Firm Performance and Changes in Institutional Ownership: A Corporate Governance Perspective

2012 ◽  
Author(s):  
Wady Haddaji ◽  
Jie Yang
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Institutional Ownership

scholarly journals Institutional Ownership and Firm Performance under Stakeholder-Oriented Corporate Governance

2020 ◽  
Vol 12 (3) ◽  
pp. 1021 ◽  
Author(s):  
Hideaki Sakawa ◽  
Naoki Watanabel
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Institutional Investors ◽  
Institutional Ownership ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Institutional Shareholders ◽  
Japanese Corporations ◽  
Oriented System

This study aimed to reveal the role of institutional investors with shareholder-oriented scopes in a stakeholder-oriented economy such as Japan. With financial globalization, the increasing number of institutional shareholders in Japanese corporations enables us to investigate whether their shareholder-oriented perspectives are conducive to taking on effective monitoring roles under stakeholder-oriented corporate governance. This study’s sample included large listed firms of the TOPIX 500 in Japan during 2010-2016. Using 2924 firm-year observations, the effect of institutional investors on firm performance was analyzed to test the role of institutional investors in stakeholder-oriented corporate governance. Our study showed that the monitoring role of institutional shareholders, or foreign shareholders, functions effectively in Japanese corporations. In addition, we showed that the monitoring roles of these are expected to strengthen firms through higher growth opportunities. These results implied that institutional shareholders contribute to enhancing sustainable firm performance and constructing sustainable corporate governance mechanisms in a stakeholder-oriented system.

scholarly journals The Effect of IAS-24 Disclosures on Governance Mechanisms and Ownership Structures in Pakistan

2016 ◽  
Vol 5 (1) ◽  
pp. 15-36
Author(s):  
Abdul Rafay Abdul Rafay ◽  
Ramla Sadiq ◽  
Mobeen Ajmal
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Reporting ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Governance Mechanisms ◽  
Ownership Structures ◽  
The Impact

IAS-24 of the International Financial Reporting Standards focuses on the concept and disclosures of related party transactions (RPTs) for a reporting entity. This study examines the interrelationship between RPTs (as disclosed under IAS-24), agency theory, ownership structures and firm performance. Our sample includes nonfinancial companies indexed by the KSE-100 of the Pakistan Stock Exchange during 2006–15. To run the regression models, we determine the regression assumptions, normality, heteroskedasticity, autocorrelation and multicollinearity. We investigate the impact of different RPTs, including cash inflows and outflows, whereas other studies generally look at the impact of RPTs on firm performance in totality. The empirical analysis suggests that institutional ownership has a positive, significant impact on firm performance. Related party purchases have a significant, negative impact on performance, resulting in the expropriation of institutional ownership. RPTs that generate revenues have a significant, positive impact on performance, such that institutional ownership has a propping-up effect with respect to the related parties. In practice, institutional ownership leads to strong corporate governance and contributes to firm performance. While other studies find family ownership responsible for the expropriation effect, we argue that institutional ownership has a propping-up and expropriation effect on related parties. Our study also suggests that certain ownership structures lead to weaker corporate governance mechanisms, resulting in greater agency problems. This, in turn, badly affects company performance and leads to the exploitation of minority shareholders.

Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia

IJAcc ◽  
2020 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Tri Cahyo Nugroho ◽  
Warseno Warseno ◽  
Isrial Isrial
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Institutional Ownership ◽  
Governance Structure ◽  
Negative Influence ◽  
Positive Influence ◽  
Committee Meeting ◽  
Board Of Director

The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance

scholarly journals Institutional Ownership Board Characteristics and Firm Performance

2021 ◽  
Vol 12 (2) ◽  
pp. 1-15
Author(s):  
Abdul Waheed ◽  
Qaisar Ali Malik
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Institutions ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Dynamic Panel Data ◽  
Performance Variables ◽  
And Performance ◽  
Moderating Role

This research study attempts to investigate the moderating role of financial institutions with corporate governance and firm performance variables in the light of a purposely developed contingent theoretical framework. The current study analyzed an unbalanced panel of 287 non-financial sector firms listed on Pakistan Stock Exchange (PSX) from 2005 to 2015 by using the technique Arellano-Bond dynamic panel-data estimation under assumptions of generalized methods of moments (GMM). The contingency framework proposed in this study confirmed the moderating role of financial institutions in corporate governance and performance variables. Empirical evidence revealed that higher level of institutional ownership in firm's ownership structure although discourages the large size board but encourages higher ratio of independent directors in the governing body. To the best of the authors' knowledge, the current study provides a deeper understanding regarding the role of financial institutions in corporate governance and performance mechanism particularly in the context of Pakistani emerging economy.

