat
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Manufacturing Companies ◽  
Minority Shareholders ◽  
Governance System ◽  
Related Party Transactions ◽  
Analysis Technique ◽  
Quantitative Descriptive ◽  
Positive Effect

Agency theory describe that ownership concentration is a good corporate governance system that helps to reduce agency problems arising from the divergence of interest between shareholders and managers. But, when ownership concentration becomes high, lead to another agency problem that is conflict between controlling shareholders and minority shareholders. This study purposed to examine the relation of ownership concentration and related party transactions on firm performance. This research uses quantitative descriptive method with associative approach. Sample used in this study was 474 manufacturing companies listed on the Indonesia Stock Exchange in 2014-2018. We used multiple linear regression as analysis technique. Results showed that ownership concentration had a positive effect on firm performance and related party transactions had a positive effect on firm performance. Keywords : Ownership Concentration; Related Party Transactions; Firm Performance.

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN KARAKTERISTIK PERUSAHAAN TERHADAP LUAS PENGUNGKAPAN TRANSAKSI PIHAK BERELASI DI INDONESIA

2016 ◽  
Vol 4 (1) ◽  
pp. 36 ◽  
Author(s):  
Hani Werdi Apriyani
Keyword(s):  
Corporate Governance ◽  
Annual Report ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Ownership Concentration ◽  
Corporate Diversification ◽  
Related Party Transactions ◽  
Related Party Transaction ◽  
Independent Variable

The purpose of this study is to examine the influence of corporate governance and firms characteristics to the extent of disclosure of related party transactions. The independent variable in this study is the level of ownership concentration, independent commissioners, the level of corporate diversification, and profitability. The dependent variable is the related party transactions disclosure. In analyzing the effect of independent variables on the dependent variable, included two control variables in our model, the type of industry and company size. The sample used in this study is annual report of non-financial companies listed in the Indonesia Stock Exchange 2008 -2011. Purposive sampling use to determine sample. There are 25 companies that meet the criteria as the sample in this study, and finally 90 annual report used in this analysis. Statistical methods using multiple linear regression analysis. The analysis showed that profitability have significant effect in Related Party Transaction disclosure. Level of ownership concentration, the level of corporate diversification , and independent commissioners did’t significantly influance the related party transaction disclosure.

scholarly journals Board composition, ownership concentration, and voluntary internet disclosure by MSM-listed companies

2014 ◽  
Vol 10 (1) ◽  
pp. 60-70 ◽  
Author(s):  
Mohamed A. K. Basuony ◽  
Ehab K. A. Mohamed
Keyword(s):  
Financial Reporting ◽  
Binary Logistic Regression ◽  
Listed Companies ◽  
Securities Market ◽  
Ownership Concentration ◽  
Binary Logistic Regression Analysis ◽  
Corporate Reporting ◽  
Gcc Countries ◽  
Important Region ◽  
Negative Effect

The purpose of this paper is to examine the determinants and characteristics of voluntary internet disclosures by listed companies in Oman. This paper uses archival data from listed companies on Muscat Securities Market (MSM). Binary Logistic Regression analysis is used to examine the determinants of internet financial reporting. The results of this study reveal that ROA is one of the factors that impacts internet financial reporting. Also, the results reveal that ownership concentration has a negative effect on the internet financial disclosure. The paper provides insights into corporate internet disclosures in the GCC countries that will benefit all stakeholders with an interest in corporate reporting in this important region of the world.

Women on boards of directors: the moderation role of female labour force participation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Reem Hamdan ◽  
Allam Hamdan ◽  
Bahaaeddin Alareeni ◽  
Osama F. Atayah ◽  
Layla Faisal Alhalwachi
Keyword(s):  
Firm Size ◽  
Labour Force ◽  
Ownership Concentration ◽  
Firm Level ◽  
Content Type ◽  
Listed Firms ◽  
Gcc Countries ◽  
Women On Boards ◽  
The Relationship

Purpose This study aims to investigate the moderation role of the percentage of women in the country labour force in the relationship between firm-level governance factors (board size, institutional ownership, ownership concentration, board independence, performance, firm size, firm’s risk and sector) and women on boards (WOBs) in publicly listed firms in Gulf Cooperation Council (GCC) countries. Design/methodology/approach The study relied on a sample of 436 publicly listed firms in 2018 in six GCC countries (Bahrain, Kuwait, Saudi Arabia, Oman, Qatar and the United Arab Emirates). Findings The study concluded that the percentage of women in the country’s labour force has a moderation role in the relationship between board size and WOB, as well as firm market performance and WOBs. However, ownership concentration, firm size, firm risk and firm sector do not affect the percentage of WOB; consequently, the percentage of women in the country’s labour force did not have a moderation role in the relationship between these variables and the percentage of WOBs. Originality/value The study incorporates an institutional level variable which is the percentage of women in the country’s labour force in a firm-level relationship mostly understood by agency theory.

