Financial Decisions, Ownership Structure and Growth Opportunities: An Analysis of Brazilian Firms

2007 ◽  
Author(s):  
Félix J. López-Iturriaga ◽  
Vicente Lima Crisóstomo
Keyword(s):  
Ownership Structure ◽  
Growth Opportunities ◽  
Financial Decisions

Financial decisions and ownership structure as control mechanisms of agency problems: evidence from Italy

2018 ◽  
Vol 18 (3) ◽  
pp. 531-563 ◽  
Author(s):  
Fabrizio Rossi ◽  
Robert Boylan ◽  
Richard J. Cebula
Keyword(s):  
Ownership Structure ◽  
Agency Costs ◽  
Generalized Method Of Moments ◽  
Control Mechanisms ◽  
Minority Shareholders ◽  
Data Set ◽  
Business Decisions ◽  
Content Type ◽  
Financial Decisions ◽  
Practical Implications

Purpose The purpose of this study is to investigate the relationship between financial decisions and ownership structure by using the control contests on a sample of Italian listed companies. Design/methodology/approach The analysis adopts a balanced panel data set of 984 firm-year observations for the period of 2002-2013, with estimation using a generalized method of moments. Findings The results appear to confirm both the hypotheses of the alignment of interests and the entrenchment effect. The entrenchment and alignment effects are not found to be alternatives but rather are found to co-exist. The presence of a coalition of minority shareholders acts as a tool to control agency costs, particularly when the coalition is instrumental in the contestability of corporate control. Practical implications These findings suggest that minority shareholders may have a larger impact than previously identified by strategically aligning with other shareholders to form coalitions. This study provides several practical implications. First, dividend payout is not necessarily a good instrument to control and monitor agency costs. This is because the payout can be used to expropriate benefits from the minority shareholders. Second, high ownership concentration does not always reduce agency costs. Third, a non-collusive coalition can be more useful in the monitoring of agency costs than other tools, such as the debt level. Originality/value This study shows that there is considerable value to the firm when individual blockholders come together in a contestable environment and become instrumental in making business decisions. The results support the contention that contestability is an excellent deterrent to dampen the expropriation of benefits to minority shareholders. This study also provides evidence that cash holding can be a good substitute for dividends and debt in the effort to limit agency costs.

Ownership Structure, Firm Value and Growth Opportunities: Malaysian Evidence

2017 ◽  
Vol 23 (8) ◽  
pp. 7378-7382
Author(s):  
Nik Anis Idayu Nik Abdullah ◽  
Mazurina Mohamad Ali ◽  
Noor Hasniza Haron
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Growth Opportunities

scholarly journals OWNERSHIP STRUCTURES, INVESTORS CONFIDENCE AND FINANCIAL DECISIONS IN FAMILY FIRMS: EVIDENCE FROM GCC MARKETS

2018 ◽  
Vol 14 (1) ◽  
pp. 52-68
Author(s):  
Muhammad Sadiq Shahid ◽  
Keyword(s):  
Ownership Structure ◽  
Family Firms ◽  
Stock Exchange ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Investment Funds ◽  
Financial Decisions ◽  
Ownership Structures ◽  
The Family ◽  
The Impact

The objective of this study is to examine the impact of financial decisions on the ownership structure. This study adopted two themes of ownership structure (e.g., 25% & 50%) that categorized the family-owned firms (FOF) and non-family firms (NFOF). The data was collected from 286 firms listed at GCC stock exchanges annual reports, stock exchange database, and Data Stream that range from 2010-2016 periods. The findings of this study showed that the FOFs have lesser investment-internal fund sensitivity than NFOFs. Though, there is an insignificant effect of the block holder on investment funds sensitivity. However, the little implication of dividend payout in FOFs as compare to NFOFs was disclosed in the results. Moreover, it wrapped up that there are less agency problems and information asymmetry in FOFs comparatively.

scholarly journals Struktur Kepemilikan dan Nilai Perusahaan pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia

2021 ◽  
Vol 7 (2) ◽  
pp. 179-190
Author(s):  
Indra Siswanti ◽  
Embun Prowanta
Keyword(s):  
Ownership Structure ◽  
Consumer Goods ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Financial Decisions ◽  
Processing Techniques

This study aims to examine the effect of ownership structure on firm value with financial decisions and investment decisions as intervening variables. This study uses secondary data from financial reports. The population used in this study are manufacturing companies in the consumer goods sector which listed on Indonesian stock exchange 2013-2019 of 35 (thirty five) companies. While the research sample was taken using certain criteria.The number of samples obtained are 7 (seven) companies. Data processing techniques using smartPLS 3.0. The results state: 1) ownership structure has a significant effect on firm value, 2) ownership structure has a significant effect on funding decisions, 3) ownership structure has a significant effect on investment decisions, 4) funding decisions has a significant effect on firm value, 5) investment decisions has a significant effect on firm value, 6) funding decisions mediate the effect of ownership structure on firm value, 7) investment decisions mediate the effect of ownership structure on firm value. The limitation of the results of this study is that the results of this study cannot be generalized because the objects used are limited to manufacturing companies in the consumer goods sub-sector.

Financial Decisions and Growth Opportunities: A Spanish Firms Panel Data Analysis

2000 ◽  
Author(s):  
Pablo de Andrés Alonso ◽  
Félix J. López Iturriaga ◽  
Juan Antonio Rodríguez Sanz
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Growth Opportunities ◽  
Financial Decisions

What Tells the Timing of Dividend Payment to Shareholders? The Case of French Companies

2019 ◽  
Vol 9 (1) ◽  
pp. 183
Author(s):  
Wissal Ben Letaifa
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Cox Regression ◽  
Growth Opportunities ◽  
Dividend Payment ◽  
Listed Firms ◽  
Agency Conflict ◽  
French Study ◽  
The Impact ◽  
The Relationship

Purpose: This paper aims to extend and contributes to prior French research on the determinants of the timing of dividend payment. It seeks to investigate the impact of ownership structure, duality of the manager as chairman and president of the board, liquidity, size and growth opportunities, profitability, variation of the amount of dividend on the real timing of dividend payment.Design/methodology/approach: Using a panel of French listed firms from 2003 to 2008, the paper uses a cox regression to investigate the relationship between the corporate determinants and the timing of dividend payment.Finding: The paper finds that large shareholders influence the timing of dividend payment but there is no significant relationship between the duality of the manager and the fixing of the dividend payment. The finding is consistent with agency theory since rapid dividend payment can be employed for mitigating agency conflict as timing of dividend payment can be substituted for shareholder monitoring. Further, the empirical results reveal that Cox regression is more appropriate in explaining the duration of dividend payment with variables associated to corporate governance and ownership structure.Originality/value: The paper contributes to prior research related to the timing of dividend payment by being the first French study to examine the determinants of the timing of dividend payment for listed companies in CAC 40.

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