scholarly journals Does ownership structure affect firm performance? Evidence from Nigerian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 503-513
Author(s):  
Ioraver N. Tsegba ◽  
Joseph K. Achua
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Insider Ownership ◽  
Ownership Structures ◽  
Concentrated Ownership ◽  
The Relationship

This paper examines the relationship between ownership structure and firm performance from the perspective of listed Nigerian companies. The sample comprises 73 companies listed on the Nigerian Stock Exchange for which relevant financial data is available for the period 2001 to 2007. The empirical results obtained through ordinary least squares (OLS) analysis provide evidence which suggests that dominant shareholding, ownership concentration, and foreign ownership structures have no significant effect on firm performance. However, insider ownership is inversely related to firm performance. Two major policy implications emerge from the results of this study. First, since ownership structures such as, dominant shareholding, concentrated ownership, and foreign ownership have no significant effect on firm performance, government emphasis on them is misplaced. Second, insider ownership of Nigerian firms is to be monitored closely by shareholders due to the adverse effect of this ownership structure on firm performance.

scholarly journals Influence analysis of ownership structure on manufacturing company's performance in Indonesia 2012 - 2013

2019 ◽  
Vol 4 (2) ◽  
pp. 47
Author(s):  
Darwin Marasi Purba ◽  
Jhon Herlan Sianturi
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Control Variable ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Manufacturing Companies ◽  
Analysis Model ◽  
Return On Assets ◽  
A Company

The purpose of this study is to analyse the effect of ownership structure on profitability in the manufacturing sector listed in Indonesia Stock Exchange (BEI). Independent variables used for this study consist of institutional ownership, foreign ownership, and pubic ownership. Profitability is measured by ROA (Return On Assets). While leverage as firm size is used as the control variable. This research uses secondary data, namely the annual financial statements of listed manufacturing companies in Indonesia Stock Exchange for the years 2012, and 2013. The sampling method used was purposive sampling and data analysis model used was multiple regression analysis. Results from this study indicate that institutional ownership in a company has a positive and significant effect on firm performance. Meanwhile, the foreign ownership and public ownership has no a positive effect on firm perforrmance in a company. Keyword: Ownership structure, Return on assets (ROA), Firm performance.

scholarly journals The Relationship between the Ownership Structure, Capital Structure and Performance

2018 ◽  
Vol 1 (25) ◽  
pp. 1 ◽  
Author(s):  
Ali Al-Thuneibat
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Assets ◽  
Service Companies ◽  
Concentrated Ownership ◽  
And Performance ◽  
The Relationship

This paper aims at providing an empirical evidence concerning the relationship between the ownership structure, capital structure and financial performance of the shareholding companies listed in Amman Stock Exchange (ASE). To measure the ownership structure, the researcher used four variables including foreign, institutional, managerial and concentrated ownership. The capital structure is measured by using the leverage, and the performance is measured by using the return on assets (ROA). To achieve the objectives of the study, a sample of 86 firms from the industrial and service companies listed in ASE during the period 2010 and 2014 is used. The results of the study showed that the relationship between ownership structure in general, and performance is positive and statistically significant, however, the results showed that the various types of ownership structure have different types of relationships with performance. More specifically, there is a negative impact of institutional and foreign ownerships on the performance and positive impact of concentrated and managerial ownerships. The results also revealed that there is a positive impact of the financial leverage on the relationship between ownership structure and firm performance. The findings of the study provide implications to the regulators, investors and managers in Jordan to take into consideration the environment-specific factors when developing corporate regulations and encourage concentrated and managerial ownership because they have positive impact on performance.

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

2017 ◽  
Vol 6 (3) ◽  
pp. 105 ◽  
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. 

