Open AccessImpact of Shareholders’ Activism on Governance Practices and Firm Performance in Pakistan: A Response for Family Controlled Firms
Author(s) -
Ayesha Amjad,
Sadaf Ehsan,
Mariam Amjad,
Seemab Gillani
Publication year - 2021
Publication title -
irasd journal of economics
Language(s) - English
Resource type - Journals
eISSN - 2709-6742
pISSN - 2709-6734
DOI - 10.52131/joe.2021.0301.0021
Subject(s) - shareholder , corporate governance , business , accounting , enterprise value , sample (material) , control (management) , association (psychology) , value (mathematics) , institutional investor , monetary economics , industrial organization , economics , finance , management , philosophy , chemistry , chromatography , epistemology , machine learning , computer science
By taking a sample of 150 non-financial firms listed on PSX, this study has empirically examined the impact of ownership structure on firm performance while considering multiple dimensions. This study employed the system GMM econometric technique to examine the association between ownership structure and firm performance. According to the computed results of the study, family ownership puts a positive and highly significant impact on the market performance of the firm. It has also found a strong and significant relationship between family control and the market value of a firm. Similarly, group affiliation and market performance of the firm have a strong and significant association but in a negative direction. Institutional ownership is significantly related to the accounting and market performance of the firm. Moreover, the joint impact of institutional and family ownership is positively and significantly related to the accounting performance of the firm. Finally, institutional activism is positively and significantly related to the accounting performance of the firm.