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A Simultaneous Equations Approach to Analysing the Relation between Ownership Structure and Performance in Bangladesh

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dc.contributor.author Al Farooque, Omar
dc.contributor.author van Zijl, Tony
dc.contributor.author Dunstan, Keitha
dc.contributor.author Karim, Wares
dc.date.accessioned 2012-05-09T00:06:22Z
dc.date.accessioned 2022-07-05T02:35:18Z
dc.date.available 2012-05-09T00:06:22Z
dc.date.available 2022-07-05T02:35:18Z
dc.date.copyright 2005
dc.date.issued 2005
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18674
dc.description.abstract This paper models the managerial (board) ownership and financial performance relationship in Bangladesh using a simultaneous equations approach. This approach is deemed to be the most appropriate methodology to control for the potential endogenous relationship between managerial (board) ownership and performance. Consistent with recent literature employing this method of analysis in developed markets, we document a ‘reverseway’ causality of relationship between them in Bangladesh listed firms. Using an unbalanced/random pooled sample of 660 firmyears, our results suggest that board ownership does not have a significant impact on performance as measured by Tobin’s Q or Return on Assets (“ROA”). However, performance does appear to have a significant negative impact on board ownership. With few exceptions, other corporate governance and control variables have effects on performance and ownership consistent with both theoretical and empirical expectations. These results imply that despite huge institutional and governance differences between Bangladesh, an emerging market economy, and developed countries (US, UK, Japan, Germany) there is nevertheless similarity in governance mechanisms, in particular, ‘internal governance mechanisms’ and agency problems. Key en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries Working Paper en_NZ
dc.relation.ispartofseries No. 35 en_NZ
dc.relation.uri http://www.victoria.ac.nz/sacl/cagtr/working-papers/WP35.pdf
dc.subject emerging markets en_NZ
dc.subject Corporate Governance en_NZ
dc.subject Corporate Governance en_NZ
dc.subject Financial Performance en_NZ
dc.subject Endogeneity en_NZ
dc.subject Simultaneous Equations en_NZ
dc.subject ‘Reverse-Way’ Causality en_NZ
dc.subject Bangladesh en_NZ
dc.title A Simultaneous Equations Approach to Analysing the Relation between Ownership Structure and Performance in Bangladesh en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit Centre for Accounting, Governance and Taxation Research en_NZ
vuwschema.contributor.unit School of Accounting and Commercial Law en_NZ
vuwschema.subject.anzsrcfor 150199 Accounting, Auditing and Accountability not elsewhere classified en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 350199 Accounting, auditing and accountability not elsewhere classified en_NZ

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