| dc.description.abstract | This study investigates the relationship between ownership structure and corporate
performance of companies within the MIMS excluding banks listed on the Nairobi Stock
Exchange during the period 2004-08. In the present study, the ownership structure is
considered in terms ownership mix and ownership concentration. Under ownership mix,
institutions, Individuals and Foreign investors were analyzed. In ownership
concentration, ownership was categorized into low, moderate and high based on the
number of shares held by different investors. The study uses Market-to-Book Value Ratio
( MBVR) Return on Equity (ROE), and Tobin's Q ratios as measures of firm
performance.
From the analysis it was found that in average foreigners owned 22.1%, Individuals
23.6% and Institutions 54.5%. There exists a statistically significant positive correlation
between all measures of performance ( ROE, MBVR and Tobins’ q ) and Foreign
holdings at 5% level of significance.
Correlation analysis showed that there exists a statistically significant positive correlation
between all measures of performance and Foreign holdings at 5% level of significance.
The results also indicate a statistically significant negative correlation between two
measures of performance (ROE and Tobins Q) and institutional holdings at 5% level of
significance. The result of the regression analysis showed that there exists a negative
relationship between firms’ performance and all ownership structure variables. This again
implies firm performance will be expected to be high in firms with less individual,
institutional and foreign ownership | en |
