The impact of ownership structure on financial performance of selected Philippine listed firms

• Main Author: Aquino, Nimpha M.
• Format: text
• Published: Animo Repository 2013
• Subjects: Corporations > Philippines; Stock ownership; Business enterprises—Finance; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/12307
• Institution: De La Salle University

This study examines the impact of ownership structure on the financial performance of Philippine listed firms under industrial sector for the years 2007-2011. The ownership structure as independent variable covers six areas namely: share of largest shareholder, share of top five shareholders, institutional, individual, managerial and foreign shareholders while financial performance as dependent variable employs accounting-based variables of performance measures such as return on equity (ROE) and return on total assets (ROA). There are 69 Philippine listed companies under the industrial sector, however due to some constraints only 33 companies were utilized making up a total of 165 firm-year observations. The study applied descriptive statistics, Pearson correlation and panel data analysis. The empirical results revealed that share of largest shareholder and managerial shareholders have positive impact on ROA. On the other hand, the share of top 5 shareholders, institutional, individual and foreign shareholders had negative impact on ROA. Inistitutional shareholders has positive impact on ROE while the rest of the independent variables have no impact on ROE. From a corporate governance perspective, separation of ownership and control is imperative in order to capture the trust and confidence of current and future shareholders, In order to expound the research on ownership structure and financial performance under Philippine scenario, all listed companies in different industry could be the coverage of the future study.