This article studies the impact of ownership structure and capital structure on firms' financial performance in context of an emerging transitional economy. According to research findings, capital structure has a negative impact with statistical significance on financial performance (measured by ROA, ROE). The higher level of state ownership in ownership structure of a firm is, the better financial performance it has. While clear evidences with statistical significance of the impact of managerial ownership on financial performance have not been found, this study found out that, the level of entrenchment of managers in state-owned enterprises (SOEs) is higher than that of businesses of other types.