The relationship between ownership concentration and performance in Czech Republic

Machek, Ondřej; Kubíček, Aleš

doi:10.14254/2071-8330.2018/11-1/13

Cited by 15 publications

(22 citation statements)

References 17 publications

(19 reference statements)

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“…(2013) conclude that it is important for the businesses to use the right model to capture and evaluate their investment risk, as it is an important determinant for raising the capital at favorable terms, and thus having an optimal capital structure. Machek and Kubíček, (2018) also report significant support for the trade-off theory in Czech companies; they report that the agency problems are minimized with concentrated ownership structure, supporting organizational performance, however, only to a certain extent. They conclude that the firms must weigh the effectiveness of concentration of ownership structure against the marginal contribution to the organizational efficiency, and thus, there must be an optimal capital structure.…”

Section: Literature Reviewmentioning

confidence: 96%

Factors affecting the capital structure: New evidence from GCC countries

Khaki¹,

Akın²

2020

Journal of International Studies

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This study aims to identify the firm-specific determinants of capital structure in the Gulf Cooperation Council (GCC) countries, namely Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates. A number of regression models are employed on the data of 329 non-financial firms for the period between 2009 and 2017. The data has been analysed at both country level and regional level to look for the evidence on the major determinants of capital structure and the differences, if any. The findings indicate that size, tangibility, and growth opportunities have positive impact on leverage. On the other hand, profitability, age, financial constraints, liquidity, and government ownership affect the leverage negatively. There is a weak evidence for a positive relationship between leverage and operating risk. The results also imply that the institutional features of GCC countries have a minor effect on the leverage within a general model for the region. Although GCC countries have a unique institutional environment that distinguishes them substantially from other countries, the current study provides evidence that the capital structure decisions are influenced by the same factors as in other developing countries.

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Section: Literature Reviewmentioning

confidence: 96%

Factors affecting the capital structure: New evidence from GCC countries

Khaki¹,

Akın²

2020

Journal of International Studies

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“…This is because firm size varies with the moderator, as supported by [60,61,166]. Large firms may be likely to have a low level of ownership concentration, which could lead to a negative relationship between ownership and firm size [174].…”

Section: Hypothesis 4 Examinationmentioning

confidence: 98%

An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan

2019

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Corporate social responsibility (CSR) are the activities of firms that are not only considered for economic profit but also include the social welfare returns. To find the key drivers that affect the relationship between corporate social responsibility (CSR) and firm performance, we investigated the moderating effects of CEO power and ownership structure. Ownership structure is classified into two parts: managerial ownership and ownership concentration. We selected a sample of firms from eight manufacturing sectors of the Pakistani economy for the analysis. We collected data from the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX), and companies’ annual reports over the period 2008 to 2017. We employed the Fixed Effects model and Generalized Method of Moment (GMM) to investigate the association between CSR and firm performance. The empirical analysis of this study highlights the following conclusions: First, CSR has a significant positive association with firm performance. Second, the relationship between CSR and firm performance shows the same results with the interaction of CEO power. Thirdly, interaction of the managerial ownership with CSR has a significant positive relationship with firm performance. Fourth, the interaction of the ownership concentration with CSR has a positive effect on firm performance.

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“…Table 5 shows a positive correlation between performance (ΔROA and ΔROE) and ownership concentration (OWC1-5), but the correlation was non-significant at the 90% level of confidence and therefore remains inconclusive. However, performance and ownership concentration were significantly correlated in a study by Gaur, Bathula and Singh (2015) involving firms from New Zealand in the period 2004-2007, and in a study by Machek and Kubíček (2018) involving firms from the Czech Republic in the period 2007-2015.…”

Section: Tablementioning

confidence: 88%

Ownership Concentration and Corporate Performance of Brazilian Firms before and after Initial Public Offerings

Viana¹,

Morais²,

Luca³

et al. 2020

CGG

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Objective: To evaluate the influence of ownership concentration on variation in corporate performance before and after initial public offerings (IPO) in firms launched on B3. Methods: Economic and financial information was obtained from the reference forms of 55 firms. Variation in performance was proxied by ROA and ROE two years before vs. two years after IPO. Ownership concentration was proxied by the proportion of shares with voting rights belonging to the single-largest, two largest, three largest, four largest or five largest shareholders. Originality/relevance: In addition to contributing to the literature, this is the first Brazilian study on the topic to analyze variation in performance before and after IPO, in light of the potential impact of IPO on firms. Results: Our results suggest that performance proxied by mean ROA and ROE tends to decrease in the post-IPO period. However, in our sample, ownership concentration did not significantly influence variation in corporate performance before and after IPO. Theoretical/methodological contribution: Based on our sample and the control variables used in the proposed econometric model, the presence of large controlling shareholders at the time IPO does not seem to influence the level of corporate performance following IPO, suggesting other factors are responsible for the observed behavior.

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The relationship between ownership concentration and performance in Czech Republic

Cited by 15 publications

References 17 publications

Factors affecting the capital structure: New evidence from GCC countries

Factors affecting the capital structure: New evidence from GCC countries

An Analysis of Corporate Social Responsibility and Firm Performance with Moderating Effects of CEO Power and Ownership Structure: A Case Study of the Manufacturing Sector of Pakistan

Ownership Concentration and Corporate Performance of Brazilian Firms before and after Initial Public Offerings

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