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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/6105

Title: Concentrated Share Ownership and Financial Performance of Listed Companies in Ghana
Authors: Awunyo-Vitor, Dadson
Baah, Emmanuel
Keywords: Ownership structure
Concentration
Financial performance
Ghana Stock Exchange
Issue Date: 2012
Publisher: Research Journal of Finance and Accounting
Citation: Research Journal of Finance and Accounting, Vol 3, No 2, 2012
Abstract: Investment on the Ghana Stock Exchange has attracted keen interest from within and outside the country. Foreign investors have grown substantially in developing markets over the last two decades, parallel with the increase in their impact. These investors seek to own large proportions of equities as well as acquire State Owned Enterprises, and as a result they have become influential on the performance of companies in which they invest. Previous studies show no conclusive evidence on the direction of the role of share ownership on the financial performance of firms especially in developing economies. This research attempts to examine the effect of share ownership and investors’ involvement on performance of investee companies. The study was conducted using panel data regression analysis and Performance was measured by using Tobin's Q and Return on Asset (RoA). Significant statistical relationships were found in this research. The results of the research suggest that share ownership on the Ghana Stock Exchange is heavily concentrated in the hands of Ghanaians and that ownership concentration, institutional and insider ownership precipitate higher firm financial performance. There is the need to encourage concentrated ownership structure. Also, investments by insider and institutional ownerships should be promoted in order to ensure proper monitoring, reduced agency costs and improve performance.
Description: An article published by Research Journal of Finance and Accounting, Vol 3, No 2, 2012
URI: http://hdl.handle.net/123456789/6105
Appears in Collections:College of Agric and Natural Resources

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