A Study on Ownership Structure and Financial Performance of Listed Beverage Food and Tobacco Companies in Sri Lanka

Abstract

The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms influencing the scope of financial performance. The aim of this study is to investigate the relationship between ownership structure and financial performance of listed beverage food and tobacco companies for the period of 2010-2015. This study also examines the impact of ownership structure on financial performance. The sample consists of 10 listed beverage food and tobacco companies in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson"s correlation and regression analysis. The results reveal that ownership concentration and foreign ownership structure are positively correlated with financial performance of listed beverage food and tobacco companies while institutional ownership structure isn"t significantly correlated with financial performance. It is also found that there is a significant impact of foreign ownership structure on financial performance. Higher the foreign ownership structure in listed beverage food and tobacco companies, the higher the financial performance which is preferable for the shareholders and it improves the wealth of companies.

The Effect of Ownership Structure and Corporate Social Responsibility on Financial Performance and Firm Value in Mining Sector Companies in Indonesian

“…This is supported by the results of research conducted by Soufeljil et al (2016), Haija and Alrabba (2017), Masry (2016), and Khamis et al (2015) where shares owned by institutions affect the improvement of financial performance. The results of research conducted by Balagobei and Velnampy (2017), Pirzada et al (2015), Folorunso and Sajuyigbe (2018), Galal and Soliman (2017), and Muthoni and Olweny (2018) on the other hand show that institutional ownership does not affect financial performance. Based on this description, the second hypothesis is formulated, namely: H2: institutional ownership affects financial performance.…”

Pengaruh Kepemilikan Asing , Leverage, Cash Holdings Dan Debt Maturity Terhadap Kinerja Keuangan Perusahaan

“…Menurut penelitian Balagobei & Velnampy (2017) kepemilikan asing memiliki pengaruh yang positif terhadap kinerja keuangan, artinya bahwa semakin tinggi tingkat kepemilikan asing semakin meningkat kinerja keuangan perusahaan. Berdasarkan penjelasan di atas dapat ditarik hipotesis seperti dibawah ini: H1: Kepemilikan asing berpengaruh positif terhadap kinerja keuangan Pengaruh Leverage Terhadap Kinerja Keuangan Menurut pandangan signalling teory menekankan pentingnya informasi yang dikeluarkan perusahaan terhadap keputusan investasi pihak diluar perusahaan.…”

“…Kepemilikan asing adalah gambaran seberapa besar atau kecilnya pemilik saham oleh badan usaha asing dan perorangan asing. Kepemilikan asing diukur dari jumlah saham yang dimiliki oleh pihak asing dibagi dengan total jumlah saham yang beredar (Balagobei & Velnampy, 2017). Kepemilikan asing dihitung dengan rumus: Kepemilikan Asing =…”

“…Kepemilikan asing dilihat dari jumlah saham yang dimiliki asing dibagi dengan jumlah saham beredar. kepemilikan saham asing dapat meningkatkan kinerja keuangan, alasannya kemampuan yang dimiliki untuk memantau perusahaan lebih serius, memberikan insentif bagi para manajer dalam mengelola perusahaan dan investor asing akan mentransfer teknologi baru yang ada diperusahaan asing sehingga menghasilkan penghematan biaya operasional (Balagobei & Velnampy, 2017).…”

The Effect of Corporate Governance, Ownership Structure and Firms Characteristics on Financial Performance

“…Effective Corporate Governance (an effective small board and by an independent board) results in an increase in the company's Financial Performance. Corporate Governance is an ethical investment that may generate long-term financial returns (Dzingai and Fakoya, 2017).. Hypothesis 1: Corporate Governance has a significant effect on Financial Performance 2.5.2 Effect of Ownership Structure on Financial Performance Ownership Structure has a role in improving company performance and is proven through several studies as follows: that Ownership Structure concentration and Foreign Ownership Structure are positively correlated with Financial Performance of listed companies (Balagobei and Velnampy, 2017). Foreign ownership and government ownership have a positive effect on the company's Financial Performance (Return on Equity) (Fatmawati and Suhardjanto, (2018)).…”