Investigating impact of ownership structure on growth of firms listed in Tehran Stock Exchange

Abstract

It is assumed that type of ownership influence organization processes and outcomes and the management aim is also achieving to growth. On this basis, the present study examines the impact of ownership structure on growth in 75 firms listed in Tehran Stock Exchange during 2005–2011. In this study two essential aspects of firm's ownership structure are examined: configuration of shareholders and degree of ownership concentration. The configuration of shareholders is measured by three variables: corporate ownership, managerial ownership & institutional ownership and firm growth is measured by net sales growth. Multiple Linear Regression is used to test the research hypotheses. The results show no significant relationship between ownership structure and firm growth. The results related to control variables also show that there is a direct relationship between firm size and growth and there is a reverse and significant relationship between firm growth and leverage. The descriptive statistics suggest the sample firms have in average 16% sale growth annually.