Literature Review

Literature Review
11047141.pdf
Afzalur Rashid (2011) Australia investigate the relationship between largest blockholding and firm
performance in Bangladesh. The study was conducted on 94 non-financial firms listed on the Dhaka
Stock Exchange. The data is taken manually from the company annual reports for the period of 2000-
2009. The study takes firm performance as dependent variable and largest blockholding as an
independent variable. The study shows that under both accounting and market base measures there lies
a significant positive relationship between largest blockholding and firm performance. The study also
showed that, largest blockholding, by narrowing the gap between ownership and control, allows the
blockholder to increase the value to the firm.
35-Steen_Thomson_paper.pdf
Steen Thomson conducted the study in order to investigate the relationship between blockholding,
dividend policy and firm value of European firms. The study used the panel of largest EU and US/UK
companies. The data is taken for the period 1998. The study used dynamic panel data technique. The
result indicates that blockholding ownership have negative effect on dividend payout ratio and on firm
value in continental Europe. The findings indicate that concentrated ownership leads to a preference for
retained earnings, which lowers the exchange value of the firm to minority investors.
ERF_22nd-AC_Instituional_Diftar1.pdf
Doaa El-Diftar, Eleri Jones & Mohamed Moustafa Soliman (Egypt) conducted a study in order to
investigate the impact of institutional blockholders on the enhancement of voluntary disclosure and
transparency; hence on overall corporate governance. The study was conducted on most active 50 firms
in the Egyptian Stock Exchange. The sample data is taken for the period 2007-2011. The pooled sample
size consists of 191 observations over the five-year period. The study found a positive impact of
institutional blockholders on voluntary disclosure and transparency. It is also found that this impact is
due to two types of institutional blockholders’ ownership: low institutional ownership (those with an
ownership size from 5 to 20 percent) and controlling institutions (who own more than 50 percent of a
company’s shares). This indicates that concentrated ownership can be viewed as a monitoring
mechanism in an emerging market like Egypt.
Sustainability- 12 -09328-v2.pdf
Jae Eun Shin, Seung-Weon Yoo & Gun Lee (2020) Korea conducted this study in order to examine the
relationship between blockholder dispersion and the informativeness of earnings. The study was
performed on a sample of Korean Companies over a five-year time period. This paper shows that firms
with dispersed ownership provide a smoother income stream and those earnings smoothing by firms
with dispersed ownership leads to higher informativeness of earnings. The results of our study suggest
that financial reporting practices and the informativeness of sustainable earnings may vary according to
the ownership concentration structure.
Imanietal2019_Blockholders.pdf
Imani Mokhtar, Sharifah Raihan Syed Mohd Zain, Jarita Duasa & Azhar Mohamad (2018) Malaysia
conducted the study in order to examine the impact of blockholders on firm performance. The study
was conducted on a sample of 526 non-financial listed firms in Malaysia. The study covers a period of
2006-2015. The study take number of blockholders (blockholders presence) and their total ownership
(blockholder ownership concentration) as independent variable and firm performance as dependent
variable. The study used panel data estimation technique and different methods of pooling panel data
were involved in the study which includes Pooled Ordinary Least Square (OLS), Fixed Effect Model (FEM)
and Random Effect Model (REM), Fixed Effect Model (FEM) and Random Effect Model (REM). The results
showed that firm performance is negatively associated with blockholders presence but positively related
to their overall ownership concentration. It was also found that the identity of the blockholders matters
in influencing performance of the firm.

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