Abstract:
We investigate the impact of institutional ownership and ownership concentration
on firm stock return performance using panel data model. Our main ownership measures
include; percentage of institutional ownership held by different institutions in a firm and
percentage of a firm’s outstanding stocks held by the largest three block holders. We find
that there is no significant relationship between either institutional ownership or ownership
concentration and both ex post and ex ante return. Also, we find that there is negative and
significant relationship between institutional ownership represented by some institutions
and ex post risk, while the relationship is negative and significant only between
institutional ownership by employee associations and ex ante risk. Ownership
concentration has no effect on ex post risk but it has a positive and significant effect on ex
ante risk. The results are consistent with some past studies from the literature.
