Impact of Ownership Structure and Board Size on Firm Performance a Study on Listed Companies of Dhaka Stock Exchange

Abstract

Arafat Rahman and Mir Hossain

Purpose- This research aims to investigate the impact of a company's ownership structure and the size of its Board of directors on the overall performance of a company listed on the Dhaka Stock Exchange (DSE).

Design/ Methodology/approach: SPSS (16.0) and Excel were used for statistical analysis. Descriptive statistics and regression analysis were used to evaluate Dhaka Stock Exchange company data based on research goals. Tobin's Q, the ratio of the firm's market value to total shareholders' equity, and Return on Assets (ROA), calculated as "Profit after tax" (PAT) scaled by the average of total assets, measure the firm's performance. Tobin's Q is sometimes spelled "Tobin's-q" or "Q." Tobin's Quotient (Q) is its other name. The "Brainerd-Tobin Q" is another name. Market value per share multiplied by shares outstanding de- termines the firm's market value. Independent factors are foreign, institutional, director, public, and government shares. Financial data comes from the Osiris database and governance data from the 2016–2020 sample company annual reports. This survey includes 255 firms. Each organization needs five years of data.

Findings: According to the study's findings, the profitability performance of the sampled organizations, as measured by Tobin's Q, ROA, and ROE, is highly influenced by ownership patterns on profitability. This study plays an essential part in under- standing the influence ownership structures have on the performance of organizations. This study also gives evidence of a significant positive association between ownership pattern and profitability, Leverage, and the participation of women on the Board with Tobin's Q; nevertheless, the share of institutional investors is statistically negligible.

Originality/Value The originality of this project lies in its examination of how ownership structure and board size influence firm perfor- mance in the context of the Dhaka Stock Exchange, offering new perspectives and empirical evidence.

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