Ownership structure and performance: a literature review

Abstract

The separation of ownership and control is the primary cause of agency issues, leading to a divergence of interests between the agent and the principal, thus affecting the company's performance. Corporate governance mechanisms are the main means to address agency issues at all levels. Ownership structure plays a crucial role in corporate governance mechanisms to mitigate agency costs arising from separating ownership and control. This study aims to provide an overview of the impact of ownership structure on corporate.