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South East European Journal of Economics and Business

The Journal of University of Sarajevo


SCImago Journal Rank (SJR) 2015: 0.154
Source Normalized Impact per Paper (SNIP) 2015: 0.739
Impact per Publication (IPP) 2015: 0.395

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2233-1999
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Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from Turkey

Pınar Mandacı1 / Guluzar Gumus1

Faculty of Business, Department of Accounting and Finance, Dokuz Eylul University1

This content is open access.

Citation Information: South East European Journal of Economics and Business. Volume 5, Issue 1, Pages 57–66, ISSN (Print) 1840-118X, DOI: 10.2478/v10033-010-0005-4, June 2011

Publication History

Published Online:
2011-06-07

Ownership Concentration, Managerial Ownership and Firm Performance: Evidence from Turkey

This study examines the effects of ownership concentration and managerial ownership on the profitability and the value of non-financial firms listed on the Istanbul Stock Exchange (ISE) in the context of an emerging market. We measure the firm's performance by Return on Assets (ROA) and Tobin's Q ratios, where the former measures profitability and the latter the value of the firm. In addition, we give detailed information on the main characteristics of the ownership structures of the firms in our sample and find that ownership of Turkish firms is highly concentrated. In addition, the unlisted holding companies have the highest average percentage of shares, which supports the belief that individuals or families establish the holding companies in order to control their listed firms. After controlling for investment intensity, leverage, growth and size, we find that ownership concentration has a significantly positive effect on both firm value and profitability, while managerial ownership has a significantly negative effect on firm value.

Keywords: Corporate governance; ownership concentration; managerial ownership; firm performance; Turkey

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