Please use this identifier to cite or link to this item: https://hdl.handle.net/1959.11/6313
Title: Non-monotonic Relationship between Ownership Concentration and Performance in Bangladesh under Mono-directional Perspective
Contributor(s): Farooque, Omar  (author)orcid ; van Zijl, Tony (author); Dunstan, Keitha (author); Karim, AKM Waresul (author)
Publication Date: 2006
Handle Link: https://hdl.handle.net/1959.11/6313
Abstract: Using Quadratic-form regression model this paper presents evidence on the ownership concentration (Top-1 shareholder's shareholding) and performance relations in corporate firms in Bangladesh, an emerging market economy. Assuming exogeneity assumption and agency theory, it follows a mono-directional 'one-way' causality of relation between ownership concentration and performance which runs from the prior to the latter. Employing an unbalanced 7 years pooled sample, regression results show that both Tobin's Q and ROA as performance measures decrease initially at a certain level of Top-1 shareholder's ownership, then increase as the level of ownership increases. This non-monotonic relation between ownership concentration and performance is consistent with many of the existing studies of developed economies. Other governance variables are also showing similar findings as in developed country studies. These results advocates that regardless of institutional and governance differences between developed and emerging economies, some similarity in firm's internal governance mechanisms and agency costs is apparent.
Publication Type: Conference Publication
Conference Name: 2006 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Wellington, New Zealand, 2nd - 4th July, 2006
Conference Details: 2006 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, Wellington, New Zealand, 2nd - 4th July, 2006
Source of Publication: Proceedings of the 2006 Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference
Publisher: AFAANZ: Accounting and Finance Association of Australia and New Zealand
Place of Publication: online
Field of Research (FOR): 150303 Corporate Governance and Stakeholder Engagement
Socio-Economic Outcome Codes: 910402 Management
Peer Reviewed: Yes
HERDC Category Description: E1 Refereed Scholarly Conference Publication
Other Links: http://www.afaanz.org/afaanz_2006_papers.htm
http://www.afaanz.org/research/AFAANZ%200669.pdf
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