Impact Of ownership Structure on the corporate performance; Empirical evidence from Pakistani Listed Companies

Abstract

More the ownership or shareholding more you have power to hold or to influence the managers or management of the organization. It is one of the most observed phenomena in the history of organizations. Current thesis explore with scientific research the effect of ownership structure on performance of the firm evidence from the Pakistani two sectors listed companies at KSE 100. Sectors that are investigated in this thesis are cement and chemical industries. Research questions that are investigated in this dissertation are (1) impact of ownership structure on performance of the firm. (2) Intensity of ownership structure or to what extent ownership structure effect the firm’s performance. The objective that are going to meet with these research questions are to manage the agency conflicts between the principal and agent, to reduce the cost of the firm by reducing or mitigating the agency cost. The findings of the study would helpful for the managers to control the organization more effectively because it incorporate the two point of views that are ownership concentration and the ownership structure. The findings define that if the managers will become the owners or shareholders of the organization then they’ll do their best in the favor of the organization and try to formulate the investment in the favor of the shareholders. This dissertation is also useful for the corporate governance for making policies and for managing the agency conflicts.