The role of institutional ownership structures on corporate performance

Abstract

Institutional investors are the key investors in stock markets. Stock markets are influenced by these giants. We investigate the comparative institutional ownership structure in financial and non‐financial corporations. Institutional ownership structures are foreign, domestic, state, and private institutional ownership, which are examined against the corporate performance of 40 firms listed in Pakistan Stock Exchange from 2006 to 2016. Panel regression is applied to observe the results. Varied impacts for every category of institutional ownership in financial and non‐financial firms are evident. The findings of the study are robust, and potential investors can use this study for their future investment plans. Investor institutions can decide their future investment directions in Pakistan.