Ownership, Control and Performance of Turkish Listed Firms PDF Download

Author: B. Burcin Yurtoglu
Publisher:
ISBN:
Category :
Languages : en
Pages : 26

View

Book Description
The paper describes the main characteristics of ownership structure of the Turkish companies listed on the Istanbul Stock Exchange. We present information on the pyrimidal and complex ownership structures within business groups, on the main owner classes, and on changes in large shareholdings. Ownership is highly concentrated in Turkey, families being the dominant shareholders. Changes in large shareholdings do not suggest the existence of an active market for share stakes. We also show that concentrated ownership and pyramidal structures have a negative effect on performance as reflected in lower return on assets, market to book ratios and dividend payments. We conclude by discussing some important problems introduced or fostered by the presence of this type of ownership structure.

Author: Bengi Ozer
Publisher:
ISBN:
Category :
Languages : en
Pages : 16

View

Book Description
The evidence of highly concentrated ownership structure in companies that have exposed themselves to market discipline illustrates a confusing structure of corporate governance. The disciplinary effect of the market is questioned in a context with concentrated ownership structure and poor investor protection. We explore whether the presence and magnitude of market control leads to differences in performance in the case of concentrated ownership structure. We explore how the presence and the magnitude of widely held ownership influence the different dimensions of performance in companies with concentrated ownership. We further investigate whether the differences in the identity of the controlling shareholder influences impact of market control on the performance of these firms. Companies trading in the Istanbul Stock Exchange as of 1999 constitute the sample of the study. The findings indicate the presence of a highly concentrated ownership structure in the Turkish market. The results of the regression analyses seem to indicate that the market control (dispersed ownership percentage) influences certain dimensions of performance but not in the expected direction. Market control does not seem to have any disciplinary effects on performance in concentrated companies. Identity of the controlling shareholder seems to have a profound effect on the performance. Controlling shareholders types that operate through a portfolio of other companies seem to have favorable influence on performance. Significant relationship between debt pressure and performance might be indicating the disciplinary pressure of the debt holders. The findings imply a potential disciplinary impact of stakeholders rather than shareholders or market. The study also provides supportive evidence for the impact of context on the relation between ownership and performance.

Author: Hicabi Ersoy
Publisher:
ISBN:
Category :
Languages : en
Pages : 11

View

Book Description
This study investigates the effects of ownership structure on the performance of the listed companies in BorsaIstanbul Stock Exchange 30 Firms (BIST 30). The main hypothesis of our study is that there is a significant relationship between companies' performances and their ownership structures. The statistical population includes 19 non-financial companies in the period of years between 2008 and 2013. The results show that, the concentration of the large shares of companies one or a few shareholders has a negative effect on related firm's performance.

Author: Vedat Mizrahi
Publisher: LAP Lambert Academic Publishing
ISBN: 9783845431871
Category :
Languages : en
Pages : 132

View

Book Description
Do corporate governance practices affect firm performance? Are shareholders willing to pay a premium for higher governance standards? How does the ownership structure of a firm affect its corporate governance practices and firm performance? This book investigates whether differences in the quality of firm-level corporate governance affects firm performance. Constructing a broad corporate governance index for listed Turkish companies, it is documented that there is a positive relationship between governance scores and Tobin's Q as a measure for firm performance. Firms with better corporate governance scores in the model used in this book have higher firm values, which implies that firms can increase shareholder value by restructuring their corporate governance standards. The analysis also sheds light on the impact of ownership structure on stock performance. Listed companies withhigher corporate governance scores and higher foreign ownership ratios experienced a smaller reduction in their share prices during the equity market crash in Turkey parallel to the global equity markets between 2008 and 2009.

Author: Abdella Kormie Dinga
Publisher:
ISBN:
Category : Corporate governance
Languages : en
Pages :

