Performance analysis of institutional shareholdings: an empirical study of top 50 non-financial listed firms in Sri Lanka

Nadarajah Sivathaasan and Kosgolla Anura Udayakumara

Afro-Asian Journal of Finance and Accounting, 2015, vol. 5, issue 4, 295-310

Abstract: In this paper, we examine the impact of institutional shareholdings on the financial performance of the top 50 non-financial firms in Sri Lanka by analysing 215 firm-year observations over the five-year period from 2009 to 2013. We find evidence of a relatively higher proportion of institutional ownership on total shareholdings, leading to a negative impact on both measure of accounting (ROA) and market performance (Tobin's Q), which strongly fit into goodness of the given model at 1% level of significance. Also, we report the adjusted R2 of accounting performance significantly higher than that of market performance. Further, we document a positive and significant impact of leverage and liquidity on accounting and market performance respectively, whereas firm size shows a negative and significant influence on both performance measures. The findings of this study will assist policy makers, financial managers and investors in making investment decisions.

Keywords: institutional shareholdings; accounting performance; market performance; firm size; leverage; liquidity; performance evaluation; non-financial listed firms; Sri Lanka; financial performance; institutional ownership; ROA; return on assets; Tobin's Q; firm performance. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=73469 (text/html)
Access to full text is restricted to subscribers.

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:ids:afasfa:v:5:y:2015:i:4:p:295-310

Access Statistics for this article

More articles in Afro-Asian Journal of Finance and Accounting from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().