The effect of ownership structure on firm performance: The case of PSE-listed firms from years 2003-2013

• Main Authors: Anigan, Alyanna M., Arjonillo, Rabboni Francis K., Jr., Castillo, Ian Joseph C., Te, Margaret Louise G.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Family-owned business enterprises > Philippines; Financial institutions > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7581
• Institution: De La Salle University

This study intends to examine the relationship of family and firm performance in the Philippines from 2003 to 2013. In meeting this objective, ordinary least squares (OLS) regression and generalized least squares (GLS) regression were implemented. A panel data set consisting of annual observations for 20 firms listed in the Philippines Stock Exchange was obtained to form the database of the study. Other than that, empirical validity of theories (agency theory and stewardship theory) was tested. The results showed that the effect of ownership structure is insignificant on firm performance. Meanwhile, other financial indicators, such as firm age and size, price-to-book-ratio, debt-to-asset ratio and total equity, are significant. These findings suggest that financial performance is not determined by ownership structure, yet is measured by a firm's financial indicators.