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Ownership Structure and Firm Performance

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  • Gholamreza Zandi
  • Jaspal Singh
  • Shafi Mohamad
  • Syed Ehsanullah

Abstract

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.

Suggested Citation

  • Gholamreza Zandi & Jaspal Singh & Shafi Mohamad & Syed Ehsanullah, 2020. "Ownership Structure and Firm Performance," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 293-300, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:293-300
    DOI: 10.5430/ijfr.v11n2p293
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    Cited by:

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    2. Anaclet Biket Okumu & Tobias Olweny & Willy Muturi, 2022. "The Moderating Effect of Automation on Firm Specific Factors and Performance of Initial Public Offering Stocks at The Nairobi Securities Exchange In Kenya," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(3), pages 1-5.

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