IDEAS home Printed from https://ideas.repec.org/a/ids/ajaafi/v6y2018i1p70-90.html
   My bibliography  Save this article

Ownership concentration, foreign ownership and corporate performance among the listed companies in East African community: the role of quality institutions

Author

Listed:
  • Bilali Basesa Jumanne
  • Choong Chee Keong

Abstract

This study examines the role of institutions to stimulate the relationship between foreign ownership and corporate performance for the panel data of 58 non-financial listed firms in EAC over 2007-2015. The panel unit root tests by Im-Pesaran-Shin and Fisher-ADF confirm that data are stationary and are also cointegrated according to Pedroni tests. The regression output using GMM estimator reveals that ownership concentration is negative and statistically significant determinant of corporate performance. Moreover, the significant positive relationship between the interaction term (foreign ownership and institution) and corporate performance indicates that quality institutions stimulate foreign ownership towards superior corporate performance and the protection of minority shareholders. Acknowledging the importance of minority shareholders for capital market development and economic output, this study recommends to the authorities to enforce ownership structure diversity and enforce quality institutions for accelerating the catching up of the potential foreign shareholders towards economic growth.

Suggested Citation

  • Bilali Basesa Jumanne & Choong Chee Keong, 2018. "Ownership concentration, foreign ownership and corporate performance among the listed companies in East African community: the role of quality institutions," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 6(1), pages 70-90.
    • Handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:70-90
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=91141
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Babarindé René ADEROMOU, 2020. "L' Influence dynamique de la séparation des fonctions de Président du Conseil d'Administration et de Dirigeant sur la performance des entreprises," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(1), pages 70-85, June.
    2. Babarindé René ADEROMOU, 2020. "Influence dynamique de la séparation des fonctions de Président du Conseil d'Administration et de Dirigeant sur la performance des entreprises," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 11(1), pages 70-85, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ajaafi:v:6:y:2018:i:1:p:70-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=383 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.