Does ownership pattern affect firm performance? Empirical evidence from an emerging market

This study examines the effect of stockholdings patterns on the corporate performance of a developing market like Bangladesh. The study investigated the top 50 listed firms on the Dhaka Stock Exchange (DSE) as market capitalization from 2015 to 2019, and data were analyzed using multiple regression. The findings showed that director and foreign stockholdings had a considerable positive effect on firm's performance in both accounting and market measures. In contrast, institutional stockholdings exhibit a negative and insignificant association with all measures except Market to Book Value (MBR), which reflect a significant negative association. The outcomes of this study may contribute to the market regulators, government, and policymakers to emphasize the close monitoring of the compliance of existing rules by companies and focus on restructuring stockholdings patterns in formulating regulations and codes for better firm performance.