Ownership structure and firm performance : an agency perspective in a Singapore context.

This study attempts to investigate the relationship between ownership structure and firm performance in a Singapore context. Based on previous research, we hypothesize that through the use of managerial and institutional ownership, managers' interest can be effectively aligned with those of shareholders and agency costs can be reduced, thus improving firm performance.The empirical results support the use of institutional shareholdings as an effective tool for improving firm performance but not managerial shareholdings. This study controls for the effects of firmsize, debt-equity ratio, corporate governance, business risk and investment opportunities, with six control variables being used. However, only firm size is significant