Managerial Ownership, Board of Directors, Equity-based Compensation and Firm Performance: A Comparative Study between France and the United States

Bouras, Mehdi; Gallali, Mohamed Imen

doi:10.5901/mjss.2017.v8n1p78

Cited by 6 publications

(8 citation statements)

References 62 publications

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“…One possible explanation for this result could be as follows. According to our literature review, managerial and institutional ownership influence greatly the firm financial performance (Kim et al , 2013; Apriada and Suardhika, 2016; Bouras and Gallali, 2017; Alfinur, 2016; Apriada and Suardhika, 2016; Pertiwi and Hermanto, 2017; Sukmawardini and Ardiansari, 2018). On the other side, our results report that managerial ownership and institutional ownership impact CSR engagement.…”

Section: Resultsmentioning

confidence: 99%

“…In a similar vein, DeAngelo and DeAngelo (1985) suggested that high managerial shareholding could solve the problem of asymmetric information related to investments. Therefore, based on this assumption, there is a positive relationship between the proportion of shares held by managers and firm performance (Bouras and Gallali, 2017). Similarly, the results of research conducted by Apriada and Suardhika (2016) reported that managerial ownership affects positively the firm value.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Dakhli

2021

SBR

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Purpose The purpose of this paper is to investigate the relationship between ownership structure and corporate social responsibility (CSR). Specifically, this paper examines the impact of financial performance on the relationship between ownership structure and CSR. Design/methodology/approach This study uses panel data set of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique. Findings The results indicate that investors have different attitudes toward CSR engagement. While institutional ownership affects positively CSR engagement, managerial ownership shows a negative effect. Findings also show that financial performance accentuates these effects. Research limitations/implications The findings have practical implications that may be useful to regulators and managers interested in enhancing CSR. For regulators, the results advise policymakers to restrict managerial ownership and promote institutional investments to improve CSR. For managers, the results suggest developing more sophisticated intervention mechanisms to deal with conflicting voices that could result from different owners’ attitudes toward CSR. As an extension to this research, further study can examine the impact of audit quality on CSR. Originality/value This study proposes the establishment of dynamic links between ownership structure and CSR around firm financial performance. In addition, it investigates not only the overall CSR ratings but also each of CSR pillars, namely, environmental, social and governance.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Dakhli

2021

SBR

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“…Against this background, it suggests that the higher the director's ownership in the firm, the higher the firm's financial performance will be [45]. The convergence of interest hypothesis presented by DeAngelo and DeAngelo [46] and some past studies also assumes a positive association between managerial ownership and firm's financial performance of firms [43,[47][48][49]. Hence, in the context of the above discussion, the following hypotheses are designed.…”

Section: The Moderating Role Of Managerial Ownership On the Link Betwmentioning

confidence: 94%

“…At this point, the interest of managers converges with the interest of the firm, and in the process, the firm's value gets better. The past studies of [42,43] proxied managerial ownership through the director's ownership. In Malaysia [44] the director's ownership was also as a proxy for measuring managerial ownership.…”

Section: The Moderating Role Of Managerial Ownership On the Link Betwmentioning

confidence: 99%

Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance

et al. 2019

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This paper examines the moderating role of Islamic corporate governance on the link between sustainable business practices and the firm’s financial performance. A post-crisis period sustainability data for the decade of 2008–2017 was collected by the study. For data collection, this study used the weighted content method. The Generalized Method of Moments (GMM) statistical test was used for empirical testing. The results of the study found that the link between sustainable business practices with the firm’s financial performance measured from the shareholders’ and the management’s perspective is positive, while the subjected link measured from the market perspective was found to be insignificant. This implies that the market stakeholders of the Islamic banks are reluctant for their bank’s spending on sustainable business practices. Interestingly, the insignificant link between sustainable business practices and market performance became significant with the moderating role of Shariah governance and managerial ownership. It shows that the moderating role of Shariah governance and managerial ownership is giving confidence to market stakeholders of Islamic banks for receiving a higher financial return through sustainable business practices initiatives. These results may provide insights for several policymakers of the Islamic banking industry about integrating vital sustainability practices in their business models and about the balanced moderating role of Islamic corporate governance in the link between sustainable business practice and the firm’s financial performance. It provides a roadmap to the Islamic banking industry for efficient management of sustainability practices from an Islamic perspective and subsequently improvement of financial performance through it.

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“…Some scholars argue that centralization can drive firm performance while others hold the opposite view [4] . Only a few scholars find a nonlinear relationship between centralized management and firm performance [5]. We believe that the reason why views vary is that most studies have ignored the importance of the firm size effect and only have used it as a control variable.…”

Section: Introductionmentioning

confidence: 99%

Centralization and Firm Performance: New Evidence on the Role of Firm Size

Fan

Chang

Yuan

2022

Wireless Communications and Mobile Computing

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Centralization has been regarded as an important factor in corporate governance in the academic and business communities. Although several studies have examined the relationship between centralization and firm performance, the conclusions remain mixed. We extend existing research by introducing firm size as a threshold variable into our model to explicate the complicated effects of centralization on firm performance. We found that a high degree of centralization can promote firm performance significantly in small- and medium-scale firms while inhibiting firm performance in large-scale firms. Using heterogeneity analysis, we found that centralization has a more significant positive impact on firm performance in private firms, family firms, and manufacturing firms than others. Furthermore, we explored the factors influencing the nexus between centralization and firm performance and found that centralization can improve the level of cost allocation management and technology innovation, driving firm performance but possibly resulting in overinvestment, which is harmful to firm performance. Our research provides guidance for companies to establish a decision-making power allocation that meets their scale-appropriate development needs.

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Managerial Ownership, Board of Directors, Equity-based Compensation and Firm Performance: A Comparative Study between France and the United States

Abstract: The aim of this comparative study between the French and American markets, characterized by a different ownership

Cited by 6 publications

References 62 publications

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

The impact of ownership structure on corporate social responsibility: the moderating role of financial performance

Sustainable Business Practices and Firm’s Financial Performance in Islamic Banking: Under the Moderating Role of Islamic Corporate Governance

Centralization and Firm Performance: New Evidence on the Role of Firm Size

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