Ownership Structure and Firm Performance – Evidence from the Listed Companies in Bangladesh

Abstract

This study investigates the effect of ownership structure on the financial performance of 59 listed manufacturing companies across eight sectors. The analysis utilizes descriptive statistics, correlation, and regression methods. The findings reveal that Sponsor Ownership and Firm Age have a significant positive impact on firm performance, as measured by Return on Assets (ROA) and Return on Equity (ROE), with Sponsor Ownership significant at the 1% level and Firm Age at the 10% level. In contrast, Public Ownership, Institutional Ownership, Government Ownership, Foreign Ownership, Firm Size, Firm Leverage, and Industry Type show no significant relationship with financial performance. The paper acknowledges certain limitations and underscores the role of institutional and government ownership in fostering improved firm performance. Finally, it offers suggestions for further research on the topic to explore other variables that might influence firm performance in different contexts.