Managerial Ownership and Firm Performance: Evidence of Listed Companies in the Baltics

Berķe-Berga, Anželika; Dovladbekova, Inna; Abula, Marta

doi:10.17512/pjms.2017.15.2.25

Cited by 9 publications

(9 citation statements)

References 18 publications

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“…The results show that managerial ownership is able to strengthen the relationship between the debt to equity ratio and the firm value. This study supports the study conducted by [10], [38] and [39].…”

Section: Discussionsupporting

confidence: 91%

“…In this case, managerial ownership can affect the relationship between financial performance and firm value [26]. The previous researches which found a relationship between managerial ownership and the value of the firm [38] and also the relationship between managerial ownership and firm value [10][39]. According to the statements above, the proposed hypotheses are as below.…”

Section: Managerial Ownership Financial Performance and Firm Valuementioning

confidence: 97%

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Managerial Ownership, Financial Performance and Firm Value: Evidence from Consumers Goods Company Listed in Indonesia Stock Exchange

Harnida

Zulfikar

Mardah

et al. 2021

International Journal of Science, Technology & Management

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The research about the impact of financial performance on firm value has become great attention to financial issues in various researches. Financial performance provides information needed by investors. Firm value is used to reflect the real value of the company more realistically by considering the concept of market value. The investors need the actual value of the firm to be a factor to consider for them to invest. This research is aimed at examining the impact of the financial performance of profitability, liquidity, leverage, and activity ratio. We also examine if there were managerial ownership effects the relationship among those financial performances on the firm value using the proxy of Tobin's Q. The sample used is the Consumers Goods Companies which listed in the Indonesia Stock Exchange for the period from 2015 to 2019. We used purposive sampling for obtaining 70 observations. We analyzed data using multiple linier regression, and moderated- regression analysis. The study indicates that profitability and leverage statistically affect the firm value. But, the liquidity and activity ratio with the proxy of total asset turnover has no significant impact on firm value. Other result were the moderation has significant effect of managerial ownership strengthens the relationship of debt to equity ratio and total assets turnover.

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Section: Discussionsupporting

confidence: 91%

Section: Managerial Ownership Financial Performance and Firm Valuementioning

confidence: 97%

Managerial Ownership, Financial Performance and Firm Value: Evidence from Consumers Goods Company Listed in Indonesia Stock Exchange

Harnida

Zulfikar

Mardah

et al. 2021

International Journal of Science, Technology & Management

View full text Add to dashboard Cite

show abstract

“…The positive impact of managerial ownership implies that the mechanism of managerial ownership converges the interests of the manager and owner. The result is consistent with the study of (Alabdullah, 2017;Berke et al, 2017;Jiang and Zhang, 2017;Ali et al, 2018;Vieira et al, 2019). The convergence of interests motivates managers to perform better with the expectation to increase the firm's performance as an increase of the firm's performance will also increase the prosperity of the manager who has become the owner of the firm (Ali et al, 2018;Vieira et al, 2019).…”

Section: Discussionsupporting

confidence: 87%

The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

Susanto

Nuringsih²

2020

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The purpose of the study is to analyze the impact determinants and the parabolic effect of managerial ownership on a firm’s performance. The model consists of managerial ownership, institutional ownership, family ownership, leverage, asset growth, dividend policy, business risk, and firm size. Purposive sampling is used on non-financial companies in the Indonesian Stock Exchange with a total observation of 539 firm-years. The panel least square is used to analyze the determinants of performance while Panel EGLS is used to analyze the parabolic effect. The study finds that managerial ownership, institutional ownership, dividend policy, and firm size have a positive and significant impact on the firm’s performance. Contrarily, some variables e.g., family ownership, leverage, and asset growth have a negative significant impact on performance. Business risk is not able to prove a significant relationship with performance. Further, the study shows a parabolic effect of managerial ownership, therefore, it proves a model for reducing agency conflict on corporate financial decisions.

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“…The analysis considered a limited sample of only 22 firms. Moreover, Berke-berga, Dovladbekova, and Abula (2017) found no significant relation between managerial ownership and Tobin's Q but report a positive effect on return on assets for Baltic States listed firms. The studies do not return similar results even where the same performance measure proxy was adopted, notwithstanding the different countries contexts.…”

Section: Managerial Shareholding and Shareholders Wealthmentioning

confidence: 85%

Managerial Shareholding, Asset Utilization Efficiency and Shareholders Wealth: A Structural Equation Model Analysis

Mukaria

2020

International Journal of Applied Economics, Finance and Account

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This paper examine whether managerial ownership impact upon shareholder wealth through efficacy or otherwise in the utilization of organizational resources. Specifically, it evaluates the causal mechanism of managerial shareholding on value via agency costs rather than just the direct effect. Herein, the study adopted structural equation modeling that enable estimate direct and indirect causal effect pathways for 64 firms listed at the Nairobi Securities Exchange as at 31st December 2017. The results show that managerial shareholding exerts negative influence on asset utilization and in turn a marginal positive effect is routed to shareholders wealth. The findings yield unequivocal substantiation that managerial shareholding is not only directly associated with shareholders wealth but also influences the investors wealth indirectly through efficacy in utilization of organizational resources.

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Managerial Ownership and Firm Performance: Evidence of Listed Companies in the Baltics

Cited by 9 publications

References 18 publications

Managerial Ownership, Financial Performance and Firm Value: Evidence from Consumers Goods Company Listed in Indonesia Stock Exchange

Managerial Ownership, Financial Performance and Firm Value: Evidence from Consumers Goods Company Listed in Indonesia Stock Exchange

The Parabolic Effect of Managerial Ownership and the Impact Toward Firm’s Performance

Managerial Shareholding, Asset Utilization Efficiency and Shareholders Wealth: A Structural Equation Model Analysis

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