Ownership Structure as a Measure of Corporate Performance

Abstract

Economic transition is not a one-dimensional process but implies ownership, structural and management
transformation. We can call the current circumstances of the economy of the Republic of Serbia post - transitional, for
which the ownership transformation is largely due. The aforementioned process is the basis for the formation of a
corporate sector in which all the most important determinants of professional management are expressed, since the
capital market represents the greatest distance between ownership and management. The structure of corporate
ownership determines the nature of the relationship between managers and shareholders, which in the final stance
manifests in the form of principal - principal or principal - agent of the situation.
The paper will analyze the nature of the ownership structure of corporations, according to one of the usual three
dimensions (concentration of ownership), in relation to the corporate performance. The corporate performance will be
expressed using the Tobin's Q indicators. The structure of ownership of the corporation will be presented using two
sets of indicators. The first group consists of indicators of percentage participation of a number of major shareholders
in the form of Top_1, Top_2, Top_3 and Top_5. Another approach to property ownership analysis includes G1
(widely held) indicators that represent dispersed -owned corporations, G2 corporations with large shareholders, and
G3 (ultimate owner) majority-owned corporations.
In the random sample will be selected corporations that have a listing on the Belgrade Stock Exchange, while at the
level of parametric statistical procedures, methods will be used for analyzing the correlation between the listed
variables and identifying the differences between the groups formed on the basis of the above mentioned criterion.
The main objective of the paper is to define the ownership structure of a corporation that has direct implications for the
management and performance of corporations. Corporate performance expressed through market capitalization
determines the future of operations through the scope of future investments.