Ownership Concentration and Firm Performance on the Romanian RASDAQ Market

There is a large body of literature that documents the relationship between the degree of ownership concentration and the firm?s performance. The results are spread among many opinions. The purpose of this thesis was to determine whether there is any relationship between ownership concentration and firm performance in Romanian firms. I use a complex database, describing 356 firms listed on the Bucharest Stock Exchange ? RASDAQ market and I determine that there is a positive relationship between the largest blockholder and firm performance and even more this relationship is concave. Furthermore, the second largest blockholder has a negative impact on the firm?s performance and it is U-shaped. This study is among the first one to treat this issue for the Romanian market by using econometric evidence to support its conclusions.

Autorentext

Szép István is a Junior Macroeconomic Analyst at Budapest Economics since 2007. He recieved his BSc diploma from the Academy of Economic Sciences in Bucharest in 2005. Later he recieved his MA in Economics diploma at Central European University in Budapest in 2007. His research interests include financial markets in emerging markets.