Information Disclosure by Family-Controlled Firms: The Role of Board Independence and Institutional Ownership

2013 ◽  
Author(s):  
Salim Darmadi ◽  
Achmad Sodikin
Keyword(s):  
Information Disclosure ◽  
Institutional Ownership ◽  
Board Independence

scholarly journals How Does the Accounting Conservatism Affect the Stock Price Crash Risk in Pakistan: The Complementary Role of Managerial and Institutional Ownership

2021 ◽  
Vol 7 (3) ◽  
pp. 607-621
Author(s):  
Aon Waqas ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Stock Prices ◽  
Information Disclosure ◽  
Stock Price ◽  
Panel Data Analysis ◽  
Institutional Ownership ◽  
Accounting Conservatism ◽  
Crash Risk ◽  
Agency Conflicts ◽  
Complementary Role

Purpose: The conservatism of accounting and robustness of accounting information disclosure may restrain the irrational behavior of investors and help to reduce the risk of stock price crashes. This study aims to explore this in the context of developing country Pakistan. More specifically, this study investigates the effect of accounting conservatism on stock price crash risk. We also examine the complementary role of managerial and institutional ownership in strengthening this effect. Design/Methodology/Approach: This study conducts the panel data analysis of 155 nonfinancial firms listed in PSX from 2007 to 2019. This study calculates the C-Score to measure accounting conservatism. This study measures the firm’s stock price crash risk by calculating the DUVOL of weekly share prices. Findings: This study finds that there is a significant negative effect of accounting conservatism on firms’ stock price crash risk. This study also finds that managerial ownership enhances the stock price crash risk of the sample firms significantly as a moderator while there is no significant moderating influence of institutional ownership. Implications/Originality/Value: The competent authorities of Pakistan should consider agency conflicts. They should direct the firms’ management to share equal information in time regardless of whether the information is good or bad for stock prices.

Board of Director Characteristics, Institutional Ownership, and Fraud: Evidence from Australia

2004 ◽  
Vol 23 (2) ◽  
pp. 105-117 ◽  
Author(s):  
Vineeta D. Sharma
Keyword(s):  
Research Evidence ◽  
Institutional Ownership ◽  
Board Of Director ◽  
Composition And Structure ◽  
High Incidence ◽  
The Board Of Directors ◽  
Director Characteristics ◽  
The Relationship ◽  
The U.S

Due to the high incidence of fraud in Australia, regulatory reports suggest strengthening the monitoring role of the board of directors (BOD). These reports recommend greater independence and no duality (chairperson of the BOD should not be the CEO) on the BOD. While there is no Australian evidence, research evidence in the U.S. supports these suggested reforms. It is not clear whether the research evidence observed in the U.S. will generalize to the Australian setting because of contextual differences. This study extends the U.S. findings to the Australian context and investigates the relationship between two attributes of the BOD, independence and duality, and fraud. In addition, I examine whether institutional ownership plays a role in the context of fraud. The more highly concentrated institutional ownership in Australia suggests the presence of some relationship. Using a matched sample of fraud and no-fraud firms from 1988–2000, I find that as the percentage of independent directors and the percentage of independent institutional ownership increases, the likelihood of fraud decreases. As expected, the results show a positive relationship between duality and the likelihood of fraud. These results support the call for strengthening the composition and structure of the BOD in Australia.

Analysing and evaluating environmental information disclosure in universities: the role of corporate governance, stakeholders and culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jesús Mauricio Flórez-Parra ◽  
Maria Victoria Lopez-Perez ◽  
Antonio M. López Hernández ◽  
Raquel Garde Sánchez
Keyword(s):  
Information Disclosure ◽  
Stakeholder Participation ◽  
Environmental Information ◽  
Content Type ◽  
Environmental Actions ◽  
Determining Factors ◽  
Environmental Information Disclosure ◽  
Internal And External Factors ◽  
The University

