This study tests two opposing views of institutional investors—monitoring versus expropriation--by investigating whether institutional ownership is positively or negatively related to future firm-specific stock price crash risk. We present robust evidence that institutional ownership is positively associated with future stock price crash risk. After further classifying institutional investors i...

The research aims to examine the antecedent variables of capital structure, such as profitability, firm size, investment opportunity set, managerial ownership, and dividend policy, its effect on value. We used 41 listed firms Indonesia Stock Exchange from manufacturing industry in 2012-2017 period. factor analysis determine representativeness independent structure then we tested value by using ...

In this paper, we study how separation of control from ownership affects overinvestment by presenting a simple model extended from La Porta et al. (2002). We find that firms with controlling shareholders whose control is more separated from ownership are likely to overinvest more, even if controlling shareholders expropriate funds for purpose of other than investment. Using over 1000 public lis...

In this paper, we study how separation of control from ownership affects overinvestment by presenting a simple model extended from La Porta et al. (2002). We show that firms with controlling shareholders whose control is more separated from ownership are likely to overinvest more, even if controlling shareholders expropriate funds for purpose of other than investment. Using over 1000 public lis...

One of the reasons that companies avoid paying their taxes is that they choose to use debts for their funding. In other words, tax saving, an activity of companies to avoid taxpaying, can be used to finance corporate projects. Furthermore, since institutional owners are more inclined to supervise, they may shrink managerial behaviors to avoid taxpaying. In this study, institutional owners’ supe...

A number of factors influence the efficiency, productivity, and welfare of transportation networks. Travel demand, user costs, and facility supply costs equili-brate on various time scales under a set of pricing (taxes and tolls), investment and ownership policies. Two types of equilibria exist in a transportation network, short-run traffic equilibrium and long-run supply-demand equilibrium. Th...

This article examines the impact of the divergence between corporate insiders’ control rights and cash-flow rights on firms’ external finance constraints via generalized method of moments estimation of an investment Euler equation. Using a large sample of U.S. firms during the 1994–2002 period, we find that the shadow value of external funds is significantly higher for companies with a wider in...

Rajah Rasiah This paper seeks to examine the importance of ownership in R&D intensities and export ownership in the automotive parts firms in China, Indonesia, Malaysia, Philippines and Taiwan. Consistent with the portfolio and ownership, location and internationalization theories of foreign direct investment about asset specific advantages, the pooled regressions show higher R&D intensities in...