ป.โท
Abstract
This paper provides insight into the characteristics of ownership structure in Romanian
listed companies and its effects on corporate performance. Adapting the methodology of
Demsetz and Villalonga (2001) to 5 years of ownership and accounting data for a panel
of 70 companies listed on the Bucharest Stock Exchange, the study accounts for both the
endogeneity of ownership structure as well as for the heterogeneity of the sample. Using
Tobin’s Q and return on equity, as measures of performance, and the size of the largest
shareholder and management team shareholdings, as measures of ownership concentration,
no evidence was found that concentration alone affects corporate performance. On
the other hand, performance was found to have a negative effect on ownership concentration.
When controlling for shareholder identity, ownership concentration positively
impacts performance. Finally, state ownership is found to have a negative effect on corporate
performance.