Theoretical Perspective on the Role of Ownership Structure in Financial Performance and Cash Flow
Year: 2025
Type: article
Abstract: This paper explores the theoretical underpinnings of the relationship between ownership structure and corporate financial performance, with a particular focus on cash flow dynamics. Drawing on agency theory, stewardship theory, and resource dependence theory, the study examines how different ownership configurations such as institutional, managerial, and concentrated ownership affect a firm's ability to generate and manage cash flow, and ultimately its financial performance. The paper highlights how ownership structure can influence managerial incentives, strategic decision-making, and risk-taking behavior, thereby impacting both short-term liquidity and long-term value creation. By synthesizing insights from existing literature, this theoretical perspective lays the groundwork for future empirical studies and offers implications for corporate governance and financial policy.
Author: Samar Adel Saad Mostafa
Institution: Arab East Colleges
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4410409986