The Effect of Ownership Structure on Corporate Financial Performance

Ing. Emir Skejovic

Master's thesis

Abstract:

Purpose of this study is to identify the crucial aspects of Ownership Structure (OS) and to present their impact on the Corporate Financial Performance (CFP) based on the data from the commercial banking sector of Bosnia and Herzegovina. This research aims to determine the effect of factors such as Ownership Concentration (OC), Ownership Type (OT), Size of the Bank (SOB) and Board Size (BS) and their impact on banks’ CFP (or Bank Financial Performance – BFP). The research also analyzes if two variables OC and OC which compose OS have an effect on CFP of the chosen commercial banks. The thesis consists of five chapters. Research represents the introductory segment of the thesis. Chapter 2 covers the literature review, which in detail breaks down the significance of the factors, which establishes the foundation for the theoretical framework. Methodology is covered in Chapter 3 and provides explanation of the model of research, tools and data source that are used, as well as data analysis methods. This chapter furthermore proposes hypothesis for the study. Chapter 4 combines representation and analysis of the data, thus this chapter includes testing of the hypothesis and presentation of empirical studies. The empirical results are followed by both research implications and research limitations. Conclusion is presented within the fifth Chapter of this study.

Abstract:

Purpose of this study is to identify the crucial aspects of Ownership Structure (OS) and to present their impact on the Corporate Financial Performance (CFP) based on the data from the commercial banking sector of Bosnia and Herzegovina. This research aims to determine the effect of factors such as Ownership Concentration (OC), Ownership Type (OT), Size of the Bank (SOB) and Board Size (BS) and their impact on banks’ CFP (or Bank Financial Performance – BFP). The research also analyzes if two variables OC and OC which compose OS have an effect on CFP of the chosen commercial banks. The thesis consists of five chapters. Research represents the introductory segment of the thesis. Chapter 2 covers the literature review, which in detail breaks down the significance of the factors, which establishes the foundation for the theoretical framework. Methodology is covered in Chapter 3 and provides explanation of the model of research, tools and data source that are used, as well as data analysis methods. This chapter furthermore proposes hypothesis for the study. Chapter 4 combines representation and analysis of the data, thus this chapter includes testing of the hypothesis and presentation of empirical studies. The empirical results are followed by both research implications and research limitations. Conclusion is presented within the fifth Chapter of this study.

Keywords

Corporate Governance, Ownership structure, Ownership concentration, Ownership type, Bank size, Board size, Corporate financial performance.

Language used: English

Date on which the thesis was submitted / produced: 13. 5. 2023

Thesis defence

• Date of defence: 22. 6. 2023
• Supervisor: doc. Ing. Ondřej Částek, Ph.D.
• Reader: PhD Olena Ivanova

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Business Management / Business Management