Impact of Ownership Structure And Capital Structure On Firm Financial Performance: An Empirical Analysis Over Pakistan Stock Exchange (PSX) Listed Firms.

Keywords: Firm Performance, Ownership structure, Capital Structure, PSX& Non-financial firms

Abstract

In the course of recent decades, the relationship between capital structure, ownership structure and performance has been a significant and steady point in the corporate finance literature. The central tenant of this investigation is to examine the relationship between capital structure, ownership structure, and firm performance with respect to emerging economies like, Pakistani non-financial firms. Secondary data was used for this study, which was taken from state Bank of Pakistan, PSX and annual reports of the companies. The population of the study consist of Pakistani non-financial firms listed in PSX. The outcomes indicate that the overall capital structure proxies (i.e. DER & LTDR) are significant but negatively affected on firm’s performance (ROA & ROE).The outcomes of current study also suggested that there is a significant and positive relationship between ownership structure (i.e. Institutional & concentration ownership) and performance of the firms. This research is helpful for every company management to keep the optimal capital structure and make appropriate decision regarding ownership structure. In future research, researchers should use different proxies of ownership structure like, institutional ownership and family ownership to check the impact on firm performance.

Key words: Firm Performance, Ownership structure, Capital Structure, PSX& Non-financial firms

Author Biography

Shrafat Ali Sair, Hailey College of Commerce

Dr. Shrafat Ali Sair has been serving as Assistant Professor at Hailey College of Commerce, University of the Punjab, Lahore. He obtained his PhD degree from NCBA&E, Lahore, by availing fully funded indigenous scholarship awarded by Higher Education Commission of Pakistan. He has served the Virtual University of Pakistan as Lecturer Marketing from November 14, 2007 to June 04, 2014. Before joining Virtual University he served Pakistan School of Economics, Lahore for one year as Lecturer Management Sciences. He has taught Marketing, Management, Entrepreneurship and Research courses at undergraduate, graduate, post graduate and executive level students. He holds an MS degree in Business Administration from National University of Modern Languages, Lahore. Before MS he obtained an MBA degree from Institute of Business Administration, University of the Punjab, Lahore. He has presented research papers in international conferences held in Pakistan and out of Pakistan and research papers have been published in national and international research journals. During his thorough research career, he has special interest in leadership, marketing strategies, digital marketing, organizational performance, mobile commerce, social media marketing, brand management, positioning strategies and consumer behavior.

Published
2021-02-08
How to Cite
Shafiq Ur Rehman, Aamir Sohail, Ali Sair, S., Atif Khan Jadoon, & Sami Ullah. (2021). Impact of Ownership Structure And Capital Structure On Firm Financial Performance: An Empirical Analysis Over Pakistan Stock Exchange (PSX) Listed Firms. AJSS, 4(4), 1098-1106. Retrieved from http://ojs.lgu.edu.pk/index.php/ajss/article/view/1102
Section
Articles