scholarly journals Corporate Responsibility Disclosure, Information Environment and Analysts’ Recommendations: Evidence from Malaysia

2021 ◽  
Vol 13 (6) ◽  
pp. 3568
Author(s):  
Wan Nordin Wan-Hussin ◽  
Ameen Qasem ◽  
Norhani Aripin ◽  
Mohd Shazwan Mohd Ariffin
Keyword(s):  
Corporate Responsibility ◽  
Family Firms ◽  
Emerging Market ◽  
Information Environment ◽  
Least Square ◽  
Family Control ◽  
Analyst Behavior ◽  
Ordinary Least Square Regression ◽  
Big Four ◽  
Csr Engagement

The purpose of this study was to extend our understanding of how corporate social responsibility (CSR) disclosures impact capital market participants, specifically sell-side analysts. The sample of this study was based on a dataset from a panel of 285 Malaysian firms for the period of 2008–2013 (738 firm-year observations). This study employed ordinary least square regression. This study found that firms with better CSR disclosures are more likely to receive optimistic investment recommendations. Subsample analyses revealed that the CSR-recommendation nexus is more pronounced under a transparent information environment (i) when there is less family control and (ii) when a firm is audited by a prominent Big Four auditor. The results implied that analysts tend to give favorable stock recommendations to high CSR companies operating in a more transparent information environment. To gain analysts’ confidence and make them more appreciative of the CSR disclosures, family firms with proactive CSR engagement are encouraged to switch to Big Four auditors or to seek assurance on their CSR reports. This study broadens our understanding of the factors influencing analysts’ recommendations and the preferences of analysts towards CSR engagement in an emerging market. This paper expands the literature on how corporate responsibility disclosures impact analysts’ final output, as reflected in the recommendation opinion, an area that has so far received little attention, particularly in emerging markets. Furthermore, this study also provides fresh evidence that analyst behavior towards CSR disclosures varies based on the strength of the firm’s information environment.

Financial reporting quality, family ownership, and investment efficiency

2019 ◽  
Vol 45 (4) ◽  
pp. 513-535 ◽  
Author(s):  
Faisal Shahzad ◽  
Ijaz Ur Rehman ◽  
Sisira Colombage ◽  
Faisal Nawaz
Keyword(s):  
Financial Reporting ◽  
Family Firms ◽  
Emerging Market ◽  
Reporting Quality ◽  
Least Square ◽  
Financial Reporting Quality ◽  
Family Ownership ◽  
Investment Efficiency ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of two monitoring mechanisms: family ownership (FO) and financial reporting quality (FRQ) on investment efficiency (IE) over the period of 2007–2014 for listed firms on the Pakistan Stock Exchange. Design/methodology/approach The authors employ two-dimensional pooled OLS cluster at the firm and year level, two-stage least square regression and feasible generalized lease square regression regression methods. Findings The findings suggest that higher FRQ and FO are associated with higher IE. Further, the authors report that higher FRQ and FO mitigate over- and under-investment. The impact of FRQ on IE is stronger (weaker) for family-controlled businesses. The results for these particular estimates are robust for alternative estimation techniques and measures of FRQ and FO. Originality/value The study draws on both agency and behavioral agency theories and therefore contributes to the literature in the following ways. First, the authors examine a relationship between FRQ and IE. Second, the authors test the impact of FO on IE. Third, the authors test the moderating impact of FO on the relationship between FRQ and the IE of family and non-family firms in relatively less regulated emerging market.

What motivates Indian consumers’ to buy organic food in an emerging market?

2020 ◽  
Vol 12 (2) ◽  
pp. 97-113 ◽  
Author(s):  
Heerah Jose ◽  
Vijay Kuriakose ◽  
Moli P. Koshy
Keyword(s):  
Emerging Market ◽  
Organic Food ◽  
Food Products ◽  
Least Square ◽  
Third Party ◽  
Content Type ◽  
Indian Consumers ◽  
Perceived Price ◽  
Buffering Agent ◽  
Ordinary Least Square Regression

