Ownership structure of family business groups of Pakistan

Shahid Hussain () and Nabeel Safdar ()
Additional contact information
Shahid Hussain: National University of Sciences and Technology (NUST), NUST Business School
Nabeel Safdar: National University of Sciences and Technology (NUST), NUST Business School

No 7108626, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: This study analysis the family business groups ownership structure in the framework of corporate legal system, regulatory institutions and codes of corporate governance of Pakistan. The study uses unique handpicked data comprising a sample of 326 non-financial firms listed on Pakistan Stock Exchange for a period of 2009-13. The results reveal that Pakistani corporations have high degree of concentration of ownership. The controlling shareholders own about 87 % of firms with 10 % or more shareholding and 60 % of firms with 20 % or more shareholding. Most of the businesses are controlled by families. In 63 % of business group firms, families own 20 % or more top shareholdings. The novel contribution of the study is to develop the ownership structure of family businesses and measure the cash flow leverage, cash flow and voting rights of ultimate owners in family business groups. The study finds the considerable difference in voting and cash flow rights in family business group firms. This has strong implications for regulators, minority shareholders and dispersed investors.

Keywords: ownership structure; business group; corporate governance; cash-flow rights; minority shareholders; voting rights; family business (search for similar items in EconPapers)
JEL-codes: G32 G34 G38 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2018-06
New Economics Papers: this item is included in nep-bec, nep-cdm, nep-cfn and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Proceedings of the Proceedings of the 9th Economics & Finance Conference, London, Jun 2018, pages 75-89

Downloads: (external link)
https://iises.net/proceedings/9th-economics-financ ... =71&iid=006&rid=8626 First version, 2018

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:7108626

Access Statistics for this paper

More papers in Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().