OWNERSHIP CONCENTRATION EFFECT ON FIRM PERFORMANCE IN TURKEY

Öz

Effect of corporate ownership concentration on firm performance has been researched in various fields. We investigate the effect of family and foreign ownership on firm performance – both market and accounting- for companies listed on the Istanbul Stock Exchange-Turkey- from 2005 to 2009. We find a positive relationship between family and foreign ownership and market performance during the period. Our results also show that foreign ownership concentration loses its effect on market performance during 2008-2009 – a period marked by the economic crisis, which might be attributed to the global source of the crisis. Interestingly, effects of family and foreign ownership concentration on firm performance diminish, and even disappear, when performance is measured by using accounting data.

Anahtar Kelimeler

• Family ownership
• foreign ownership
• firm performance
• ROA
• Tobin’s q

TÜRKİYE’DE ORTAKLIK YOĞUNLAŞMASININ ŞİRKET PERFORMANSINA ETKİSİ

Öz

Ortaklık yapısının şirket performansı üzerindeki etkisine ilişkin çeşitli alanlarda araştırmalar yapılmıştır. Bu araştırmada aile ve yabancı ortaklık paylarının şirket performansı üzerindeki etkileri, 2005-2009 yılları arasında İstanbul Menkul Kıymetler Borsasında işlem gören şirketler için incelenmiştir. Araştırma döneminde piyasa performansı ile aile ve yabancı ortaklık payı arasında pozitif ilişki saptanmıştır. Ayrıca sonuçlar, ekonomik kriz dönemi olan 2008-2009 yıllarında yabancı ortaklık yoğunlaşmasının piyasa performansı üzerindeki etkisinin azaldığını da göstermektedir ki bu da krizin küresel nitelikte olmasına bağlanabilir. Araştırmanın dikkate değer bir başka sonucu ise, aile ve yabancı ortaklık yoğunlaşması etkilerinin, performans muhasebe verileri kullanılarak ölçüldüğünde azalması ve hatta etkilerin ortadan kalkmasıdır.

Anahtar Kelimeler

• Aile ortaklık yapısı
• yabancı ortaklık
• şirket performansı
• varlık getirisi
• Tobin’s q

Kaynakça

1. Ali, A., T. Y Chen, and S.Rodhakrishnan.2007.“Corporate Disclosures by Family Firms”Journal of Accounting and Economics, 44 (1-2): 238-286.
2. Anderson, R. C. and D. M. Reeb.2003.“Founding-Family Ownership and Firm Performance: Evidence from the S&P 500”, The Journal of Finance, 58 (3):1301-1328.
3. Anderson, R. C. and D. M. Reeb.2004.”Board Composition: Balancing Family Influence in S&P 500 Firms”, Administrative Science Quarterly, 49 (2):209-237.
4. Anderson, R. C., A.Duru, and D. M. Reeb.2009, ”Founders, Heirs, and Opacity in the United States”, Journal of Financial Economics, 92: 205-222.
5. Ararat, M. and M.Uğur.2003 “Corporate Governance in Turkey: An Overview and Some Policy Recommendations”, Corporate Governance, 3(1): 58-75.
6. Barth, E., T.Gulbrandsen, and P. Schøne.2005.“Family Ownership and Productivity: The Role of Owner-Management”, Journal of Corporate Finance, 11: 107-127.
7. Bebchuk, L. A., R.Kraakman, and G. G. Triantis. 2000 “ Stock Pyramids, Cross Ownership and Dual Class Equity: The Mechanisms and Agency Costs of Separating Control from Cash Flow Rights”, In: R.Morck, (Ed.) Concentrated Corporate Ownership, Chicago University Press, Chicago, pp. 295-315.
8. Becht, M., P.Bolton and A.Roell .2003.”Corporate Governance and Control”, in: G.M. Constantinides and R. Stulz, (eds), Handbook of the Economics and Finance, Vol.1, Amsterdam: Elsevier, North Holland, pp. 1-109.

