The Effect of Ownership Structure on Tobins Q Ratio

Malihe Rostami

Abstract


This article is done to find the effect of ownership structure on Tobins Q ratio. In many literature and financial context, the relationship between ownership structure and organizations performance and relative ratios are considered by many researchers. In this article, Tobins Q ratio is used to estimate performance.

Tobins Q ratio as independent variable is calculated with sum of market value of shares plus book value of debts to book value of assets.

Ownership of legal shareholders, Ownership of individual shareholders, Ownership of largest shareholder and Ownership of shareholders more than 5 percent are taken as ownership structure variables.

The research model is probed a relationship between ownership structures on Tobins Q ratio that can be useful for anticipating future position and decides better when bank try to increase capital. Managers may use the results of this study to change view themselves when want to attract new shareholders according to the weight of each indicators in ownership structure of bank.


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