Skip to main content
SpringerLink
Log in
Book cover

Proceedings of the Second International Conference on the Future of ASEAN (ICoFA) 2017 - Volume 1 pp 585–595Cite as

The Effect of Government Ownership, Foreign Ownership, Institutional Ownership, and Audit Quality on Firm Performance of Listed Companies in Oman: A Conceptual Framework

  • Conference paper
  • First Online:

Abstract

This study conceptually examines the direct ownership structure (government ownership, foreign ownership, and institutional ownership) relationship with the performance of nonfinancial companies in Oman. It also explores audit quality as a moderating variable between the relationship of ownership structure and firm performance (return on assets). It adopts leverage as the control variable and provides recommendations for future research toward the end of the chapter to further explore the issues examined.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   329.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Abdurrouf, M. A. (2011). The relationship between corporate governance and value of the firm in developing countries: Evidence from Bangladesh. The International Journal of Applied Economics and Finance, 5(3), 237–244.

    Article  Google Scholar 

  • Adeyemi, S. B., & Fagbemi, T. O. (2010). Audit quality, corporate governance and firm characteristics in Nigeria. International Journal of Business and Management, 5(5), 169–179.

    Article  Google Scholar 

  • Al Farooque, O. A., Zijl, T. V., Dunstan, K., & Karim, A. K. M. W. (2007). Corporate governance in Bangladesh: Link between ownership and financial performance. Corporate Governance, 15(6), 1453–1469.

    Article  Google Scholar 

  • Al Manaseer, M. F. A., Al-Hindawi, R. M., Al-Dahiyat, M. A., & Sartawi, I. I. (2012). The impact of corporate governance on the performance of Jordanian banks. European Journal of Scientific Research, 67(3), 349–359.

    Google Scholar 

  • Al-Hussain, A. H., & Johnson, R. L. (2009). Relationship between corporate governance efficiency and Saudi Banks’ performance. The Business Review, Cambridge, 14(1), 111–117.

    Google Scholar 

  • Aljifri, K., & Moustafa, M. (2007). The impact of corporate governance mechanisms on the performance of UAE firms: An empirical analysis. Journal of Economic and Administrative Sciences, 23(2), 71–93.

    Article  Google Scholar 

  • Al-Matari, E. M., & Al-Arussi, A. S. (2016). The effect of the ownership structure characteristics on firm performance in Oman: Empirical study. Corporate Ownership and Control journal, 13(2), 93–100.

    Google Scholar 

  • Al-Matari, E. M., Al-Swidi, A. K., Faudziah, H. B., & Al-Matari, Y. A. (2012). The impact of board characteristics on firm performance: Evidence from nonfinancial listed companies in Kuwaiti stock exchange. International Journal of Accounting and Financial Reporting, 2(2), 310–332.

    Article  Google Scholar 

  • Al-Matari, E. M., Al-Matari, Y. A., & Saif, S. A. (2017). Ownership structure, audit quality and firm performance moderating and direct-effect models: An empirical study. Corporate Board: Role, Duties & Composition, 13(1), 28–35.

    Google Scholar 

  • Barontini, R., & Caprio, L. (2006). The effect of family control on firm value and performance: Evidence from continental Europe. European Financial Management, 12(5), 689–723.

    Article  Google Scholar 

  • Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillan.

    Google Scholar 

  • Brown, L. D., & Caylor, M. L. (2004). Corporate governance and firm valuation. Journal of Accounting and Public Policy, 25(2), 409–434. https://doi.org/10.1016/j.jaccpubpol.2006.05.005.

    Article  Google Scholar 

  • Chanawongse, K., Poonpol, P., & Poonpool, N. (2011). The effect of auditor professional on audit quality: An empirical study of certified public accountants (Cpas) in Thailand. International Journal of Business Research, 11(3), 113–127.

    Google Scholar 

  • Chari, A., Chen, W., & Dominguez, K. M. E. (2012). Foreign ownership and firm performance: Emerging market acquisitions in the United States. IMF Economic Review, 60(1), 1–42. https://doi.org/10.1057/imfer.2012.1.

    Article  Google Scholar 

  • Chen, J., Chen, D., & Chung, H. (2006). Corporate control, corporate governance and firm performance in New Zealand. International Journal of Disclosure and Governance, 3(4), 263–276.

    Article  Google Scholar 

  • Chung, D. S., Kim, B. G., Kim, D. W., & Choi, S. (2008). Corporate governance and firm performance: The Korea evidence. Journal of International Business and Economic, 8(2), 46–54.

    Google Scholar 

  • Cremers, K. J. M., & Nair, V. B. (2005). Governance mechanisms and equity prices. Journal of Finance, 5(6), 2859–2894.

    Article  Google Scholar 

  • Dehkordi, H. F., & Makarem, N. (2011). The effect of size and type of auditor on audit quality. International Research Journal of Finance and Economics, 80, 121–137.

    Google Scholar 

  • Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. Journal of Political Economy, 93(6), 1155–1177.