9. Bennedsen, M., F.Perez-Gonzalesand D.Wolfenzon. 2010.“The Governance of Family Firms” in H.K Baker and R. Anderson, (eds), Corporate Governance, A Synthesis of Theory, Research and Practice.United States of America: John Wiley & Sons, Inc., pp.371-389.
10. Berle, A.A.Jr., and G.C Means. 1932.The Modern Corporation and Private Property, Mac Millan, New York.
11. Bianco, M. and P.Casavola.1999. “Italian Corporate Governance: Effects on Financial Structure and Firm Performance”, European Economic Review, 43: 1057-169.
12. Bjuggren, P., J.E.Eklundand D.Wiberg. 2007.”Ownership Structure, Control and Firm Performance: the Effects of Vote-Differentiated Shares”, Applied Financial Economics, 7: 1323-1334.
13. Bloom, N. and J. Van Reenen.2007.”Measuring and Explaining Management Practices across Firms and Countries”, Quarterly Journal of Economics, 122 (4): 1351-1408.
14. Burkart,M., F.Panunziand A.Schleifer . 2003. “Family firms”.Journal of Finance, 58(5): 2167-2202
15. Castaneda, G.2006.“Economic Growth and Concentrated Ownership in Stock Markets”.Journal of Economic Behavior and Organization, 59(2): 249-286.
16. Chang, S. J. 2003.“Ownership Structure, Expropriation, and Performance of Group-Affiliated Companies in Korea”, Academy of Management Journal, 46 (2): 238-253.
17. Claessens, S., Djankov, S., Fan, J.P.H., and Lang, L.H.P. 2000.“The Separation of Ownership and Control in East Asian Corporations”, Journal of Financial Economics, 58 (1): 81-112.
18. Demirag, I. and Serter, M. 2003.“Ownership Patterns and Control in Turkish Listed Companies”, Corporate Governance, 11 (1):40-51.
19. Demsetz, H., and Lehn, K. 1985.“The Structure of Corporate Ownership: Causes and Consequences”, Journal of Political Economy, 93: 1155-1177.
20. Denis, D., and Denis, D. 1994.“Majority Owner-Managers and Organizational Efficiency”.Journal of Corporate Finance,1: 91-118.
21. Douma, S., George, R. and Kabir, R. 2006.“Foreign and Domestic Ownership, Business Groups, and Firm Performance: Evidence from a Large Emerging Market”, Strategic Management Journal, 27: 637-657.
22. Fama, E., and Jensen,M.C. 1983.“Separation of Ownership and Control”.Journal of Law and Economics, 26(2): 301-325
23. Franks, J., Mayer, C. and Rossi, S. 2009.“Ownership: Evolution and Regulation”, Review of Financial Studies, 22(10): 4009-4056.
24. Gedajlovic, E., and Shapiro, D. 2002.“Ownership Structure and Firm Profitability in Japan”, Academy of Management Journal, 45: 565-575.
25. Górriz, C. G., and Fumás, V. S. 1996.“Ownership Structure and Firm Performance: Some Empirical Evidence from Spain”, Managerial and Decision Economics, 17: 575-586.
26. Grant, J., and Kirshmaier, T. 2004.“Corporate Ownership Structure and Performance in Europe”, CEP Discussion Paper, No.631, LSE
27. Gursoy, G. 2004.“Changing Corporate Ownership in the Turkish Market”, Journal of Transnational Management, 10(2): 33-48.
28. Gursoy, G. and Aydogan, K. 2003.“Equity Ownership Structure, Risk Taking and Performance, an Empirical Investigation in Turkish Listed Companies”, Emerging Markets Finance and Trade, 38(6): 6-25.
29. Harvey, S. J. 1999.“Owner as Manager, Extended Horizons and the Family Firm”,International Journal of the Economics of Business, 6(1):41-55.
30. Hausmann, H. 1996.“The Ownership of Enterprise”, Harvard University Press, Cambridge: MA
31. Holderness, C.G. 2003.“A Survey of Blockholders and Corporate Control”, FRBNY Economic Policy Review, April, pp. 51-64
32. Huang, R.D., Shiu, C. 2009.“Local Effects of Foreign Ownership in an Emerging Financial Market: Evidence from Qualified Institutional Investors in Taiwan”, Financial Management, Autumn 2009: 567-602.
33. Jensen, M.C. and Meckling, W.H. 1976.“Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics, 3(4): 305-360. Kapopoulos, P., and Lazaretou, S. 2007.“Corporate Ownership Structure and Firm Performance: Evidence from Greek Firms”, Corporate Governance, 15 (2): 144-158.
34. Kowalewski, O., Talavera, O., and Stetsyuk, I. 2010.“Influence of Family Involvement in Management and Ownership on Firm Performance: Evidence from Poland”, Family Business Review, 23 (1): 45-59.
