The Relationship Between Ownership Structure and Firm Performance: an...

THE EFFECTS OF OWNERSHIP STRUCTURE AND BOARD EFFECTIVENESS ON FIRM PERFORMANCE: NEW EVIDENCE FROM KENYA Vincent O. Ongore, PhD Assistant Commissioner Kenya revenue Authority P.O. Box 48240-00100, GPO Phone: + 254 (20) 310900 Mobile: +254 723854796 Nairobi. Email: Vincent.ongore@kra.go.ke Abstract Research on corporate governance is very thin on the image of owners on corporate performance, especially how risk-taking orientation of owners comes to bear on decision making processes of the firm. The panel has been given inordinate worry in corporate governance literature, and yet a lap of corporate failures and malfeasance have occurred in spite of effective boards. This raises the dubiousness of whether the board alone is sufficient in corporate governance. The speculate therefore, investigated the combined effects of self-possession structure and board say-so on performance of listed companies in Kenya using agency supposition as an analytical framework. willpower structure was operationalized in monetary value of ownership concentration and ownership identity, while elements of board metier were leadership, stewardship, monitoring and reporting. Measures of performance were Return on Assets, Return on Equity and Dividend Yield.

Using Pearsons Product Moment Correlation, logistical Regression and Step-Wise Regression, the study found that Ownership Concentration and government Ownership have significant negative relationships with firm performance. On the other hand, Foreign Ownership, Diffuse Ownership, Corporation Ownership, and Manager Ownership were found to have significant positive relationships with firm performance. The Board has no effect on firm performance. Key run-in: Ownership Structure; Ownership Concentration; Ownership personal identity; Firm Performance; Board Effectiveness INTRODUCTION AND RESEARCH OBJECTIVE This paper reports the findings of a study conducted to establish the combined effects of ownership structure and board effectiveness on... If you want to get a full essay, order it on our website: Ordercustompaper.com

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