Ownership Structure, Corporate Governance, and Firm's Performance in Emerging Markets: Evidence from Bangaldesh

The International Journal of Finance Vol 19, No. 1, 2007

20 Pages Posted: 28 Jan 2014 Last revised: 17 May 2015

See all articles by Sabur Mollah

Sabur Mollah

Sheffield University Management School, University of Sheffield; Swansea Management School, Swansea University; Hull University Business School; Hull University Business School

Bakhtear Talukdar

Florida International University (FIU) - College of Business Administration; University of Wisconsin - Whitewater

Date Written: April 30, 2007

Abstract

This study examines whether differences in ownership structure across firms can explain their performance differences in an emerging economy, like Bangladesh, where corporate governance variables have been testified whether they exert any influence on firm performance. The empirical evidence of this study suggests that sponsor holding and government holding are significantly positively related to firm performance, whereas institutional holding is insignificantly related to performance. However, board size and existence of audit committee chaired by sponsor director are significantly negatively related to firm’s performance. Using the data for the period of 2002-2004, it is observed that a large fraction of cross-sectional variation in performance, found in several studies, is explained by unobserved firm heterogeneity, rather than the shareholders holding pattern alone.

Suggested Citation

Mollah, Sabur and Talukdar, Bakhtear, Ownership Structure, Corporate Governance, and Firm's Performance in Emerging Markets: Evidence from Bangaldesh (April 30, 2007). The International Journal of Finance Vol 19, No. 1, 2007. Available at SSRN: https://ssrn.com/abstract=2385805

Sabur Mollah

Sheffield University Management School, University of Sheffield ( email )

Conduit Road
Sheffield, Sheffield S10 1FL
United Kingdom

Swansea Management School, Swansea University ( email )

Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Great Britain HU6 7RX
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Hull HU6 7RX
United Kingdom

Bakhtear Talukdar (Contact Author)

Florida International University (FIU) - College of Business Administration ( email )

Miami, FL 33199
United States

University of Wisconsin - Whitewater ( email )

Whitewater, WI 53190
United States
2624727036 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
254
Abstract Views
859
rank
118,741
PlumX Metrics