Shareholders Right
Assignment-2
Introduction of supervisor:
Name: Sir. Rana Tanveer
Designation: Lecturer
Department: School Of
Commerce & Accountancy
School of: Business and Management Sciences
Faculty Of: Commerce & Accountancy
Institute: Minhaj University
Lahore
MINHAJ UNIVERSITY LAHORE
Article No.1:
Title:
Impact of Shareholders’ Activism on Governance Practices and Firm Performance
in Pakistan: A Response for Family Controlled Firm
Objective:
The objective of this Article is to investigate the relationship between ownership structure and
firm performance using the system GMM econometric technique. According to the study's
computed results, The impact of family ownership is both good and significant the company's
market performance.
According to the study’s findings, family ownership has a positive and extremely significant
impact on the firm’s market success. It also discovered a strong and significant link between
family control and a company’s market worth.
Research methodology:
This study adopts the positivist paradigm and deductive approach because quantitative research
methods are essential for the achievement of the research objective.
Findings:
According to the study’s findings, family ownership has a positive and extremely significant
impact on the firm’s market success. It also discovered a strong and significant link between
family control and a company’s market worth.
Theories:
Agency theory is used in this article.
Hypothesis:
H1: Family ownership concentration puts a positive impact on firm performance.
Reference:
Amjad, A., Ehsan, S., Amjad, M., & Gillani, S. (2021). Impact of Shareholders’ Activism on
Governance Practices and Firm Performance in Pakistan: A Response for Family Controlled
Firms. iRASD Journal of Economics, 3(1), 1-12.
Article no 2
Title:
Concomitant of inside-shareholding, group affiliation and firm value: Evidence
from Pakistan
Objective:
The objective of this Article is to examine the effects of inside shareholding on business value in
Pakistan for both group-affiliated and non-group-affiliated firms.
Research methodology:
The modified Chop Shop methodology is used.
Findings:
The findings indicate that inside shareholding is negatively related with business value at both
low and high levels. It does, however, have a moderately positive correlation. Furthermore, the
inside shareholding-value connection for group-affiliated and non-group-affiliated enterprises
differs dramatically.
Theories:
Agency theory is used.
Hypothesis:
Hypothesis 1a. There is a significantly positive effect of inside shareholdings on firms’
performance.
Hypothesis 1b. There is a significantly negative effect of inside shareholdings on firms’
performance.
Reference:
Tahir, S. H., Kaleem, M. S., Kanwal, T., & Quddoos, M. U. (2021). Concomitant of insideshareholding, group affiliation and firm value: evidence from Pakistan. Business: Theory and
Practice, 22(1), 133-145.
Article No.3:
Title:
Shareholder Engagement on Environmental, Social, and Governance Performance
Objective:
The objective of this Article is the data set of a big worldwide, socially responsible activist fund,
behind-the-scenes investor advocacy is pushing environmental, social, and governance (ESG)
reforms.
Research methodology:
Environmental, Social and governance (ESG) approach is used.
Findings:
The Findings is simply that corporate social responsibility activism increases ESG practices and
corporate sales while also benefiting the activist.
Theories:
In this article the Agency theory is used.
Hypothesis:
H1: The activism regarding corporate social responsibility generally improves ESG practices and
corporate sales and is profitable to the activist.
Reference:
Barko, T., Cremers, M., & Renneboog, L. (2021). Shareholder engagement
environmental,social, and governance performance. Journal of Business Ethics, 1-36.
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Article No.4:
Title:
Shareholder Litigation Rights and Corporate Acquisition
Objective:
We examine the effect of shareholder litigation rights on managers’ acquisition decisions. Our
experimental design exploits a U.S. Ninth Circuit Court of Appeals ruling on July 2, 1999 that resulted in a
reduction in shareholder class actions. We find that, since the ruling, firms in Ninth Circuit states acquire
larger targets. Furthermore, acquirers’ returns are lower in these states, especially for those with
weaker corporate governance.
Research methodology:
Cross-sectional research methodology is used in this research.
Findings:
Analysis shows that value destruction is the result of managers’ freedom to conduct empire-building
acquisitions using overvalued equity. Overall, our findings indicate the importance of shareholder
litigation as an external governance mechanism.
Theories:
In this article Derivative lawsuit theory is used.
Hypothesis:
H1: All else being equal, after the Ninth Circuit Court of Appeals ruling, acquiring firms
headquartered in Ninth Circuit states experienced lower CARs around M&A announcements
compared to firms headquartered in other states.
Reference:
Chung, C. Y., Kim, I., Rabarison, M. K., To, T. Y., & Wu, E. (2020). Shareholder litigation
rights and corporate acquisitions. Journal of Corporate Finance, 62, 101599.
Article No.5:
Title:
Shareholder wealth implications of software firms’ transition to cloud computing:
a marketing perspective
Objective:
The objective of this article is to Moving into distributed computing addresses a significant
showcasing shift since it replaces on-premises offerings requiring large, direct front installments
with facilitated processing.
Research methodology:
To test our theoretical framework, we assemble a longitudinal data set from multiple sources. As
the starting point for sample construction, we use the merged Center for Research in Security
Prices (CRSP)-Compustat database to create a list of publicly traded firms operating in the
computer software and services industries.
Findings:
This study draws on a longitudinal information set of 435 openly recorded business-to-business
(B2B) firms inside the PC programming and administrations enterprises to investigate, according
to the merchants' point of view. It have both positive and negative effects on unexpected
increases in market maturity and in advertising Intensity.
