Abstract:
Ils research sought to examine the impact of ownership structure on corporate
jr performance of public listed companies in Sri Lanka. The ownership structure was divided
into ownership concentration and ownership mix. The empirical study emphasized that the
previous study failed to identify a static relationship between ownership structure and
corporate performance. The research used the financial statements of the top 20 listed
companies at Colombo Stock Exchange for the period from 2010 to 2016 as a sample and
used descriptive statistics to analyze the level nature of ownership concentration and
ownership mix. Further, the study used correlation and regression analysis to examine the
relationship between ownership structure and corporate performance. Hypotheses were
formed and tested to generalize the findings. The main finding indicated that the ownership
structure of Sri Lankan companies was highly concentrated and the concentrated ownership
lid a strong positive impact on corporate performance. In relation to ownership mix,
institutional ownership was considerably high than individual ownership and it had
a moderately positive effect on corporate finance and market performance. Moreover, in
the ownership mix, insider ownership was higher than outsider ownership and it had
a moderately positive effect on corporate finance and market performance. And in
the ownership mix, foreign ownership was comparatively lower than local ownership but it
had a very strong positive impact on corporate finance and market performance. Regression
analysis ensured that Herfindahl-Hirschman Index in ownership concentration and foreign
ownership in ownership mix were significant variables of ownership structure and they
love a significant effect on corporate finance and market performances.