Empirical investigation of relationship between research and development intensity and firm performance: The role of ownership structure and board structure

2019 ◽  
Vol 06 (02) ◽  
pp. 1950016
Author(s):  
Muhammad Usman Yousaf ◽  
Muhammad Kashif Khurshid ◽  
Aftab Ahmed ◽  
Muhammad Zulfiqar
Keyword(s):  
Firm Performance ◽  
Research And Development ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Outcome Variable ◽  
Board Structure ◽  
Governance Mechanism ◽  
Financial Firms ◽  
The Relationship

Research and development is an emerging competitive advantage to gain maximum market share. This study is conducted to empirically investigate the relationship between research and development intensity and firm performance in selected non-financial firms listed at Pakistan Stock Exchange (PSX). Moreover, the role of ownership structure and board structure have been evaluated between predictor and outcome variable. For this purpose, 27 non-financial firms listed on PSX have been selected for the period of eight years from 2009 to 2016 and unbalanced panel data was obtained. Research and development intensity has been used as an independent variable. ROA, ROE, and TQ are used as measures of financial performance, i.e., dependent variable. Ownership concentration, institutional ownership, and managerial ownership are used as the proxies for ownership structure. Board size, board independence, and board meeting frequency are used as the proxies for board structure. Moreover, firm size, firm age and leverage have also been used as a control variables in data analysis. Based on data analyses, it is concluded that research and development intensity has a positive and significant relationship with all three proxies of firm performance, i.e., ROA, ROE and Tobin’s Q. Afterward, the researchers have investigated the moderating role of ownership structure and board structure between research and development intensity and three proxies of firm performance. It is also concluded that in general ownership structure as well as board structure are negatively moderating the relationship between research and development intensity and firm performance which raises a question mark on the effectiveness of corporate governance mechanism in terms of R&D performance.

scholarly journals CSR reporting and ownership structure: Evidence from Italian listed companies

2020 ◽  
Vol 17 (3) ◽  
pp. 146-157 ◽  
Author(s):  
Fabio Fortuna ◽  
Mirella Ciaburri ◽  
Silvia Testarmata ◽  
Riccardo Tiscini
Keyword(s):  
Ownership Structure ◽  
Family Firms ◽  
Listed Firms ◽  
Ownership Structures ◽  
Csr Reporting ◽  
Concentrated Ownership ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship ◽  
Dispersed Ownership

The paper empirically explores how firms’ Corporate Social Responsibility (CSR) disclosure varies according to their ownership structure. Three different kinds of ownership structures are considered: family firms (FFs), state-owned firms (SOFs) and firms with dispersed ownership (DOFs). It is the first study examining the relationship between CSR disclosure and ownership structure, which includes in the analysis also FFs and SOFs. The analysis is provided on a sample of 192 listed firms with reference to Italy, a suitable setting for the purpose of the study due to the considerable presence of both FFs and SOFs. Firstly, a content analysis on the CSR documents disclosed by the 192 firms is provided and then data are empirically analysed to test whether the ownership structure influences a firm’s CSR disclosure. Results show that FFs and SOFs disclose less CSR information and the explanation can be found in the lower level of agency problems they have to face. The paper contributes to the stream of literature about CSR disclosure, because it argues that the contents of CSR disclosure vary according to firm’s ownership structure and also to those about FFs and SOFs because it shows that the presence of a concentrated ownership lowers the level of CSR information disclosed.

scholarly journals Impact of corporate ownership and control on firm performance: The Nigerian experience

2012 ◽  
Vol 9 (2) ◽  
pp. 94-105
Author(s):  
Ioraver Nyenger Tsegba ◽  
John Iorpenda Sar
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
The State ◽  
Corporate Ownership ◽  
Control Structures ◽  
The Core ◽  
And Control ◽  
Better Than

The main purpose of this study is to ascertain whether alternative corporate ownership and control structures give rise to significant differential firm performance in light of Nigeria’s conflicting polices regarding the ownership structure of the state owned enterprises. The data obtained from a sample of 73 companies listed on the Nigerian Stock Exchange is analyzed through the Wilcoxon ranks tests for two independent samples. The evidence obtained suggests that firms with foreign ownership and control outperform their indigenous counterparts. However, firms controlled by single shareholders do not perform better than those controlled by multiple shareholders. The study recommends that foreign ownership and control of Nigerian firms be encouraged due to their affirmative features, while single shareholder control of firms, embedded in the core investor mode of ownership, is reconsidered.

scholarly journals Leverage, Ownership Structure and Firm Performance: Evidence from Karachi Stock Exchange

2015 ◽  
Vol 2 (2) ◽  
pp. 1-7
Author(s):  
Adnan Ali ◽  
Attaullah Shah ◽  
Farzand Ali Jan
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Performance Measure ◽  
Managerial Ownership ◽  
Return On Assets ◽  
Control Variables ◽  
Simple Regression Analysis ◽  
Using Data ◽  
The Relationship