    Article  Google Scholar 

  • Ehikioya, B. I. (2009). Corporate governance structure and firm performance in developing economies: Evidence from Nigeria. Corporate Governance, 9(3), 231–243. https://doi.org/10.1108/14720700910964307.

    Article  Google Scholar 

  • Eng, L., & Mak, Y. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325–345.

    Article  Google Scholar 

  • Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of Political Economy, 88, 288–307. https://doi.org/10.1086/260866.

    Article  Google Scholar 

  • Fama, E., & Jensen, M. (1983a). Agency problems and residual claims. The Journal of Law and Economics, 26(2), 327–349.

    Article  Google Scholar 

  • Fama, E. F., & Jensen, M. C. (1983b). Separation of ownership and control. Journal of Law and Economics, 26, 301–325. https://doi.org/10.1086/467037.

    Article  Google Scholar 

  • Fazlzadeh, A., Hendi, A. T., & Mahboubi, K. (2011). The examination of the effect of ownership structure on firm performance in listed firms of Tehran stock exchange based on the type of the industry. Interactional Journal of Business and Management, 6(3), 249–267.

    Google Scholar 

  • Ghahroudi, M. R. (2011). Ownership advantages and firm factors influencing performance of foreign affiliates in Japan. International Journal of Business and Management, 6(11), 119–138. https://doi.org/10.5539/ijbm.v6n11p119.

    Article  Google Scholar 

  • Gitundu, E. W., Kiprop, S. K., Kibet, L. K., & Kisaka, S. E. (2016). The influence of ownership structure on financial performance of privatized companies in Kenya. African Journal of Business Management, 10(4), 75–88.

    Article  Google Scholar 

  • Gurbuz, A. O., & Aybars, A. (2010). The impact of foreign ownership on firm performance, evidence from an emerging market : Turkey. American Journal of Economics and Business Administration, 2(4), 350–359.

    Article  Google Scholar 

  • Harjoto, M. A., & Jo, H. (2008). Board leadership and firm performance. Journal of International Business and Economics, 8(3), 143–155.

    Google Scholar 

  • Hsu, W., & Petchsakulwong, P. (2010). The impact of corporate governance on the efficiency performance of the thai non-life insurance industry. The Geneva Papers on Risk and Insurance Issues and Practice, 35(1), S28–S49. https://doi.org/10.1057/gpp.2010.30.

    Article  Google Scholar 

  • Irina, I., & Nadezhda, Z. (2009). The relationship between corporate governance and company performance in concentrated ownership systems: The case of Germany. Journal of Corporate Finance, 4(12), 34–56.

    Google Scholar 

  • Jensen, M., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1016/0304-405X(76)90026-X.

    Article  Google Scholar 

  • Kajola, S. O. (2008). Corporate governance and firm performance: The case of Nigerian listed firms. European Journal of Economics, Finance and Administrative Sciences, 14(14), 16–28.

    Google Scholar 

  • Kane, G. D., & Velury, U. (2004). The role of institutional ownership in the market for auditing services: An empirical investigation. Journal of Business Research, 57(9), 976–983.

    Article  Google Scholar 

  • Khan, K., Nemati, A. R., & Iftikhar, M. (2011). Impact of corporate governance on firm performance evidence from the tobacco industry of Pakistan. International Research Journal of Finance and Economics, 61, 7–14.

    Google Scholar 

  • Khanchel, I. (2007). Corporate governance: Measurement and determinant analysis. Managerial Auditing Journal, 22(8), 740–760. https://doi.org/10.1108/02686900710819625.

    Article  Google Scholar 

  • Liang, C.-J., Lin, Y.-L., & Huang, T.-T. (2011). Does endogenously determined ownership matter on performance? Dynamic evidence from the emerging Taiwan market. Emerging Markets Finance and Trade, 47(6), 120–133. https://doi.org/10.2753/REE1540-496X470607.

    Article  Google Scholar 

  • Mashayekhi, B., & Bazazb, M. S. (2008). Corporate governance and firm performance in Iran. Journal of Contemporary Accounting & Economics, 4(2), 156–172. https://doi.org/10.1016/S1815-5669(10)70033-3.

    Article  Google Scholar 

  • Masood, F. C. (2011). Corporate governance and firm performance. International Conference on Sociality and Economic Development, 10, 484–489.

    Google Scholar 

  • Mautz, R., & Sharaf, H (1961). The philosophy of auditing. American Accounting Association Monograph, 6.

    Google Scholar 

  • Millet-Reyes, B., & Zhao, R. (2010). A comparison between one-tier and two-tier board structures in France. Journal of International Financial Management and Accounting, 21(3), 279–310.

    Article  Google Scholar 

  • Mura, R. (2007). Firm performance: Do non-executive directors have minds of their own? Evidence from UK panel data. Financial Management, 81–112.

    Article  Google Scholar 

  • Musallam, S. R. (2015). Relationships between ownership structures and corporate performance: Evidence from Malaysia. Mediterranean Journal of Social Sciences, 6(3), 70–76.

    Google Scholar 

  • NazliAnum, M. G. (2010). Ownership structure, corporate governance and corporate performance in Malaysia. International Journal of Commerce and Management, 20(2), 109–119.

