Ownership structure and firm performance in emerging markets: A comparative meta-analysis of East European EU member states, Russia and China

Abstract

Using a total of 4425 estimates collected from 204 previous studies, this paper presents a meta-analysis performed to compare East European EU member states, Russia and China in terms of the relationship between ownership structure and firm performance. The results indicate that, as the standard theory predicts, state ownership negatively influences the performance of firms the state invests in, while the presence of domestic outside investors and foreign investors as company owners positively affects firm performance irrespective of the difference in country/region. Furthermore, we also found that ownership of managers tends to exert a positive impact on the performance of their owned firms. Overall, however, the linkage between corporate ownership and performance is weak. This finding implies that, in comparison with advanced economies, management discipline by investors is less sufficient in emerging markets.