STRUKTURA VLASNIŠTVA I PERFORMANSE PODUZEĆA: SLUČAJ BOSNE I HERCEGOVINE
OWNERSHIP STRUCTURE AND PERFORMANCE OF THE COMPANY: THE CASE OF BOSNIA AND HERZEGOVINA

Summary/Abstract: This paper examines the ownership structure of the largest public firms in Bosnia and Herzegovina. In this context, the impact of ownership concentration and owner identity on firm value and performance was analysed. Research results show high ownership concentration in the capital market of Bosnia and Herzegovina, where the state appears as the largest owner of capital. Controlling for the effects of firm size, leverage, and dividend pay-outs, regression results show a statistically significant positive impact of ownership concentration on firm value measured by the simplistic version of Tobin Q. Regarding the identity of owner, research results show that firm value increases with an increase in institutional holdings and decreases with an increase in government ownership. Research results also show that government-controlled firms have relatively higher levels of investment, lower dividend pay-out ratios, lower returns on assets and capital and poorer quality of profits compared to companies owned by other firms or private persons.

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