Ownership concentration and corporate performance from a dynamic perspective: Does national governance quality matter?

2015 ◽  
Vol 41 ◽  
pp. 148-161 ◽  
Author(s):  
Tuan Nguyen ◽  
Stuart Locke ◽  
Krishna Reddy
Keyword(s):  
Corporate Performance ◽  
Ownership Concentration ◽  
Dynamic Perspective ◽  
Governance Quality

scholarly journals Ownership Concentration and Performance Recovery Patterns in the European Union

2019 ◽  
Vol 11 (4) ◽  
pp. 953 ◽  
Author(s):  
Alexandra Horobet ◽  
Lucian Belascu ◽  
Ștefania Curea ◽  
Alma Pentescu
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Corporate Performance ◽  
Manufacturing Sector ◽  
Ownership Concentration ◽  
The European Union ◽  
And Performance ◽  
The Global Financial Crisis

Our study addresses the link between ownership concentration and corporate performance in the manufacturing sector in the European Union in an economic environment stressed by the global financial and sovereign debt crises. This is, to our knowledge, the first attempt to tackle differences between companies with different origin-countries in EU from the perspective of ownership concentration and corporate performance in a period marked by the adverse impact of the global financial crisis. Ownership concentration is measured by the number of shareholders and the percentage of their individual and collective holdings, while performance is measured by accounting-based and market-based indicators. Our results, based on a detailed and methodical statistical analysis, show a clear division between Western and Eastern companies in terms of ownership concentration and performance, with an impact on businesses’ recovery patterns. Overall, there is a positive link between ownership concentration and corporate performance in the case of Western companies, but not for Eastern-based companies. Moreover, ownership concentration has supported business recovery in EU, but particularly for Western companies. On the other hand, our results suggest that market investors’ assessment of corporate performance is disconnected from business fundamentals and do not acknowledge the role of ownership concentration (either beneficial of detrimental) for performance assessment.

scholarly journals Relationship between Competitive Advantage and Success or Failure of Overseas Expansion in Small and Medium-Sized Manufacturers

2018 ◽  
Vol 2 (6) ◽  
pp. 23-27
Author(s):  
Keyword(s):  
Decision Making ◽  
Competitive Advantage ◽  
Corporate Performance ◽  
The Other ◽  
Organizational Capability ◽  
Expansion Process ◽  
Probability Of Success ◽  
Dynamic Perspective ◽  
Overseas Expansion ◽  
The One

The objective of this research is to clarify, empirically, how business factors influence the overseas expansion of small-to-medium-sized manufacturers (SMMs). With the internationalisation of a business, many SMMs have increased their overseas expansion in recent years. On the one hand, the probability of success for overseas expansion is not necessarily high. Of course, a lot of SMMs have succeeded in overseas expansion and expanded their revenue. On the other hand, however, there are many cases of SMMs failing in and withdrawing from the overseas expansion process. Although the influence of succeeding or failing is great in regard to corporate performance, there is a lack of clarification as to which business factors serve as the basis for SMMs’ decision-making. In this paper, research hypotheses are proposed to help measure the influential difference between the following select sources of competitive advantage: (a) external positioning and internal organizational capability; and (b) static perspective and dynamic perspective. Then, the select sources of competitive advantage are typified based on prior research. To verify the hypotheses, a questionnaire was implemented toward SMMs of Japan that expanded their business overseas. As a result, it became clear that the optimal overseas expansion strategies are different according to an SMM’s source of competitive advantage. As a contribution, it is expected that the results of this research will support the decision-making of SMMs toward overseas expansion.

scholarly journals Corporate Governance Quality, Ownership Structure, Agency Costs and Firm Performance. Evidence from an Emerging Economy

2020 ◽  
Vol 13 (7) ◽  
pp. 154
Author(s):  
Haroon ur Rashid Khan ◽  
Waqas Bin Khidmat ◽  
Osama Al Hares ◽  
Naeem Muhammad ◽  
Kashif Saleem
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Agency Cost ◽  
State Ownership ◽  
Ownership Concentration ◽  
Listed Firms ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
The Relationship

The purpose of this paper is to investigate the effect of corporate governance quality and ownership structure on the relationship between the agency cost and firm performance. Both the fixed-effects model and a more robust dynamic panel generalized method of moment estimation are applied to Chinese A-listed firms for the years 2008 to 2016. The results show that the agency–performance relationship is positively moderated by (1) corporate governance quality, (2) ownership concentration, and (3) non-state ownership. State ownership has a negative effect on the agency–performance relationship. Various robust tests of an alternative measure of agency cost confirm our main conclusions. The analysis adds to the empirical literature on agency theory by providing useful insights into how corporate governance and ownership concentration can help mitigate agency–performance relationship. It also highlights the impact of ownership type on the relationship between agency cost and firm performance. Our study supports the literature that agency cost and firm performance are negatively related to the Chinese listed firms. The investors should keep in mind the proxies of agency cost while choosing a specific stock. Secondly; the abuse of managerial appropriation is higher in state-held firms as compared to non-state firms. Policymakers can use these results to devise the investor protection rules so that managerial appropriation can be minimized.

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