3. Electronic Theses and Dissertations (ETDs) - All submissions

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How does ownership structure affect the performance of JSE listed companies?
(2017) Komati, Oratilwe
Research into corporate governance has shown that there are a number of factors that influence company performance, one of them being ownership structure. The objective of this study is to determine how ownership structure affects the performance of companies listed on the Johannesburg Stock Exchange (JSE). Five categories of shareholders were identified namely, managerial shareholders, institutional investors, family shareholders, government shareholders and foreign shareholders. Some shareholders of a company may be entirely passive whereas others may play a more active role in the company or perform an important monitoring service. The various motivations and abilities of the different types of shareholders may directly impact their ability to influence the major corporate decisions of the company that will ultimately impact the performance of the company. Using return on assets (ROA) and return on equity (ROE) as performance measures this study investigates the effect of ownership structure on the performance of 143 companies from the year 2004 to 2014. The results of the study reveal that of the five different categories of shareholders identified it was only managerial shareholders and institutional shareholders that had a significant impact on a company’s performance