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Ownership Concentration and Performance: JSE-TOP40 Perspective

Author

Listed:
  • Lethabo Mosimanyane

    (University of South Africa)

  • Godfrey Marozva

    (University of South Africa)

Abstract

This study aims to address the problem of agency cost by examining the impact of ownership concentration on the performance of the JSE-TOP40 listed companies, using the profitability and market variable. The effectiveness of ownership concentration in alleviating the agency cost issue was investigated over a period from 2010 to 2018. The findings revealed that company performance deteriorated with managerial ownership for JSE-TOP40 companies. Likewise, results showed that foreign ownership concentration negatively impacted performance. The persistence of agency costs in these companies imply that companies should continue to monitor them vigorously and apply corporate governance to the detriment of the poor performance. Further, corporate governance implication should be questioned as to its benefit extracted towards these companies.

Suggested Citation

  • Lethabo Mosimanyane & Godfrey Marozva, 2024. "Ownership Concentration and Performance: JSE-TOP40 Perspective," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 20(1), pages 55-69, February.
    • Handle: RePEc:dug:actaec:y:2024:i:1:p:55-69
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