The Relationship between Ownership Structure and Firm Performance in Companies Listed on the Zimbabwe Stock Exchange (2010-2013)

ABSTRACT

The study sought to examine the relationship between ownership structure and firm

performance in companies listed on the Zimbabwe Stock Exchange. The study analysed the

various types and forms of ownership structure and how the influence the performance of the

listed companies. Deferent forms of performance measures and determinants were also

explored. The study made use of secondary data collected on the Zimbabwe Stock Exchange

for a period of four years (2010-2013) and the data was analysed using the Pearson’s

Product Moment Correlation and Logistics Regression. Sixty-five companies listed on the

Zimbabwe Stock exchange where studied and the measure of performance used in this study

was Return on Assets. Firstly, the findings revealed that there is a positive relationship

between institutional ownership structure and foreign ownership structure and firm

performance. The study also revealed that some of the variables such as managerial

ownership were not statistically significant in explaining firm performance. Secondly, the

study proved that on average, best company performance is associated with foreign and

institutional ownership structures.

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