IDEAS home Printed from https://ideas.repec.org/a/bas/econst/y2025i4p80-97.html
   My bibliography  Save this article

Ownership Structure and Financial Restatement in Emerging Markets: A Study from Indonesia

Author

Listed:
  • Ni Wayan Rustiarini
  • Ni Made Sunarsih
  • Putu Diah Kumalasari

Abstract

Financial restatements have been shown to cause anxiety among capital market players due to perceived weaknesses in corporate governance oversight, especially in developing countries. An effective ownership structure can fortify corporate governance, particularly in nations where a robust legal framework is yet to be established, such as Indonesia. The primary focus of this study is to investigate the influence of managerial ownership, institutional ownership, public ownership, and concentrated ownership in financial restatements. The study examines manufacturing firms listed on the Indonesia Stock Exchange over the period 2017 to 2021, employing logistic regression for data analysis. The study reveals that managerial ownership does not exert a significant influence on financial restatements. In contrast, both institutional ownership and public ownership are found to have a negative correlation with financial restatements. Furthermore, the existence of concentrated ownership is associated with a decreased likelihood of financial restatements.

Suggested Citation

  • Ni Wayan Rustiarini & Ni Made Sunarsih & Putu Diah Kumalasari, 2025. "Ownership Structure and Financial Restatement in Emerging Markets: A Study from Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 80-97.
    • Handle: RePEc:bas:econst:y:2025:i:4:p:80-97
    as

    Download full text from publisher

    File URL: https://archive.econ-studies.iki.bas.bg/2025/2025_04/2025_04_05.pdf
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econst:y:2025:i:4:p:80-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.