35. Kuznetsov, A, Kapelyushnikov, R., and Dyomina, N. 2008.“The Performance of Closely Held Firms in Russia: Evidence from Firm-Level Data”, The European Journal of Finance, 14(04): 337 - 358.
36. La Porta, R., Lopez-de-Silanes, F., and Shleifer, A. 1999.“Corporate Ownership Around the World”, Journal of Finance, 54(2): 471-517.
37. Lauterbach, B., and Vaninsky, A. 1999.“Ownership Structure and Firm Performance: Evidence from Israel”.Journal of Management and Governance.3: 189-201.
38. Lee, J. 2006.“Family Firm Performance: Further Evidence”.Family Business Review. 19(2): 103-114.
39. Lehmann, E., and Weigand, J. 2000.“Does the Governed Corporation Perform Better? Governance Structures and Corporate Performance in Germany”. European Finance Review.4: 157-195.
40. Lins, Karl V. 2003.“Ownership and Firm Value in Emerging Markets”.The Journal of Financial and Quantitative Analysis. 38(1): 159-184
41. Martinez, J. I., Stöhr, B. S., and Quiroga, B. S. 2007.“Family Ownership and Firm Performance: Evidence from Public Companies in Chile”.Family Business Review.20: 83-94.
42. Maury, B. 2006.“Family Ownership and Firm Performance: Empirical Evidence from Western European Corporations”.Journal of Corporate Finance.12:321-341.
43. McConnel, J.J. and Servaes, H. 1990.“Additional Evidence on Equity Ownership and Corporate Value”.Journal of Financial Economics. 27(2): 595-612.
44. Miguel, A., Pindado, J. and Torre, C. 2004.“Ownership Structure and Firm Value: New Evidence from Spain”.Strategic Management Journal. 25: pp.1199-1207.
45. Miller, D., and Breton-Miller, I. 2006.“Family Governance and Firm Performance: Agency, Stewardship, and Capabilities”.Family Business Review. 19 (1): 73-87.
46. Morck, R., and Yeung, B. 2003.“Agency Problems in Large Family Groups”. Entrepreneurship: Theory and Practice.27: 367-382.
47. Morck, R., Shleifer, A., and Vishny, R. 1988.“Management Ownership and Market Valuation: An Empirical Analysis”.Journal of Financial Economics.20: 293-315.
48. Morck, R., Stangeland, D. A., and Yeung, B. 2000.“Inherited Wealth, Corporate Control, and Economic Growth: The Canadian Disease”. In: Morck R.(Ed.).Concentrated Corporate Ownership. Chicago: University of Chicago Press, pp. 316-369.
49. North,D.C. 1990.“Institutions”.Institutional Change and Economic Performance. Cambridge, Cambridge University Press Sacristan-Navarro, M., Gomez-Anson, S. and Cabeza-Garcia, L. 2011.“Family Ownership and Control, the Presence of Other Large Shareholders, and Firm Performance: Further Evidence”, Family Business Review, 24(1): 71-93
50. Schulze, W. S., Lubatkin, M. H., Dino, R. N., and Buchholtz, A. K. 2001.“Agency Relationships in Family Firms: Theory and Evidence”, Organization Science, 12 (2): 99-116.
51. Shleifer, A., and Vishny, R. W. 1986.“Large Shareholders and Corporate Control”.Journal of Political Economy, 94(3): 461-488.
52. Shleifer, A., and Vishny, R. W. 1997.“A Survey of Corporate Governance”, Journal of Finance.52: 737-783.
53. Sueyoshi, T., Goto, M. and Omi, Y. 2010.“Corporate Governance and Firm Performance: Evidence from Japanese Manufacturing Industries after the Lost Decade”, European Journal of Operational Research, 203: 724-736.
54. Surroca, J. and Tribo, J.A. 2008.“Managerial Entrenchment abd Corporate Social Performance”, Journal of Business Finance and Accounting, 35(5,6):748-789.
55. Villalonga, B., and Amit, R. 2006.“How Do Family Ownership, Control and Management Affect Firm Value?”, Journal of Financial Economics,80: 385-417.
56. Wei,Z., Xie, F., and Zhang, S. 2005.“Ownership Structure and Firm Value in China’s Privatized Firms: 1991-2001”, Journal of Financial and Quantitative Analysis, 40(1): 87-108.
57. Young, M.N., Peng, M.W., Ahlstrom, D., Bruton, G.D. and Jiang, Y. 2008.“Corporate Governance in Emerging Economies: A Review of the PrincipalPrincipal Perspective”, Journal of Management Studies, 45(1): 196-220.
58. Yurtoğlu, B.B. 2000.“Ownership, Control and Performance of Turkish Listed Firms”, Empirica.27: 193-222.
59. Yurtoğlu, B.B. 2003.“Corporate Governance and Implications for Minority Shareholders in Turkey”,Corporate Ownership and Control, 1(1): 73-89