scholarly journals DIVIDEND PAYOUTS: MAJORITY CONTROL AND RENT EXTRACTION

2018 ◽  
Vol 19 (4) ◽  
pp. 648-672
Author(s):  
Seniha Besim ◽  
Cahit Adaoglu
Keyword(s):  
Business Groups ◽  
Empirical Support ◽  
Business Group ◽  
Financial Control ◽  
Rent Extraction ◽  
Control Variables ◽  
Capitalist System ◽  
Majority Control ◽  
Main Determinants ◽  
Ownership Rights

In Eurasia, Turkey has a “crony” capitalist system with majority control and business groups (BGs) in the hands of a few families. These business groups are often organised around a holding company. We analyse the dividend payouts of family controlled Borsa Istanbul companies, which are affiliated to holding and non-holding BGs. We investigate and quantify the effects of several control-enhancing mechanisms (CEMs) on dividend payouts. We use precise quantitative proxies for CEMs to measure the divergence between control and ownership rights. Supporting the rent extraction hypothesis, holding business group companies have lower dividend payouts as the divergence between control and ownership rights widens and the pyramid wedge increases. However, controlling foreign-family coalitions in holding business group companies curb the rent extraction problem by having a positive effect on the dividend payouts. Overall, for family controlled holding BG companies, the effects of company-specific financial control variables on dividend payouts are stronger than the effects of CEMs. For family controlled non-holding BG companies, there is no empirical support for either the rent extraction or the reputation building hypotheses. The company-specific financial control variables are the main determinants of dividend payouts for family controlled non-holding BG companies.

Business-groups in Russian industries

2004 ◽  
pp. 121-134 ◽  
Author(s):  
S. Avdasheva
Keyword(s):  
Industrial Organization ◽  
Economic System ◽  
Institutional Economics ◽  
Business Groups ◽  
Control Rights ◽  
Organization And Management ◽  
Russian Economy ◽  
Main Determinants ◽  
Soviet Economic System

The chapter of “Institutional Economics” textbook is devoted to the development of business-groups as a specific feature of industrial organization in the Russian economy. The main determinants of forming and functioning of business-groups such as allocation of property rights in Soviet enterprises, networks of directors and executive authorities in the Soviet economic system as well as import of new institutes and inefficient state enforcement are in the center of analysis. Origins, structure, organization and management within the groups and the role of shareholding and informal control rights are considered.

Australia

2018 ◽  
Author(s):  
Simon Ville
Keyword(s):  
Twentieth Century ◽  
Multinational Corporations ◽  
Business Model ◽  
Capital Markets ◽  
Business Groups ◽  
Business Group ◽  
Modern History ◽  
Resource Base ◽  
Australian Economy ◽  
Diversified Portfolio

Business groups have been limited in number and influence for most of Australia’s modern history. Several entrepreneurs managed a diversified portfolio of interests, and business families often cooperated with one another, but this rarely took the form of a business group. When the Australian economy diversified into manufacturing from its initial narrow resource base, multinational corporations formed a dominant presence. Governments built infrastructure but did not facilitate groups. Maturing capital markets negated the need for in-house treasuries. Business groups temporarily dominated the corporate landscape for several decades towards the end of the twentieth century, but their business model was flawed in relation to the Australian environment and most failed to survive the downturn of the late 1980s and early 1990s.

scholarly journals Dividend Policy Decisions in India: Standalone Versus Business Group-Affiliated Firms

2018 ◽  
Vol 20 (1) ◽  
pp. 133-150 ◽  
Author(s):  
Nishant B. Labhane
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Business Groups ◽  
Business Group ◽  
Business Risk ◽  
Policy Decisions ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Investment Opportunities ◽  
High Investment

This study examines the determinants of two important dividend policy decisions specifically the dividend payment decision and the dividend payout level decision of 781 sample Indian firms enlisted on National Stock Exchange (NSE) over the period, 1995–2015, comparing the business group-affiliated firms with the standalone firms. In term of characteristics, the business group-affiliated firms are larger, more profitable and more levered than the standalone firms. The empirical results suggest that the dividend policy decisions of business group-affiliated firms differ significantly from that of the standalone firms. In the case of standalone firms, the firms with high investment opportunities, high financial leverage and high business risk are less likely to pay dividends, and their dividend payout levels are lower. On the other hand, the firms affiliated with business groups are more likely to pay dividends, and their dividend payout levels are higher even when they have high investment opportunities, high financial leverage and high business risk. Overall, the findings suggest that although the business groups are able to create internal capital markets (ICMs) and shield their member firms from market imperfections, they may suffer from other information asymmetry problems.

scholarly journals ANALISIS KINERJA PENYULUH TERHADAP PEMBERDAYAAN KELOMPOK USAHA PETERNAKAN SAPI DI DESA TONDEGESAN KECAMATAN KAWANGKOAN KABUPATEN MINAHASA

ZOOTEC ◽  
2019 ◽  
Vol 39 (1) ◽  
pp. 101
Author(s):  
Indah Th.P Sondakh ◽  
J A Malingkas ◽  
J Lainawa ◽  
G D Lenzun
Keyword(s):  
Data Collection ◽  
Sampling Method ◽  
Business Groups ◽  
Business Group ◽  
Extension Agents ◽  
Cattle Breeding ◽  
Productivity Level ◽  
Study Population ◽  
Using Data ◽  
The Village

