The Impact of Ownership Structure and Executive Team Composition on Firm Performance: The Resolution of a Leadership Paradox.Eva M. Meyerson

This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.

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Corporate governance and firm performance within the Russian agri-food sector: does ownership structure matter?

International Food and Agribusiness Management Review ◽

10.22434/ifamr2019.0184 ◽

2020 ◽

pp. 1-20

Author(s):

Alisher Tleubayev ◽

Ihtiyor Bobojonov ◽

Taras Gagalyuk ◽

Emma García Meca ◽

Thomas Glauben

Keyword(s):

Firm Performance ◽

Ownership Structure ◽

Food System ◽

Vital Role ◽

Ownership Concentration ◽

Food Sector ◽

Return On Assets ◽

Peak Point ◽

Return On Sales ◽

The Impact

This article provides pioneering empirical evidence on the ownership structure and firm performance relationship for the case of corporate agri-food companies in Russia. While Russia plays a vital role in the global agri-food system, its domestic agri-food production is evidently dominated by a small number of corporate enterprises, which are in turn characterized by high ownership concentration. We employ unique panel data obtained from 203 companies for the years between 2012 and 2017. A random effects model was used to analyze the impacts of ownership concentration and ownership identity on the firms’ financial performance, measured by return on assets and return on sales. Our results indicate an inverse U-shaped association between ownership concentration and firm performance, with average level of ownership concentration found to be on the descending range of the inverse U-shaped curve. Moreover, we observe a similar quadratic relationship between ownership concentration by government and directors and firm performance. On average, ownership by directors was found to be on the ascending range and below the peak point, suggesting a potential for further performance improvement, while the impact of agroholding ownership was found to be linear and positive.

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CORPORATE GOVERNANCE AND FIRM PERFORMANCE NEXUS: A CASE OF CEMENT INDUSTRY OF PAKISTAN

International Journal of Entrepreneurial Research ◽

10.31580/ijer.v1i1.140 ◽

2018 ◽

Vol 1 (1) ◽

pp. 1-6 ◽

Cited By ~ 1

Author(s):

Abdul Ghafoor Kazi ◽

Muhammad Asad Arain ◽

Payal Devi Sahetiya

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Ownership Structure ◽

Significant Relationship ◽

Stock Exchange ◽

Study Data ◽

Cement Industry ◽

Annual Reports ◽

Board Structure ◽

The Impact

Corporate governance is the system of rules, practices and method by that business corporations are directed and controlled. The aim of this research is to examine the impact of the corporate governance on the financial performance of the enlisted cement industry on the Pakistan Stock Exchange from the year 2013-17. This research is a â€œquantitative researchâ€ which focuses on numbers and results based on empirical analysis of actual data and logic. Ten out of seventeen cement firms listed at PSX from the period 2013-17 are selected as sample of the study. Data was collected from documents and records. Descriptive statistics, Pearsonâ€™s correlation and multiple regressions were used for data analysis. The results showed that there is no significant relationship between leverage and firm performance, the board structure has no significant relationship with firm performance, and firm size has an insignificant relationship with firm performance. The results however suggested that ownership structure has significant relationship with firm performance. The future investors in cement industry of Pakistan must consider above factors before investments. This study helps shareholders and management in decision making about the effect of ownership structure on firm performance and how these can change ownership structure. This study helps students to gain knowledge and understanding about good corporate governance and its impact on firm performance. It will also help them to go through the annual reports of companies and to analyse the financial statements so that they could learn how to analyse the performance of the firm in terms of ROE. Moreover, the study would also be a direction for future researchers and students to further add value to the subject of corporate governance and firm performance.

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The relationship between ownership structure and firm financial performance

Benchmarking An International Journal ◽

10.1108/bij-04-2016-0051 ◽

2018 ◽

Vol 25 (1) ◽

pp. 319-333 ◽

Cited By ~ 5

Author(s):

