Figure 1
Majority shareholders right vis-a `-vis minority shareholders rights in firms
Source publication
Purpose
We examine the rights of shareholders particularly that of minority shareholders in the management of firms in Ghana.
Design/methodology/approach
As a result of the largely unexplored nature of this issue in Ghana, we employ a qualitative analysis to offer a painstaking understanding needed. The case study design is in particular relevant...
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Citations
... Berdasarkan riset terdahulu oleh Salsabila dan Urip Santoso (2021) Dari penjelasan tersebut, dapat dijabarkan pemegang saham pengendali yang memiliki saham makaa sebanding dengan jumlah yang dimiliki dan mempengaruhi jalannya usaha disebut kepemilikan saham mayoritas. Rasio kepemilikan saham pada jumlah total saham yang beredar dapat digunakan untuk mengukur kepemilikan ini (International Finance Corporation, 2018;Croci et al., 2016;Agyemang et al., 2015;Komite Nasional Kebijakan Tata Kelola, 2006). ...
Keputusan untuk mengevaluasi kinerja perusahaan dapat dilakukan dengan meningkatkan kinerja keuangan perusahaan dan didasarkan pada semua faktor yang telah disepakati. Kinerja keuangan perusahaan dievaluasi untuk menentukan apakah perusahaan mengalami pertumbuhan atau tidak. Pengukuran kinerja keuangan perusahaan dapat menghasilkan dasar untuk membuat keputusan. Tujuan penelitian adalah untuk mengetahui peran kepemilikan saham mayoritas dan strategi perusahaan terhadap kinerja keuangan perusahaan telekomunikasi nirkabel yang terdaftar di BEI tahun 2017-2020. Penelitian ini dilakukan terhadap 5 perusahaan telekomunikasi nirkabel yang terdaftar di Bursa Efek Indonesia tahun 2017-2020. Metode kuantitatif digunakan dalam penelitian ini. Regresi linier sederhana dan analisis deskriptif adalah metode yang digunakan dalam penelitian ini. Penelitian ini diukur dengan return on asset , return on equity , dan net profit margin untuk menguji peran kepemilikan saham mayoritas dan strategi perusahaan terhadap kinerja keuangan perusahaan telekomunikasi nirkabel.
... On the other hand, the board is considered a party with a fundamental role in corporate governance (Yasser et al., 2017). In terms of structure, corporate boards are assumed to have better performance when the boards are diverse; they will be better able to accommodate the interests of shareholders (Agyemang et al., 2015;Yasser et al., 2017). The board is responsible for the company's performance and for improving shareholders' welfare. ...
This study examines the effect of audit committee characteristics and board diversity on the performance of companies in Indonesia. In addition, this research also explores the effect of the audit committee's characteristics and the board's diversity on the company's performance in various age classifications. The study involves 170 samples of primary and secondary sector firms registered on the Indonesian Stock Exchange from 2014 to 2020, analyzed by data panel regression analysis. The study's main findings disclosed that the audit committee's size and the competence of the financial audit committee are positively influencing the market-based firm performance. However, it does not significantly affect the audit committee's meeting frequency regarding the market-based strong performance. Furthermore, the study discloses that foreign and board gender positively influences market-based firm performance. Such findings benefit policymakers in developing appropriate governance mechanisms in the Indonesian market as a developing country. To the best author's knowledge, this study is the first to comprehensively analyze the association between audit committee characteristics and board diversity on market-based firm performance. Furthermore, no previous study conducted additional analyzes based on firm age in the Indonesian context.
Keywords:
Strategy and Organization; Firm performance; Audit committee; Quality Management; Good corporate governance
... An important examination of agency conflict in developing countries is the unresolved conflicts between majority shareholders and minority shareholders (McLean et al., 2012). Corporate governance scholars have argued that when the legal system of an economy is weak in terms of protecting minority shareholders from expropriation, corporate governance mechanisms can offer higher levels protection (Agyemang et al., 2015). Increasingly, Since 1992, there is being increasing evidences that those economies which seek to attract foreign direct investment, but are characterized by a weak protection of the interests of minority shareholders tend to develop a higher number of codes of good governance (Aguilera and Cuervo-Cazurra, 2004). ...
