The effect of ownership concentration on company performance

Abstract

The study is to explore a relationship between ownership attributes and the performance of the firm (value of the firm). The ownership concentration or type of ownership will be divided into a few categories either institutional or individual companies, foreign or non foreign holding companies and government or non government holding companies. The study found that companies in Malaysia with foreign or government stakeholders prefer institutional type ownership. Furthermore, companies with foreign stakeholders have higher EVA as compared to companies with non-foreign holdings, while companies with government as their stakeholders have lower values of EVA than the companies without government stakeholders. It also found that the value of institutional type of ownership is lower as compared to EVA value of individual type of ownership.