Do the institutional environment and types of owners influence the relationship between ownership concentration and board of director independence? An international meta-analysis

Pérez‐Calero, Leticia; González, José Manuel Hurtado; López‐Iturriaga, Félix J.

doi:10.1016/j.irfa.2018.11.014

Cited by 23 publications

(21 citation statements)

References 83 publications

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“…On the opposite way, lower concentration usually asks for more managers as the agency costs may increase. Pérez-Calero et al. (2019) consider that ownership in the hands of managers and families has a negative relationship with the board's independence.…”

Section: Resultsmentioning

confidence: 99%

Corporate ownership concentration drivers in a context dominated by private SME's

Reis

Pinto

2021

Heliyon

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This paper aims to ascertain how company-specific factors influence the corporate ownership concentration of Portuguese firms. The paper employs several different regression techniques: Generalized Linear Model, Ordered Logit, 2 Stage Least Squares, Ordinary Least Squares, Truncated and Constrained regression. Additionally, to test the model's prediction power, it conducts an in and out-of-sample analysis and used joint-rolling window regressions and dependent variables intervals partition to test the robustness of the model under different sample restrictions. Firm size, profitability, the number of subsidiaries, and bank concentration are positive determinants of ownership concentration, while an opposite influence is found concerning auditor qualification and the board of directors' size. Significant implications are provided for the policymaking in countries where capital markets are underdeveloped, and concentrated ownership is common to help the regulator determining the power of controlling shareholders. This study enriches the literature on the determinants of corporate ownership, being the first study to approach non-public companies. It adds novelty by incorporating new company factors which are scarce in ownership studies.

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Section: Resultsmentioning

confidence: 99%

Corporate ownership concentration drivers in a context dominated by private SME's

Reis

Pinto

2021

Heliyon

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“…Following previous meta‐analyses in management, finance, and economics (e.g., Klier et al ., 2017; Fidrmuc and Korhonen, 2018; Pérez‐Calero et al ., 2019), we included Pearson's r and statistics that can be transformed into r , such as descriptive statistics or t ‐test statistics (Lipsey and Wilson, 2001). 5 We transformed all raw correlations by Fisher's Z transformation to correct for skewness in the effect size distribution (Fisher, 1921; Hedges and Olkin, 1985):

Z (r) = \frac{1}{2} normalln (\frac{1 + r}{1 - r})

…”

Section: Methodsmentioning

confidence: 99%

Family Firm Performance Over the Business Cycle: A Meta‐analysis

Hansen¹,

Block²,

Neuenkirch³

2020

Journal of Economic Surveys

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The financial performance of family firms has been widely studied in the literature. Combining the results of 172 primary studies from 38 countries with data about business cycles, we investigated how family firm performance changes over the business cycle. Using meta-analytic estimation methods, we found that family firms slightly outperform nonfamily firms in both economically good and economically difficult times. For non-OECD countries, we found evidence for a countercyclical effect where the relative outperformance of family firms is higher in economically difficult times. No such cyclical effect was found for family firms in OECD countries. Our study extends the literature on how family firm performance depends on macroeconomic factors.

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“…Long-term institutional investors are more likely to persuade managers to enhance long-run value maximization and corporate innovation [ 35 ]. Moreover, long-term institutional investors are prone to monitoring costs and acting to control managers’ decisions in order to protect their interests in the firm [ 16 ]. Lakonishok et al pointed out that an investor who bought and sold stock frequently would not obtain profits greater than the average income level, only long-term institutional investors with growth stocks would receive higher returns [ 36 ].…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Furthermore, all else being equal, firms with different ownership structures have different cost of capital. Extant research on governance has underlined the nature of ownership structure as foundational to the quality of relationships within firms [ 16 ]. It is necessary to consider the essential function of the equity environment when researching the influence of institutional investors on cost of capital.…”

Section: Introductionmentioning

confidence: 99%

Institutional investors and cost of capital: The moderating effect of ownership structure

Xiao-ping

Lin

et al. 2021

PLoS ONE

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Guiding institutional investors to actively participate in corporate governance is a hot issue to improve the internal governance of China’s listed companies. This study seeks to provide a comprehensive understanding of the mechanism that underlies the governance effects of the heterogeneity of institutional investors on the cost of capital, and the influence of ownership structure on the relationship between them. Using an unbalanced panel data on A-share listed companies of Shanghai and Shenzhen in China’s capital market during the 2014–2019 period, this study reveals how institutional investors with longer holding period and higher shareholding ratio are negatively associated with the cost of capital in China’s capital market. Furthermore, this study successfully confirms the moderating effect of ownership structure in the relationship between institutional investors and the cost of capital. China’s state-owned enterprises are more likely to introduce improvements at the corporate governance level, and ownership concentration weakens the negative influence of institutional investors on the cost of capital. The research contributes to a deeper understanding of the impacts of institutional investor’s heterogeneity and ownership structure on the cost of capital in China. In the process, the study yields useful implications for the theory and practice of corporate governance.

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Do the institutional environment and types of owners influence the relationship between ownership concentration and board of director independence? An international meta-analysis

Cited by 23 publications

References 83 publications

Corporate ownership concentration drivers in a context dominated by private SME's

Corporate ownership concentration drivers in a context dominated by private SME's

Family Firm Performance Over the Business Cycle: A Meta‐analysis

Institutional investors and cost of capital: The moderating effect of ownership structure

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