A Systematic Literature Review on Ownership Structure and Firm Growth

Muhammad Sadil Ali; Dr. Syed Muhammad Amir Shah

Authors

Muhammad Sadil Ali PhD Scholar & Research Associate Department of Business Administration, AIOU
Dr. Syed Muhammad Amir Shah Department of Commerce, AIOU, Islamabad

Abstract

Research background: Ownership structure is a key element of corporate governance that helps firms to better perform organizational activities and improve firm growth. Studies have been conducted to expand our understanding on the linkage of corporate ownership structure and firm growth, however systematization of prior findings is needed to provide conclusive picture regarding the direction of the influence of ownership structure variables on firm growth.

Purpose of the Article: This study aims to comprehensively review the relevant studies on the relationship between ownership structure and firm growth by using systematic literature review approach. The study also aims to identify the gaps in the existing literature and provide avenues for future research.

Method: The study used systematic literature review method to review the published research work related to the study objectives. The study conducted SLR and selected 16 research articles published in national and international journals from 2009 to 2023.

Findings & value added: The systematic literature review identified that studies conducted on the relationship between ownership structure and firm growth primarily classified ownership structure into different equity ownership. The prior literature mainly focusses on particular ownership categories i.e., state vs foreign ownership, family vs non-family ownership and ownership concentration while studying ownership structure in-relation with firm growth. The study found that mostly firm growth was estimated by three measures i.e., asset growth, sales growth, and employment. The study made the available evidence more accessible to the policy and decision makers. Understanding the direction of the effect of different ownership structure variables on firm growth is important for academicians, policy makers, and shareholders as the level of firm growth indicates the long-term survival of the firms and success of the business entity. The study provides integrated findings and provides knowledge regarding the direction of the influence of different ownership variables on the firm growth.

Keywords: Ownership Structure, Firms Growth, Systematic Literature Review (SLR)