Purpose Indian consumers are showing an increased demand for organic food products; however, little is known about their intention to buy organic foods. The purpose of this paper is to understand how fear towards conventional food products motivates an individual to buy organic food products and whether trust and perceived price as contextual factors are able to enhance the buying intention. Design/methodology/approach A total of 275 valid responses were collected using a self-administrated structured questionnaire, representative of Indian consumers. An ordinary least square regression analysis was used to analyse the effect of trust and perceived price in influencing the relationship between consumers’ fear and intention to buy organic food products. Findings The moderating role of trust and perceived price in enhancing the direct relation between fear and intention was established. In addition, cluster analysis results revealed that married women with children are showing a greater interest in buying organic food products. Practical implications The findings of the study are of high importance to all stakeholders in organic food products, as selecting marketing practices which target consumers’ concern is an indispensable part of finding a niche for organic food products. Originality/value The findings suggest that even though consumers are fearful towards conventional food products, they displayed negative intention to buy organic food products when their trust towards the third party is low, thus confirming the importance of trust as a buffering agent.

Price premium of private placement: evidence from India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Supriya Katti ◽  
Naval Verma ◽  
B.V. Phani ◽  
Chinmoy Ghosh
Keyword(s):  
Emerging Market ◽  
Least Square ◽  
Price Premium ◽  
Group Affiliation ◽  
Data Set ◽  
Content Type ◽  
Equity Issues ◽  
Private Placement ◽  
Ordinary Least Square Regression ◽  
Binary Probit

PurposeThis study identifies the factors responsible for obtaining price premium on privately placed equity in a developing market.Design/methodology/approachWe examine a unique data set of a special case of private placement of equity, Qualified Institutional Placement (QIP) in India purchased at a premium. The study analyzed 188 equity issues offered between September 2006 and December 2014. On average, we find that QIP issues received a price premium of 4.38%. The study employed binary probit and ordinary least square regression models to analyze the probability and magnitude of the premium.FindingsThe study attributes the price premium of QIP to certification effect through group affiliation, signaling through promoters' ownership and monitoring effect through existing institutional investors. These factors influence the probability of premium for QIP issues. However, group affiliation and institutional ownership do not significantly influence the magnitude of the premium.Originality/valueThe private placement of equity is usually offered at a discount. Our findings contribute to the existing literature by evaluating the premium obtained on private placement as a unique scenario in emerging market supported through certification hypothesis, monitoring hypothesis and signaling.

scholarly journals NON-AUDIT SERVICES AND THE CORPORATE GOVERNANCE OF AUDIT CLIENTS

2019 ◽  
Vol 18 (1) ◽  
pp. 167
Author(s):  
Khairul Anuar Kamarudin ◽  
Wan Adibah Wan Ismail ◽  
Jessieca Cherryl Yatan
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Emerging Market ◽  
Least Square ◽  
Board Independence ◽  
Ordinary Least Square ◽  
Big 4 ◽  
Ordinary Least Square Regression ◽  
New Policies ◽  
Non Audit Services

This paper investigates the relationship between corporate governance qualities and the purchase of non-audit services among Malaysian Listed Companies. The sample consists of 709 companies listed on Bursa Malaysia during the year 2014. The study posits that CEO duality, board independence, audit comitte independence, big 4 auditors, the audit committee size, and the frequency of audit committee meetings are associated with the amount of non-audit services. This is basically based on the argument that weaker governance allows the company to jeopardise the independence of external auditor, hence higher level of non-audit services. Company size, profitability, leverage, growth and industry are also included in the study as the control variables. Using the ordinary least square regression model and relevant diagnostic tests, findings shows that only board independence, audit committee independence, audit committee size and big 4 auditors are associated with the level of non-audit services. The results of this study contribute to the present literature on the determinants of non-audit services, especially in emerging market. The result would also be informative to regulators worldwide when considering to apply new policies related to non-audit services.

scholarly journals Family Involvement with MD & A (Management Disclosure & Analysis) Readability Level

2020 ◽  
Vol 24 (1) ◽  
pp. 62
Author(s):  
Diarany Sucahyati, Iman Harymawan, Tubagus Algan Roiston
Keyword(s):  
Family Involvement ◽  
Family Firms ◽  
Stock Exchange ◽  
Least Square ◽  
Language Differences ◽  
Management Level ◽  
Study Results ◽  
The Family ◽  
Ordinary Least Square Regression ◽  
Readability Level

This study aims to examine the relationship between family involvement and the readability level of the MD & A (Management Disclosure & Analysis) released by the company. This study uses 1795 final samples from firms listed on the Indonesia Stock Exchange in the period 2010-2018. We tested the research hypothesis using ordinary least square regression (OLS). This was done using the Stata software by adding a fixed effect for industry diversity in order to strengthen the study results. This study used two proxies of the family firm where there is the involvement of family members at the management level and related to the ownership of company shares. Both of these proxies show consistent results indicating that family firms tend to release less readable MD&As. Furthermore, the language differences were also tested in this study. Apart from the presentation of the MD&A in English or Indonesian, family firms still present reports with lower readability. This study provides a perspective to the authorities regarding the family firm's governance intended to help improve existing regulations.

scholarly journals Does the pyramidal ownership mechanism negatively affect the firm’s performance?

