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Impact of Ownership Structure on Firm Value: A Quantitative Analysis of All Listed Companies in Karachi Stock Exchange (KSE) Pakistan

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Listed:
  • Yasir Ali
  • Safdar Husain Tahir
  • Nadeem Nazir

Abstract

There has been sizeable growth in FOBs in the economy of Pakistan during last few decades. The current study is designed to explore the factors behind this rapid growth. For this purpose, a sample (367 listed companies from Karachi Stock Exchange (KSE) for the period last decade 2003-2012) was taken for the final analysis. The data were taken from Basic Balance Sheet analysis, Business Recorder and financial statements of respective companies. Generalized Method of Moments (GMM) was applied for quantitative analysis. The results indicated that there was more positive statistically significant relation between ownership control and firm value in family owned business (FOBs) as compared to its counterpart non-family owned business (NFOBs). The involvement of family members and first generation in business activities was found as positives impact on value of business. Overall the research shows the positive effect of family ownership concentration on firm value with the possible benefit of family owners.

Suggested Citation

  • Yasir Ali & Safdar Husain Tahir & Nadeem Nazir, 2015. "Impact of Ownership Structure on Firm Value: A Quantitative Analysis of All Listed Companies in Karachi Stock Exchange (KSE) Pakistan," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 5(1), pages 102-110.
    • Handle: RePEc:rss:jnljms:v5i1p5
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    References listed on IDEAS

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    3. Maury, Benjamin, 2006. "Family ownership and firm performance: Empirical evidence from Western European corporations," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 321-341, January.
    4. Julio Pindado & Chabela De La Torre, 2009. "Effect of ownership structure on underinvestment and overinvestment: empirical evidence from Spain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 49(2), pages 363-383, June.
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