The study uses panel data for seventeen 17 firms for the period 2001 2010 10 years. This paper intends to fill this research gap, by examining the effect of corporate ownership structure on firm performance. Value and corporate performance of firms capital structure is very important. The influence of the ownership and control structure on corporate. Ownership structure, investment behaviour and firm performance in. Corporate governance and firm performance of listed companies in malaysia wan fauziah wan yusoff and idris adamu alhaji university tun hussein onn malaysia author note idris adamu alhaji, faculty of technology management and business, university tun hussein onn malaysia, 86400 parit raja, batu pahat, johor, malaysia. Inessa love development research group the world bank andrei rachinsky center for economic and financial research at new economic school abstract. Secretary of state offices click here for links to the secretary of state offices of several states.
Ownership structure and corporate performance ying li previous studies of ownership structure mainly focus on the relationship between insider ownership and corporate performance. The debate goes back to berle and means 1932 thesis, which suggests that an inverse correlation should be observed between the diffuseness of shareholdings and firm performance. This ownership structure, that is, extent of ownership concentration, is related to corporate performance, as evidenced by the results of numerous academic very often conflicting studies in the areas of corporate management and governance. Article information, pdf download for ownership structure, investment behaviour and firm. Corporate governance, ownership structure and bank performance in jordan article pdf available may 2014 with 1,632 reads how we measure reads. Corporate governance, monitoring and the ownership structure of the firm. Ownership structure, firm performance, and corporate governance. While most empirical research on merger focus on daily stock return surrounding announcement date, a few studies also look at long term performance of term performance of acquiring firm after merger. Corporate governance, ownership and bank performance in. Mergers, acquisitions, and other changes to the corporate structure links to helpful web pages downloadable forms links to helpful web pages state corporation law click here for links to the corporate law statutes of several states. The impact of ownership structure on the financial. Ownership structure, investment behaviour and firm performance. Pdf ownership structure, corporate governance and firm.
However, empirical results have failed to provide consistent evidence to prove whether the type of ownership does significant affect firm performance. Many countries have recognized in recent years that mergers, corporate. There is a question of how one should interpret cr4 with respect to management performance. Ownership structure, firm performance, and corporate. Corporate governance, ownership and bank performance in emerging markets. However, i do not find any evidence of interaction effects between the ownership structure variables and acquirer firm longterm postmerger. The 431 mining and manufacturing firms contained in their data base are used to estimate regression coefficients. It is proved that an open communication, a flexible structure, support mechanisms such as reward systems and entrepreneurial orientation that encourage. Ownership structure and firm performance university of twente. A study of listed firms in vietnam thesis submitted to the school of business of the university of western sydney in fulfilment of the requirements for the degree of doctor of business administration duc nam phung march 2015.
Performance of mergers and acquisitions under corporate. Control potential control potential is the wealth gain achievable through more effective monitoring of managerial performance by a firms owners. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the. Jul 25, 2011 the three principal structural alternatives for a merger or acquisition transaction are the statutory merger, acquisition of assets and acquisition of stock or other form of equity of the target. Corporate governance, ownership structure and performance in. In brazil, the ownership and control structure of companies is marked by its high. Aman srivastava associate professor jaipuria institute of management, noida, india, email. Impact of ownership structure on financial performance of. This study set out with the aim of investigating the effect of ownership structure and corporate governance on bank performance profitability and operating efficiency.
The corporate governance has been a growing area of management research. Evidence from selected arab countries abstract the paper works with a sample of 304 firms from different sectors of the economy, and from a representative group of arab countries egypt, jordan, oman and tunisia where related data could be gathered. Introduction an important and open question is how the incentives of managers and the governance profiles of companies influence the operating outcomes of a merger. The debate goes back to the berle and means 1932 thesis, which suggests that an inverse correlation should be observed between the diffuseness of shareholdings and firm performance. Takeover activity is a significant part of the australian corporate market. The purpose of the study is to investigate the relationship between firms ownership structures, corporate governance pratices and firm performance. It is the premise of this study to shed light on, and to help explain, the relationship between the type of merger, ownership structure and acquirer longterm post merger performance. This paper presents evidence on the relationship between ownership, corporate governance.
Performance of mergers and acquisitions under corporate governance perspective article pdf available in open journal of social sciences 0107. The nature of corporate governance and performance in the. Operating performance changes associated with corporate. Impact of ownership structure and corporate governance on. They used panel data with 7900 observations banks over the period 19881995. Mergers and acquisitions in restructuring business. Ownership structure, inside ownership and firm performance. Evidence from bangladesh omar al farooque,a tony van zijl,b keitha dunstanc and akm waresul karimd auniversity of new england b, c, dvictoria university of wellington. Namazi and kermani2008 analyzed the impact of ownership structure on corporate performance of listed companies in tehran stock exchange.
Insider ownership, ownership concentration and investment. Operating performance changes associated with corporate mergers and the role of corporate governance 1. Although the effect of ownership structure on firm performance has been the subject of. If the market for corporate control and the managerial labor market per. The investigation made by assessing the impact of the structure of ownership on corporate performance, measured by profitability along with data on year 2000 from 175 of greek listed firms which. Pdf this study investigates the influence of ownership structure on longterm postmerger operating performance of acquirers. Hu and izumida 2008 state the ownership performance relationship varies across countries and over time. Ownership structure and corporate performance sciencedirect. Ownership structure and corporate performance by harold. Ownership structure, inside ownership and firm performance author. The central research question and purpose of this topic is oriented on the. Pdf corporate governance, ownership structure and bank. The effect of ownership structure on corporate performance of.
Recommended citation dai, sophia and helfrich, christian, the structure of corporate ownership and control 2016. Abstract this paper examines the impact of ownership structure on the financial performance of listed insurance firms in nigeria. Corporate governance practices, ownership structure, and. There are several aspects and dimensions of corporate governance, which may influence a firms. The relation between ownership structure and performance has been the subject of an important and ongoing debate in the corporate finance literature. Performance implication of ownership structure and ownership concentration. Ownership structure, corporate diversification, and firm. Merger%and%acquisition the impact on organizationalculture. A truly healthy merger results in improvements across multiple dimensions, including operating and financial performance, business and technical capabilities, strength of stakeholder relationships, corporate culture, pace and focus of learning, and ability to renew and enhance strategy.
I focus on the role of two main dimensions of the ownership. Evidence from panel data of south korea sanghoon lee university of utah, department of economics abstract the study seeks to examine the effect of equity ownership structure on firm financial performance in south korea. Buzz of merger and acquisition often creates hype in the financial market about the acquirers stock price. Participants will learn the key principles and concepts related to discounted cash flows, project analysis and budgeting, optimizing capital structure and capital raising issues. Ownership structure and corporate performance request pdf. The influence of corporate ownership structure on corporate performance and governance has been a matter of debate and investigation in the literature of financial performance, and financial. Specifically, this study narrows the ownership structures categories into. Ownership structure is one of the main dimensions of corporate governance and is widely seen to be. Performance implication of ownership structure and ownership. The connection between ownership structure and performance has been the subject of an important and ongoing debate in the corporate finance literature. Corporate governance, monitoring and the ownership structure. This paper investigates the relation between the ownership structure and the performance of corporations if ownership is made multidimensional and also is trea. Ownership structure, corporate diversification, and firm performance. The estimates show that firm performance does affect ownership structure but not that ownership structure affects firm performance.