Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Leverage

Firm Characteristics and Earning Management: Moderating Role of Ownership Structure

Anam Ashiq, Zhang Guoxing, Aftab Hussain Tabassam, Dr. Abdul Waheed

Journal of Contemporary Issues in Business and Government, 2022, Volume 28, Issue 3, Pages 964-976
DOI: 10.47750/cibg.2022.28.03.077

Prior studies examine the influence of Firm characteristics and ownership structure on earning
management with competing interests. This research investigates the inconsistent results with a
proposed framework through the interaction effect of ownership structure (concentrated ownership
and institutional ownership) on the relationship between Firm characteristics (firm size and leverage)
and earning management. The study carried out a test using a sample of 139 firms listed on Pakistan
stock exchange from 2008-2019. This study's tests are carried out using the Stata programme and the
fixed effect panel least squares regression model. The results indicates a negative and significant
impact of concentrated ownership on earning management while, firm size, leverage and institutional
ownership shows insignificant relationship with earning management. Additionally, the results seem
to indicate that concentrated ownership diminished the influence of firm size on earning management.
Moreover the relationship between business characteristics and earning management is also
unaffected by institutional ownership.This is perhaps because most businesses in Pakistan are
family-owned and concentrated.


Farbod Souri Farbod Souri

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 5, Pages 2487-2497
DOI: 10.47750/cibg.2021.27.05.125

One of the most significant duties encountered by the managers of an enterprise is decision-making. Just like other individuals of the society, the managers have specific individual differences, talents, motivations, inclinations and desires and enjoy from different attitudes, knowledge and value system which can be influential upon the financing policies.
The present research deals with review of the influence of the managers’ optimism upon the financing policies and its consequences upon the companies admitted in Tehran Stock Exchange
Regarding the purpose, this is an applied research and with respect to the execution, it is descriptive-correlational. In line with this goal, the information of 125 companies in Tehran Stock Exchange during a time period of 2015-2019 were studied. In this research, in order to measure the management overconfidence, the three metrics based on the managers’ bias in prediction of the revenue, investment decisions made by the managers and the investment were used. To test the hypotheses, the multivariable regression with combined data were used.
The research findings indicated that the managers’ optimistic behavioral features resulted in an increase in managers’ use of financing patterns through the lever of debt in the companies admitted in Tehran Stock Exchange


Rachmawati MeitaOktaviani Zulaikha Zulaikha

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 5, Pages 2564-2571

This study aims to examine the effect of leverage on tax avoidance with independent commissioners and institutional ownership as moderating variables. The population in this study uses manufacturing companies listed on the Indonesia Stock Exchange (IDX) 2016-2020. This study uses secondary data. The sample of this study consisted of 15 companies the sampling technique used purposive sampling. The data were analyzed using the panel data moderation regression analysis method. The results show that leverage has no and significant effect on tax avoidance, independent commissioners can weaken the effect of leverage on tax avoidance, and institutional ownership does not moderate the effect of leverage on tax avoidance.

The determinants of capital structure in insurance companies Evidence from Saudi Arabia

Faiza Omer Elmahgop

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 2, Pages 1303-1315
DOI: 10.47750/cibg.2021.27.02.143

The study examines the significant determinants of the insurance companies' capital structure
listed on the Saudi Stock Exchange (Tadawul) from 2010 to 2018. In this study, one dependent
variable capital structure is represented by leverage and six independent variables, firm
characteristics variables (profitability, growth rate, risk, size, age) and macroeconomic variable
(GDP). A random effect on a panel data regression model is employed as a tool of analysis. This
study attempts to fill the lack of research in Saudi insurance companies to arrive at constructive
suggestions that could contribute to financial structure decisions. The results show that
profitability, age and risk have a statistically significant negative effect on the capital structure.
Growth rate and firm size significantly positively influence the capital structure, while gross
domestic product is insignificant.

The Effect of Operational and Financial Leverage on Economic Performance Indicators: Evidence from industrial companies listed on the Amman Stock Exchange

Dr. Shadi Arshid Muslim Saraireh

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 1301-1317

The aim of study was to examine the impact of the operational and financial leverage on the economic performance indicators in the industrial companies listed on the Amman Stock Exchange (ASE). The financial reports for the financial statements of the industrial companies were collected during the period of five years 2014-2018 for the listed companies whose shares are in the Amman Stock Exchange, and the study population were 62 Industrial companies until 31st December 2018. The sample of the study population was presented by 13 companies distributed over four industrial sectors such as Tobacco and Cigarettes, Medicine and Medical Industries, Chemicals, Food and Beverages. This study depends on data processing (Panel Data) using the STATA program. The results of the study showed that the economic value-added came in a medium degree for the industrial investment companies. Meanwhile, the market value-added came as a second order, there was no statistically significant effect of the operational and financial leverage on the economic value-added and the market value-added in the Jordanian industrial companies listed on the Amman Stock Exchange (ASE). The Study recommended the increase of caution when using loans for financing due to the effect of increasing operational risks in industrial companies.