Reducing Agency Conflict through Bank Dividend Payout Decisions: The Role of Opacity and Ownership Structure

2016 ◽  
Author(s):  
Laetitia Lepetit ◽  
CCline Meslier
Keyword(s):  
Ownership Structure ◽  
Dividend Payout ◽  
Agency Conflict

Reducing agency conflicts through bank dividend payout decisions: the role of opacity and ownership structure

2017 ◽  
Vol 49 (49) ◽  
pp. 4999-5026 ◽  
Author(s):  
Laetitia Lepetit ◽  
Celine Meslier ◽  
Leo Indra Wardhana
Keyword(s):  
Ownership Structure ◽  
Agency Conflicts ◽  
Dividend Payout

scholarly journals PENGARUH KONFLIK KEAGENAN TERHADAP CORPORATE GOVERNANCE DAN KINERJA PERUSAHAAN

MAKSIMUM ◽  
2012 ◽  
Vol 1 (2) ◽  
pp. 109
Author(s):  
Wahyu Manuhara Putra
Keyword(s):  
Corporate Governance ◽  
Principal Components Analysis ◽  
Principal Components ◽  
Ownership Structure ◽  
Agency Conflicts ◽  
Agency Conflict ◽  
Corporate Governance Mechanisms ◽  
Different Dimensions ◽  
Components Analysis

Abstract This study aimed to test whether the Corporate Governance associated the Agent- Conflicts This research Used exploratory principal components analysis and kanonikal analysis on 6 individual governance variables to get the 5 factors representing different dimensions of corporate governance and treasures the agent, conflict firms based on 7 agency conflict proxies used in the literature. Results of analysis found that Companies with greater agency conflict has a mechanism for better corporate governance, in particular that the low ownership structure has a high impact on institutional ownership. Overall the result support the theory that the existence and role of corporate governance mechanisms on firm is a function of agency Conflict in the company. Keyword : Agency Conflicts, Corporate Governance, exploratory principal components analysis, kanonikal analysis

scholarly journals The Role of Board Independence and Ownership Structure in Improving the Efficacy of Corporate Financial Distress Prediction Model Evidence from India

2021 ◽  
Vol 14 (7) ◽  
pp. 333
Author(s):  
Shilpa H. Shetty ◽  
Theresa Nithila Vincent
Keyword(s):  
Prediction Model ◽  
Ownership Structure ◽  
Financial Distress ◽  
Prediction Models ◽  
Receiver Operating Curve ◽  
Financial Measures ◽  
Financial Variables ◽  
Financial Distress Prediction ◽  
Distress Prediction

The study aimed to investigate the role of non-financial measures in predicting corporate financial distress in the Indian industrial sector. The proportion of independent directors on the board and the proportion of the promoters’ share in the ownership structure of the business were the non-financial measures that were analysed, along with ten financial measures. For this, sample data consisted of 82 companies that had filed for bankruptcy under the Insolvency and Bankruptcy Code (IBC). An equal number of matching financially sound companies also constituted the sample. Therefore, the total sample size was 164 companies. Data for five years immediately preceding the bankruptcy filing was collected for the sample companies. The data of 120 companies evenly drawn from the two groups of companies were used for developing the model and the remaining data were used for validating the developed model. Two binary logistic regression models were developed, M1 and M2, where M1 was formulated with both financial and non-financial variables, and M2 only had financial variables as predictors. The diagnostic ability of the model was tested with the aid of the receiver operating curve (ROC), area under the curve (AUC), sensitivity, specificity and annual accuracy. The results of the study show that inclusion of the two non-financial variables improved the efficacy of the financial distress prediction model. This study made a unique attempt to provide empirical evidence on the role played by non-financial variables in improving the efficiency of corporate distress prediction models.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Payout Policy ◽  
Board Composition ◽  
Dividend Payout ◽  
Content Type ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

scholarly journals IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1156-1165
Author(s):  
Taymoor Ali ◽  
Muhammad Kashif Khurshid ◽  
Adnan Ali Chaudhary
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Firms ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Relationship Of ◽  
The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

scholarly journals Ownership Structure of the Organisation as a Determinant of Human Resource Management in the Context of Transition Countries

2018 ◽  
Vol 15 (26) ◽  
Author(s):  
Branka Zolak Poljašević ◽  
Gordana Ilić ◽  
Darko Milunović
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Ownership Structure ◽  
Transition Period ◽  
Transition Countries ◽  
Foreign Companies ◽  
Significant Difference ◽  
The Republic

Transition period of the post-socialist countries and opening of their markets have led to the positive shift in understanding the role of employees in organizations and the importance of proper management of this specific resource. An important factor in spreading modern principles of human resource management in transition countries is the arrival of foreign companies on their market. In that context, this paper focuses on the relationship between the ownership structure of the organisation and the level of development of the core activities of human resource management. The subject of the empirical research was companies which operate on the territory of the Republic of Srpska, and employ more than 200 employees. Empirical data were collected by using questionnaire, and some of them were generated from the official websites of the observed companies. Testing of hypothesis was performed with the Analysis of Variance. The research results show that in the foreign-ownedcompanies there is a statistically significant difference in the level of development ofhuman resources management, compared to the state-owned and national privatecompanies. On the other hand, among foreign-owned companies, which differ in thecountry of origin of the majority owner and the number of years in business in thedomestic (BiH/RS) market, there is no statistically significant difference in the levelof development of basic activities of human resource management.

scholarly journals Implementation of Social Culture in Corporate Governance: A Literature Study

2019 ◽  
Vol 11 (1) ◽  
pp. 293
Author(s):  
Mukhtaruddin Mukhtaruddin ◽  
M. Adam ◽  
Isnurhadi Isnurhadi ◽  
Luk Luk Fuadah
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Literature Study ◽  
Social Culture ◽  
The Public ◽  
Good Corporate Governance ◽  
The People ◽  
Governance Index

Good corporate governance (GCG) is a principle implemented by the company to ensure that the interests of stakeholders are not neglected. GCG consists of five main pillars which are transparency, accountability, responsiveness, independency, and fairness. In Indonesia, GCG implementation has not been effective enough as it is only necessarry for large companies and the public. The instrument used to assess GCG implementation is not appropriate either, examples of such are its portion, the existence and role of independent commissioners, portion, the existence and role of the audit committee, and ownership structure. This paper analyzes the implementation of culture found in Indonesian people living in GCG system. With the implementation of this social culture, the corporate GCG is better in its implementation because it is built on the noble values of the people. It then became the Pancasila which is the philosophy of Indonesia as such the the GCG implementation is accessed using the Pancasila Corporate Governance Index (PCGI).

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