Commerce and Management

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Start date: 2020Subject: search.filters.subject.Managerial Ownership

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    Analysis of Earnings Management: Using Ownership Structure and Audit Quality Among Banking Industries in Indonesia
    (Department of Finance, University of Kelaniya., 2023) Susbiyani, A.; Fauzan, D. T.; Aspirandi, R. M.
    Purpose: This research aims to examine the impact of ownership structure consisting of managerial ownership, institutional ownership and audit quality which is proxied using size of public accountant firms on earnings management using three control variables, namely company size, leverage and market value. Design/Methodology/Approach: The population used in this research is banking companies listed on the Indonesian Stock Exchange for the 2020-2022 period. The data used in this research is secondary data and the sampling technique selection used is purposive sampling. There were 35 companies in the sample with a total of 105 data points at the beginning, after the outlier elimination process the final data amounted to 87 data points. The analytical method used to test the hypothesis in this research uses multiple linear regression analysis. Findings: The results of this research show that managerial ownership and audit quality have a significant negative effect on earnings management, while institutional ownership has a significant positive effect on earnings management. Originality: This study uses a sample of banking companies in Indonesia. Control variables were added by researchers when testing the influence of research variables. Agency theory is used to explain the relationship between managerial ownership, institutional ownership and audit quality with earnings management.
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    The Influence of Managerial Ownership and Firm Size on Debt Policy Evidence from Listed Manufacturing Companies in Sri Lanka
    (Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Abdullah, M.; Ranjani, R. P. C.
    Introduction: This study looks at how managerial ownership and firm size affect debt policy in listed manufacturing companies in Sri Lanka, using data from the Colombo Stock Exchange (CSE) from 2013 to 2023. It shows that when managers own shares, it reduces conflicts between managers and shareholders, while firm size impacts borrowing capacity and leverage. The research provides useful insights into how these factors influence debt policies in Sri Lanka and fills gaps in existing studies, offering practical guidance for better financial decision-making. Methodology: In this study, a quantitative approach was used, analysing panel data from 10 companies listed on the Colombo Stock Exchange (CSE) over the past 11 years. The main variables examined were managerial ownership (measured by the percentage of shares held by management), firm size (measured by total assets), and debt policy (measured by the debt-to-equity ratio). Multiple regression analysis was conducted, along with diagnostic tests like the variance inflation factor (VIF) and autocorrelation tests, to ensure the reliability of the data and the accuracy of the results. Findings: The study shows that more managerial ownership leads to higher debt because it aligns managers’ interests with shareholders. It also finds that larger companies use less debt, likely due to stronger financial positions. The analysis highlights differences in ownership and firm sizes, and the diagnostic tests confirm the results are reliable.