ABSTRACTANALYSIS OF INSTRUCTOR PERFORMANCE TO EMPOWERING CATTLE BREEDING BUSINESS GROUP AT TONDEGESAN VILLAGE OF KAWANGKOAN DISTRICT. The purpose of this study was to analyze the performance of instructors on empowerment of cattle business groups in Tondegesan Village, Kawangkoan District, Minahasa Regency. This research was carried out by using data miles and huberman analysis which was carried out when the data collection took place in the field. The study population was all members of the serentape business group. The sampling method for farmers is based on indications to assess performance, namely productivity, responsiveness, and responsibility. The results showed that the performance of extension agents was mostly in the successful category. The success of the instructor's performance in the productivity level is in the successful category with a percentage of 93.33%, in the level of responsiveness in the successful category with a percentage of 73.33%, and the level of responsibility in the successful category with a percentage of 93.33%. Based on the research,concluded that the performance of the instructor towards the empowerment of business groups in the village of Tondegesan, Kawangkoan Subdistrict which was measured in terms of productivity, responsiveness and responsibilitysuccessful.Keywords: Performance, Extension, Empowerment

Corporate R&D Investments and Risk

2017 ◽  
pp. 211-231
Author(s):  
Mine Uğurlu
Keyword(s):  
Sustainable Development ◽  
Capital Markets ◽  
Financial Constraints ◽  
Business Groups ◽  
Business Group ◽  
Corporate Diversification ◽  
Subprime Crisis ◽  
Group Affiliation ◽  
Earnings Volatility ◽  
Business Group Affiliation

Corporate R&D Investments,that constitute basis for sustainable development, are influenced by external and firm-specific risks.Evidence shows that firms in Turkey have increased R&D spending during subprime crisis despite its procyclicality in most of the emerging countries.This chapter investigates if business group affiliation or corporate diversification that is predominant in Turkey stimulate R&D investments under risk.It focuses on internal capital markets of business groups or conglomerates that may enhance R&D spending by reducing financial constraints, and likelihood of distress of the affiliated firms.The results reveal that group affiliation and diversification positively affect corporate R&D spending when firm-specific risks rise.These results are significant during the global crisis period.Group-affiliated corporations increase their R&D investments as idiosyncratic risks rise.The diversified conglomerates increase R&D investments when earnings volatility and equity erosion rise.Results indicate that large firms are more inclined to reduce R&D investments under risk.

scholarly journals Implementasi Model Pemberdayaan Perempuan Berbasis Pengembangan Industri Rumah Tangga Spesifik Lokal Di Kabupaten Karangasem, Provinsi Bali

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Ni Wayan Sri Astiti ◽  
Dwi Putra Darmawan ◽  
I Dewa Gede Raka Sarjana
Keyword(s):  
Development Strategy ◽  
Production Management ◽  
Descriptive Analysis ◽  
Business Groups ◽  
Monitoring And Evaluation ◽  
Business Group ◽  
Business Community ◽  
Women Empowerment ◽  
Empowerment Model ◽  
Participatory Training

AbstractImplementation of the Women Empowerment Model Based on Develompment of HouseholdIndustrial Specific Local in Karangasem Regency, Bali ProvinceEmpowerment model obtained by Analytic Network Process (ANP) proposed a top priorityindustrial development strategy of household handicraft is through strengthening human resourcecompetencies. Based on these results, the objectives of the activities are (1) to develop businessinstitutions elected, namely the Joint Business Group (the Kube) in the handicraft industry of coconutshell, (2) increase the capabilities of businesses in terms of production management and marketing, (3)strengthen the institutional in order to the business groups able to utilize the facilities and productiontechnology, as well as improving product marketing functions, and (4) develop a system of householdhandicraft industry in an integrated manner, supported by marketing management information systembased on the web.The research location is the Kube named "Eka Lestari Mandiri", in the village of Abang, Districtof Abang, Karangasem regency. The analytical method used is descriptive analysis method with a needsanalysis approach (participatory need assessment). Suitable business partnership (business matching)realized at the business meeting session between the business group and the business partners throughparticipatory learning and action. The number of respondents was 25 assigned census. The realizationof activities to strengthen the competence of human resources carried out by changing the mindset ofwomen of craftsmen through participatory training, strengthening production management andmarketing capabilities, and consolidates communication and wider network.The results achieved from the implementation of the empowerment model are (1) the analysis ofthe needs of business groups, (2) create training modules and conduct participatory training onmanagement of business, (3) conduct technical guidance of production management and marketing, (4)training to strengthen marketing information system web-based, (5) strengthening the institutionaloriented to collective business community (socio-business), (6) benchmarking and businesspartnerships, and (7) monitoring and evaluation of the implementation and follow-up assistance. In theimplementation of the strategy of strengthening human resource competencies, the business group ofwomen should be oriented to produce premium quality handicraft, sustained innovation capabilitiesdistinctive product design in order to support the independence of the business as well as thesustainability of the partnership contract.Keywords: implementation of women empowerment of model, specific local households’ handicraftindustry.

