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The Impact of Ownership Structure on Corporate Performance in Transitional Economies

Author

Listed:
  • Slobodan Cerovic

    (Singidunum University, Belgrade, Serbia)

  • Nemanja Stanišic

    (Singidunum University, Belgrade, Serbia)

  • Tijana Radojevic

    (Singidunum University, Belgrade, Serbia)

  • Nikica Radovic

    (Singidunum University, Belgrade, Serbia)

Abstract

The relationship between ownership structure and corporate performance might be remarkably strong and in formative within transition economies. In this research, we explore this relationship, referring to the example of the Republic of Serbia. For that purpose, appropriate linear models have been fitted to the panel dataset compiled from financial reports of 2101 non-financial companies actively operating during the period 2008-2013. The results indicate that, after controlling for size effect, companies characterised by state, dispersed or/and foreign ownership have significantly lower profitability in comparison to their counterparts. We would argue that an intensified agency problem and lack of entrepreneurial spirit might be the root of the profitability problem.

Suggested Citation

  • Slobodan Cerovic & Nemanja Stanišic & Tijana Radojevic & Nikica Radovic, 2015. "The Impact of Ownership Structure on Corporate Performance in Transitional Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(38), pages 441-441, February.
    • Handle: RePEc:aes:amfeco:v:38:y:2015:i:17:p:441
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    More about this item

    Keywords

    ownership structure; profitability; agency problem; linear mixed models;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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