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Relationship between institutional investors’ ownership and public companies’ performance in Sri Lanka

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dc.contributor.author Fathima Rifna, Iqbal
dc.contributor.author Fathima Nusaika, Manartheen
dc.date.accessioned 2024-04-02T09:04:49Z
dc.date.available 2024-04-02T09:04:49Z
dc.date.issued 2023-08-25
dc.identifier.citation Proceeding of the 3rd Student Research Symposium of the Faculty of Humanities and Social Sciences pp. 72. en_US
dc.identifier.isbn 978-955-23-1874-0
dc.identifier.uri http://ir.lib.seu.ac.lk/handle/123456789/7024
dc.description.abstract Institutional investors have become important players and stakeholders in the financial industry today. They have also become a major influence in the equity market. They have a substantial global presence in both established and developing markets. The growing amount of corporate equity they hold demonstrates their growing significance in corporate governance. When making decisions in the past, these investors avoided direct involvement and instead used the exit strategy, selling their shares if they didn't like the decisions made by management (Bathalaal, 1994). They are more emboldened to speak up when they disagree with management since they used their right to vote during company meetings, and as a result, they are actively taking part in corporate decision-making. They do this in an effort to persuade senior executives to consider the long-term interests of shareholders (Coffee, 1991). The purpose of the study is to look at the relationship between firm performance and institutional ownership. The annual reports and financial statements of 100 companies from thirteen industries that were listed on the Colombo Stock Exchange in Sri Lanka between 2017 and 2019 were used to compile the desired goals and the relevant data. The institutional investor’s ownership has been investigated as an independent variable, along with company performance (Return on Assets and Return on Equity) and firm size (control variable). This study employed correlation and regression, and the results revealed a significant positive relationship between firm size and performance, whereas ownership by institutional investors has a significant negative association with the company's performance. The study's conclusions suggest that it is wise to support the adoption of corporate governance principles in Sri Lankan public firms in order to motivate institutions to boost their investments and implement efficient monitoring, which might improve company performance. en_US
dc.language.iso en_US en_US
dc.publisher The Open University of Sri Lanka en_US
dc.subject Institutional investors en_US
dc.subject Ownership en_US
dc.subject Firm performance en_US
dc.subject Return on Assets (ROA) en_US
dc.subject Return on Equity (ROE) en_US
dc.title Relationship between institutional investors’ ownership and public companies’ performance in Sri Lanka en_US
dc.type Article en_US


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  • Research Articles [915]
    THESE ARE RESEARCH ARTICLES OF ACADEMIC STAFF, PUBLISHED IN JOURNALS AND PROCEEDINGS ELSWHERE

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