OWNERSHIP IDENTITY AND FIRM PERFORMANCE IN MANUFACTURING COMPANIES IN TURKEY: A MULTINOMIAL LOGIT MODEL APPROACH

Year 2009, Volume: 1 Issue: 2, 23 - 34, 01.12.2009

Aydin Unsal Erginbay Ugurlu İlker Sakınc

Abstract

The studies on ownership structure provides us with several testable hypothesis as well as
empirical evidence from different countries. The study describes the main characteristics of
ownership identities of the Turkish manufacturing companies listed on the Istanbul Stock
Exchange (ISE) and examines the impact of ownership identity on performance. The identity of
the owners has implications for their objectives and the way exercise their power, and this is
reflected in company strategy.
A multinomial logit model has been developed to study the effects of different ownership
identities on the selection of performance measurements. The model is then applied to explain the
performance of ownership structure in manufacturing companies in Turkey.

Keywords

Ownership Structure, Ownership Identity, Company Performance, Multinomial Logit Model.

References

• Akdoğan, Nalan and Nejat Tenker (2007), Finansal Tablolar ve Mali Analiz Teknikleri, Gazi Kitabevi.
• Anderson, Ronald, C. and David, M. Reeb (2003), “Founding – Family Ownership and Firm
• Performance: Evidence From The S&P 500”, The Journal of The Finance, Vol. LVIII, No 3, pp.1301-1328.
• Ardıç, Oya Pınar and Uygar Yüzeroğlu (2006), A Multinomial Logit Model of Bank Choice: An
• Application to Turkey, Bogazici University, Department of Economics Working Paper 2006/2 :
• Istanbul: Bogazici University Boardman, Anthony, E. Daniel Shapıro, and M. Vining (1997), “The role of agency costs in explaining the superior performance of foreign MNE subsidiaries”, International Business Review, , pp. 295-317.
• Borooah, Vani. K. (1999), “Is There a Penalty to Being A Catholic in Northern Ireland: An
• Econometric Analysis of the Relationship Between Religious Belief and Occupational Success”, European Journal of Political Economy, Vol. 15, pp. 163-192. Bozec, Richard, Gaetan Breton and Louise Cote (2002), “The peformance of State Owned
• Enterprises Revisited”, Financial Accountability and Management, Vol, 18, pp. 383-407. Dalton, Dan, R. and Catherine, M. Daıly (1992), “Financial Performance of Founder-Managed versus Professionally Managed Corporations”, Journal of Small Business, 30, pp.25-34.
• Fontenla, Matias and Gonzalez (2007), “Self-fulfilling and Fundamental Banking Crises: A
• Multinomial Logit Approach”, Economics Bulletin, Vol. 6, No. 17 pp.1-11. Goethals, Joeri and Hubert Ooghe (1997), “The Performance of Foreign and National take-overs in
• Belgium”, European Business Review, Vol, 97, Number 1, pp. 24-37. Greene, William. H. (2002), Econometrics Analysis, 5th edn. Upper Saddle, NJ: Prentice-Hall
• Hausman, J. ve McFadden, D. (1984), “Spesification Tests for the Multinomial Logit Model”, Econometrica, Vol. 52, pp. 1219-1240.
• İvgen, Hünkar (2003), Hisse Senedi Yatırımcıları Analistler ve Şirket Yöneticileri için Şirket
• Değerleme, Finnet Yayınları. Karan, Mehmet Baha (2001), Yatırım Analizi ve Portföy Yönetimi, Gazi Kitabevi,.
• Lo Hing-Po and Lam Wendy S P (1997), “A Modified Multinomial Logit Model of Route Choice for Drivers Using the Transportation Information System”, Proceedings of 9th Mini-EURO Conference, 295-299
• Lui, Feng (2000), Environmental Justice Analysis: Theories,Methods, and Practice,Maryland, USA: CRC Pres
• Lawrence, Edward C. And Nasser Arshadi (1995), “A Multinomial Logit Analysis of Problem
• Loan Resolution Chices in Banking”, Journal of Money, Credit and Banking, Vol. 27, No. 1, pp. 216. Mishra, Chandra S., Trond Randoy and Jan Inge Jenssen (2001), “The Effect of Founding Family
• Influence on Firm Value and Corporate Governance”, Journal of International Financial Management and Accounting, 12:3, pp.235-259. Thomsen, Steen and Torben PEDERSEN (2000), “Ownership Structure and Economic
• Performance in the Largest European Companies”, Strategic Management Journal, 21, pp. 689- Randoy, Trond, and Jan Inge Jessen (2003), “Family Firms and Good Corporate Governance:
• Altruism and Agency Considerations”, European Academy of Management Meeting, Milan, Italy, http: // finance. bi. no/ ~ charlotte /Seminars/Randoy2003.pdf. [Accessed: 22.11.2007]
• Sakınç, İlker (2008), Sermaye Sahipliği ve Firma Değeri İlişkisi, Gazi University, Phd. Thesis,
• Social Sciences Institute. Vanderhart, Peter G. (1994), "An Empirical Analysis of the Housing Decisions of Older
• Homeowners" Journal Of The Amerıcan Real Estate And Urban Economics Assocıatıon,Vol. ,No. 2, pp. 205-233
• Wiwattanakantang, Yupana (2001), “Controlling Shareholders and Corporate Value: Evidence from Thailand”, Pacific Basin Finance Journal, Vol. 9, pp.323-362.
• Wilmore, Larry, N (1986), “The Comparative Performance of Foreign and Domestic Firms in
• Brazil”, World Development, 1986, 4: pp. 499-517.