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Ultimate Owner and Firm Performance - Evidence from Romanian Mining and Quarrying Listed Firms

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Listed:
  • Iuliana Oana MIHAI

    (Department of Business Administration, Faculty of Economics and Business Administration, “Dunarea de Jos” University of Galati, Romania)

  • Cosmin MIHAI

    (Department of Business Administration, Faculty of Economics and Business Administration, “Dunarea de Jos” University of Galati, Romania)

Abstract

The main objectives of this paper are to describe the necessary steps to identify the ultimate owner and to investigate the relation between the ultimate ownership and the financial performance of Romanian mining and quarrying listed firms. The study was conducted for the companies listed on Bucharest Stock Exchange, in both regulated and non-regulated segments. The final sample included 17 companies of mining and quarrying. Return on Equity was used for measuring the financial performance of the firms. The ultimate ownership was measured by the percentage of voting rights held by a shareholder. Econometric tools like multiple linear regression analysis were used for analysis. The results of the study suggest that there is a significant negative link between financial performance and divergence between voting rights and cash-flow rights

Suggested Citation

  • Iuliana Oana MIHAI & Cosmin MIHAI, 2012. "Ultimate Owner and Firm Performance - Evidence from Romanian Mining and Quarrying Listed Firms," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 75-82.
  • Handle: RePEc:ddj:fseeai:y:2012:i:2:p:75-82
    as

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    File URL: http://www.ann.ugal.ro/eco/Doc2012.2/Mihai_Mihai.pdf
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    References listed on IDEAS

    as
    1. Stijn Claessens & Simeon Djankov & Joseph P. H. Fan & Larry H. P. Lang, 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," Journal of Finance, American Finance Association, vol. 57(6), pages 2741-2771, December.
    2. Wiwattanakantang, Yupana & ウィワッタナカンタン, ユパナ, 2001. "The Equity Ownership Structure of Thai Firms," CEI Working Paper Series 2001-8, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
    4. Yves Bozec & Claude Laurin, 2008. "Large Shareholder Entrenchment and Performance: Empirical Evidence from Canada," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(1‐2), pages 25-49, January.
    5. Yin‐Hua Yeh, 2005. "Do Controlling Shareholders Enhance Corporate Value?," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(2), pages 313-325, March.
    6. Yves Bozec & Claude Laurin, 2008. "Large Shareholder Entrenchment and Performance: Empirical Evidence from Canada," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(1-2), pages 25-49.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Sebastian LAZAR, 2016. "Determinants Of Firm Performance: Evidence From Romanian Listed Companies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 17, pages 53-69, June.
    2. Sorin Gabriel ANTON, 2016. "The Impact Of Leverage On Firm Growth. Empirical Evidence From Romanian Listed Firms," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 147-158, December.

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    More about this item

    Keywords

    Ultimate owner; Financial performance; Voting rights; Cash flow rights;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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