ARTÍCULO
TITULO

Does the pyramidal ownership mechanism negatively affect the firm?s performance?

Vera Diyanty    

Resumen

This research aims to evaluate the effect of family control, which is obtained through both direct or pyramidal ownership mechanism, and company performance. It also examines the mediating effect of founder leadership as represented by founding family members occupying the top management position and the effectiveness of Board of Commissioner. This study used Ordinary Least Square regression for the data analysis with 670 data as the sample from 134 sample companies from year 2009 to 2013. The results show that family control through direct ownership mechanism enhances company performance (alignment effect). On the other hand, family control through pyramidal ownership mechanism weakens company performance (entrenchment effect). The results also show that founder leadership boosts the alignment effect and limits the entrenchment effect. However, this research fails to confirm the role of the effectiveness of the Board of Commissioner in increasing the alignment effect and limiting the entrenchment effect.

 Artículos similares

       
 
Ayman Hassan Bazhair and Hamid Ghazi H Sulimany    
This paper explores the moderating role of family ownership in the relationship between board diversity and financial performance. The study sampled data of 98 Saudi non-financial companies from 2012 to 2021. The data were analysed using fixed effect reg... ver más

 
Sandy Harianto     Pág. 204 - 216
This study aims to explore the effect of political connections, external auditor quality, and family ownership on real and discretionary accrual earnings management practices in public companies in Indonesia. So far, previous studies have shown inconclus... ver más

 
Nihayatun Najahiyah, Siti Aisjah, Atim Dzajuli     Pág. 148 - 156

 
Muhammad Faisal Akbar,(Universitas Bangka BelitungIndonesia)Devi Valeriani,(Universitas Bangka BelitungIndonesia)     Pág. 130 - 141
This paper investigates the impact of household characteristics on child health outcomes in Indonesia using Indonesian family Life Survey. This paper using birth wage, infant mortality and Z score to represent child health. Using Random effect method and... ver más

 
Abimbola A. AKANNI,Chris O. AJILA     Pág. 177 - 184
Past studies reported that social support correlated with work-family balance. However, the role of self-efficacy in the relationship between social support and work-family balance among the manufacturing sector employees is missing. Therefore, this stud... ver más