Independent Directors' Tenure, Expropriation, Related Party Transactions, and Firm Value

2022 ◽  
pp. 369-394
Author(s):  
Chee Yoong Liew ◽  
S. Susela Devi
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Moderating Effect ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Policy Makers ◽  
Related Party Transactions ◽  
Financial Valuation ◽  
Agency Conflict ◽  
The Relationship

This chapter analyses the relationship between related party transactions (RPT) and firm value and whether independent directors' tenure (IDT) strengthens or weakens this relationship. Further, it examines ownership concentration's role on this moderating effect of IDT in Malaysian family and non-family corporations. It is found that that IDT weakens the relationship between RPT and firm value. However, ownership concentration strengthens this moderating effect of IDT. Interestingly, family corporations are more likely to show a stronger impact of ownership concentration which we allude to concerns of maintaining reputation. The research results remain after controlling for technology corporations. The findings' have important implications for policy makers, practitioners and regulators, especially in emerging economies globally.Keywords: Agency Conflict, Corporate Financial Valuation, Independent Directors' Term in the Office, Corporate Governance, Family Corporations, Emerging Markets

Ownership concentration in the Gulf Cooperation Council

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irma Martinez-Garcia ◽  
Rodrigo Basco ◽  
Silvia Gomez-Anson ◽  
Narjess Boubakri
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Gulf Cooperation Council ◽  
Ownership Concentration ◽  
Content Type ◽  
Listed Firms ◽  
Gcc Countries ◽  
Governance Practices ◽  
Institutional Contexts ◽  
Pyramid Structures

PurposeThis article attempts to answer the following questions: Who ultimately owns firms listed in the Gulf Cooperation Council (GCC) countries? Does ownership structure depend on the institutional context? How does ownership affect firm performance? Do institutional factors influence the ownership–performance relationship?Design/methodology/approachWe apply univariate analyses and generalised methods of moments estimations for a sample of 692 GCC listed firms during 2009–2015.FindingsOur results reveal that corporations are mainly controlled by the state or families, the ownership structure is highly concentrated and pyramid structures are common in the region. Ownership is more concentrated in non-financial than financial firms, and ownership concentration and shareholder identity differ by institutional country setting. Finally, ownership concentration does not influence performance, but formal institutions play a moderating role in the relationship.Practical implicationsAs our findings reveal potential type II agency problems due to ownership concentration, policymakers should raise awareness of professional corporate governance practices and tailor them to GCC countries’ institutional contexts.Social implicationsEven with the introduction of new regulations by some GCC states to protect minority investors and promote corporate governance practices, ownership concentration is a rigid structure, and its use by investors to protect their economic endowment and power is culturally embedded.Originality/valueAlthough previous studies have analysed ownership concentration and large shareholders’ identities across countries, this study fills a research gap investigating this phenomenon in-depth in emerging economies.

Independent Directors' Tenure, Expropriation, Related Party Transactions, and Firm Value

2020 ◽  
pp. 182-207
Author(s):  
Chee Yoong Liew ◽  
S. Susela Devi
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Moderating Effect ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Policy Makers ◽  
Related Party Transactions ◽  
Financial Valuation ◽  
Agency Conflict ◽  
The Relationship

This chapter analyses the relationship between related party transactions (RPT) and firm value and whether independent directors' tenure (IDT) strengthens or weakens this relationship. Further, it examines ownership concentration's role on this moderating effect of IDT in Malaysian family and non-family corporations. It is found that that IDT weakens the relationship between RPT and firm value. However, ownership concentration strengthens this moderating effect of IDT. Interestingly, family corporations are more likely to show a stronger impact of ownership concentration which we allude to concerns of maintaining reputation. The research results remain after controlling for technology corporations. The findings' have important implications for policy makers, practitioners and regulators, especially in emerging economies globally.Keywords: Agency Conflict, Corporate Financial Valuation, Independent Directors' Term in the Office, Corporate Governance, Family Corporations, Emerging Markets

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