    Article  Google Scholar 

  • NurulAfzan, N., & Rashidah, A. (2011). Government ownership and performance of Malaysian government-linked companies. International Research Journal of Finance and Economics, 61, 42–56.

    Google Scholar 

  • Nuryanah, S., & Islam, S. M. N. (2011). Corporate governance and performance: Evidence from an emerging market. Malaysian Accounting Review, 10(1), 17–42.

    Google Scholar 

  • Pfeffer, J. (1972). Size, composition, and function of hospital boards of directors. Administrative Science Quarterly, 18(2), 349–364.

    Google Scholar 

  • Pfeffer, J., & Salancik, G. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.

    Google Scholar 

  • Pfeffer, J., & Slanick, G. R. (1979). The external control of organizations: A resource dependence perspective. Contemporary Sociology, 8(4), 612–613.

    Article  Google Scholar 

  • Phung, D. N., & Mishra, A. V. (2016). Ownership structure and firm performance: Evidence from Vietnamese listed firms. Australian Economic Papers, 55(1), 63–98.

    Article  Google Scholar 

  • Rhoades, M., Juleff, L., & Paton, C. (2001). Corporate governance in the financial services sector. International Journal of Business, 7(5), 623–634.

    Google Scholar 

  • Shan, Y. G., & McIver, R. P. (2011). Corporate governance mechanisms and financial performance in China: Panel data evidence on listed non-financial companies. Asia Pacific Business Review, 17(3), 301–324. https://doi.org/10.1080/13602380903522325.

    Article  Google Scholar 

  • Sing, T. F., & Sirmans, C. F. (2008). Does real estate ownership matter in corporate governance? Journal of Property Research, 25(1), 23–43. https://doi.org/10.1080/09599910802397065.

    Article  Google Scholar 

  • Ting, I. W., Kweh, Q. L., Lean, H. H., & Ng, J. H. (2016). Ownership structure and firm performance: The role of R&D. Institutions and Economies, 8(4), 1–21.

    Google Scholar 

  • Tsegba, I. N., & Ezi-herbert, W. (2011). The relationship between ownership structure and firm performance: Evidence from Nigerian. African Journal of Accounting, Economics, Finance and Banking Research, 7(7), 51–63.

    Google Scholar 

  • Uwuigbe, U., & Olusanmi, O. (2012). An empirical examination of the relationship between ownership structure and the performance of firms in Nigeria. International Business Research, 5(1), 208–216. https://doi.org/10.5539/ibr.v5n1p208.

    Article  Google Scholar 

  • Wan, Z. W. A., Shahnaz, I., & Nurasyikin, J. (2008). The impact of board composition, ownership and CEO duality on audit quality. Malaysian Accounting Review, 7(2), 1–22.

    Google Scholar 

  • Watts, R. L., & Zimmerman, J. E. (1983). Agency problems, auditing and the theory of the firm: Some evidence. Journal of Law and Economics, 26, 613–633.

    Article  Google Scholar 

  • Weir, C., Laing, D., & McKnight, P. (2002). Internal and external governance mechanisms: Their impact on the performance of large UK public companies. Journal of Business Finance & Accounting, 29(5&6), 579–611.

    Article  Google Scholar 

  • Yasser, Q. R., Entebang, H., & Mansor, S. A. (2011). Corporate governance and firm performance in Pakistan: The case of Karachi Stock Exchange (KSE). Journal of Economic and International Finance, 3(8), 482–491.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Tunku Intan Safinaz School of Accountancy (TISSA), Universiti Utara Malaysia (UUM), Changlun, Malaysia

    Ebrahim Mohammed Al-Matari

  2. Amran University, Sanaa, Yemen

    Ebrahim Mohammed Al-Matari

  3. College of Business and Administration, University of Dubai, Dubai, United Arab Emirates

    Hassan Saleh Al-Dhaafri

  4. College of Business and Economics (CBE), Qatar University (QU), Doha, Qatar

    Abdullah Kaid Al-Swidi

Authors
  1. Ebrahim Mohammed Al-Matari
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hassan Saleh Al-Dhaafri
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Abdullah Kaid Al-Swidi
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Universiti Teknologi MARA, Perlis, Malaysia

    Ahmad Nizan Mat Noor

  2. Universiti Teknologi MARA, Perlis, Malaysia

    Zeti Zuryani Mohd Zakuan

  3. Universiti Teknologi MARA, Perlis, Malaysia

    Sarina Muhamad Noor

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Al-Matari, E.M., Al-Dhaafri, H.S., Al-Swidi, A.K. (2019). The Effect of Government Ownership, Foreign Ownership, Institutional Ownership, and Audit Quality on Firm Performance of Listed Companies in Oman: A Conceptual Framework. In: Mat Noor, A., Mohd Zakuan, Z., Muhamad Noor, S. (eds) Proceedings of the Second International Conference on the Future of ASEAN (ICoFA) 2017 - Volume 1. Springer, Singapore. https://doi.org/10.1007/978-981-10-8730-1_59

Download citation

Publish with us

Policies and ethics

Search

Navigation