scholarly journals A meta-analysis of corporate governance and firm performance

2020 ◽  
Vol 9 (1) ◽  
pp. 18-39
Author(s):  
Thi Thanh Binh Dao ◽  
Thu Nguyen Tra
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Meta Analysis ◽  
Institutional Ownership ◽  
Sampling Period ◽  
State Ownership ◽  
Board Independence ◽  
Potential Sources ◽  
Selection Of

This research provides a systematic picture on the topic of “How corporate governance influences on firm performance?” through the application of meta-analysis on over 251 studies covering 24,867 businesses of 37 distinguished published papers. Using meta-analysis, by proceeding HOMA procedure, it is statistically evidenced that better corporate governance index and more board independence significantly enhance firm performance. By contrast, business’ financial value would be harmed as raise management shares proportion. Not only providing a general relationship direction, the paper also contributes an insight of potential sources of heterogeneity among collected samples as endogeneity problems; and selection of financial performance base. Moreover, significant changes through the sampling period are investigated in the connection of business’ worth and board size, board independence (declining trend); state ownership and institutional ownership (rising tendency).

Pengaruh Struktur Dan Proses Corporate Governance Terhadap Kinerja Perusahaan Di Indonesia

IJAcc ◽  
2020 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Tri Cahyo Nugroho ◽  
Warseno Warseno ◽  
Isrial Isrial
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Institutional Ownership ◽  
Governance Structure ◽  
Negative Influence ◽  
Positive Influence ◽  
Committee Meeting ◽  
Board Of Director

The aims of the research is analyzing the influence of corporate governance structure and process on firm performance in Indonesia . The Indicators in this research is : institutional ownership, independent commissioner, board of directors size, board of directors meeting, board of commissioners meeting and audit committee meeting. Firm performance measured by TobinsQ value. This research uses multiplier regression analysis as statistic instrument. Population in this research is consumer goods manufacture listed on Bursa Efek Indonesia 2001-2015 obtain 85 samples base on determined criteria. The results of this research show that institutional ownership, independent commissioner and board of commissioners meeting has significant positive influence on firm performance, board of directors size and board of director meeting has significant negative influence on firm performance, while the audit committee meeting has no influence on firm performance

scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE: EVIDENCE FROM LISTED FIRMS OF PAKISTAN

2021 ◽  
Vol 12 (1) ◽  
pp. 170-187
Author(s):  
Shuaib Ali ◽  
Guo Fei ◽  
Zhaid Ali ◽  
Farhan Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Agency Problem ◽  
Institutional Ownership ◽  
Least Square ◽  
Ownership Concentration ◽  
Listed Firms ◽  
And Performance

This study aims to find the influence of corporate governance on firm performance for the listed non-financial firms on the Pakistan Stock Exchange (PSX) for the period 2005-15.  The article has measured corporate governance by the large boards with more independent directors, independence of audit committee, ownership concentration, non-existence ofCEOduality, and presence of foreign and institutional investors. To address this endogenous nature of institutional ownership and performance in this study we have used instrumental variables (IV) techniques using a two-stage least square (2SLS) by instrumentalizing institutional ownership with firm size and firm age. The study found that firms with large and independent boards outperform their counterparts. Similarly, the study found that firms having the joint position ofCEOand chairperson performs lower than counterparts. In Pakistan firms with foreign and institutional owners better than others. We found that firms with concentrated owners have a lower level of agency problem and ultimately perform well. Furthermore, we found that firms with a lower level of agency problem type II (measured via ownership concentration contestability) perform better in Pakistan. 

scholarly journals The impacts of managerial and institutional ownership on firm performance: The role of stock price informativeness and corporate governance

2009 ◽  
Vol 6 (4) ◽  
pp. 115-127 ◽  
Author(s):  
William Cheung ◽  
Scott Fung ◽  
Shih-Chuan Tsai
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Price ◽  
Positive Impact ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Price Informativeness ◽  
Internal Governance ◽  
Future Performance ◽  
Stock Price Informativeness

This paper provides new evidence on the relations between managerial and institutional ownerships and firm performance. These relations are found to be affected by firm’s stock price informativeness and corporate governance. Based on a sample of US firms from NYSE, AMEX, and NASDAQ between 1989 and 2006, we document three important findings. First, managerial ownership and firm future performance are non-linearly related; the positive relation is stronger for firms with less informative prices or more agency problems. This finding suggests that poor governance and uninformative price increase the importance of managerial value creation for their firms by improving internal governance. Second, institutional ownership has a significant positive impact on firm future performance, with larger impact for firms with less informative prices or good governance. However, institutional ownership, which reflects external monitoring, has a weaker positive effect compared to managerial ownership, which controls for internal governance. Third, the interaction between managerial ownership and institutional ownership has a significant positive impact on firm future performance, suggesting that there are synergistic effects of internal and external corporate governance mechanisms in improving firm value.

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