2016 ◽  
Vol 19 (2) ◽  
pp. 205
Author(s):  
Vera Diyanty
Keyword(s):  
Least Square ◽  
Mediating Effect ◽  
Company Performance ◽  
Alignment Effect ◽  
Family Control ◽  
Ordinary Least Square ◽  
Founding Family ◽  
Ordinary Least Square Regression ◽  
Pyramidal Ownership

This research aims to evaluate the effect of family control, which is obtained through both direct or pyramidal ownership mechanism, and company performance. It also examines the mediating effect of founder leadership as represented by founding family members occupying the top management position and the effectiveness of Board of Commissioner. This study used Ordinary Least Square regression for the data analysis with 670 data as the sample from 134 sample companies from year 2009 to 2013. The results show that family control through direct ownership mechanism enhances company performance (alignment effect). On the other hand, family control through pyramidal ownership mechanism weakens company performance (entrenchment effect). The results also show that founder leadership boosts the alignment effect and limits the entrenchment effect. However, this research fails to confirm the role of the effectiveness of the Board of Commissioner in increasing the alignment effect and limiting the entrenchment effect.

Why do they do that? Motives and dimensions of family firms’ CSR engagement

2018 ◽  
Vol 14 (3) ◽  
pp. 633-650 ◽  
Author(s):  
Maria Federica Izzo ◽  
Mirella Ciaburri
Keyword(s):  
Family Firms ◽  
Socially Responsible ◽  
Fiber Model ◽  
Content Type ◽  
Family Control ◽  
Five Dimensions ◽  
Primary Reference ◽  
Dynastic Succession ◽  
Corporate Social ◽  
Csr Engagement

Purpose This paper aims to explore the role of socioemotional wealth (SEW) in family firms’ (FFs) corporate social responsibility (CSR) engagement and practices. The authors draw on the notion of “Socioemotional endowment” (Gomez-Mejia et al., 2010), to interpret how the different dimensions of the FIBER model impact on the instrumental, moral or relational motives that push companies toward CSR. Design/methodology/approach The authors develop an integrated framework that analyzes motives of CSR practices (distinguishing between moral, instrumental and relational ones) and dimensions of FF’ SEW. The idea is that it is not possible to analyze the CSR attitude of FFs without distinguishing among the five dimensions of SEW (family control and influence; identification of family members with the firm; binding social ties; emotional attachment; and renewal of family bonds to the firm through dynastic succession). Findings The authors posit that FFs are particularly likely to engage in instrumental, moral or relational CSR practices depending on the FIBER dimension that they consider as primary reference point to achieve the goal of preserving SEW. In particular, out of the five FIBER dimensions, relational and instrumental motives appear to be more present in firms’ priority, when they deal with CSR activities. Originality/value Most of the literature on CSR and FFs concentrates on the differences between family and non-family firms (non-FFs) in approaching social responsible practices. Instead of debating whether FFs are more or less socially responsible than non-family organizations, the authors add to this literature by arguing that it is much more relevant to analyze which approach family firms (as an heterogeneous group) are more likely to adopt in relation to CSR. In so doing, they contribute to FFs studies on sustainability, by demonstrating that CSR engagement can be differently influenced and interpreted through the five dimensions of the FIBER model.

