Effect of managerial ownership on bank value: insights of an emerging economy

Moudud‐Ul‐Huq, Syed; Biswas, Tanmay; Dola, Shukla Proshad

doi:10.1108/ajar-03-2020-0016

Cited by 6 publications

(3 citation statements)

References 48 publications

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“…Therefore, they will make decisions compatible with the maximization of the welfare of other shareholders, and provide a high value for the company. This result corroborates some previous studies (Rizqia et al , 2013; Yusra et al , 2019; Ul Huq et al , 2020).…”

Section: Results Analysis and Discussionsupporting

confidence: 94%

Corporate governance and firm value: a study on European financial institutions

Fatma

Chouaibi

2021

IJPPM

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PurposeThe purpose of this paper is to examine the impact of the characteristics of two corporate governance mechanisms, namely, board of directors and ownership structure, on the firm value of European financial institutions.Design/methodology/approachUsing the market-to-book ratio calculated by the Thomson Reuters Eikon ASSET4 database, this study measures the firm value of 111 financial institutions belonging to 12 European countries listed on the stock exchange during the period 2007–2019. Multivariate regression analysis on panel data is used to estimate the relationship between corporate governance attributes, such as board size, board independence, board gender diversity, ownership concentration and CEO ownership, and the firm value of European financial institutions.FindingsThe empirical results reveal that board gender diversity and CEO ownership are positively related to the firm value, whereas board size and ownership concentration are negatively related. Furthermore, the findings suggest that board independence is insignificantly correlated with the firm value. Regarding the control variables, the results show that financial institutions' size, age and legal system are significant factors in changing the firm value. Nevertheless, financial institutions' leverage and activity sector are not significantly correlated with their value.Originality/valueThis research contributes to the literature by providing the significant links between some corporate governance mechanisms and the firm value of companies from the financial industry, by addressing the information gap for this critical industry in the context of a developed market like Europe.

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Section: Results Analysis and Discussionsupporting

confidence: 94%

Corporate governance and firm value: a study on European financial institutions

Fatma

Chouaibi

2021

IJPPM

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“…According to agency theory, ownership management aligns the interests of agents with those of principals, resulting in improved company performance. Moudud-Ul-Huq et al (2020) in Bangladeshi conventional and Islamic banks validate these findings. Therefore, the findings of this study accept H2 for all IRB performance measures, namely, ROA, ROE and NPF.…”

Section: Resultssupporting

confidence: 63%

Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks

Mai,

Nansuri,

Setiawan

2024

IMEFM

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Purpose This study aims to examine the influence of ownership structure and board characteristics on the performance of Indonesian Islamic rural banks (IRB) using the system generalized method of moment model. Design/methodology/approach This research uses Indonesian IRB unbalanced annual panel data from 2016 to 2022. IRB performance is measured by return on assets (ROA), return on equity (ROE) and nonperforming financing (NPF). The ownership structure is represented by controlling shareholders, ownership of the board of directors (BD) and ownership of the board of commissioners (BC). Meanwhile, board characteristics are represented by the size of the BC, the proportion of female board directors and female president directors. Findings The results show that the ownership structure and board characteristics play an important role in improving the IRB’s performance. Technically, the results show that the size of the BC and the ownership of the BD increase all IRB performance measures. Female president directors and controlling shareholders improve IRB’s performance as measured by ROA and ROE. Women’s boards of directors improve IRB performance as measured by NPF. Meanwhile, the ownership of the BC does not show its effect on all IRB performance measures. Research limitations/implications This study fills a literature gap on the influence of ownership structure and board characteristics on IRB Indonesia’s performance. In addition, it adds understanding and insight for Islamic bank regulators, management and IRB depositors in Indonesia. Originality/value To the best of the authors’ knowledge, this study is one of the first to provide an empirical survey on the influence of controlling shareholders and board characteristics on IRB performance, particularly in Indonesia.

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“…Corporate governance has succeeded in becoming the basis of rules to control company management in good management so as to generate added value for stakeholders (Abang'a et al, 2022). Some elements of good governance are the ownership of management, independent commissioners, audit committees, and external auditors in the company (Asni &Agustia, 2022;Dalwai &Mohammadi, 2020;Moudud-Ul-Huq et al, 2020). Governance practices contribute to the achievement of high financial performance (Kasbar et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance, Intellectual Capital, and Financial Performance

Wardhani¹,

Muid

Apip

2022

Tax Accounting Applied Journal

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These studies provide empirical evidence related to intellectual capital disclosure, corporate governance, and firm financial performance. The sample is manufacturing company listed in IDX for 2015 -2017 period. The analysis technique is regression. This study founds that independent commissioners, external auditor, managerial ownership, and relational capital disclosure has a positive effect on financial performance. Otherwise, human capital disclosure, structural capital disclosure, and audit committee disclosure has no effect.

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Effect of managerial ownership on bank value: insights of an emerging economy

Cited by 6 publications

References 48 publications

Corporate governance and firm value: a study on European financial institutions

Corporate governance and firm value: a study on European financial institutions

Ownership structure, board characteristics, and performance of Indonesian Islamic rural banks

Corporate Governance, Intellectual Capital, and Financial Performance

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