Purpose
This paper aims to contribute to research on corporate governance in regulated sectors, with emphasis in the field of activity of foreign investors through the ownership structure and legal system that regulates companies in Brazil.
Design/methodology/approach
In the first moment, the investigation had a quantitative approach of relational nature. Based on the data about the valuation of actions, statistical methods were applied to a secondary database containing measurable information provided by the organizations that operate the Brazilian stock-market and documentary evidence provided by the companies. In the second moment, a qualitative approach was adopted, resorting on the use of semi-structured interviews with investors and agents of the sector.
Findings
The results lead to two paths: presenting the perspective that foreign investors play a key role in improving governance practices because foreign ownership mitigates agency problems, provides adequate follow-up and optimizes the use of corporate resources; and evidencing the existence of a mitigation of operational risks in the face of the various obligations imposed by the concession contract with the regulatory agency, without direct interference under the ownership structure of regulated companies.
Research limitations/implications
The literature portrays a distinct economic scenario in Brazil, where stock control is pulverized and mechanisms of corporate governance and scope of action of investors and regulated sectors are well-defined and implemented.
Practical implications
A great part of the studies from this field discusses the same object: the impact of the adoption of corporate governance mechanisms on selected efficiency indicators or on the value of the companies' actions. This investigation, on the other hand, targeted a differentiated approach so that its contribution would lie in the investigation under the influence of the regulation on the legal attributions and the performance of the investors how many conflicts between the other shareholder/regulatory body, as the control measures import by the regulatory agent the concessionaires of the Brazilian highways and transportation sector.
Social implications
The identification of the presence of foreign investors as a determinant for: better performance of companies in Brazilian regulated sector in terms of market valuation; better mitigation of requirements with the regulatory framework for the agencies that regulate the concession sector, targeting a reduction in the asymmetry of information and transparency among all stakeholders.
Originality/value
The fact that Brazil is an emerging country that lacks a rigid legal system and corruption-control measures in corporate environments and public sectors, stresses the importance of the application of the “Best Codes of Corporate Governance Practices” in the main developed countries. This also stresses the need for effective supervisory bodies that contribute to a better financial performance of companies, guaranteeing investors the legal system.
... Ownership concentration and expropriation of shareholders' rights have an adverse effect on firm performance (Chong, 2012;Agyemang et al., 2015;Umrani et al., 2015). The empirical evidence shows that ownership concentration of public companies prevails in nearly all countries (Jensen and Meckling, 1976;Shleifer and Vishny, 1997;La Porta et al., 1999;Claessens et al., 2002;Faccio and Lang, 2002;Lemmon and Lins, 2003;Yeh et al., 2003;Yurtoglu, 2003;Krishnamurti et al., 2005;Siregar, 2008). ...
... Since the past, issues of minority shareholders' rights in small and medium enterprises (SMEs) have become a major concern for researchers, regulatory bodies, policymakers and practitioners (Agyemang et al., 2015;Agyemang and Castellini, 2013b;Okpara, 2010). This is because of the inequality in the decision making process, where minority shareholders can talk, criticize or try to raise their voices in general meetings, but they do not have influence on any part of the decision making (Agyemang et al., 2015;Cory, 2005;Berglof and Claessens, 2004). ...
... Since the past, issues of minority shareholders' rights in small and medium enterprises (SMEs) have become a major concern for researchers, regulatory bodies, policymakers and practitioners (Agyemang et al., 2015;Agyemang and Castellini, 2013b;Okpara, 2010). This is because of the inequality in the decision making process, where minority shareholders can talk, criticize or try to raise their voices in general meetings, but they do not have influence on any part of the decision making (Agyemang et al., 2015;Cory, 2005;Berglof and Claessens, 2004). Minority shareholders are invited to attend general meetings; however, the majority shareholders influence most of the meetings. ...
... Minority shareholders are invited to attend general meetings; however, the majority shareholders influence most of the meetings. Such block holders have the greater decision-making power and influence the board and management of the firm (Agyemang et al., 2015;Bohrer, 2007;Cory, 2005;Roe, 2003;Hirschey, 2003). ...
