The Relationship between Corporate Governance and Expropriation of Minority Shareholders’ Interests

Hamid, Masdiah Abdul; Ting, Irene Wei Kiong; Kweh, Qian Long

doi:10.1016/s2212-5671(16)00014-9

Cited by 18 publications

(33 citation statements)

References 13 publications

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“…As an example, the top 100 Malaysian public listed companies have lower minority expropriation in which the companies have higher number of independence board on audit committee (Hamid et al, 2016).…”

Section: The Independent Commissioner Boardmentioning

confidence: 99%

The Type I Versus Type II Agency Conflict on Earnings Management

Nurim

Sunardi

Raharti

2017

JDM

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This study aims to detect the background of earnings management behavior in which it shows the tendency of type I or II agency conflict. The high ownership concentration of firms in Indonesia leads type II agency conflict, but the good corporate governance formulation assumes conflict between management and shareholders. This study uses published data in IDX from [2009][2010][2011][2012][2013][2014]. TThe result reveals that reputation quality has negative significant correlation to earnings management behaviors, but corporate governance quality has insignificant correlation to earnings management, except percentage of independent commissioner board in moderate level. It has implication that management faces type II agency conflict. The majority may monitor management directly, so the finding reveals that independent commissioner board' s function is not optimum as part of corporate governance mechanism. According to the evidence, corporate governance formulation, especially in Indonesia, should be needed for reducing earnings management on type II tendency. Info Article

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Section: The Independent Commissioner Boardmentioning

confidence: 99%

The Type I Versus Type II Agency Conflict on Earnings Management

Nurim

Sunardi

Raharti

2017

JDM

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“…The other study reveals that investor protection correlates to auditor [6][7][8]. The next study also reveal that investor protection correlates to financial performance or management behavior [9][10][11][12][13][14][15][16][17]. The findings imply the society's value surrounding the company in where operates could encourage management to behave ethically, such as less aggressive to maximize himself/herself interest.…”

Section: Introductionmentioning

confidence: 70%

The Effect of Local Value on Financial Performance in Digital Society Era

Nurim¹

2019

Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

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The digital era reduces the boundaries obstacles between societies. However, the local value still has role because the value encourages the management to behave ethically. The aim of this study is to provide empirical evidence about the important role of local wisdom value to encourage the optimal financial company performance. This study uses the local value, such as Islamic Value, that has recognized formally by Indonesia Government as Jakarta Islamic Index. Management considers the Islamic Sharia as local wisdom value of Indonesian to behave ethically. The result shows that local value has significant positive effect to financial performance. The result also supported by the finding that corporate governance score that has formulated globally is insignificant different between the members of Jakarta Islamic Index and Non Jakarta Islamic Index. The result implies that local wisdom can be considered on digital era as the part of corporate governance formulation because it captures the certain region characteristics. This study contributes to agency theory through the awareness of management on local value emerged from local wisdom value to align with shareholder's interest. This study also contributes to the implementation of corporate governance practice, because the local wisdom value can become the social enforcement for management to behave ethically.

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“…A transaction with special relationships is typically carried out by companies in the group compared to companies operating independently. Transactions with special relationships cause the transfer of profits from the subsidiary company to the holding company (Cheung et. al.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…A transaction with a special relationship can result in the transfer of profits from the subsidiary company to the holding company (Cheung et. al.…”

mentioning

confidence: 99%

The Effect of Related Party Transactions through Opportunistic Behaviour Management to Increase Firm Value

Suryani

Atikah

Putri

2019

J. Fin. Bank. Review

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Objective -This research aims to determine and analyze related party transactions to increase firm value through opportunistic behaviour management by conducting earnings management on manufacturing companies listed on the Indonesian Stock Exchange between 2015 and 2018. Methodology/Technique -There are 34 companies that fulfill the requirements to become the sample of this study. The method applied in analyzing the data is verification using path analysis. Findings -The results of the research show that related party transactions do not have any significant effect on firm value however it indicates a positive impact. Moreover, related party transactions do not have any significant impact on earning management yet it gives a negative impact on earning management. Novelty -The influence of earnings management shows a positive impact on firm value while it shows no signs of positive impact on firm value. The analysis shows that the value of the indirect impact of related party transactions through earnings management towards firm value is negative being 0.022 smaller than the direct impact of related party transaction toward firm value which is 0.053. This indicates that related party transactions through earnings management have no significant impact on firm value.

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The Relationship between Corporate Governance and Expropriation of Minority Shareholders’ Interests

Cited by 18 publications

References 13 publications

The Type I Versus Type II Agency Conflict on Earnings Management

The Type I Versus Type II Agency Conflict on Earnings Management

The Effect of Local Value on Financial Performance in Digital Society Era

The Effect of Related Party Transactions through Opportunistic Behaviour Management to Increase Firm Value

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