Authors: Khemaies Bougatef; Sahbi Missaoui
Addresses: Higher Institute of Computer Science and Management of Kairouan, University of Kairouan, Kairouan, Tunisia ' Faculty of Economics and Management of Mahdia, University of Monastir, Al Munastîr, Tunisia
Abstract: The study of the relationship between corporate governance and financial performance is an ambiguous theme. Several studies have focused on this topic by defining a relationship between the firm performance and its ownership structure. However, empirical findings did not reach a consensus on the determinants of this relationship. This paper aims to investigate the impact of institutional ownership on the firm performance using a sample of 100 French start-ups for a period from 2004 to 2006. Our findings reveal that market liquidity significantly affects the relationship between institutions' shareholding and firm performance.
Keywords: ownership structure; corporate governance; firm performance; market liquidity; institutional shareholders; shareholder activism; institutional ownership; financial performance; France.
American Journal of Finance and Accounting, 2014 Vol.3 No.2/3/4, pp.109 - 127
Accepted: 25 Mar 2014
Published online: 29 Apr 2014 *