Ownership concentration, ownership identity and firm performance : an empirical analysis of Dutch listed firms

Boerkamp, E.P.G. (2016) Ownership concentration, ownership identity and firm performance : an empirical analysis of Dutch listed firms.

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Abstract:Ownership structure is considered as an important corporate governance mechanism. However, the relationship between ownership structure and firm performance remains an empirical issue as different researches yield mixed results. This research aims at adding to the existing literature by providing empirical evidence about the ownership structure of Dutch listed firms. Ownership concentration by the largest shareholder has been found to have a positive effect on firm performance. Nevertheless, another measure of ownership concentration follows a quadratic relationship with firm performance, thereby highlighting both the incentive and the entrenchment effect. Multiple large shareholdings follow the same relationship. The control-ownership wedge was found to oftentimes have a positive effect on firm performance, which was not expected by literature. Institutional ownership has been found to have a positive effect on firm performance. Family ownership’s influence on firm performance is firstly negative but after shareholdings of around 20 percent, its influence becomes positive. Unfortunately, managerial ownership does not provide a clear direction of the relationship. This research has practical relevance in the sense that managers can understand why a certain firm performance can be expected from ownership structure.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/70140
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