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399813

Ownership concentration and firms’ performance

Article

Last updated: 04 Jan 2025

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Abstract

Purpose: This paper aims at investigating ownership concentration and explore the nature of the relationship between ownership concentration and firms' performance in the Egyptian economy over 2014 -2018.
Design /methodology / approach: The required data are gathered from the annual financial statements of the interested companies. The primary sources that have been used to collect data are: The Egyptian Stock Exchange and the Co face Financial Yearbook over the period 2014-2018. The sample of the existing research includes the companies listed in EGX30 over the period 2014-2018. The researcher employs Ordinary least Square method (OLS) to estimate the impact of ownership structure on firms' performance measured ROA and ROE. Two regression models were employed in this research.

Findings: My results confirmed that the mean value of ownership concentration of the largest shareholder in this research sample is 18.3570%. This implies that largest shareholder in Egypt has a fairly ownership concentration. Additionally, ownership concentration owned by the largest shareholder in my sample ranges from 17% to 20%. More than half of the total percentage of shares is already in the largest five shareholders' hands. It also suggests that the largest five shareholders have a widely concentrated structure of ownership. Additionally, the ownership concentration by largest five shareholders ranges from 58% to 59%. Ownership concentration measured by shares owned by largest owner contributes positively in enhancing firm's financial performance measured by ROA. However, it decreases significantly returns on equity (ROE).

DOI

10.21608/csj.2021.62198.1013

Keywords

ownership concentration, the percentage of largest owner, the percentage of largest five owners, Financial Performance

Authors

First Name

سارة

Last Name

صبحي محمد

MiddleName

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Affiliation

قسم ادارة الاعمال کلية التجارة جامعة القاهرة

Email

sarah_sobhy@foc.cu.edu.eg

City

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Orcid

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Volume

7

Article Issue

12

Related Issue

30093

Issue Date

2021-07-01

Receive Date

2021-02-08

Publish Date

2021-07-01

Page Start

2,150

Page End

2,171

Print ISSN

2356-9255

Online ISSN

2356-9263

Link

https://csj.journals.ekb.eg/article_399813.html

Detail API

https://csj.journals.ekb.eg/service?article_code=399813

Order

399,813

Type

المقالة الأصلية

Type Code

1,297

Publication Type

Journal

Publication Title

مجلة الدراسات التجارية المعاصرة

Publication Link

https://csj.journals.ekb.eg/

MainTitle

Ownership concentration and firms’ performance

Details

Type

Article

Created At

25 Dec 2024