The Examination of the Effect of Ownership Structure on Firm Performance in Listed Firms of Tehran Stock Exchange Based on the Type of the Industry

Alireza Fazlzadeh, Ali Tahbaz Hendi, Kazem Mahboubi


This study is aimed to determine the role of ownership structure on firm performance. Using panel data
regression analysis method, the role of variables of ownership structure which includes: ownership concentration,
institutional ownership and institutional ownership concentration have been examined for 137 listed firms of
Tehran stock exchange within the period 2001 to 2006. It is concluded that ownership concentration doesn’t have
any significant effect on firm performance but the effect of two other variables are significant: institutional
ownership has positive significant effect on firm performance but the effect of concentrated institutional
ownership is negative. In the next part of this research the effect of ownership structure on firm performance
based on type of the industry has been studied and it is concluded that the industry factor moderates this
effectiveness relationship. The findings of this research shed light on the role of ownership structure plays in
corporate performance and thus offer insights to policy makers interested in improving corporate governance

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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