Elias Dedoussis and Afroditi Papadaki
The purpose of this paper is to present evidence on the effects that different ownership's structures of Greek listed firms exercise on the relation between investment and…
Abstract
Purpose
The purpose of this paper is to present evidence on the effects that different ownership's structures of Greek listed firms exercise on the relation between investment and liquidity constraints.
Design/methodology/approach
Corporate governance in Greece is primarily based on the form of family‐owned firms, as in many European countries. In countries with similar corporate governance systems, a possible source of separation (in the absence of bank‐controlled firms and large business groups) between management and ownership is the nationality of the companies, as foreign nationality implies the physical separation of managers and owners. A second possible separation is based on the shareholdings of the CEO when he/she bears no relation with the controlling shareholders. A sample of Athens Stock Exchange listed firms is collected and a generalized (vs a simple) model of investment is applied to test the role of corporate governance using these two basic separations of management and ownership.
Findings
The paper's empirical findings support the hypothesis of asymmetric information both in the total sample and in various sub‐samples. Low Q, small, and new firms under the generalized model are facing asymmetric information problems. On the other hand, low Q, old and low dividend firms are more likely to face managerial discretion problems that result in over‐investment.
Originality/value
This paper links information‐related problems of investment with simple corporate governance structures.
Details
Keywords
Elias Dedoussis and Afroditi Papadaki
The purpose of this paper is to test the hypothesis that the nationality of ownership affects investment through its interaction with return expectations and cash flow and to…
Abstract
Purpose
The purpose of this paper is to test the hypothesis that the nationality of ownership affects investment through its interaction with return expectations and cash flow and to answer the question whether this is due to asymmetric information or managerial discretion problems.
Design/methodology/approach
Asymmetric information and managerial discretion hypothesis are being tested in a fully extended model, which provides for a variety of effects from the explanatory variables. The paper also uses firm and industry variables to account for the investment opportunities or marginal q instead of using the average Q. Using industrial variables instead of stock market data enables the possibility to extend the sample to cover a more representative sample of firms and especially a group of firms where financial constraints are expected to be more profound. Another aspect of the paper is that the ownership variable varies with the nationality of the shareholders of the firm and not with the shareholdings of the managers. This means that the paper restricts its search in two sub‐samples, those of domestic firms and of foreign (multinational) ones.
Findings
In total, 2,700 domestic and foreign (multinational) manufacturing firms located in Greece in the 1992‐1997 period were examined, providing consistent evidence supporting the asymmetric information hypothesis against the managerial discretion hypothesis. These results also support the significance of ownership effects, at least with respect to the national origin of the firm's shareholders.
Originality/value
This paper provides evidence that the nationality of ownership affects the investment behavior and is related with the specific information problems of the firms.
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Paolo Pietro Biancone, Buerhan Saiti, Denisa Petricean and Federico Chmet
Islamic banking and finance (IBF) have been the subject of central scientific interest, as demonstrated by the significant increase in publications on the subject in recent years…
Abstract
Purpose
Islamic banking and finance (IBF) have been the subject of central scientific interest, as demonstrated by the significant increase in publications on the subject in recent years. In the present paper, the use of the bibliometric analytical technique is proposed to examine the research on IBF. The purpose of this study is to carry out a bibliometric analysis of all the publications on Scopus relative to IBF.
Design/methodology/approach
The screening methodology conducted in May 2020, in the foreground, for precise research and as complete as possible, sought all references to “Islamic finance” or “Islamic bank” in “all fields” of Scopus and 7,662 scientific contributions were found. Therefore, the results include a time frame for publications between 1980 and 2020.
Findings
This study shows that the literature on Islamic finance focusses on banking, rates, comparisons with traditional banks and portfolios, analysis of governance and control structures. In the journals taken into consideration in this paper from which the sample of selected articles comes, it can be deduced that the ethicality of the finance and the bank is placed in second place.
Originality/value
Through analysis, citation rates are proposed, and the impact factors of journals are quantitative and objective indicators directly linked to published science. The implications of this paper are to identify the future trend of research in the field of IBF.