The Effect of Ownership Structure on Corporate Financial
Performance in the Czech Republic
The Effect of Ownership Structure on Corporate Financial
Performance in the Czech Republic
Author(s): Lukáš Konečný, Ondřej ČástekSubject(s): Economy, National Economy, Business Economy / Management
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: ownership structure; ownership concentration; corporate financial performance; Czech Republic
Summary/Abstract: This paper seeks to examine the effect of ownership concentration on corporate financial performance in the Czech Republic. The study uses linear regression models and analyses data gathered from medium and large businesses in order to test the aforementioned relation. Using data from a sample of over 5,000 Czech businesses between 2010 and 2012, the study finds that ownership concentration expressed as the Herfindahl index has a weak, but statistically significant negative effect on corporate performance represented by return on assets. However, the data do not conclusively reveal whether the effect is monotonic or inverted U-shaped.
Journal: Ekonomický časopis
- Issue Year: 64/2016
- Issue No: 05
- Page Range: 477-498
- Page Count: 22
- Language: English