Small and medium enterprises (SMEs) serve as the financial backbone of the developed and developing economies, and a major contributor in many
countries’ gross domestic product. Asustainable SME sector is vital for a developing country like Malaysia where SMEs represent 99.2% of the overall
business establishment and a major employment sector in the country. Although, the Malaysian SME sector faces a critical problem, which results in
50% of SMEs collapse during the first 5 years of operation and a 60% rate of failure among SMEs. In addition, unauthorized use of company property,
misappropriating company funds, making false statements, illegal investment schemes and many other allegations have been put on the Malaysian
SME owners and directors in the past. The objective of this paper is to investigate the Malaysian SMEs structure, past allegations and the corporate
governance (CG) practices in the medium sized manufacturing SMEs. This study has adopted a qualitative approach, face-to-face interviews were
conducted with SME owners/directors, and regulatory body officials. The results show that the Malaysian SMEs are mainly family based and higher
management positions are kept by the family. Furthermore, it was revealed that there is no CG code for the SMEs. This provides room for the family
to expropriate minority shareholders’ rights and perform illegal activities. Hence, the results stressed on the need of the implementation of CG code
for Malaysian SMEs.
Purpose
This paper aims to examine how country-level corporate governance structures influence the level of protection of minority shareholders’ rights in the context of Africa.
Design/methodology/approach
Data are collected from the world competitiveness report for the period 2010-2015. To examine the validity of the study’s hypotheses empirically, the authors use ordinary least squares with correlated panel-corrected standards error (PCSE).
Findings
This paper offers additional empirical evidence on the level of protection of minority shareholders’ rights in Africa. It highlights that country-level corporate governance structures such as efficacy of corporate boards, strength of investor confidence, regulations of securities exchanges and the operation of the Big 4 accounting firms have significant positive impacts on the level of protection of minority shareholders’ rights.
Research limitations/implications
This paper fails to include all African countries because of non-availability of a report for some African countries. Thus, the findings on the level of protection of minority shareholders’ rights in a country are applicable to the countries used in this study.
Practical implications
This paper emphasizes on the relevance of country-level corporate governance structures to ensuring a reasonable level of protection of minority shareholders’ rights.
Originality/value
This paper partially fills the gap regarding the absence of an empirical cross-country study on how country-level corporate governance structures influence the level of protection of minority shareholders’ rights.
Purpose
The purpose of this study is to examine the link between country-level corporate governance and foreign direct investment in African economies for the period 2009-2015.
Design/methodology/approach
The authors use annual panel data of 40 African economies over the period of the study and use the system generalized method of moments (GMM) to establish the relationship between country-level corporate governance and foreign direct investment.
Findings
The authors find that African economies characterized by firms with high ethical values tend to attract a great deal of foreign direct investment. In addition, they highlight that when an economy is associated with effective corporate boards, it tends to attract much foreign direct investment. Further, this study reveals that the level of minority shareholders’ interests’ protection in an economy has a significant positive relationship with foreign direct investment. Finally, they document a negative relationship between effectiveness of regulation of securities and exchanges and foreign direct investment.
Practical implications
It is advised that sound and implementable corporate governance structures devoid of political interferences should be put in place in African economies, if the aim of using foreign direct investment to mitigate poverty by 2015 as part of the Millennium Development Goals is to be attained.
Originality/value
Empiricists have devoted considerable effort to estimate the factors that influence the level of foreign direct investment into African economies without taking into consideration the corporate governance structures in these economies. However, this paper seeks to examine the relationship between country-level corporate governance structures and foreign direct investment in African economies.
The developed countries' institutional research undertaken on corporate social responsibilities (CSR) have shown a positive relationship between accessibility of financial related assets and CSR. Contentions that we classified as the Institutional Difference Hypothesis (IDH) drawn from the institutional writing, on the other hand, propose that institutional contrasts amid of developing and the developed economies are prone to result in diverse CSR propositions. Incorporating the rationale of IDH with understanding of knowledge from slack resource theory, we contend that there exists a negative relationship between fiscal resources accessibility and CSR investments for mining companies in Ghana, a sub-Saharan African developing economy. We utilize a well-protected data from the Ghana Investment Promotion Center (GIPC), Ghana Stock Exchange (GSE) and Ghana Chamber of mines (GCM) and find that Return on Ordinary Share, Return on Sales, and Net Profit were reliably connected with lower CSR disbursements. We highlight the ramifications of our discoveries for academics' examination and corporate practitioners.
