EFFECT OF OWNERSHIP STRUCTURE ON CORPORATE FINANCIAL PERFORMANCE IN THE CZECH REPUBLIC

• Authors: Lukáš Konečný , Ondřej Částek
• Languages of publication: EN

Abstracts

EN

This paper seeks to examine the effect of ownership concentration on corporate financial performance in the Czech Republic. The study uses linear regression models and analyses data gathered from medium and large businesses in order to test the aforementioned relation. Using data from a sample of over 5,000 Czech businesses between 2010 and 2012, the study finds that ownership concentration expressed as the Herfindahl index has a weak, but statistically significant negative effect on corporate performance represented by return on assets. However, the data do not conclusively reveal whether the effect is monotonic or inverted U-shaped.

Keywords

EN

OWNERSHIP STRUCTURE; OWNERSHIP CONCENTRATION; CORPORATE FINANCIAL PERFORMANCE; CZECH REPUBLIC; BUSINESS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2016
• Volume: 64
• Issue: 5
• Pages: 477 – 498

Contributors

author

Lukáš Konečný

• Masaryk University, Faculty of Economics and Administration, Department of Corporate Economics, Lipová 41a, 602 00 Brno, Czech Republic

author

Ondřej Částek