| dc.description.abstract | The discussion on the relationship between firm ownership and performance has not
been concluded, despite the number of studies that have been conducted to establish
the same. This study investigated the relationship between ownership structure and
performance of non-financial institutions in the MIMS sector of the Nairobi Securities
Exchange during the period 2005 - 2012. In the present study, the ownership structure
was considered in terms of foreign and local, and subsidiary, associate and trade
investment. The study used Return on Total Assets (ROTA) as the measure of firm
performance. The data collected from the sample companies was analysed using
regression analysis. Other factors such as firm’s age and size were also taken into
consideration during data collection and analysis. From the analysis it was found that
6 out of 8 years under study did not reveal any significant relationship between any of
the ownership aspects analysed and firm performance, at a significance level of 5%.
This means that 75% of the firms’ performance was not in any way related to its
ownership structure, whether local or foreign, subsidiary, associate or trade
investment. Still, the 25% that showed significant statistical relationship had some
trends of no significant relationships, for example in the year 2006 there was no
difference in the performance of local and foreign companies, no difference in
performance of associates and subsidiaries. These findings mean that overally; there is
no significant relationship between firm ownership structure and performance. Firm
ownership structure therefore does not need be taken into consideration in planning
for and projecting firm performance, since it has no significant impact on firm
performance | en_US |
