Ownership Structure and Company's Risk Taking Behaviour

DOI

10.2991/icbmr-17.2017.5How to use a DOI?

Keywords

risk taking,ÿownership structure, family ownership, foreign ownership

Abstract

This study aims to determine the effect of ownership structure on risk-taking behaviour among the companies listed on the Indonesia Stock Exchange in the period 2013 to 2015 with a total of 390 firm observations. Companies' risk-taking is measured through income volatility over five years. There are two types of corporate ownership structures investigated in this study: family ownership and foreign ownership. By using fixed effect panel regression, the results showed that both ownership structures have a significant negative effect upon the company's risk taking behaviour, which implies that family and foreign ownership can function effectively to mitigate excessive risk-taking behaviour in a company.

Copyright

© 2017, 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  - Sekar Langit
AU  - Desi Adhariani
PY  - 2017/11
DA  - 2017/11
TI  - Ownership Structure and Company's Risk Taking Behaviour
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 52
EP  - 64
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.5
DO  - 10.2991/icbmr-17.2017.5
ID  - Langit2017/11
ER  -