Tariq Tawfeeq Yousif Alabdullah

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Emerging Economies ◽

Ownership Structure ◽

Foreign Ownership ◽

Fiscal Year ◽

Content Type ◽

Firm Financial Performance ◽

The Impact ◽

Practical Implications

Purpose Previous studies that dealt with corporate governance have witnessed gradually significant growth that created some new trends. The purpose of this paper is to be involved in such trends through examining the link between ownership structure as one of the important corporate governance mechanisms and firm performance in Jordan as one of emerging economies. Design/methodology/approach The current study used the multiple regression method to analyze available data for non-financial firms listed in the Amman Stock Exchange for the fiscal year 2012. Findings The findings revealed that managerial ownership has a positive impact on performance. On the other hand, the findings surprisingly showed no evidence to support the impact of foreign ownership on performance. Moreover, there is a significant evidence to support the fact that company size has no impact on firm performance. The findings also revealed that industry type has no impact on firm performance. Practical implications The practical implications of the current study demonstrated that good corporate governance is imperative to all organizations and must be encouraged for the interest of all stakeholders. Unlike the majority of the previous studies, the current study unexpectedly found that foreign ownership is not significantly contributing to the firm performance. Thus, Jordanian Government and other related/responsible parties should formulate policies for the foreign investors. Originality/value Interestingly, from developed and developing countries perspective, the study is the first of its kind that exclusively chose the mechanisms of ownership structure in its relationship with firm performance represented by market share, where no previous study has tested foreign ownership in such relationship. In that, this study is the first study in emerging economies to investigate such a link. Such new insights on this relationship by current study provide helpful information that is of great value to the government, academics, policy makers, and other stakeholders.

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Impact of Ownership Structure on Firm Performance in the MENA Region: An Empirical Study

Accounting and Finance Research ◽

10.5430/afr.v6n3p105 ◽

2017 ◽

Vol 6 (3) ◽

pp. 105 ◽

Cited By ~ 3

Author(s):

Neveen Ahmed ◽

Ola Abdel Hadi

Keyword(s):

Firm Performance ◽

Ownership Structure ◽

Positive Impact ◽

Mena Region ◽

Positive Role ◽

Insider Ownership ◽

Mena Countries ◽

Ownership Structures ◽

Firm Financial Performance ◽

The Impact

This paper investigates the impact of ownership structures on firm financial performance in the MENA region. The sample covers nine MENA countries (Egypt, Bahrain, Qatar, Kuwait, Tunisia, UAE, Morocco, Oman and Jordan) for the year 2014. We examine the impact of ownership structures on firm performance. Performance is proxied by Tobin-Q, ROE and ROA, while ownership structure is proxied using insider ownership, governmental, and blockholders. We control for risk, size, country effect and industry type. Our results suggest that blockholders, insider ownership and governmental ownership play a crucial role in firm performance measured by Tobin-Q, ROE and ROA respectively. Our results suggest that insider ownership negatively effects firm’s return on equity, while blockholder ownership has a positive impact on a firm’s Tobin-Q. Finally we find that governmental ownership plays a positive role on a firm’s return on assets in the MENA region.

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The Impact of Ownership Structure on Wage Intensity in Japanese Corporations

Journal of Management ◽

10.1177/0149206304271766 ◽

2005 ◽

Vol 31 (2) ◽

pp. 278-300 ◽

Cited By ~ 38

Author(s):

Toru Yoshikawa ◽

Phillip H. Phan ◽

Parthiban David

Keyword(s):

Human Capital ◽

Firm Performance ◽

Ownership Structure ◽

Opposite Effect ◽

Economic Recession ◽

Manufacturing Firms ◽

Capital Investments ◽

Human Capital Investments ◽

The Impact ◽

Japanese Corporations

The authors studied the effect of ownership structure on human capital investments as indicated by wage intensity, defined as the ratio of expenditure on employee wages to sales, in a sample of 996 Japanese manufacturing firms during their economic recession of 1998-2002. They found that domestic shareholders, with interests beyond financial considerations, enhance wage intensity, especially when performance is low, and thereby safeguard human capital investments. Foreign shareholders with sole interest in financial returns have an opposite effect; they reduce wage intensity when firm performance is low.

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International ownership and firm performance in Arab economies

Corporate Ownership and Control ◽

10.22495/cocv17i4siart8 ◽

2020 ◽

Vol 17 (4, Special Issue) ◽

pp. 308-318

Author(s):

Stefan Lutz ◽

Karim Hegazy ◽

Ehab K. A. Mohamed ◽

Mohamed A. K. Basuony

Keyword(s):

Firm Performance ◽

Ownership Structure ◽

Business Environment ◽

State Ownership ◽

Mena Region ◽

Cross Sectional ◽

Ownership Structures ◽

And Performance ◽

The Impact ◽

Better Than

This paper aims at filling existing research by examining the impact of corporate governance and ownership structure on firm performance using cross-sectional data from companies in the MENA region for the years 2009-2013. The results indicate that higher ownership concentration is associated with higher returns. Furthermore, firms with higher international ownership share tend to perform better than those with only local private and/or state ownership. The results suggest some prevalent features with respect to ownership and performance of firms in the MENA region. Due to the volatile social and business environment, these firms operate in, they may be particularly dependent on effective ownership structures and support which may be provided by international, institutional, and large shareholders.

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