Foreign Ownership and Performance: Evidence from Italian Firms

Bentivogli, Chiara; Mirenda, Litterio

doi:10.1080/13571516.2017.1343542

Cited by 70 publications

(31 citation statements)

References 17 publications

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“…The presence of foreign investors in the ownership or capital structure is taken positively by other investors in the market (Khanna and Palepu, 2000;Douma et al, 2006;Kao et al, 2018). Several prior studies documented a positive association between foreign ownership and firm's performance (Douma et al, 2006;Omran et al, 2008;Ferreira and Matos, 2008;Bentivogli and Mirenda, 2017;Kao et al, 2018). For instance, Douma et al (2006) demonstrated that foreign investors with large shareholdings, higher commitment and longer-term involvement have positive effect on firm's performance.…”

Section: Ownership Structure and Firm Performancementioning

confidence: 99%

“…However, the findings of these studies are rather inconclusive and misleading (Tam and Tan, 2007). Though majority of the prior studies demonstrated positive association between institutional ownership (Omran et al, 2008;Kansil and Singh, 2018;Yeh, 2019), foreign ownership (Ferreira and Matos, 2008;Bentivogli and Mirenda, 2017;Kao et al, 2018) and director ownership (Kao et al, 2018;Hanafi et al, 2018) and firm performance, others documented negative (Muttakin et al, 2012) or no association (Demsetz and Villalonga, 2001). The underlying reason for such findings may be attributed to the fact that owners/shareholders have limited capacity, in majority of the cases, to influence the activities of management (as general shareholders cannot take part in the day to day operation or crucial decision making process) unless they take part in the corporate board.…”

Section: Introductionmentioning

confidence: 96%

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“Ownership structure and firm performance: the mediating role of board characteristics”

Rashid

2020

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Purpose The purpose of this study is to examine the mediating role of corporate board characteristics in the relationship between ownership structure and firm performance in the listed public limited companies of Bangladesh. Design/methodology/approach The study analyzed 527 annual reports of listed companies in Bangladesh for the years 2015-2017. The direct and indirect effect of ownership structure on firm performance was examined using AMOS 23. Baron and Kenny’s (1986) four steps procedure was used to establish the mediating role of board characteristics. Findings The results demonstrated that foreign ownership and director ownership have significant positive influence on both accounting and market based firm’s performance, while institutional ownership exhibits positive influence only on accounting-based performance (return on assets). With respect to mediating effect, the results show that board size and board independence partially mediate the relationship between ownership structure and firm performance. Research limitations/implications The major limitation of the study is that it focuses only on three years data in examining the hypothesized relationship among the variables. Practical implications Investors, regulators and managers can get evocative insights, particularly who seek to improve their company’s performance in the capital market through restructuring their ownership structure and board composition. Originality/value The study focuses on both direct and indirect effect of ownership structure on firm performance in the context of an emerging and developing economy. In examining the indirect effect, the study uses board size and board independence as the mediating variables.

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Section: Ownership Structure and Firm Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 96%

“Ownership structure and firm performance: the mediating role of board characteristics”

Rashid

2020

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“…Also, Rasiah and Kumar (2008) indicated that foreign investors could offer complementary technology, higher wages and intensive training, which induce higher firm performance. Recently, Bentivogli and Mirenda (2017) considered the effects of investments by foreign investors based in a fiscal haven.…”

Section: Foreign Ownership and Firm Performancementioning

confidence: 99%

Do Ownership Structure, Political Connections and Executive Compensation Have Multifaceted Effects on Firm Performance? An Alternative Approach

Shaddady¹,

Alnori²

2020

IJEF

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This study investigates the multifaceted effects of board characteristics and ownership on firm performance. Using panel data for 130 listed firms over the period 2009-2016 and after applying the SORM-DEA to OLS, quantile and 3SLS regressions. We explore the first empirical evidence showing that board characteristics tend to have multifaceted effects in explaining firm performance. Executive compensation has a positive influence in expounding firm performance. In contrast, political connections have a negative impact on firm performance. Further, the findings indicate that foreign ownership and CEO chair duality are positively related to firm performance. These effects are more pronounced in periods of high oil prices, while foreign ownership and CEO chair duality fail to explain firm performance in a period of low oil price. The results also reveal that CEO educational background has a significant effect on performance in service firms compared with industrial firms. The outcomes of this study provide important implications for investors and policymakers.

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“…Researches related to ownership and performances have been carried out. The results are inconsistent; some indicate positive effect, others indicate negative effect, or even no effect [5,6]. the first hypothesis (H1) of this research is that type of ownership influences the financial performance of SOEs.…”

Section: Ownership and Financial Performancementioning

confidence: 78%

The Ownership, Remuneration, Corporate Governance, and Financial Performance of Indonesian State-Owned Enterprises

Surifah¹,

Rofiqoh²,

Krismiaji³

2020

Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)

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The purpose of this research is to investigate the relationship between ownership, remuneration, corporate governance, and the financial performance of Indonesian state-owned enterprises (SOEs). The research population is all state-owned enterprises listed in the Indonesia Stock Exchange, and the samples were selected using purposive sampling. Using generally least square multiple regression analysis, this study finds that public ownership has a positive and significant effect on financial performance. Independent board of commissioners and independent audit committee have a significant positive effect on financial performance, but the size of board of commissioners and the size of audit committee have no effect on performance. The board of commissioners' remuneration has a negative effect on performance, while directors' remuneration has a positive effect on performance. The results also imply that remuneration at executive level has a positive impact on performance, but at supervisory level it has no effect, except adding to the burden. Leverage, as measured by debt to assets ratio, has a negative effect on performance.

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Foreign Ownership and Performance: Evidence from Italian Firms

Cited by 70 publications

References 17 publications

“Ownership structure and firm performance: the mediating role of board characteristics”

“Ownership structure and firm performance: the mediating role of board characteristics”

Do Ownership Structure, Political Connections and Executive Compensation Have Multifaceted Effects on Firm Performance? An Alternative Approach

The Ownership, Remuneration, Corporate Governance, and Financial Performance of Indonesian State-Owned Enterprises

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