Business Commons^™

Performance Implication Of Ownership Structure And Ownership Concentration: Evidence From Sri Lankan Firms, Athula S. Manawaduge, Anura De Zoysa, Kathleen M. Rudkin

Faculty of Commerce - Papers (Archive)

Purpose - This paper seeks to examine the impact of ownership concentration and ownership structure on firms’ performance of a sample of public listed companies in Sri Lanka in the premise of an agency theory framework.

Design/methodology/approach - The paper first investigates the nature of ownership structure and concentration and then examines whether there is strong evidence to support the observation that the variations of ownership structure across firms result in systematic variations in firm performance. This hypothesis is tested by assessing the impact of ownership structure and concentration on firm performance measured in terms of accounting profitability and market …

When The Going Gets Tough: Board Capital And Survival Of New Economy Ipo Firms, Nongnit Chancharat, Chandrasekhar Krishnamurti, Gary G. Tian

Faculty of Commerce - Papers (Archive)

The high profile corporate collapse of Enron and WorldCom has been attributed to corporate governance failures. This implicit linkage between governance failures and corporate failures raises the important question of whether good governance will mitigate the probability of failure of a firm faced with extreme financial duress. Additionally, recent studies question the assumption that a single board structure will be optimal for all firms. We empirically address this issue in the context of survival of new economy Australian IPOs. We characterize governance by board structure and leadership. Our results show that one of the key principles of the Cadbury Code …

Fostering Women's Entrepreneurial Leadership In Family Firms: Ten Lessons, Mary Barrett, Ken Moores

Faculty of Commerce - Papers (Archive)

Women's potential to lead a firm - whether one started by a family member or a new venture of their own - is still not often enough acknowledged. With family firms acknowledged as the seeding grounds for the next generation of entrepreneurs, and with increasing attention in research and public policy to women's entrepreneurship, it is important to understand the factors in family firms which help and hinder their women members' leadership and entrepreneurship potential. This article, based on the authors' book Women in Family Business Leadership Roles: Daughters on the Stage (Edward Elgar, 2009), presents ten lessons for family …

State Owned Vs. Privately Owned Firms: Whose Ceos Are Better Compensated?, Jerry Cao, Xiaofei Pan, Gary G. Tian

Faculty of Commerce - Papers (Archive)

This paper investigates CEO pay and pay-performance relationshipin China s listed firms. We distinguish four firm types based on theircontrolling owners: state owned enterprises affiliated with stateasset management bureaus (SAMBs), state owned enterprisesaffiliated with the central government (SOECGs), state ownedenterprises affiliated with a local government (SOELGs), and privatefirms controlled by private investors. We also distinguish betweenfirms with foreign investors and those without. Because thedifferent types of controlling owners have different objectives,motivations, and political interests, they affect managerscompensation in the firms in which they invest. Our results indicatethat CEO pay is lowest in SAMB controlled firms and highest inSOECG controlled firms. …

Managerial Compensation, Ownership Structure And Firm Performance In China's Listed Firms, Xiaofei Pan, Gary G. Tian, Shiguang Ma, Aelee Jun, Qingliang Tang

Faculty of Commerce - Papers (Archive)

This paper investigates managerial compensation and its relationship with firm performance in China's listed firms. In China, the largest shareholder dominates other shareholders, controls the firm and therefore exercises substantial impacts on manager compensation. After controlling for other firm and industry characteristics, we find that manager remuneration is greater and pay-performance relation is stronger for privately-controlled firms than for state-controlled firms. We also document that state-controlled firms exercise performance-based manager incentive schemes, which is contrary to evidence found in some earlier studies. Our results also indicate that top executives in firms with a foreign ownership are more highly compensated, relative …

Financing Growth: New Issues By Australian Firms, 1920-1939, David Merrett, Simon Ville

Faculty of Commerce - Papers (Archive)

An expanding economy, new technologies, and changing consumer preferences provided growth opportunities for firms in interwar Australia. This period saw an increase in the number of large-scale firms in mining, manufacturing, and a wide range of service industries. Firms unable to rely solely on retained earnings to fund expansion turned to the domestic stock exchanges. A new data set of capital raisings constructed from reports of prospectuses published in the financial press forms the basis for the conclusion that many firms used substantial injections of equity finance to augment internally generated sources of funds. That they were able to do …