THE RELATIONSHIP BETWEEN INSTITUTIONAL OWNERSHIP AND GOVERNMENT OWNERSHIP ON FIRM PERFORMANCE
Keywords:
Institutional Ownership, Government Ownership, Firm PerformanceAbstract
This independent study aims to study the relationship between institutional ownership and government ownership on firm performance, using the stock exchange of Thailand in SET100, 239 samples from three years 2015-2017. Firm performance is measured in three dimensions; (1) Financial by Return on Equity (ROE) (2) Marketing by Tobin’s Q ratio and (3) Accounting by Economic Value Added (EVA).
The results showed that private institutional ownership has significantly positive correlation with firm performance by Return on Equity (ROE) and Tobin’s Q ratio. So we can conclude that that greater of private institutional ownership proportion, the company’s performance will be better in terms of finance and marketing. On the contrary, government ownership has significantly negative correlation with firm performance by Economic value added (EVA). So we can conclude that the greater of government ownership proportion will result in the performance of the company in the field of accounting deteriorate. However, this study has not found significantly associated between government institutional ownership and firm performance.
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