THE EFFECT OF OWNERSHIP STRUCTURE ON FINANCIAL PERFORMANCE OF BANKS IN PAKISTAN

Abstract

Objective This study investigates the impact of Government Ownership and, Domestic Ownership and liquidity on the financial performance of banks in Pakistan. Methodology adopted, utilizing secondary data from the A quantitative research approach was financial statements of 10 selected banks over the period from 2019 to 2023. The analysis employed regression method to evaluate the impact of ownership structures on key financial performance indicator, Return on Equity (ROE). Statistical techniques included descriptive analysis and regression analysis to assess the significance of impact. Findings The study found a strong positive impact between government ownership and financial performance, indicating that banks with higher government ownership tend to perform better financially. Domestic ownership also had a significant positive effect on ROE. Liquidity risk was not found to have a significant impact on financial performance Practical Implications: The findings provide valuable insights for investors, business executives, and policymakers regarding the importance of ownership structure in influencing bank performance. The study suggests that increasing government and domestic ownership can enhance in the financial performance, banking sector. highlighting the need for strategic ownership policies