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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
MiddleName
-Affiliation
قسم ادارة الاعمال کلية التجارة جامعة القاهرة
Email
sarah_sobhy@foc.cu.edu.eg
City
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-Link
https://csj.journals.ekb.eg/article_399813.html
Detail API
https://csj.journals.ekb.eg/service?article_code=399813
Publication Title
مجلة الدراسات التجارية المعاصرة
Publication Link
https://csj.journals.ekb.eg/
MainTitle
Ownership concentration and firms’ performance