Ownership Structure and Publicness of Firms: A Literature Review

Abstract

There has been an extensive body of literature studying the link between ownership structure and firm performance. Some of them focus on the performance difference across ownership types (i.e. state vs foreign vs private domestic). On the other hand, some studies stress ownership structure on the fraction of ownership based on agency theory (i.e. majority versus minority) and its derivatives (e.g. ultimate ownership, cross listing). However, an important element has not been explored while discussing ownership structure of firms which is the concept of publicness of firms. Publicness is important to explain to which extent an organization is related with governmental institutions. In fact, there are many engagements of firms with governmental bodies (e.g. deposit and lending from and to public organization). In this present paper, I provide a comprehensive literature review on the intersection between publicness level of firms and ownership structure. Going deeper, I also provide a literature review on the measurement of publicness and postulate a model to link between these two and firm performance as a venue for future studies. ABSTRAKBanyak literatur yang mempelajari hubungan antara struktur kepemilikan dan kinerja perusahaan. Beberapa di antaranya fokus pada kinerja perusahaan dengan tipe kepemilikan yang berbeda (yaitu pemerintah vs asing vs swasta domestik). Di sisi lain, beberapa studi menekankan struktur kepemilikan pada pemecahan kepemilikan berdasarkan teori agensi (yaitu mayoritas versus minoritas) dan derivatifnya (misalnya ultimate ownership, cross listing). Namun, elemen penting tentang struktur kepemilikan perusahaan dalam konsep publicness perusahaan belum banyak dieksplorasi. Publicness penting untuk menjelaskan sejauh mana sebuah organisasi berhubungan dengan lembaga pemerintah. Pada kenyataannya, ada banyak keterlibatan perusahaan dengan lembaga pemerintah (misalnya simpanan dan pinjaman dari dan ke organisasi publik). Tulisan ini, memberikan tinjauan literatur secara komprehensif tentang hubungan antara tingkat publicness perusahaan dan struktur kepemilikan. Lebih jauh, saya juga memberikan tinjauan literatur tentang pengukuran publicness dan mendalilkan model untuk menghubungkan antara kedua hal tersebut dengan kinerja perusahaan, sebagai wahana bagi penelitian selanjutnya.

Board Characteristics and Accounting Performance in Banking Industry: The Indonesian Experience

“…Other characteristic that might hamper market for corporate control to work well is the existence of government ownership. It is described that government ownership might have a specific impact on public (Untoro, 2017) and internal governance system that eventually determines the effectiveness of disciplinary mechanisms to work well (Borisova et al, 2015). This view is grounded on the notion that government ownership serves as an implicit guarantee that allows management to escape from potential default consequences (Stiglitz, 1993 Borisova et al (2012) posit that government controlled firm is more likely to put anti-takeover provision and thus prevent external governance mechanisms to discipline management.…”