Theories:
In this article Control function approach is used.
Hypothesis:
H1 An unanticipated increase in the cloud ratio has a positive effect on excess stock returns.
Reference:
Nezami, M., Tuli, K. R., & Dutta, S. (2022). Shareholder wealth implications of software firms’
transition to cloud computing: a marketing perspective. Journal of the Academy of Marketing
Science, 1-25.
Article No.6 :
Title:
Sustainable corporate governance and gender diversity on corporate boards:
evidence from COVID-19
Objective:
The ongoing review examines the directed impact of orientation assorted corporate sheets on
sustainable corporate administration rehearses in Malaysian monetary also, non-monetary firms
during the period 2011-2020, utilizing the powerful assessor .It have negative connection
between possession builds and Global Announcing Initiative (GAI) markers is seen in nonmonetary
Research methodology:
Dynamic panel data technique is used.
Findings:
Firms Findings of this article is that the economical corporate administration is drilled in
monetary firms yet not in non-monetary firms.
Theories:
In this article the Agency theory is used.
Hypothesis:
H1Draw significant implications for policymakers and regulatory bodies of Malaysia to carefully monitor
the implementation of sustainable corporate governance given uncertain circumstances of COVID-19
pandemic
Reference:
Naeem, M. A., Karim, S., Nor, S. M., & Ismail, R. (2022). Sustainable corporate governance and
gender diversity on corporate boards: evidence from COVID-19. Economic ResearchEkonomska Istraživanja, 1-19.
Article No. 7:
Title:
Stakeholder engagement strategies, national institutions, and firm performance: A
configurational perspective
Objective:
Objective of this article is the impacts of taking care of investors and treating representatives
well however underplays public contrasts in the general force of work and capital. Investigating
a cross-public test of firms from 2004 to 2011, we distinguish combi countries of commitment
procedures, firm credits, and settings connected to superior execution.
Research methodology:
Fuzzy-set qualitative comparative analysis (fsQCA) is used.
Findings:
Findings of this article is the various setting subordinate ways, which connect partner
commitment to high firm execution.
Theories:
In this article Explanatory theory is used.
Hypothesis:
H1The engagement strategies associated with high performance vary according to local
institutional context and firm characteristics
Reference:
Gupta, K., Crilly, D., & Greckhamer, T. (2020). Stakeholder engagement strategies, national
institutions, and firm performance: A configurational perspective. Strategic Management
Journal, 41(10), 1869-1900.
Article No.8:
Title:
Boards of directors and firm performance: A study of non-financial listed firms on
the Kuwait stock exchange
Objective:
This analysis basically investigates the effects of the board of directors on firm performance of
89 listed firms from 2017 to 2019. This work used four variables board size, board
independence, family directors, and board diversity.
Research methodology:
In this research Descriptive analysis is used.
Findings:
This analysis basically finds out that board size, board self-rule, family directors, and board
diversity have an effect on firm performance. Although the outcome shows that only family
directors importantly affect firm performance.
Theories:
In this article Agency theory is used.
Hypothesis:
H1: Board size negatively impacts firm performance.
H2: Board independence positively impacts firm performance.
Reference:
Al-saidi, m. (2021). Boards of directors and firm performance: A study of non-financial listed
firms on the Kuwait stock exchange. Corporate ownership & control, 18(2), 40-47.
Article No.9:
Title:
The impact of board of directors’ characteristics on firm performance: A case
study in Jordan
Objective:
This analysis investigates the outcome of the board of directors on the corporate performance of
Jordanian industrial and service companies which are listed on the Amman stock exchange from
2015 to 2019.this analysis includes 85 industrial and service companies with 425 observations.
This study used corporate size and corporate age as a variable.
Research methodology:
Descriptive and analytical approach was used.
Findings:
This research finds out that the corporate age and corporate size have an impact on corporate
performance and they negatively affect the performance.
Theories:
In this article Agency theory is used.
Hypothesis:
H1: Showed a positive effect of the study variables on performance.
H2The corporate age and the education level (BOD members) have a negative effect on performance.
Reference:
KANAKRIYAH, R. (2021). The impact of board of directors' characteristics on firm performance:
a case study in Jordan. The Journal of Asian Finance, Economics and Business, 8(3), 341-350.
Article No.10:
Title:
The Impact of Ownership Structure and Corporate Governance on Capital
Structure of Jordanian Industrial Companies
Objective:
This research investigates the outcome of ownership structure and corporate governance of 798
years of firm inspection from 2005 to 2018 of registered firms in the Amman stock exchange
(ASE).
This work used ownership concentration factors, and CG factors (peroxided by board size,
CEO/chairman duality, board composition, a committee of nominations and remuneration,
meetings number), as variables.
Research methodology:
In this research Quantitative analysis and Descriptive Approach is used.
Findings:
This analysis has resulted that there has a strong relationship between shareholders and capital
structure which might be positive or negative.
Theories:
In this article Agency theory is used.
Hypothesis:
H1: there is a significant impact of ownership structure factors on capital structure.
H2: there is a significant impact of corporate governance factors on capital structure.
Reference:
Shehadeh, M., Alharasis, E. E., Haddad, H., & Hasan, E. F. (2022). The Impact of Ownership
Structure and Corporate Governance on Capital Structure of Jordanian Industrial
Companies. Wseas Transactions on Business and Economics, 19, 361-75