IMPACT OF OWNERSHIP CONCENTRATION ON THE FIRM'S FINANCIAL PERFORMANCE

Abstract

In this research tried to find out the impact of ownership concentration on the firms' financial performance. For this purpose chosen the banking sector of Pakistan which are listed in the Karachi Stock Exchange (KSE). Basically in this research chose the ROE, ROA and Tobin’s Q as a dependent or performance measure variables and Ownership Concentration as independent variable for measure the ownership in the company. After applying the regression test found that ROE and Ownership Concentration has close relationship but ROA and Tobin’s Q didn’t show any relation so we exclude the ROA and Tobin’s Q. Hence conclude that ownership concentration impact on the firms’ financial performance and found the positive relationship between the ROE.