The effect of management ownership on firm financial performance : an empirical study on Egyptian firms listed in the Egyptian stock market

Abstract EN

The effect of ownership structure.^ on firm performance is considered as an important subject that interests many researchers.

This research examines the relationship between management ownership and firm financial performance for 91 non-financial Egyptian firms listed in the Eg\ptian stock market for tne fiscal year 2012.

Management ownership was measured as the percentage of shares owned by members of board of directors in the firm.

While, firm financial performarce was measured using Tobin's Q.

SPSS software was used to analyze the empirical study data; through using descriptive statistics, Ko-Imogorov-Smimov test, Pearson correlation coefficients, and multiple regression analysis.

The empirical results found a significant non-linear (Quadratic) relationship bet//een management ownership and firm financial performance.

The results show also that there is a positive relationship between management ownership and Tobin's Q for values of management ownership exceeding approximately 7%.