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The Influence of Ownership Structure on Corporate Performance; Evidence from selected Ethiopian companies

Mikael Belay


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    "description": "<p>This paper explores the influence of ownership structure and firm performance among<br>\nselected Ethiopian companies. The data collected for this research is for the period<br>\n2008-2010 and the sample consists of 23 companies among which 5 are sole<br>\nproprietorship, 8 partnership and 10 share companies. Three specific research<br>\nquestions are applied to explore the relationships between the ownership structure<br>\n(characterized by owners&rsquo; identity and ownership concentration) and firm<br>\nperformance. Ownership concentration is measured by the percentage of shares<br>\nowned by the largest five shareholders and HHI while the performance measures<br>\napplied are ROA and ROE. While analyzing the linear regression, the ownership<br>\nstructure measures were treated as independent variables and the firm performance<br>\nmeasures were treated as dependent variables controlling for firm size, firm age and<br>\ndebt ratio. The results indicate that there is no statistically significant performance<br>\ndifference between solely owned, partner controlled and diffused firms. However, the<br>\nlinear regression analysis shows that young solely owned firms have better<br>\nperformance compared to old solely owned firms. The other result shows that, there<br>\nare positive relationships between institutional and foreign ownership and firm<br>\nperformance measures. Whereas, the correlation of government ownership and firm<br>\nperformance measure reveals a negative sign</p>", 
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