Please use this identifier to cite or link to this item:
https://hdl.handle.net/1959.11/3732
Title: | Corporate Governance in Bangladesh: Link between Ownership and Financial Performance | Contributor(s): | Farooque, Omar (author) ; van Zijl, Tony (author); Dunstan, Keitha (author); Karim, AKM Waresul (author) | Publication Date: | 2007 | DOI: | 10.1111/j.1467-8683.2007.00657.x | Handle Link: | https://hdl.handle.net/1959.11/3732 | Abstract: | This paper investigates empirically the effect of board ownership on firm performance in Bangladesh. By estimating single equation and simultaneous equation models on an unbalanced pooled sample of listed firms, it offers some new insight into the ownership-performance link in Bangladesh. Building on extant literature, it examines the ownership-performance relationship in an emerging market economy considering ownership as exogenous and as endogenous. The latter approach is favoured as recent empirical evidence shows that ownership and performance are endogenously determined and there is either a reverse-way or two-way causality relationship between the two. While OLS regression analysis indicates a linear and non-linear relationship between board ownership and performance, this disappears when 2-SLS estimation of a simultaneous equation model is carried out. Instead, a reverse causality relationship emerges. Other governance and control variables appear to have effects consistent with the literature. These results suggest a need to strengthen the internal control mechanisms within listed firms in Bangladesh. | Publication Type: | Journal Article | Source of Publication: | Corporate Governance, 15(6), p. 1453-1468 | Publisher: | Wiley-Blackwell Publishing Ltd | Place of Publication: | United Kingdom | ISSN: | 0964-8410 1467-8683 |
Fields of Research (FoR) 2008: | 150103 Financial Accounting | Socio-Economic Objective (SEO) 2008: | 900101 Finance Services | Peer Reviewed: | Yes | HERDC Category Description: | C1 Refereed Article in a Scholarly Journal |
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Appears in Collections: | Journal Article |
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