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The structure of corporate ownership and firm performance: Sri Lankan evidence

Journal Article


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.

UOW Authors


Publication Date


  • 2013

Citation


  • Manawaduge, A. & De Zoysa, A. (2013). The structure of corporate ownership and firm performance: Sri Lankan evidence. Corporate Ownership and Control, 11 (1), 723-734.

Scopus Eid


  • 2-s2.0-84893076904

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/316

Number Of Pages


  • 11

Start Page


  • 723

End Page


  • 734

Volume


  • 11

Issue


  • 1

Place Of Publication


  • http://www.virtusinterpress.org/Published-Issues-of-the-Journal,62.html

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.

UOW Authors


Publication Date


  • 2013

Citation


  • Manawaduge, A. & De Zoysa, A. (2013). The structure of corporate ownership and firm performance: Sri Lankan evidence. Corporate Ownership and Control, 11 (1), 723-734.

Scopus Eid


  • 2-s2.0-84893076904

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/316

Number Of Pages


  • 11

Start Page


  • 723

End Page


  • 734

Volume


  • 11

Issue


  • 1

Place Of Publication


  • http://www.virtusinterpress.org/Published-Issues-of-the-Journal,62.html