The Effect of Ownership Structure on a Company’s Tunneling Activities: Indonesian Evidence

DOI

10.2991/apbec-18.2019.48How to use a DOI?

Keywords

Party transaction, tunneling, ownership structure

Abstract

This study aims to provide empirical evidence about the effect of ownership structure on the tendency of firms to conduct tunneling practices. Tunneling is a form of misappropriation in related-party transactions that harms minority shareholders. The samples employed are companies listed on the Indonesia Stock Exchange from 2013 to 2015 that disclosed related-party transactions affecting assets and liabilities. The study argues that concentrated family ownership and concentrated government ownership have a positive effect on firm tunneling practices, while concentrated institutional ownership and dispersed ownership have a negative effect. Concentrated family ownership has a significant positive effect on firms’ tunneling practices, while concentrated government ownership, concentrated institutional ownership, and dispersed ownership have a significant negative effect on a firm’s tunneling practices.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ani Dwi Rahmanti Riadi
AU  - Aria Farah Mita
PY  - 2019/07
DA  - 2019/07
TI  - The Effect of Ownership Structure on a Company’s Tunneling Activities: Indonesian Evidence
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 353
EP  - 357
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.48
DO  - 10.2991/apbec-18.2019.48
ID  - DwiRahmantiRiadi2019/07
ER  -