OWNERSHIP STRUCTURE AND CORPORATE FINANCIAL PERFORMANCE
OWNERSHIP STRUCTURE AND CORPORATE FINANCIAL PERFORMANCE

Summary/Abstract: Capital structure and links with business performance is a very interesting research topic, especially for transition economies in which state-owned companies continue to play an important role. Previous research indicates that sometimes better business performance has private-owned companies and sometimes state-owned companies. Namely, research results are often mixed. Considering the available literature it is noted that the relationship between company ownership structure and business performance has not been sufficiently explored in domestic circumstances. This study examines the business performance of companies in B&H ie company that makes the SASX10 index. The subject of this paper is to examine the ownership structure of the company and financial performance, in the context of companies operating in transition, while the aim is to examine whether there is a link between the ownership structure and business results. The research focuses is on the indicators of return on capital, return on assets, earnings per share, net profit and indebtedness. The observed business period of the analyzed companies is from 2012 to 2020. Two hypotheses are set. The first claims that there is a statistically significant difference in the performance of state-owned and private companies, while the second hypothesis claims that private companies are more profitable than state-owned ones. The hypothesis are tested using a statistical t-test. The results show that there is a statistically significant difference in the business results of companies depending on ownership structure. The results, also, show that private companies use available resources more efficiently but these companies usually realize lower net profit compare to state-owned companies.

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