The Influence of Institutional and Government Ownership on Firm Performance: Evidence from Kuwait

By Mishari M. Alfaraih, Faisal S. Alanezi, Hesham I. Almujamed. 2012

115 citations recorded by the source corpus.

Drawing on prior theoretical and empirical research examining corporate governance mechanisms, this study empirically explores the effects of institutional and government ownership on the performance of firms listed on the Kuwait Stock Exchange (KSE). Both a market-based measure (Tobin’s Q) and an accounting-based measure (ROA) are used to measures firm performance. Based on a sample of 134 firms listed on the KSE in the year 2010, regression analysis results show a positive relationship between institutional investors and KSE firm performance, suggesting the powerful and influential role institutional investors play as a corporate governance mechanism. In contrast, a negative relationship is observed between government ownership and KSE firm performance, implying worse market performance when government ownership exists. The findings imply that different types of ownership structures have different affects on firm performance. Some ownership structures enhance performance while others worsen performance.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/0e28054addac1c4f8da6e8cdc4febc92ef820025

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1. D. Phung
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Citations in the corpus

• Ownership Structure and Firm Performance: Evidence from Vietnamese Listed Firms (2016, background): “Connections with the state may help firms cope 1 Alfaraih et al. (2012) and Megginson et al. (1994) found a negative relationship between state ownership and firm performance.”