Ownership Structure and Financial Performance Essay

Ownership Structure and Financial Performance - Essay ExampleThe paper talks about the measurement of the ownership structures with respect to fiscal performances and finally generates an understanding of US and UK based companies by distinguishing them on the basis of ownership identities and level of concentration. The development in corporate governance practices and regulations pertaining to disclosures of ownership be also discussed. Various measures of financial performance are highlighted and discussed in relation with the research topic. It has been concluded that ownership structure has an impact on financial performances, scarcely with varying interests as there are former(a) internal and external factors that may play a vital role in reducing or increasing productivity. It has been identified in this report that the alliance between ownership structure and financial performance of firms is not observed to have a analogous trend in different countries.Corporate governan ce comprises of control mechanisms through which corporations are governed and enjoin to perform their duties effectively. The ownership structure needs to be directed by corporate governance because lack of transparency of ownership structure may have an adverse impact on financial performances. In other words, it can be said that ownership structure shows the types and compositions of different shareholders that have an influence on companys key decisions areas so they need to be administered by corporate governance in order to carry out their processes in ethical and transparent manner. The purpose of this paper is to generate an understanding of the relationship of ownership structure and companys performance. In this regard, investigation of UK and United companies is carried out in this paper.