The Impact of Corporate Ownership on Corporate Financial Performance in the Developing Markets

Authors

  • Hussein Mahdi Makttoof Imam Jaafar Al-Sadiq University Department of Accounting, Administrative and Finance Science College, Imam Ja'afar Al-Sadiq University, Iraq.
  • Hussein Salah Jalal Imam Jaafar Al-Sadiq University Department of Accounting, Administrative and Finance Science College, Imam Ja'afar Al-Sadiq University, Iraq.
  • Asia Hasan Hadi Al-Muthanna University College of Administration and Economics Department of Business Administration
  • Akeel Dakheel Kareem Département of Accounting, College of Administration and Economics, Al-Muthanna University, Iraq
  • Yousif Mousa Sabti Department of Accounting, Administrative and Finance Science College.

DOI:

https://doi.org/10.48165/sajssh.2024.6210

Keywords:

corporate ownership, corporate financial performance, developing markets

Abstract

The ownership structure of companies is one of the main factors that affect their financial performance in developing markets. This paper purposes to study the relationship between company ownership, whether public sector, private sector and the corporate financial performance of 108 firms from bursa Malaysia from 2019 to 2024, the data from annual reports and DataStream. The research is found there are positive and significant relationship between corporate ownership and corporate financial performance. The results of studies indicate that the company's ownership structure is one of the significant factors that affect financial performance. Companies rely on different strategies to increase their profitability and improve their financial performance, and it is believed that the ownership can affect administrative decisions, the level of transparency, and governance, which is directly reflected in financial performance. These results confirm the importance of adopting effective governance strategies when designing the ownership structure in order to improve the financial performance of the firm and enhance its long-term sustainability.

References

C. S., & Hashim, F. (2019). Corporate board diversity, corporate social responsibility and financial performance: The case of Malaysian public listed companies. International Journal of Sustainable Strategic Management, 7(2), 172–185.

Din, S., Arshad Khan, M., Khan, M.J., Yar Khan, M. (2021). Ownership structure and corporate financial performance in an emerging market: a dynamic panel data analysis. International Journal of Emerging Markets,17(8), 1973-1997.

Maniruzzaman, M., Hossain, S.Z., & Sayaduzzaman, M. (2014). Ownership concentration and corporate financial performance: A study on listed manufacturing companies in Bangladesh. The cost and management,51.

Paniagua, J, Rivelles, R., & Sapena, J. (2018). Corporate governance and financial performance: The role of ownership and board structure. Journal of Business Research, 89, 229-234.

Tulung, J. E., & Ramdani, D. (2018). Independence, size and performance of the board: An emerging market research. Corporate Ownership and Control, 15(2), 201–208.

Usman, A. B., & Amran, N. A. B. (2015). Corporate social responsibility practice and corporate financial performance: Evidence from Nigeria companies. Social Responsibility Journal, 11(4), 749–763.

Uwuigbe, U., & Egbide, B. C. (2012). Corporate social responsibility disclosures in Nigeria: A study of listed financial and non-financial firms. Journal of Management and Sustainability, 2(1), 160–169.

Wan Ahamed, W. S., Almsafir, M. K., & Al-Smadi, A. W. (2014). Does corporate social responsibility lead to improve in firm financial performance? Evidence from Malaysia. International Journal of Economics and Finance, 6(3), 126–138.

Wang, X., Cao, J., Liu, Q., Tang, J., & Tian, G. G. (2015). Disproportionate ownership structure and IPO long-run performance of non-SOEs in China. China Economic Review, 32, 1–47.

Xu, B., & Zeng, T. (2016). Profitability, state ownership, tax reporting and corporate social responsibility: Evidence from Chinese listed firms. Social Responsibility Journal, 12(1), 23–31.

Downloads

Published

2025-04-07

Issue

Vol. 6 No. 2 (2025): South Asian Journal of Social Sciences and Humanities (Apr) 2025

Section

Articles

License

Copyright (c) 2025 South Asian Journal of Social Sciences and Humanities

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Makttoof, H.M., Jalal, H.S., Hadi, A.H., Kareem, A.D., & Sabti, Y.M. (2025). The Impact of Corporate Ownership on Corporate Financial Performance in the Developing Markets . South Asian Journal of Social Sciences and Humanities, 6(2), 136–144. https://doi.org/10.48165/sajssh.2024.6210