(The Effect of Ownership Structure on Value Driven Performance Measures: An Application on The BIST Manufacturıng Sector)

Abstract

Purpose – The purpose of study is to determine whether the ownership structures of the manufacturing companies in Borsa Istanbul (BIST) have an impact on value-based performance measures by statistical analysis. Design/methodology/approach – The size of the board of directors, the free-float rate, the free float period and the age of the enterprise are taken as ownership variables of the enterprises. Economic Value Added (EVA) and Market Value Added (MVA) were taken as value, or in other words, the performance criteria, which are considered as modern. In the analysis, the natural logarithm of the total assets of the enterprises was taken as the control variable. In the study, the annual data of the enterprises for the period of 2011-2017 is included. With the help of the JASP package program, the 7-year complete data of 124 enterprises were analyzed and he existence and direction of the relationship between the variables are examined. Findings – According to the statistical results obtained in the regression analysis, it was observed that the ownership structures had no effect on EVA, the effect of the control variable was significant, and the effects of the control variable and the free float ratio on the MVA model was significant. Discussion – According to the research findings, the size of the board of directors, the age of the enterprise and the duration of the freehold have not been determined on the companies' Market Value Added (MVA) and Economic Value Added (EVA). It has been found that the free float ratio has a negative effect on MVA, its total assets have a negative effect on EVA and a positive effect on MVA.