Browsing by Author "Khan, Muhammad Kaleem"

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    Article
    Citation Count: 4
    The effect of ownership composition on corporate financial performance in the European frontier markets
    (Emerald Group Publishing Ltd, 2023) Zahid, R. M. Ammar; Taran, Alina; Khan, Muhammad Kaleem; Simga-Mugan, Can
    PurposeThis study investigates the influence of ownership composition on market-based and accounting-based financial performance in the European frontier markets (EFMs), a target region for global investors.Design/methodology/approachOwnership composition is defined as shareholders' concentration and structure (i.e. foreign, domestic, state and free-float), whereas financial performance is measured as Tobin's Q and return on assets. The system generalised method of moments panel data estimation technique is employed on a sample of 241 companies.FindingsFindings reveal that companies from European Union (EU) frontier markets are controlled, on average, by one to five large shareholders. Being a signal of expropriation rationale of majority shareholders regardless of the capital structure, this highly concentrated ownership and decision-making model negatively affects the market-based and accounting-based financial performance of the companies and thereby supports the agency theory in the frontier markets.Research limitations/implicationsThe findings provide empirical evidence for authorities, investors, analysts and corporations regarding the effect of ownership percentage and structure in the Eastern European region, assisting also other frontier and emerging markets in corporate governance and other regulatory decisions.Originality/valueThe ownership-performance relationship varies from developed to emerging markets with conflicting results. This study provides evidence on monitoring and expropriation effects of majority shareholders in the context of different categories of shareholders. In doing so, it combines the analysis of both ownership concentration and structure in the EFMs.
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    Article
    Citation Count: 23
    ESG, dividend payout policy and the moderating role of audit quality: Empirical evidence from Western Europe
    (Elsevier, 2023) Zahid, R. M. Ammar; Taran, Alina; Khan, Muhammad Kaleem; Chersan, Ionela-Corina
    This study investigates the relationship between environmental, social, and governance (ESG) scores and dividend policies, considering the moderating role of audit quality. Based on data for Western European listed companies (leaders in ESG revolution) over the period 2010-2019, panel regression analyses show a significant positive relationship between ESG and dividend payouts. Thus, companies with strong ESG practices prove their stakeholders' and shareholders' orientation, maintaining their dividend payments. However, involvement in high-quality ESG practices slows dividend growth. Audit quality has also a negative moderating effect on ESG-dividend links, prevalent at the firms whose financial audit is conducted by Big Four auditors, with no statistically significant results for ESG assurance quality. The findings are robust to sensitivity analyses based on alternative measures and estimation techniques. These results have implications for investors, management, analysts, and policy makers, providing significant lessons for companies and markets concerned about extending their ESG policies. Copyright & COPY; 2022 Borsa Istanbul Anonim S,irketi. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).