The structure of corporate ownership and firm performance: Sri Lankan evidence
RIS ID
87680
Link to publisher version (URL)
Abstract
This paper examines the impact of ownership structure and concentration on firm performance in Sri Lanka, an emerging market in Asia. The study estimates a series of regressions using pooled data for a sample of Sri Lankan-listed firms to investigate the impact of ownership concentration and structure on firm performance based on agency theory framework, using both accounting and market-based performance indicators. The results of the study provide evidence for a strong positive relationship between ownership concentration and accounting performance measures. This suggests that a greater concentration of ownership leads to better performance. However, we found no significant impact using market-based performance measures, which suggests the existence of numerous market inefficiencies and anomalies. Furthermore, the findings of the study show that ownership structure does not have a significant distinguishable effect on performance.
Publication Details
Manawaduge, A. & De Zoysa, A. (2013). The structure of corporate ownership and firm performance: Sri Lankan evidence. Corporate Ownership and Control, 11 (1, Fall (continued 8)), 723-734.