View

Book Description
The research study comprises of two preceding Chapters, three main empirical Parts, and CONCLUSION. The first Chapter, Introduction, presents the overall research objectives and questions of the study based on the existing agency perspectives regarding the issues of control and governance conflicts in modern corporations. The second Chapter, Review of Theoretical Frameworks, presents a brief account of similarities and differences between the existing theoretical frameworks relevant to the control of corporations. The review identified that the agency theory provides powerful testable models and tools that can be used in the investigation of the agency conflicts and the possible solutions that mitigate the governance problems. The three empirical Chapters follow mainly the deductive research approach of making statistical inferences using a sample of major UK listed firms in the FTSE All Share Index for the period 2003-2007. Chapter Three deals with the analysis of the state and trends or evolution of corporate ownership and control structure and some board structures of the UK listed firms. The Chapter has been instrumental in preparing the raw materials of ownership and control structure variables that are used in the succeeding two chapters. Chapter Four deals with the analysis of the relationship between ownership structure and performance using aggregate stake of all identifiable blockholders? categories and all external blockholders in the agency perspective. Chapter Five presents analysis of the relationship among ownership, control structures and firm performance using the structural equations framework in the control dominance-contestability perspective. Finally, the Thesis closes with a Conclusion. In summary, the Theses of this empirical research study suggest the followings. Firstly, there is the prevalence of multiple significant blockholders in the modern listed firms even when share ownership is dispersed. Secondly, in the presence of multiple significant blockholders in the firm, there is a likelihood that the second-type agency conflicts between large shareholders and minority shareholders exists, and that might be the dominant force that determines the possible control configuration even in listed firms with dispersed ownership. Thirdly and finally, the traditional one-equation modelling and their estimations in the methodology of looking into the relationship of separate share ownership categories or accounting for few of the categories might not precisely identify (1) the blockholders? (control forces?) incentives and ability of exerting control over the modern corporations, (2) the problem of endogeneity that might arise in the relationships, and (3) the way significant multiple blockholders interact and share control of the firms. Hence, the use of structural equations modelling and control dominance-contestability perspectives, in which the roles of blockholders structure control forces, internal and external governance mechanisms, and the problems of endogeneity are accounted for might be appropriate to reveal the control configuration of modern listed firms with multiple large blockholders.

Author: Meysam Foroughi
Publisher:
ISBN:
Category :
Languages : en
Pages : 6

View

Book Description
Corporate governance as a mechanism helps to align management's goals with those of the stakeholders which are to increase firm performance. The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms influencing the scope of a firm performance. Therefore, the aim of this study is to answer this question: ''is there any relationship between ownership concentration and firm performance?'' Based on stratified random sampling of listed firms on Tehran Stock Exchange and applying the panel least squared with cross-section weights as the underlying statistical test, it is found that firm performance is negatively related to ownership concentration of Iranian listed firms. In addition, the impact of ownership structure on firm performance depends on industry.

Author: Ayse Bugra
Publisher: State University of New York Press
ISBN: 079149795X
Category : History
Languages : en
Pages : 344

View

Book Description
This book analyzes the factors that shape business activity in Republican Turkey and examines the presence of some of these factors in other societies with highly different cultures and histories. Bugra's premise is that neither the institutional framework nor the behavioral regularities of a market economy emerge spontaneously following principles of a universally rational behavior. Rather, these reflect societal characteristics to be shaped by policy measures that ensure the smooth functioning of the market mechanism. The author investigates the sociopolitical context of Turkish entrepreneurship by looking at the development of the private sector in the Republican period; policy process under successive Republican governments; socially defined features of the holding company, the typical big-business unit; and the nature of business associations in Turkey. Her analysis is relevant both to the study of business organization and to the study of structural change in late-industrializing countries and former socialist societies where the shortcomings of standard economic approaches are clear.

Author: Sumru Altug
Publisher: Psychology Press
ISBN: 9780415365925
Category : Business & Economics
Languages : en
Pages : 340

View

Book Description
Including contributions from noted international scholars, this collection of papers provides a strong theoretical and empirical underpinning for the discussion of major public policy issues facing Turkey today. Matters addressed include:- determinants of growth and productivity- education and human capital accumulation- income inequality- corporate control and government- performance of the government sector- impact of major public policy issues on the future growth prospects of the Turkish economy.This volume relates the impact of major public policy issues on the future growth prospects of the Turkish economy. At a time when Turkey is currently attempting to gain membership to the European Union, this pertinent reference questions whether the country's economy is in fact ready for EU accession and membership.

Author: Pooja Rani
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Giovanni Fiori
Publisher:
ISBN:
Category :
Languages : en
Pages : 27

View

Book Description
Agency costs, deriving from the separation between ownership and control, affect whatever company model. In case of firms with dispersed ownership (the public companies), the classic agency conflict regards the relation between shareholders and managers. In case of family firms the classic agency conflicts are mitigated thanks to reduced separation between ownership and control, but there are other types of agency conflicts, moreover between family shareholders and minority ones.This paper focuses on the relation between agency costs and ownership structure, in the specific perspective of minority shareholders, providing a first empirical evidence of the proposition that family ownership reduces the agency costs of equity and has a negative effect on the equity risk perceived by the market.The analysis statistically compares family and non-family firms, sorted from Italian listed companies, in any sector with a significant presence of family business, to get evidence of family's ownership impact on equity cost of capital.