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Ownership Structure, Capital Structure And Firm Performance In The GCC Region
Siddiqua, Afreen
Siddiqua, Afreen
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Abstract
This paper aims to investigate the relationship between ownership structure, capital structure and firm performance of manufacturing companies listed in the GCC stock exchanges from 2013- 2022. The GCC countries include Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates. The firm performance was measured by using Return on assets (ROA) and return on equity (ROE). The data used in this study is panel data which was extracted from Bloomberg terminal. The capital structure is represented by debt-to-equity ratio whereas the ownership structure is represented by managerial ownership and institutional ownership. The control variables used in this study are liquidity, firm size and economic growth. After the data had been collected and analyzed, the results were computed, analyzed and presented using panel data analysis, descriptive statistics and correlation analysis methods such as random effect model for ROA and fixed effect model for ROE was carried out. The study concludes that capital structure has a negative impact on ROA and ROE. Managerial ownership has positive relation with ROA but a negative relation with ROE. Institutional ownership has negative relationship with both ROA and ROE.