Ownership Structure and Firm Performance. A Panel Regression Study from Poland

Abstract

This paper explores the relationship between ownership structure and firm
performance, using the framework of agency theory. Given a sample of 126 Polish
non-financial firms listed on the Warsaw Stock Exchange between 2016-2021,
we applied fixed and random effects panel regressions with robust standard
errors, tested for specification, endogeneity, cross-sectional heteroskedasticity,
and serial autocorrelation. Our models identify several significant associations
of adopted ownership structures with firm performance measured by accounting
and market-based measures. We find that ownership concentration by the largest
shareholder is negatively related to enterprise market-measured performance.
Additionally, our results indicate the significance of shareholder heterogeneity.