Purpose The purpose of this paper is to analyse the internal and external factors related to the disclosure of environmental information in universities which reflect the actions carried out in these universities. Design/methodology/approach Taking as reference the first 200 universities in the Shanghai ranking, several factors associated with the degree of environmental information disclosure in universities – governance dimension, the relationship and participation of stakeholders, position and prestige as signs of the quality of the institution and cultural concern in the university’s country for the environment – are analysed. Findings The results obtained show that the size of the leadership team, stakeholder participation, the position of the university in rankings and cultural concern in the university’s country for the environment are determining factors in the university’s environmental actions and, consequently, in their disclosure. Other factors – such as the size of the university, the level of self-financing and financial autonomy – do not affect the disclosure of environmental information. Originality/value Scant research exists on the environmental commitments of universities; this paper aims to fill that gap. Their role as the main channel of research and as instructors of future professionals makes them points of reference in society. Research on university ranking has traditionally focussed on teaching and research results, but environmental issues are becoming increasingly important. This paper enumerates the factors that influence the dissemination of environmental information in the most prestigious universities. This research also provides an original approach by considering not only top-down but also bottom-up strategies through communication channels and the incidence of cultural factors.

Board Independence of Listed Companies in the US and China

2018 ◽  
Vol 9 (3) ◽  
Author(s):  
Wenge Wang
Keyword(s):  
Listed Companies ◽  
Independent Directors ◽  
Board Independence ◽  
Top Management ◽  
Access To Information ◽  
Governance Mechanism ◽  
Chinese Listed Companies ◽  
The Us ◽  
Efficiency And Effectiveness

Abstract This article explores the board independence of listed companies in the US and China – an ongoing and important issue of corporate governance concerning the true independence of independent directors from management in both countries. It aims to identify what elements have an impact on board independence and examine how these influence the independence of independent directors. Four elements, independence from management; dependence on shareholders; access to information; and incentive to monitor, may have a substantial influence on board independence and align with the in-fact independence of independent directors. This article examines how and why these four elements have an impact on the effectiveness of the role of independent directors in monitoring top management and lead to independent directors failing to be truly independent of management. To support this argument, this article also investigates the efficiency and effectiveness of independent directors serving as a governance mechanism in terms of board independence in Chinese listed companies. The aim was therefore to scrutinise whether independent directors in Chinese listed companies are truly independent from management. Based on statistics calculated on data collected from CSMAR, there appears to be little evidence that independent directors serve as a governance mechanism in monitoring top management in Chinese listed companies, which thus shows that independent directors are not independent in China. The implications arising from this article are that solutions addressing the four elements that have an impact on board independence will enable independent directors to become truly independent.

scholarly journals Administrasi HUSEMAS

2019 ◽  
Author(s):  
ANNISA
Keyword(s):  
Public Relations ◽  
Information Disclosure ◽  
Mutual Understanding ◽  
Press Releases ◽  
Street Vendors ◽  
Good Relationship ◽  
The Public ◽  
The Press ◽  
Contingency Plans

Implementation of Public Relations or Public Relations is the entire implementation and application of the role of public relations in an organization / agency / company that has been planned, and organized with the aim of creating and maintaining mutual understanding and connecting between companies and their communities. These objectives can be applied through various programs / programs that benefit companies and the public in supporting them with information openness. This research aims to study and describe the Public Relations Implementation of the PSDA Office to foster good relations with external publics such as the press, agreements, and others. information. In a good relationship made by the Public Relations Department of the PSDA to reporters in the disclosure of information through the form of activities of forming personal contacts, press releases, and contingency plans. The good relations of PSDA Public Relations with Cross-Chancellors in information disclosure are coordinating activities, inviting the Governor, providing assistance, and holding social activities. The good relations of PSDA Public Relations with Universities in information disclosure are through apprenticeship / job training / street vendors, as well as holding World Water Day seminars.

scholarly journals Pengembangan Website Direktorat Jenderal Industri Agro Kementerian Perindustrian

