The effect of ownership composition on corporate financial performance in the European frontier markets

dc.authoridTaran, Alina/0000-0003-4812-4347
dc.authoridZahid, Rana Muhammad Ammar/0000-0002-4627-0917
dc.authoridKhan, Muhammad Kaleem/0000-0001-5552-0650
dc.authorscopusid57203976096
dc.authorscopusid58753001700
dc.authorscopusid57190974278
dc.authorscopusid7801371051
dc.authorwosidVillen Retamero, Andrea Maria/IAR-1667-2023
dc.authorwosidTaran, Alina/ACV-4854-2022
dc.authorwosidZahid, Rana Muhammad Ammar/T-9202-2019
dc.authorwosidKhan, Muhammad Kaleem/AFN-6958-2022
dc.contributor.authorZahid, R. M. Ammar
dc.contributor.authorTaran, Alina
dc.contributor.authorKhan, Muhammad Kaleem
dc.contributor.authorSimga-Mugan, Can
dc.date.accessioned2024-05-25T11:38:43Z
dc.date.available2024-05-25T11:38:43Z
dc.date.issued2023
dc.departmentOkan Universityen_US
dc.department-temp[Zahid, R. M. Ammar] Yunnan Technol & Business Univ, Sch Accounting, Kunming, Peoples R China; [Taran, Alina] Istanbul Okan Univ, Fac Business & Adm Sci, Istanbul, Turkiye; [Khan, Muhammad Kaleem] Asia Australia Business Coll, Body Expert & Licensed Accountants Romania, Suceava, Romania; [Simga-Mugan, Can] Liaoning Univ, Asia Australia Business Coll, Shenyang, Peoples R China; [Taran, Alina] Middle East Tech Univ, Ankara, Turkiyeen_US
dc.descriptionTaran, Alina/0000-0003-4812-4347; Zahid, Rana Muhammad Ammar/0000-0002-4627-0917; Khan, Muhammad Kaleem/0000-0001-5552-0650en_US
dc.description.abstractPurposeThis study investigates the influence of ownership composition on market-based and accounting-based financial performance in the European frontier markets (EFMs), a target region for global investors.Design/methodology/approachOwnership composition is defined as shareholders' concentration and structure (i.e. foreign, domestic, state and free-float), whereas financial performance is measured as Tobin's Q and return on assets. The system generalised method of moments panel data estimation technique is employed on a sample of 241 companies.FindingsFindings reveal that companies from European Union (EU) frontier markets are controlled, on average, by one to five large shareholders. Being a signal of expropriation rationale of majority shareholders regardless of the capital structure, this highly concentrated ownership and decision-making model negatively affects the market-based and accounting-based financial performance of the companies and thereby supports the agency theory in the frontier markets.Research limitations/implicationsThe findings provide empirical evidence for authorities, investors, analysts and corporations regarding the effect of ownership percentage and structure in the Eastern European region, assisting also other frontier and emerging markets in corporate governance and other regulatory decisions.Originality/valueThe ownership-performance relationship varies from developed to emerging markets with conflicting results. This study provides evidence on monitoring and expropriation effects of majority shareholders in the context of different categories of shareholders. In doing so, it combines the analysis of both ownership concentration and structure in the EFMs.en_US
dc.identifier.citation4
dc.identifier.doi10.1108/BJM-12-2021-0457
dc.identifier.endpage261en_US
dc.identifier.issn1746-5265
dc.identifier.issn1746-5273
dc.identifier.issue2en_US
dc.identifier.scopus2-s2.0-85149294124
dc.identifier.scopusqualityQ2
dc.identifier.startpage242en_US
dc.identifier.urihttps://doi.org/10.1108/BJM-12-2021-0457
dc.identifier.urihttps://hdl.handle.net/20.500.14517/1273
dc.identifier.volume18en_US
dc.identifier.wosWOS:000940683300001
dc.identifier.wosqualityQ3
dc.language.isoenen_US
dc.publisherEmerald Group Publishing Ltden_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectOwnership structureen_US
dc.subjectOwnership concentrationen_US
dc.subjectCorporate governanceen_US
dc.subjectFrontier marketsen_US
dc.subjectFinancial performanceen_US
dc.subjectG32en_US
dc.subjectO16en_US
dc.subjectM49en_US
dc.titleThe effect of ownership composition on corporate financial performance in the European frontier marketsen_US
dc.typeArticleen_US
dspace.entity.typePublication

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