Mustafa, Aree Saeed and Che Ahmad, Ayoib and Chandren, Sitraselvi (2017) Ownership Patterns and Control of Top 100 Turkish Listed Companies. Asian Journal of Finance & Accounting, 9 (1). pp. 192-209. ISSN 1946-052X

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Abstract

This study aims to highlight the importance of protecting investors’ rights,and particularly those of minority shareholders.This study addresses the predominant control-ownership structure of the top 100 firms listed in Bursa Istanbul (BI) using the data for 2015. It shows the most common control-ownership structure within business groups, in which shareholders exercise control over a group of firms and maintain a small stake of firms’ equities.Turkish firms are categorised with highly concentrated ownership and families’ being the dominant shareholders owning more than 80% of all publically listed firms in BI. The study results indicate that the divergence between cash rights and control rights (wedge)in the top 100 Turkish firms is mainly achieved through pyramidal-ownership structure, dual class shares,and cross-ownership at about 41%, 40% and 11%, respectively, while approximately 8% of firms do not use wedge.Hence, wedge exacerbates Type II Agency Problems.This paper calls for future research to study the environment of wedge for Turkish firms listed in BI.

Item Type:	Article
Uncontrolled Keywords:	Pyramidal structure, dual class shares, cross-ownership, Turkey.
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	15 Mar 2018 01:30
Last Modified:	15 Mar 2018 01:30
URI:	https://repo.uum.edu.my/id/eprint/23589

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