Turn-of-the-month effect in three major emerging countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Geeta Singh ◽  
Kaushik Bhattacharjee ◽  
Satish Kumar
Keyword(s):  
Stock Markets ◽  
Emerging Market ◽  
Emerging Countries ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Market Participants ◽  
Emerging Stock Markets ◽  
Ordinary Least Square Regression ◽  
The Times

PurposeThe purpose if this paper is to examine the turn-of-the-month effect in the equity market of three major emerging countries – Brazil, India and China – from January 2000 to December 2017.Design/methodology/approachOrdinary least square regression analysis is used to examine the presence of the turn-of-the-month effect and to test the efficiency of the emerging stock markets. The characteristics of the returns during the turn-of-the-month days are compared with that of the non-turn-of-the-month trading days.FindingsThe average returns during turn-of-the-month days for all the considered emerging market indices are significantly higher than the non-turn-of-the-month days for the full sample. For the subsample analysis, the average returns for Brazil and India for pre-GFC period are higher on the turn-of-the-month days than on the non-turn-of-the-month days. However, the effect disappears in China during the GFC period. During the crisis period, the results show that the turn-of-the-month effect disappears in Brazil and India, whereas for China, the effect is significant. For the post-GFC period, the-turn-of-the-month effect reappears for all the countries.Practical implicationsThe results have important implications for both traders and investors. The authors’ results indicate that the market participants can time the stock markets of these countries by taking long positions especially during the times when the turn-of-the-month effect is highly significant.Originality/valueTo the best of the authors’ knowledge, this paper is the first to study the turn-of-the-month effect, in the key emerging countries such as Brazil, China and India. Second, the authors divide the sample into three subperiods based on the 2008 GFC such as pre-GFC, GFC and post-GFC to understand the dynamic behavior of turn-of-the-month effect over time. Most importantly, the authors control for the day-of-the-week effect while examining the turn-of-the-month effect.

The effect of institutional transition on entrepreneurial orientation of family businesses

2018 ◽  
Vol 26 (1) ◽  
pp. 76-97
Author(s):  
Amit Baran Chakrabarti ◽  
Arindam Mondal
Keyword(s):  
Family Business ◽  
Entrepreneurial Orientation ◽  
Family Firms ◽  
Emerging Market ◽  
Family Businesses ◽  
Least Square ◽  
Family Ownership ◽  
Content Type ◽  
Institutional Transition ◽  
The Impact

Purpose The purpose of this paper is to ascertain the impact of family ownership on the entrepreneurial orientation (EO) of firms in an emerging market and the contingencies under which it is likely to be affected. Design/methodology/approach The paper adopted a panel data multiple regression using ordinary least square methodology on a sample of 51,972 observations belonging to 12,250 firms from India. Findings The study finds that family businesses have higher EO than non-family firms. However, it is likely to be affected during institutional transition due to environmental uncertainty. Furthermore, during institutional transition, there will be differences in the EO of family business groups and stand-alone family firms due to the former’s ubiquitous network-level resource advantages. Research limitations/implications This paper contributes to the literature on family business by reconciling the positive and negative views on the effect of family ownership on EO by arguing that the risk-taking behavior of family firms is contingent on the environmental conditions and the resource position of the firm. Practical implications This study will enable managers and other stakeholders to predict the entrepreneurial attitude of family-owned firms during environmentally stable as well as turbulent times. Social implications This study highlights the implication of institutional transition through reforms on a vital part of the economy. Policy makers have to be sensitive to repercussions on family business due to environmental turbulence. Originality/value This is one of the first papers that investigate the influence of institutional transition and the resource position of Indian family firms on their EO.

Family Firms, Social Responsibility, and Non-Family Member Employees Identification

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 10-19
Author(s):  
Ang Bao
Keyword(s):  
Resource Allocation ◽  
Social Responsibility ◽  
Family Member ◽  
Program Implementation ◽  
Social Identity Theory ◽  
Family Firms ◽  
The Family ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

The objective of this paper is to find the relationship between family firms’ CSR engagement and their non-family member employees’ organisational identification. Drawing upon the existing literature on social identity theory, corporate social responsibility and family firms, the author proposes that family firms engage actively in CSR programs in a balanced manner to increase non-family member employees’ organisational identification. The findings of the research suggest that by developing and implementing balanced CSR programs, and actively getting engaged in CSR activities, family firms may help their non-family member employees better identify themselves with the firms. The article points out that due to unbalanced CSR resource allocation, family firms face the problem of inefficient CSR program implementation, and are suggested to switch alternatively to an improved scheme. Family firms may be advised to take corresponding steps to select right employees, communicate better with non-family member employees, use resources better and handle firms’ succession problems efficiently. The paper extends employees’ identification and CSR research into the family firm research domain and points out some drawbacks in family firms’ CSR resource allocation while formerly were seldom noticed.

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