Impact of ownership structure on firm performance in manufacturing sector in Sri Lanka

Abstract

Corporate governance can be defined as a “Corporate governance involves a set of relationship between a company’s management, its board, its shareholders and other stakeholders also the structure through which objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined” (Organization for economic Co-operation and Development principle of corporate Governance-2004). Corporate Governance is widely spreader concept. It consists of many factors such as ownership structure, board meeting, CEO duality …etc. Therefore, it is very difficult to look all these factors at once. Ownership Structure is one main characteristic of Corporate Governance. Therefore to get the deep understand about the relationship between ownerships structure and firm performance would be very useful. The Objective of this research is to find about the relationship between ownership and financial performance, how the Ownership structure makes the significant impact on company performance in manufacture sector companies on Sri Lanka .The sample of this study includes fifty listed companies in Colombo Stock Exchange (CSE). The Research samples consist with manufacturing companies that are listed on the Colombo Stock Exchange in Sri Lanka. In this study consider period as 2013 and 2014. In this study Researcher will be used secondary data for conducting the research. The related data will be collected from Company annual reports, CD issued by CSE and CSE web site. This study analysed the annual reports of selected companies in the Manufacturing sector of last two years.