Performance analysis of institutional shareholdings: an empirical study of top 50 non-financial listed firms in Sri Lanka Online publication date: Wed, 09-Dec-2015
by Nadarajah Sivathaasan; Kosgolla Anura Udayakumara
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 5, No. 4, 2015
Abstract: In this paper, we examine the impact of institutional shareholdings on the financial performance of the top 50 non-financial firms in Sri Lanka by analysing 215 firm-year observations over the five-year period from 2009 to 2013. We find evidence of a relatively higher proportion of institutional ownership on total shareholdings, leading to a negative impact on both measure of accounting (ROA) and market performance (Tobin's Q), which strongly fit into goodness of the given model at 1% level of significance. Also, we report the adjusted R2 of accounting performance significantly higher than that of market performance. Further, we document a positive and significant impact of leverage and liquidity on accounting and market performance respectively, whereas firm size shows a negative and significant influence on both performance measures. The findings of this study will assist policy makers, financial managers and investors in making investment decisions.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Afro-Asian J. of Finance and Accounting (AAJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook