Corporate Ownership Structure and Firm Performance: A Brief Review
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DOI: 10.23977/icemgd.2019.005
Corresponding Author
Yiwen Fang
ABSTRACT
The correlation between ownership structure and corporate performance has been studied extensively in the corporate finance literature. The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms affecting the manager behavior and behavioral tendency of shareholders, which in turn affects the firm value. This paper gives a brief review on the relationship between firm performance and different dimensions of ownership structure (with special attention to ownership concentration and insiders ownership). The results of existing literature regarding the value-ownership relationship have not been conclusive, thus the probable reasons of the discrepancy are discussed. And several avenues for future research are also provided in the end of this paper.
KEYWORDS
Ownership structure; firm performance; ownership concentration; insiders ownership