Ownership Concentration, Firm Size, and Information Value Relevance: Indonesian Evidence

Krismiaji, Krismiaji; Wiratno, Dwi Haryono; Ashari, Sidiq

doi:10.18196/jai.2002119

Cited by 5 publications

(9 citation statements)

References 33 publications

(52 reference statements)

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“…There are two approaches to measuring value relevance. The first is the price model approach and the second is the return model (Krismiaji et al, 2019). Following previous studies (Kalantonis et al, 2020;Callao et al, 2016;ur Rehman et al, 2020), we use the Price Model (James, 1995) as a value relevance proxy.…”

Section: Variable Measurementmentioning

confidence: 99%

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View of institutional ownership and value relevance in Indonesia: the nexus of accounting conservatism

Muslim,

Setiawan

2024

RAMJ

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PurposeOur study aims to explore the ownership structure and accounting conservatism in influencing the value relevance that we analyse through the paradigm of open innovation and socio-emotional wealth (SEW). We also extended the test to identify how firm size could affect value relevance.Design/methodology/approachThrough panel data testing, we collected all issuers on the stock exchange for the 2016–2018 period. The total collected observations are 735 observations from various industries.FindingsThe results of the study provide empirical evidence that institutional ownership is more pronounce, especially in companies with high asset levels. We also conducted other tests to see it from the perspective of SEW. We divide companies into family and non-family companies. The results of this study indicate that institutional ownership has an effect on increasing value relevance, especially in family companies compared with non-family companies. The results of the study also indicate that accounting conservatism plays a more important role in increasing value relevance in non-family firms compared to family firms.Originality/valueThis study advances in two main ways. First, we use a SEW approach and an open innovation perspective. Second, we conducted tests for family and non-family firms.

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Section: Variable Measurementmentioning

confidence: 99%

“…Therefore, this study is very important to do. Previous studies on governance and value relevance in the context of Indonesia have been carried out by Krismiaji et al (2019). Their study was conducted in the manufacturing industry from 2011 to 2015, but has not explored all industries in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

View of institutional ownership and value relevance in Indonesia: the nexus of accounting conservatism

Muslim,

Setiawan

2024

RAMJ

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“…One important aspect of the company's ownership structure is institutional ownership. It refers to institutions that have and manage their investment funds in the capital market objectively in order to make their clients prosperous (Crane, Michenaud, & Weston, 2016;Handriani & Robiyanto, 2019;Herman & Subowo, 2016;Krismiaji, Wiratno, & Ashari, 2019). In general, there are five types of institutional ownership: 1) Pension Funds, 2) Mutual Funds, 3) Banks, 4) Asset Management, and 5) Insurance Companies.…”

Section: Background Of the Studymentioning

confidence: 99%

“…According to Krismiaji et al (2019), another important aspect of ownership structure is concentrated ownership. It enables the owners to have higher voting rights, so that they can have a broader supervision which in turn can reduce the opportunistic behavior of company managers.…”

Section: Background Of the Studymentioning

confidence: 99%

Corporate Social Responsibility Disclosure and Cost of Equity of ASEAN-5 Public Companies

Anto¹,

Pangestuti²,

Wahyudi³

et al. 2021

RWE

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This research aims to analyze the influence of corporate social responsibility (CSR) disclosure, leverage, and ownership structure – consisting of institutional ownership, managerial ownership and concentrated ownership – on cost of equity with book-to-market ratio and firm size as control variables. The population was non-financial public companies listed in ASEAN. There was a total of 76 companies obtained using a purposive sampling technique. The data was analyzed using the multiple regression technique. The results show that the data is normally distributed and has met the requirements for using the multiple linear regression models. The findings indicate that the CSR and leverage have a positive and significant influence on cost of equity. Similarly, the institutional ownership also has a positive and significant influence on cost of equity. However, the managerial ownership and concentrated ownership have a negative and significant influence on cost of equity. Meanwhile, the book-to-market ratio has a negative and significant influence on cost of equity. In contrast, the firm size has a positive and significant influence on cost of equity.

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“…In other words, there is no corporate governance recommendation for appointing female executives to companies listed on the Indonesia Stock Exchange (IDX). It is highly likely that the implementation of http://dx.doi.org/10.21511/ppm.20 (1).2022.08 IFRS, high-quality accounting standards, promotes cross-country investment (Krismiaji et al, 2019). Concisely, there is no regulation in Indonesia imposing the boardroom's gender diversity quota under the Indonesia Stock Exchange's (IDX) rules and the Financial Services Authority.…”

Section: Introductionmentioning

confidence: 99%

Is gender diversity good for the quality of accruals in Indonesia?

Robiyanto

Lako

Rahutami

2022

Problems and Perspectives in Management

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There is no regulation in emerging markets, i.e. Indonesia imposing the gender diversity quota. Therefore, based on the different characteristics and attributes between developed and emerging markets, this study aims to analyze the impact of the boardroom’s gender diversity on the quality of accruals, i.e. earnings in big Indonesian firms. This study used a sample of 100 big manufacturing firms in Indonesia. Moreover, this paper utilized a widely used proxy for the quality of earnings and the boardroom’s gender diversity. Data panel with fixed effect method was used to compute the quality of accruals while path analysis was utilized for hypotheses testing. Furthermore, the results showed evidence that the boardroom’s gender diversity indirectly influenced the quality of accruals through cash flow variability. However, the presence of female directors is not a significant inducement for managers to report better quality of earnings. The managerial implication of this study is that the boardroom’s gender diversity is good for the emerging markets since it supports better accounting accruals indirectly. Future studies should incorporate many industries and consider the potential of endogeneity, which has not been tackled in this paper.

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Ownership Concentration, Firm Size, and Information Value Relevance: Indonesian Evidence

Cited by 5 publications

References 33 publications

View of institutional ownership and value relevance in Indonesia: the nexus of accounting conservatism

View of institutional ownership and value relevance in Indonesia: the nexus of accounting conservatism

Corporate Social Responsibility Disclosure and Cost of Equity of ASEAN-5 Public Companies

Is gender diversity good for the quality of accruals in Indonesia?

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