Institutional Ownership and Firm Performance: Evidence from an Emerging Economy

Syeda Humayra Abedin, Humaira Haque, Tanjina Shahjahan and Md Nurul Kabir
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Syeda Humayra Abedin: Department of Accounting and Finance, School of Business and Economics, North South University, Dhaka 1229, Bangladesh
Humaira Haque: Department of Accounting and Finance, School of Business and Economics, North South University, Dhaka 1229, Bangladesh
Tanjina Shahjahan: Department of Accounting and Finance, School of Business and Economics, North South University, Dhaka 1229, Bangladesh

JRFM, 2022, vol. 15, issue 12, 1-17

Abstract: Using the Ordinary Least Square (OLS) estimation technique based on a sample of 180 listed firms from 2008 to 2018, this study investigates the impact of institutional ownership on firm performance in the Bangladeshi setting. Consistent with the “active monitoring” view, the results indicate that both domestic and foreign institutional investors have a positive effect on firm performance measured by Tobin’s Q and Return on Asset (ROA). In addition, this study explores whether the other corporate governance attributes—board size and board independence—operate as mediators between institutional ownership and firm performance. Our findings indicate that both board size and board independence have a significant positive impact on the relationship between institutional ownership and firm performance.

Keywords: institutional ownership; domestic ownership; foreign ownership; Tobin’s Q; ROA; board ownership; board independence (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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