Abstract:
This paper examines the effect of ownership structure on corporate performance of the
firms in Sri Lanka. The ownership structure was measured with the variables of
ownership concentration and ownership mix. The corporate performance was evaluated
with the variables of corporate financial performance and corporate market
performance. The study used financial statements of S&P SL20 listed companies for
the periods from 2010 to 2016. Descriptive statistics showed that ownership of Sri
Lanka listed companies were highly concentrated. The positive correlation of
ownership structure on corporate performance ensured that there was an effect between
these two research variables. It was further ensured by regression analysis that that
Herfindahl-Hirschman Index in ownership concentration and foreign ownership in
ownership mix were significant variables of ownership structure and they have
significant effect on corporate financial and market performances.
