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The Relationship between Ownership Structure and Firm’s Performance: An Empirical Evidence from Palestine

Year: 2014

Type: article

Abstract: This study examines the relationship between the ownership structure and performance of 31 firms listed on the Palestine Stock Exchange (PS) during the period of 2008-2012. The results reveal that ownership concentration to be significantly negative related with performance of firms (Tobin’s Q and ROA), while the insider ownership (executive management and directors of board) found to have significant positive relation with firm's performance (Tobin's Q and ROA). The findings supported the prediction of alignment hypothesis (aligning interests between manager and shareholders), and the results provided evidence for negative effect of ownership concentration which could be considered support for entrenchment hypothesis.

Source: International Journal of Business and Management

DOI: 10.5539/ijbm.v9n12p49

Authors: Nizar Dwaikat, Abdelbaset Queiri

Institution: Multimedia University

Language: English

Topic: Corporate Finance and Governance

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W2142697533

FWCI: 0.587

Cites: 62

Cited by: 12

Related to: 10