Does ownership pattern affect firm performance? Empirical evidence from an emerging market

Sumon Kumar Das (), Shafiqul Alam (), Md. Jamsedul Islam (), Fahmida Boby () and Rabeya Begum ()
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Sumon Kumar Das: Noakhali Science and Technology University
Shafiqul Alam: Noakhali Science and Technology University
Md. Jamsedul Islam: Noakhali Science and Technology University
Fahmida Boby: Noakhali Science and Technology University
Rabeya Begum: Noakhali Science and Technology University

International Journal of Disclosure and Governance, 2024, vol. 21, issue 3, No 4, 406-420

Abstract: Abstract This study examines the effect of stockholdings patterns on the corporate performance of a developing market like Bangladesh. The study investigated the top 50 listed firms on the Dhaka Stock Exchange (DSE) as market capitalization from 2015 to 2019, and data were analyzed using multiple regression. The findings showed that director and foreign stockholdings had a considerable positive effect on firm’s performance in both accounting and market measures. In contrast, institutional stockholdings exhibit a negative and insignificant association with all measures except Market to Book Value (MBR), which reflect a significant negative association. The outcomes of this study may contribute to the market regulators, government, and policymakers to emphasize the close monitoring of the compliance of existing rules by companies and focus on restructuring stockholdings patterns in formulating regulations and codes for better firm performance.

Keywords: Corporate governance; Dhaka stock exchange (DSE); Director stockholdings; Firm performance; Foreign stockholdings; Institutional stockholdings (search for similar items in EconPapers)
JEL-codes: G32 M41 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1057/s41310-023-00204-5

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