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The Impact of Institutional Ownership on Firms’ Performance Evidence From Pakistan

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The objective of this study is to explore the impact of institutional ownership on the performance of quoted non-financial firms in Pakistan during the period from 2007 to 2011. Ordinary least square model is employed to estimate the relationship of variables like the return of assets, leverage, institutional ownership, size, liquidity and growth of the study. The results of the study reveal that return on assets has a negative significant relationship with leverage and institutional ownership while, size, liquidity, and growth opportunity have positive significant association among them. Pakistani firms employ 57 percent leverage into their capital structure and institutional ownership has 30 percent influence to obtain debt and both affects the performance negatively.

Abstract

The objective of this study is to explore the impact of institutional ownership on the performance of quoted non-financial firms in Pakistan during the period from 2007 to 2011. Ordinary least square model is employed to estimate the relationship of variables like the return of assets, leverage, institutional ownership, size, liquidity and growth of the study. The results of the study reveal that return on assets has a negative significant relationship with leverage and institutional ownership while, size, liquidity, and growth opportunity have positive significant association among them. Pakistani firms employ 57 percent leverage into their capital structure and institutional ownership has 30 percent influence to obtain debt and both affects the performance negatively.

참고문헌 (47)

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