2021 ◽  
Vol 11 (1) ◽  
pp. 51-65
Author(s):  
M R Sadif ◽  
J C Wibawa
Keyword(s):  
Information Disclosure ◽  
Good Governance ◽  
Object Oriented ◽  
Prototype Model ◽  
Foreign Investors ◽  
Website Development ◽  
Directorate General ◽  
Object Oriented Approach ◽  
Descriptive Method

The Directorate General of Agro-Industry is one of the implementing elements of the duties of the Minister of Industry, which has the task of organizing the formulation and implementation of policies. In order to encourage the growth and development of the role of the agro-industry, especially in providing informative information, which is very important in the current era of technology 4.0, publications and information facilities are needed regarding the development of the agro-industry. The design of this study used a descriptive method, using an object-oriented approach, while its development used a prototype model. This study aims to develop a website that is in accordance with several important factors that need to be considered so that website development can touch the quality side of the Ministry of Industry, Directorate General of Agro-industry which is in line with Law Number 14 of 2008 concerning Information Disclosure. This research produces a quality website at the Ministry of Industry, Directorate General of Agro-Industry, and meets the principles of good governance in accordance with Presidential Instruction No. 3 of 2003. So that the transparency and accountability of the information on this website are expected to have an impact on increasing the confidence of both local and foreign investors.

scholarly journals Corporate governance issues surrounding executive compensation and executive severance

2021 ◽  
Author(s):  
Andrea W. Zanetti
Keyword(s):  
Executive Compensation ◽  
Board Independence ◽  
Substantial Influence ◽  
Publicly Traded ◽  
Business Corporation ◽  
Effective Governance ◽  
Corporation Law ◽  
Managerial Power ◽  
Legislative Framework

This paper seeks to explain why and how executive severances of publicly-traded Canadian and U.S. companies have reached the financial levels they have, generating public and shareholder outrage and causing governments on both sides of the border to introduce new legislation. The paper investigates the role of the CEO, boards and shareholders in the setting of executive compensation. As the origins ofthe three roles lie in business corporation law, the legislative framework of Canadian and U.S. companies is presented to permit the reader to understand the legal accountabilities and rights of each of the three parties. The paper identifies that executives may exercise substantial influence over boards, possibly impeding effective governance. The paper concludes that effective governance, including greater board independence and board competence in executive compensation matters will help to improve board functioning and minimize the effects of the agency problem, cronyism and managerial power.

scholarly journals Board structure and institutional ownership at the time of IPO

2017 ◽  
Vol 43 (9) ◽  
pp. 950-965 ◽  
Author(s):  
Suman Neupane ◽  
Biwesh Neupane
Keyword(s):  
Institutional Investors ◽  
Critical Time ◽  
Institutional Ownership ◽  
Board Independence ◽  
Board Structure ◽  
Data Set ◽  
Content Type ◽  
Institutional Holdings ◽  
Foreign Institutional Investors ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of mandatory regulatory provisions on board structure and the influence of such board structure on institutional holdings. Design/methodology/approach The study uses unique hand-collected data set of Indian IPOs during the 2004-2012 period after the corporate governance reforms with the introduction of clause 49 in the listing agreements in 2001. Using OLS regression, the paper empirically analyses the determinants of board size and board independence at the time of the IPOs and the influence of such a board structure on shareholdings by domestic and foreign institutional investors. Findings The authors find that complying with mandatory regulatory provisions does not impede firms from structuring their boards to reflect the firms’ advising and monitoring needs. The authors also find that complying with provisions have positive implication for the firm, as firms with greater board independence appear to attract more foreign institutional investors. Originality/value To the authors’ best knowledge, this is the first study to examine the issue in a regime where regulation mandates the composition of the board of directors. The paper also extends the literature on institutional holdings by providing evidence on the impact of board structure on institutional ownership at a critical time in a firm’s life cycle when concerns for endogeneity for empirical investigations are weaker.

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