Ownership Structure And Performance Of Kuwait Non-Listed Corporations
The objective of this research is to explore trends of Kuwaiti non-listed corporations in terms of ownership structure and its effect on performance. Trends of ownership structure vary among Kuwaiti corporations, but there is a tendency towards concentration of ownership rather than diffusion it. Both descriptive as well as analytical methods have been used to test for such correlation. A sample of 36 corporations was used for testing such correlation among listed firms in Kuwait. In addition, capital structure of these corporations as published during 2004-2014 was examined. The basic correlation model used in the study relates the firmís equity structure to its book value adjusted for abnormal earnings. The basic correlation model used in the study relates the firmís equity structure to its book value adjusted for abnormal earnings. Results of the multiple regressions and collinearity analysis indicated that profitability decreases with high concentration ownership and increases with high portion of equity owned by institutional investors. Also, no significant evidence was found on the relationship between profitability and foreign ownership and management ownership dimensions. Initial results were indecisive as to which parameter of ownership structure is more linked to high prized performance. Abnormal earnings per share and abnormal cash dividends per share yet are useful equity structure indicators especially if measured in terms of changes in the equity. To be more decisive, however, the model would better be expanded to measure the incremental value of performance as related to the equity structure and management style.
Key termsó Corporate Performance, Accounting Policies, Ownership Concentration, Management Styles.