Shareholders' control rights, family ownership and the firm's leverage decisions

Amin, Qazi Awais

doi:10.2139/ssrn.3932668

Cited by 2 publications

(2 citation statements)

References 70 publications

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“…4.5.2 Alternative control variables. The baseline analysis is re-run by trying a list of alternative control variables to see that the results are robust to alternative variables (Amin and Liu, 2020). For this, profitability, leverage and firm size are replaced with their alternative counterparts.…”

Section: Robustness Testsmentioning

confidence: 99%

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Uyar

Elbardan

Kuzey

et al. 2022

IJAIM

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Purpose This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance and global reporting initiative (GRI) framework adoption and to investigate how CSR committee existence moderates this main relationship. Design/methodology/approach The study uses a large global sample that includes all (59,172) firm-year observations having CSR-related data in the Thomson Reuters Eikon database for a period between 2002 and 2019. The empirical analyses are based on random-effects logistic panel regression and Hayes methodology for the moderation analysis. Findings The study finds that audit committee independence and expertise are significantly associated with CSR reporting, CSR report assurance and GRI framework adoption. Moderation analysis largely supports the existence of a substitution role between audit and CSR committees and implies that audit committees are significant predictors of CSR reporting, assurance and GRI framework adoption mostly in the absence of the CSR committee. Practical implications The findings propose audit committee members be extra-vigilant in CSR reporting and assurance practices arising from undertaking substitution roles with the CSR committee. Hence, firms may configure their corporate structure in line with the results such as augmenting the audit committee with independent and expert members if they do not constitute a CSR committee. If firms establish a CSR committee, audit committee members may allocate less time to CSR reporting and assurance and more time to financial reporting quality. Originality/value This is the first study, to the best of the authors’ knowledge, to investigate the direct and indirect effect of audit committees’ attributes not only on CSR disclosure but also on GRI implementation and CSR reporting external assurance, considering the CSR committee’s possible substitutability or complementarity moderating role. This research develops a deeper understanding of audit committees’ non-financial role.

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Section: Robustness Testsmentioning

confidence: 99%

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Uyar

Elbardan

Kuzey

et al. 2022

IJAIM

View full text Add to dashboard Cite

show abstract

“…Second, as mentioned above, we chose Southeast Asia as our sampling frame because family firms dominate this region ( (Fang et al, 2022;Amin & Liu, 2020). Another reason is that this region comprises two distinguished markets: the developed and developing markets.…”

Section: Introductionmentioning

confidence: 99%

Cash Holdings and R&D Intensity with Different Controlling Shareholders

Setiawan

Kontesa

Soo

2023

JIEB

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Introduction/Main Objectives: This research aims to examine the effects of cash holdings on a firm’s R&D intensity. We further examine how that relationship may be varied across different controlling shareholders. For robustness reasons, we test it in a developing market and a developed market. Background Problems: Economics and business theories state that research and development (R&D) is susceptible to financing constraints due to the lack of collateral value and asymmetric information issues. This argument has been extensively debated with no consensus being reached. Therefore current study focuses on the examination of R&D and cash holding and the role of controlling shareholders. Novelty: The current study considers the importance of controlling shareholders on the relationship between cash holding and R&D intensity. We expect that different controlling shareholders will have different constraints on R&D financing. Research Methods: This study focuses on a sample of public listed companies in Malaysia and Singapore from the year 2012 to 2018, and estimates the model under a two-step GMM panel regression to eliminate the endogeneity issue. Finding/Results: The results show that cash holdings have significant effects on the intensity of R&D. However, that relationship is different across countries and across controlling shareholders. Malaysia’s foreign firms will increase their R&D’s intensity when their cash holdings are high. Meanwhile, Singaporean family firms will reduce the intensity of their R&D when their cash holdings are high. Overall the findings confirm the hypothetical alignment of the agency theory and also the resource-based view theory. Conclusion: Our findings surmise that higher cash holdings cause a lower R&D intensity due to the cash management decisions by managers. A firm with high leverage tends to reduce its R&D intensity when cash holdings are high, and vice versa. This behavior can be found in all the controlling shareholders.

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Shareholders' control rights, family ownership and the firm's leverage decisions

Cited by 2 publications

References 70 publications

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Cash Holdings and R&D Intensity with Different Controlling Shareholders

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