Impact of Shareholders’ Activism on Governance Practices and Firm Performance in Pakistan: A Response for Family Controlled Firms

  • Ayesha Amjad M.Phil., Department of Management Sciences, COMSATS University Islamabad, Lahore campus, Pakistan
  • Sadaf Ehsan Lecturer, Department of Management Sciences, COMSATS University Islamabad, Lahore campus, Pakistan
  • Mariam Amjad PhD Scholar, School of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061, P.R.China https://orcid.org/0000-0002-3183-1275
  • Seemab Gillani PhD Scholar, School of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061, P.R.China https://orcid.org/0000-0001-7344-3222
Keywords: Ownership structure, Financial Institutions Activism, Corporate Governance, Firm performance

Abstract

By taking a sample of 150 non-financial firms listed on PSX, this study has empirically examined the impact of ownership structure on firm performance while considering multiple dimensions. This study employed the system GMM econometric technique to examine the association between ownership structure and firm performance. According to the computed results of the study, family ownership puts a positive and highly significant impact on the market performance of the firm. It has also found a strong and significant relationship between family control and the market value of a firm. Similarly, group affiliation and market performance of the firm have a strong and significant association but in a negative direction. Institutional ownership is significantly related to the accounting and market performance of the firm. Moreover, the joint impact of institutional and family ownership is positively and significantly related to the accounting performance of the firm. Finally, institutional activism is positively and significantly related to the accounting performance of the firm.

Author Biographies

Ayesha Amjad, M.Phil., Department of Management Sciences, COMSATS University Islamabad, Lahore campus, Pakistan

Ayesha Amjad

M.Phil.,

Department of Management Sciences,

COMSATS University Islamabad, Lahore Campus, Pakistan

Email: ayeshasalman916@gmail.com

Sadaf Ehsan, Lecturer, Department of Management Sciences, COMSATS University Islamabad, Lahore campus, Pakistan

Dr. Sadaf Ehsan

Lecturer,

Department of Management Sciences,

COMSATS University Islamabad, Lahore Campus, Pakistan

Email: sadafehsan@cuilahore.edu.pk

Mariam Amjad, PhD Scholar, School of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061, P.R.China

PhD Scholar,

School of Economics and Finance,

Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061,
P.R.China

Email: mariamamjad40@gmail.com

Seemab Gillani, PhD Scholar, School of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061, P.R.China

Seemab Gillani

PhD Scholar,

School of Economics and Finance,

Xi’an Jiaotong University, Xi’an, Shaanxi Province, 710061,
P.R.China

Email: seemabgillani@yahoo.com

Published
2021-06-30
How to Cite
Amjad, A., Ehsan, S., Amjad, M., & Gillani, S. (2021). Impact of Shareholders’ Activism on Governance Practices and Firm Performance in Pakistan: A Response for Family Controlled Firms. IRASD Journal of Economics, 3(1), 1 - 12. https://doi.org/10.52131/joe.2021.0301.0021