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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.

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 K), 723-734. doi:10.22495/cocv11i1c8art3

Scopus Eid


  • 2-s2.0-84893076904

Web Of Science Accession Number


Start Page


  • 723

End Page


  • 734

Volume


  • 11

Issue


  • 1 K

Place Of Publication


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 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 K), 723-734. doi:10.22495/cocv11i1c8art3

Scopus Eid


  • 2-s2.0-84893076904

Web Of Science Accession Number


Start Page


  • 723

End Page


  • 734

Volume


  • 11

Issue


  • 1 K

Place Of Publication