This study aims to investigate the relationship between the ownership structure and firm performance. The study uses two performance measures i.e. market-based performance measure (Tobin’s Q) and accounting-based performance measure (return on assets (ROA)) as dependent variables and ownership proxies and other control variables as independent variables whereas leverage is used as moderating variable. The ownership proxies include the managerial ownership and institutional ownership while the control variables include the size of the firm, the coefficient of variation, and growth. This study has used simple regression analysis while using data of 355 firms listed on Karachi Stock Exchange (KSE) for the years 2003 to 2008. The results show that the ownership structure has significant relationship with the market-based performance measure, while it has insignificant relationship with the accounting-based performance measure. Moreover, the leverage has no moderating effect on the relationship between ownership structure and firm performance

scholarly journals Effects of ownership concentration on firm performance: Pakistani evidence

2015 ◽  
Vol 9 (2) ◽  
pp. 162-176 ◽  
Author(s):  
Qaiser Rafique Yasser ◽  
Abdullah Al Mamun
Keyword(s):  
Firm Performance ◽  
Performance Measures ◽  
Stock Exchange ◽  
Emerging Market ◽  
Positive Association ◽  
Ownership Concentration ◽  
Content Type ◽  
Concentrated Ownership ◽  
Concentration Degree ◽  
The Relationship

Purpose – This paper aims to present an analysis of the association between five categories of concentrated ownership and firm performance in Pakistan. The connection between high ownership concentration and firm performance has attracted much attention, especially in emerging market, yet yielded many inconsistent empirical results. Design/methodology/approach – Karachi Stock Exchange (KSE)-100 Indexed companies listed in KSE from 2007 to 2011 were selected as the sample, and correlation coefficient and regression model were used to inspect the relationship between ownership concentration degree and corporate performance. Findings – It was found that there is no significant association with ownership concentration and accounting-based performance, market-based performance measures and economic profit, in general. Originality/value – The first demonstration that the shareholding proportion of the single largest shareholder is the only variable having positive association with market-based performance measures.

scholarly journals Ownership Structure and Firm Performance

2020 ◽  
Vol 11 (2) ◽  
pp. 293
Author(s):  
Gholamreza Zandi ◽  
Jaspal Singh ◽  
Shafi Mohamad ◽  
Syed Ehsanullah
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Rate Of Return ◽  
Managerial Ownership ◽  
Ownership Structures ◽  
Sample Data ◽  
Accounting Rate

This study implies that diffuse ownership structure negatively affects firm performance. Our study based on empirical evidence found that the ownership structure (the outsider and the insider i.e. managerial ownership) favorably increase the firm performance. Our sample data was based on 200 Malaysian companies listed on the Malaysian stock exchange Bursa Malaysia. We used Tobin’s Q and accounting rate of return for firm performance measurement and compared it with important ownership structure and managerial ownership structure. Our results indicate that both ownership structures have a positive relationship with firm performance.

scholarly journals Equity ownership structure and corporate performance using industry-adjusted measures

2010 ◽  
Vol 7 (4) ◽  
pp. 49-61
Author(s):  
Bingsheng Yi ◽  
Jang Shee Barry Lin ◽  
Jane Mooney
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Firm Value ◽  
Shape Effect ◽  
Minority Shareholders ◽  
Insider Ownership ◽  
Negative Effect ◽  
Equity Ownership Structure ◽  
The Relationship ◽  
Positive Effect

This paper applies a more robust methodology in industry-adjustment on measuring firm performance as related to ownership structure. We consider insider ownership, institutional ownership, and blockholder ownership. Even after controlling for the endogeneity of insider ownership, we still find positive effect of insider ownership on firm performance, which is conflicting with results found by other recent studies. We find a non-linearity in the relationship between insider ownership and firm performance, but our results do not support a relationship as neat as the inverse U-shape effect found by earlier studies. Our results indicate that the effects of the insider and square of insider on performance are positive, yet the effect of the cubic of insider ownership on firm performance is negative. As no other study based on U.S. data used the cubic of insider ownership and document its effect, our finding is new. We find strong negative effect of blockholder ownership on firm performance, and our results indicate that institutional investors are efficient monitors whose existence helps improving firm value and protecting outside minority shareholders.

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