Small–Business Group Formation as an Entrepreneurial Development Model

2009 ◽  
Vol 33 (3) ◽  
pp. 645-667 ◽  
Author(s):  
Christian Lechner ◽  
Christophe Leyronas
Keyword(s):  
Small Business ◽  
Market Failure ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Management Style ◽  
Medium Size ◽  
Entrepreneurial Firms ◽  
Theoretical Approaches ◽  
Related Diversification

Why do small–business groups in developed countries exist? Research has shown the strong economic impact of business groups throughout the world but remains heavily focused on large–business groups and on emerging economies. Theoretical approaches to explain the existence of highly diversified business groups range from market power to the resource–based view and include market failure, transaction costs, agency theory, and cultural embeddedness. These approaches, however, are not very appropriate to explain the existence of small to medium–size firms in developed countries. What we know is that these smaller groups exist and that they are largely the outcome of related diversification. We investigate relatively small and young–business groups organized in a holding structure. What are the perceived benefits of this kind of group for entrepreneurs and how can we explain the phenomenon theoretically? Based on case study research, we argue that the small–business group is both the outcome and the antecedent of growth. It enables, and helps to realize and manage the growth of entrepreneurial firms. The enabling function consists in increasing reputation, attracting complementary resources that facilitate the exploitation of new opportunities, overcoming overembeddedness, and dealing with coopetition (concurrent cooperative and competitive relationships with another company). The group is also the outcome of realized internationalization and related diversification. Interestingly, for the emergence of the small–business group, just as important as diversification is the integration of activities as well as the separation of closely linked activities. Finally, the small–business group corresponds to an entrepreneurial management style. The main contribution of this article is to link organizational structure to the management and growth of entrepreneurial firms.

Parenting Advantage in Business Groups of Emerging Markets

2007 ◽  
Vol 11 (3) ◽  
pp. 1-10 ◽  
Author(s):  
Anurag Mishra ◽  
M. Akbar
Keyword(s):  
Emerging Markets ◽  
Group Structure ◽  
Emerging Market ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Managerial Practices ◽  
Developed Economies ◽  
Divisional Structure ◽  
Made In

The concept of parenting was originally proposed by Campbell et al (1995) in the context of conglomerates in developed economies. In contrast to the divisional structure of conglomerates in developed countries, business groups as found in most emerging consist of a network of affiliated yet independent firms. This difference in the structure of multi-business firms in developed and emerging markets solicits a revisiting the concept of parenting as originally proposed by Campbell et al. (1995). Does ‘parenting advantage’ exist in emerging markets? If so, what are the sources of ‘parenting advantage’? Given the multi-firm, multi-business group affiliated setup how does ‘parenting’ differ in emerging markets when compared to conglomerates of developed economies? How does the business group structure and associated managerial practices impact ‘parenting advantage’ of firms affiliated to a business group in emerging market? This paper examines some of these critical yet unanswered questions. The contribution made in this work is threefold… One, we redefine the concept of ‘parenting’ as relevant to business group structure found in emerging markets like India. Two, we articulate the drivers of parenting value for affiliate firms bound in a business group structure. Three, the paper discusses the nuances of parenting and its advantages in an emerging market, in contrast to its conceptualization in developed economies. Finally, extending the parenting literature to a wider context of an emerging market is an important outcome of this work.

scholarly journals Building a Society Economy through Innovative Product Training in Kampung Pasir Gadung, Sangiang Village, Mancak District, Serang Regency [Membangun Ekonomi Masyarakat Melalui Pelatihan Produk Inovatif di Kampung Pasir Gadung, Kecamatan Mancak, Kabupaten Serang]

2019 ◽  
Vol 2 ◽  
pp. 234
Author(s):  
Syaina Ulfah Azhara ◽  
Firdanis Setyaning Handika
Keyword(s):  
Product Quality ◽  
Business Groups ◽  
Business Management ◽  
Business Group ◽  
Added Value ◽  
Agricultural Product ◽  
Innovative Product ◽  
Agricultural Commodities ◽  
Society Business ◽  
Management Capabilities

Economically, The society of Pasir Gadung in Sangiang village is fairly low because the majority employment of society is as farmers and laborers where the agricultural product is still sold directly without processing. As yields of Melinjo trees society usually sell the bark and seeds Melinjo directly to the collector of Melinjo in Pasir Gadung. To increase the added value and selling value of agricultural commodities, it is necessary to handle and post-yields processing. The yield of Melinjo can be processed into ceplis which is one of souvenir typical of the Serang Banten region and has a higher selling value than raw Melinjo. So that effort is made,  approach themselves, entrepreneurship seminar, the formation of society business groups, mentoring of production activities, marketing guidance and business evaluation monitoring in the Pasir Gadung society business group to increase knowledge, skills, product quality, number of products, product types and management capabilities. The result of this activity is to form a society business group so that business management is more directed and better organized, develops raw melinjo product into ceplis with interesting packaging and has a higher selling value, and cooperates with other sectors as a way of a marketing product.

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