The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain
In this study we examine the relation between ownership structure and corporate performance; the sample of the study included 42 out of 48 companies of all sectors in Bahrain Bourse in five years from 2007-2011. Several dimensions of ownership concentration were studied in addition to managerial a...
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doaj-2b04b73ff108497494e72cf7999015c62020-11-24T22:40:56ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192015-12-0194375510.14453/aabfj.v9i4.4The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from BahrainReem Khamis0Allam Mohammed Hamdan1Wajeeh Elali2Brunel University, UKAhlia University, BahrainAhlia University, BahrainIn this study we examine the relation between ownership structure and corporate performance; the sample of the study included 42 out of 48 companies of all sectors in Bahrain Bourse in five years from 2007-2011. Several dimensions of ownership concentration were studied in addition to managerial and institutional ownership. Two different measurements of performance were used (ROA and Tobin’s Q). The study investigated this relation using several control variables and 2SLS statistical method to overcome the problem of endogeneity that may exist between the study variables. It was found that ownership concentration have a negative effect with statistical significance on company performance. Institutional ownership was found to have a positive effect on company performance. Managerial ownership was not found to have a significant effect on company performance, however it was found that managerial ownership has a positive effect on performance only in the case of declining ownership concentration. Other results were revealed by the study regarding company age, size, growth, board size and liquidity. The study is considered to have theoretical and practical implications. It contributes to the debate about agency theory and managerial entrenchment. It also may help officials in Bahrain in making laws and legislations concerning corporate governance improvement in Bahraini market. Thishttp://ro.uow.edu.au/aabfj/vol9/iss4/4Ownership structureOwnership concentrationForeign ownership2SLSInstitutional ownershipendogeneityManagerial ownershipCompany performancecorporate governance |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Reem Khamis Allam Mohammed Hamdan Wajeeh Elali |
spellingShingle |
Reem Khamis Allam Mohammed Hamdan Wajeeh Elali The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain Australasian Accounting, Business and Finance Journal Ownership structure Ownership concentration Foreign ownership 2SLS Institutional ownership endogeneity Managerial ownership Company performance corporate governance |
author_facet |
Reem Khamis Allam Mohammed Hamdan Wajeeh Elali |
author_sort |
Reem Khamis |
title |
The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain |
title_short |
The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain |
title_full |
The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain |
title_fullStr |
The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain |
title_full_unstemmed |
The Relationship between Ownership Structure Dimensions and Corporate Performance: Evidence from Bahrain |
title_sort |
relationship between ownership structure dimensions and corporate performance: evidence from bahrain |
publisher |
University of Wollongong |
series |
Australasian Accounting, Business and Finance Journal |
issn |
1834-2000 1834-2019 |
publishDate |
2015-12-01 |
description |
In this study we examine the relation between ownership structure and corporate performance; the sample of
the study included 42 out of 48 companies of all sectors in Bahrain Bourse in five years from 2007-2011.
Several dimensions of ownership concentration were studied in addition to managerial and institutional
ownership. Two different measurements of performance were used (ROA and Tobin’s Q). The study
investigated this relation using several control variables and 2SLS statistical method to overcome the problem
of endogeneity that may exist between the study variables. It was found that ownership concentration have a
negative effect with statistical significance on company performance. Institutional ownership was found to
have a positive effect on company performance. Managerial ownership was not found to have a significant
effect on company performance, however it was found that managerial ownership has a positive effect on
performance only in the case of declining ownership concentration. Other results were revealed by the study
regarding company age, size, growth, board size and liquidity. The study is considered to have theoretical and
practical implications. It contributes to the debate about agency theory and managerial entrenchment. It also
may help officials in Bahrain in making laws and legislations concerning corporate governance improvement
in Bahraini market.
This |
topic |
Ownership structure Ownership concentration Foreign ownership 2SLS Institutional ownership endogeneity Managerial ownership Company performance corporate governance |
url |
http://ro.uow.edu.au/aabfj/vol9/iss4/4 |
work_keys_str_mv |
AT reemkhamis therelationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain AT allammohammedhamdan therelationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain AT wajeehelali therelationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain AT reemkhamis relationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain AT allammohammedhamdan relationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain AT wajeehelali relationshipbetweenownershipstructuredimensionsandcorporateperformanceevidencefrombahrain |
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