RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in PSSR agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in PSSR retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of PSSR are required to cite author(s) and publisher in their work. Therefore, RESEARCH OF SOCIAL SCIENCES (SMC-PRIVATE) LIMITED(ROSS) & PAKISTAN SOCIAL SCIENCES REVIEW (PSSR) follow an Open Access Policy for copyright and licensing.
How to Cite
Ownership Concentration and Firm Performance: A Case of Non-financial Sector Family Firms in Pakistan
Abstract
The present examined the effect of ownership concentration on family firms’ performance in Pakistan. The performance measures included both accounting and market performance variables. The estimation technique employed in the study was Generalized Method of Moments. The findings clearly indicate that concentrated ownership is harmful for family firms’ performance. Although, the results are contradictory to previous studies in Pakistani context, these were consistent with the entrenchment effect. The results suggest that dominant family shareholders are forceful and they are engaged in tunneling firms’ resources for their personal gains at the costs of external shareholders that is detrimental for firms’ performance.
Authors
Muhammad Kashif Khurshid
Lecturer, National University of Modern Languages (NUML) Islamabad, Punjab, Pakistan
Waseem ullah
Lecturer, Department of Management Sciences Department, University of Gujrat, Punjab, Pakistan
Muhammad Sajid Amin
Lecturer, Department of Commerce, The Islamia University of Bahawalpur, Punjab, Pakistan
Keywords
Entrenchment Effect, Family Firms, Ownership Concentration, Return on Equity
