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Title: The ownership structure effect on firm performance in South Africa
Authors: Mutize, Misheck 
Aspeling, Jonathan 
Mugobo, Virimai Victor 
Keywords: Corporate governance;Ownership structure;Performance returns;Return on assets;Firm performance;Managerial ownership;Performance determinance model
Issue Date: 2016
Publisher: virtusinterpress.
Source: Mugobo, V, Aspeling, J and Mutize, M.,2016.The ownership structure effect on firm performance in South Africa. Journal of Corporate Ownership and Control, 13(2): 461 – 464.
Journal: Corporate Ownership & Control / Volume 13, Issue 2, Winter 2016 
Abstract: This research investigates the effect of corporate governance through ownership structures; ownership concentration, managerial ownership and government ownership on firm performance. A multiple regression analysis was employed on sample data collected over ten years from 2001-2010 from 80 South African companies to test the magnitude of their influence to company performance as measured by return on assets (ROA). This study found a positive and significant correlation between ownership concentration, government ownership and firm performance. Results also showed a negative relationship between insider ownership and firm performance. To this account, the research concludes that managerial ownership is a single factor that significantly weighs down company performance. In validating the significance of the performance determinance model, evidence shows that companies that maintain the recommended King Report shareholding structure have an average to above average performance. Hence, corporate governance is a critical catalyst for company performance.
Description: Article
Appears in Collections:Dr. Virimai Victor Mugobo
BUS - Journal Articles (DHET subsidised)

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