Does equity holding by main banks affect the earnings quality of client firms? Empirical evidence from Japan

Kojima, Koji; Adhikary, Bishnu Kumar; Mitra, Ranjan Kumar

doi:10.1016/j.mulfin.2017.10.003

Cited by 6 publications

(3 citation statements)

References 46 publications

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“…Hideaki et al (2015) unearthed a significant positive association between foreign shareholding and Tobin's Q for Japanese firms even after controlling the effect of various factors that may affect firm performance. By contrast, Kojima et al (2017) found a negative relationship between foreign shareholdings and earnings quality.…”

Section: Foreign Ownership and Firm Performancementioning

confidence: 76%

Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Non-Family Firms in Japan

Kojima

Adhikary

Tram³

2020

JRFM

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This study aims to explore the relationship between corporate governance and financial performance of publicly listed family and non-family firms in the Japanese manufacturing industry. The study obtains data from Bloomberg over the period 2014–2018 and covers 1412 firms comprising of 861 non-family and 551 family firms. Our results show that family firms outperform non-family counterparts in terms of return on assets (ROA) and Tobin’s Q when a univariate analysis is invoked. On multivariate analysis, family firms show superior performance to non-family firms with Tobin’s Q. However, family ownership negates firm performance when ROA is taken into account. Regarding the impact of governance elements on Tobin’s Q, institutional shareholding appears to be a significant and positive factor for promoting the performance of both family and non-family firms. Furthermore, board size encourages the performance of non-family firms, while such influence is not observed for family firms. In terms of ROA, foreign ownership inspires the performance of both family and non-family firms. Moreover, government ownership stimulates the performance of family firms, while board independence significantly negates the same. Besides, we find that the performance of family firms run by the founder’s descendants is superior to that of family firms run by the founder. These findings have critical policy implications for family firms in Japan.

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Section: Foreign Ownership and Firm Performancementioning

confidence: 76%

Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Non-Family Firms in Japan

Kojima

Adhikary

Tram³

2020

JRFM

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“…First: The equity value-based hypothesis By looking over Kojima et al (2017), the accruals have influenced on the cost of equity negatively, so this research uses the innate accruals quality as an indicator of high obedience in the recording of the market value of company assets (Chiang et al 2017); this indicates the ability to expand the future performance on the right track. The first hypothesis can be arranged statistically, as follows:…”

Section: Frameworkmentioning

confidence: 99%

The impact of innate accruals quality on the future market value moderated by dividend policy

Siladjaja

Anwar²

2020

AJAR

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PurposeThe purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.Design/methodology/approachThis research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.FindingsThe results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.Research limitations/implicationsThis test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.Originality/valueBy calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

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“…It encompasses a collection of skills in processes, proper mechanisms, and relations used by different parties in the corporations. It is also a combination of board and committee, all policies, legalities, rules and regulations system, overall hierarchy, and internal control (Kojima et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks’ Financial Performance

et al. 2021

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The basic aim of this research was to check the impact of innovation, corporate social responsibilities (CSR), and entrepreneurship on the monetary performance of banks in five different countries: Qatar, Pakistan, China, the United States (US), and France. This research was conducted to measure the relationship of these factors and innovative workforce activities. The secondary data were collected from websites of twenty five banks in different countries, including Islamic and conventional banks. Different econometric analyses, such as descriptive statistical analysis, correlation coefficient test for measuring the interaction, and ordinary least square regression analysis for determining the impact of dependent and independent variables, were carried out. In the present study, entrepreneurship, CSR, and innovation were taken as independent variables. Board size, frequency of assemblies, and self-employed with large shareholders were included as sub-parts of entrepreneurship. On the other hand, the financial performance of banks was taken as the dependent variable. Return on assets (ROA) and return on equity (ROE) were considered parts of economic performance. The overall conclusions drawn in this study showed that there was a significant relationship between all the studied variables. The research provided useful insights into the long-debated question regarding the relevance of entrepreneurship and CSR.

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Does equity holding by main banks affect the earnings quality of client firms? Empirical evidence from Japan

Cited by 6 publications

References 46 publications

Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Non-Family Firms in Japan

Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Non-Family Firms in Japan

The impact of innate accruals quality on the future market value moderated by dividend policy

Entrepreneurship, Corporate Social Responsibilities, and Innovation Impact on Banks’ Financial Performance

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